The Biden administration awarded $504 million on Tuesday to a dozen projects across the country in an effort to transform historically overlooked communities into technological powerhouses.
The grants will fund “technology hubs” aimed at strengthening the production of critical technologies in regions including western Montana, central Indiana, South Florida and upstate New York. The centers aim to accelerate the growth of advanced industries in the United States, such as biomanufacturing, clean energy, artificial intelligence and personalized medicine.
The program reflects a federal effort to expand funding for America’s science and technology beyond Silicon Valley and some coastal regions, an initiative that Biden administration officials say will help revitalize areas that have traditionally received less government investment. Supporters say the projects will help create “good-paying” jobs and tap into untapped pools of workers and resources across the country.
The $10 billion program was authorized by the CHIPS and Science Act, which Congress passed in 2022 to increase domestic semiconductor production and increase funding for scientific research. The idea of spreading tech funding beyond Silicon Valley helped the legislation gain broader support from lawmakers representing parts of the country eager to benefit.
The Commerce Department initially reviewed about 400 applications, narrowing them down to a group of 31 projects that received “tech hub” designations in October. On Tuesday, 12 regions won grants that ranged from $19 million to $51 million.
It is unclear, however, how much more funding will be available. Although Congress authorized $10 billion for the five-year program when it passed the CHIPS Act, only about $541 million — or roughly 5 percent — has been appropriated so far, which some say could hinder the program’s success.
John Lettieri, chief executive of the Economic Innovation Group, a think tank in Washington, said a lack of funding had been a major obstacle to the program and that he was skeptical the awards would result in substantial transformation in those regions. He said that while the Biden administration was not to blame for the limited funding, he would have preferred to see officials make “big bets on a smaller number of promising emerging technologies and countries” rather than smaller grants of spread over a dozen regions.
“We are unlikely to achieve major technological advances as a result of this half a billion dollars,” said Mr. Lettieri, adding that the funds would “help the growth of these regions, but would not lead to transformative results”.
Mark Muro, a senior fellow at the Brookings Institution, said the funding was an “important down payment” but that additional funding was needed to see more significant economic transformation in those regions. Mr. Muro said he was not “totally pessimistic” about the prospect of additional money, given the bipartisan interest in the program. Still, he said it would be a challenge because of political tensions that have made government spending a contentious issue on Capitol Hill.
“There is hope for further investment, but nothing is easy at the moment,” Mr Muro said.
Commerce Department officials said they would be eager to provide additional rounds of funding if lawmakers appropriate more money for the program.
“Simply put: We can do more with more,” Commerce Secretary Gina M. Raimondo said in a statement. “With more funding, we will make more awards, leading to more technological advancements, more regional growth and many more good-paying jobs.”
One of the recipients on Tuesday was a project in Tulsa, Okla., that aims to develop drones and other autonomous systems for customers including the U.S. military. Tulsa is home to a drone port with labs that can replicate various weather conditions for drone testing.
Jennifer Hankins, managing director of Tulsa Innovation Labs, which leads the $51 million Tulsa project, said the initiative would help reduce the nation’s dependence on foreign manufacturing for autonomous technologies and their components.
She also said the project will focus on addressing the issue of cultural bias in AI systems, working with Native American tribal nations and black business organizations, among others. “Tulsa has been intentional about who we partner with to address this challenge,” she said.
Another winning project came from an Indiana consortium called Heartland BioWorks, which was awarded $51 million to invest in biotechnology and biomanufacturing, including human, animal and plant biosciences.
Andrew Kossack, executive vice president for partnerships at the Applied Research Institute, which is leading the Indiana project, said the technology center will draw on local advantages, such as the presence of pharmaceutical company Eli Lilly, a network of contract drug manufacturers and others. companies that focus on plant and animal science.
“The Tech Hubs program was created to leverage industry clusters like ours here in Indiana in the biotech space,” he said. The money would put these industry clusters on the map for venture capital and other funding that otherwise might not invest “in what some might consider the ‘flyover country,'” he said.