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“US 500m Tech Hub Funding Uncertain”

May 18, 2025

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The Trump administration has re-opened its $500m funding programme for 31 tech hubs across the US, including six that were already approved. The Tech Hubs were a key part of the CHIPS Act, with six announced on January 14th under the previous administration, although these details have been removed from the US government website.

These six, each with funding between $22 million to $48 million, covered 15 projects. Some semiconductor projects, such as three at the Vermont Gallium Nitride (V-GaN) Tech Hub with GlobalFoundries, were not in the original list of 12 phase two projects to receive funding. There was also funding for the Elevate quantum hub in Colorado that is supporting the development of large quantum computer systems from Quantinuum.

“While these opportunities are exciting, all federal investment must be strategic, smart, and result in the best return for the taxpayer. Regrettably, on its way out the door, the prior Administration announced awards to six Tech Hubs, even though the funds were not yet available,” said Howard Lutnick, US secretary of commerce.

“Moreover, the process was rushed, opaque, and unfair- administration officials did not make prospective applicants aware of the competition and chose awardees using outdated applications submitted nearly a year earlier. A rushed process using outdated information is no way to invest taxpayer funds.”

The announcement and decision to use existing Phase 2 applications resulted in some criticism from those Tech Hubs that did not receive awards (see the list below) and their Members of Congress, which is why the funding has been re-opened.

The Economic Development Administration (EDA) plans to release a new notice of funding opportunity this summer with the goal of announcing selections in early 2026.

The previously selected Tech Hubs can compete for funding alongside all other prospective applicants.

“This decision is about fairness and making prudent choices with hard earned taxpayer dollars. The process will be transparent, fair, and ensure that the American taxpayers are investing in the best technological advancements to bolster the growth of critical industries in the United States,” said Lutnick.

The list of hubs (the starred ones received the now-cancelled funding) that can bid again is here and includes