The Tech Hubs program, initiated by the 2022 CHIPS and Science Act, has allocated over $541 million in funding through grants. The program designated 31 Tech Hubs in its initial phase and awarded 12 of these hubs a total of $504 million in Implementation grants during the second phase. Being recognized as a Tech Hub was necessary to participate in Phase 2 and qualify for substantial Implementation grants. Applicants were required to develop interconnected projects focusing on governance, infrastructure, workforce development, business growth, and technology advancement.
The FY25 National Defense Authorization Act, signed on December 23, 2024, provided up to $500 million more for the Economic Development Administration's (EDA) Tech Hubs program. This funding is expected from a future spectrum auction by the FCC. The first $220 million comes as a loan from Treasury approved by Secretary Lutnick and executed by EDA in March 2025. There are efforts to remove interest payment requirements on this loan; however, if repayment with interest becomes necessary, EDA would need to allocate part of the loan for interest payments.
On January 14, 2025, six hubs were notified that they would receive Phase 2 Implementation funding ranging from approximately $22 million to $48 million per hub. This decision sparked criticism from those not receiving awards and their Congressional representatives. Since then, EDA staff have reviewed selected project files for compliance with legal requirements but have not communicated adjustments pending guidance from Secretary Lutnick.
Secretary Lutnick has instructed EDA to initiate a new competition using the $220 million loan. Upon his approval, EDA will execute an engagement plan and inform Members of Congress, Tech Hubs, and the public about this new competition through a published statement. Subsequently, EDA will draft and release a new notice of funding opportunity detailing competition terms.
