The Tech Hubs program was established with broad bipartisan support by the 2022 CHIPS and Science Act and has awarded more than $541 million in appropriated funding through grants. To date, the program has designated 31 Tech Hubs in a Phase 1 competition and awarded 12 of those designated Hubs a total of $504 million via Implementation grants in a Phase 2 competition. Being designated as a Tech Hub in Phase 1 of the competition was a prerequisite for participation in Phase 2 of the competition and for receiving large Implementation grants. Tech Hub applicants were instructed via the Phase 2 NOFO to develop a portfolio of interconnected projects investing in Hub governance, infrastructure, workforce development, business and entrepreneur development, and technology development and maturation.

The FY25 National Defense Authorization Act, which was signed on December 23, 2024, included up to $500 million in additional funding for EDA’s Tech Hubs program using proceeds from a future spectrum auction by the FCC. The first $220 million of this funding comes in the form of a loan from Treasury which Secretary Lutnick approved, and EDA executed in March 2025. While efforts are currently underway to remove the requirement to pay interest on the borrowed funds, should EDA be required to repay this loan with interest, EDA’s only option is to set aside a portion of the $220 million loan for interest payments. 

On January 14, 2025, the agency notified 6 Hubs (comprising 15 projects total) that they had been selected and would receive Phase 2 Implementation funding ranging from approximately $22 million to $48 million per Hub and announced these selections publicly. The announcement and decision to use existing Phase 2 applications resulted in some criticism from those Tech Hubs that did not receive awards and their Members of Congress. Since the announcement, EDA staff have internally reviewed selected project files for budget and programmatic changes necessary to ensure compliance with various legal requirements, including recent Executive Orders (EOs), but have not yet communicated those required adjustments to the selected Tech Hubs, pending Secretary Lutnick’s guidance. 

Secretary Lutnick directed EDA to run a new competition with the $220 million loan. With his approval, EDA would execute the engagement plan outlined above and publish the statement to notify Members of Congress, the Tech Hubs, and the public of a new competition. EDA will then draft and publish a new notice of funding opportunity (NOFO) that will outline the terms of the competition, including:  

• Add requirements to the NOFO for applicants to present information on how this project will be a bargain to taxpayers which will be used to evaluate and select awards.
• Tech Hubs that have not received implementation awards to date will be eligible to compete in the competition. This is 19 of the 31 designated Tech Hubs and includes the 6 that were notified and publicly announced that they would receive awards and now will have to compete again for them.
• Remove references to policy priorities of the previous administration including those that   contradict with President Trump’s Executive Orders on diversity, equity, and inclusion and energy. References prioritizing unions and the Good Jobs Principles will also be removed.
• Provide the 6 Tech Hubs that were announced as receiving awards but will now need to compete again for them with heightened consideration by reviewing these applications first in the investment review committee and preferencing these applications through a selection factor.