The White House Unveiled a New High-Tech Initiative This Year, But It's Flown Under the Radar. Here's Why.
The national, bipartisan Tech Hubs program had the potential to be a significant campaign asset. However, it currently faces underfunding and limited visibility in the political arena, leaving anxious awardees “holding their breath” for November.
TroibNews 
The Biden administration's initiative to inject billions into future technologies in the heart of America has faced significant funding challenges from Congress, jeopardizing its future viability.
Two years ago, the Regional Technology and Innovation Hubs program was established by Congress as a key component of a broader strategy endorsed by President Joe Biden to restore American tech manufacturing. The proposal garnered bipartisan support at its inception, promising potential political benefits for representatives from both red and blue states.
The vision was to cultivate new innovation centers in at least 20 regions nationwide. Part of the 2022 CHIPS and Science Act, the initiative called for a $10 billion investment over five years to elevate these regions into global leaders in fields such as quantum technology, biotech, and lithium battery manufacturing.
However, funding has fallen drastically short; Congress has allocated less than a fifth of the intended financial support for the Tech Hubs, with the Commerce Department disbursing significant grants to only 12 locations. The uncertainty surrounding the program's fate has led some selected regions to seek assurances from Washington regarding the promised funds as the new administration approaches.
“Knock on wood they get it done before the election,” remarked Zachary Yerushalmi, a leader of the Elevate Quantum Tech Hub in Colorado and New Mexico.
The Tech Hubs initiative aims to leverage federal investment to stimulate economic recovery and spur innovation in crucial sectors, although previous similar government efforts have produced mixed results. For instance, a $500 million biomedical hub project in Florida fell short of its job creation goals and did not achieve financial sustainability.
Mark Muro, a senior fellow at Brookings Metro and contributor to the research inspiring Tech Hubs, expressed that the program emerged from a desire for more substantial investments, stating, “an impatience with small ball,” and the aspiration of “making some really big investments and see what happens.”
Unfortunately, the program’s funding has turned into a series of modest investments despite grand ambitions. It was perceived to be a significant talking point for political candidates, as indicated by former Nevada Governor Brian Sandoval, who noted, “I'd be campaigning on it. It was a big, big win for the state,” referring to the $21 million allocated to advance lithium-ion and EV battery initiatives in Nevada.
Yet, the announcement of the program's winners received limited coverage, overshadowed by political upheaval, including Biden’s disappointing debate performance shortly before the announcement. The president did not deliver a speech for the occasion, as he had for previous milestones, with only a brief mention afforded by Vice President Kamala Harris in a press release.
“This is a missed opportunity,” commented Shalin Jyotishi, a policy strategist at the New America think tank. “If these appropriations don’t come to be … it's not going to be a successful pilot of science and tech-based industrial policy if that happens, and the political impetus of that is there might be even more of a reluctance for certain members to support programs like this in the future.”
While the Tech Hubs program enjoys general popularity among those familiar with it, actual engagement with the program remains limited. Commerce Secretary Gina Raimondo noted it’s the program she hears about most from lawmakers, and Democrats are keen to leverage its potential in securing national support. Still, it has not prominently featured in candidates' messaging.
The Democratic Party's 2024 platform touches upon the initiative, asserting, “We’ve designated more than 30 tech hubs in communities from Reno, Nevada; to Charlotte, North Carolina; to North Central Pennsylvania,” listing both funded projects and those designated as finalists. The platform emphasizes maintaining U.S. leadership in “fields of the future, like AI, biotech, quantum computing, advanced materials, and more,” areas central to the Tech Hubs initiative.
Although the GOP platform does not name Tech Hubs, it similarly promises to support innovation in emerging industries, aligning with the goal of the program.
Despite substantial theoretical backing, the program's rollout has been limited. According to the original CHIPS Act, Tech Hubs should have received $2.95 billion over two years, yet it has only obtained $541 million, or 18% of the original proposal.
This drastic reduction is attributed to broader underfunding of the CHIPS Act itself, which allocated nearly $53 billion for semiconductor industry subsidies, while the remaining science programs and research investments have received minimal funding. Key agencies like the National Science Foundation and the Commerce Department’s Economic Development Administration, the body managing Tech Hubs, have been particularly impacted by these shortfalls.
Appropriators often cite last summer’s debt ceiling deal as a reason for the reduced funding, which limited non-defense spending. In March, House Science Chair Frank Lucas expressed his disappointment over the inability to provide the promised funding for the Tech Hubs despite his committee’s authorization, noting, “unfortunately, in our current fiscal environment we have to make difficult decisions and that’s reflected in the budgets for these agencies.”
Some commentators suggest the White House has not effectively communicated the program's significance, citing Biden's difficulty in conveying its benefits. In October 2023, Biden unveiled 31 finalists for the tech hubs indicating their eligibility for larger grants. In a related interview, radio host Charlamagne tha God criticized Biden for lacking specifics about the jobs these hubs could generate.
“Yeah, it’s good that you’re making all these investments in tech and everything else,” Charlamagne remarked. “But what does this mean, for regular everyday people?”
In early July, significant awards ranging from $19 million to $51 million were announced for a dozen winning proposals across 14 states. This was an opportunity for the administration to spotlight its investments in key swing states. However, the moment faded amidst the controversy around Biden's late June debate performance. While Harris briefly praised the selections in a press release, Biden did not promote the program again, leaving communications to lower-level officials.
"Literally, Vice President Harris gave the remarks for the Tech Hubs announcement, like her name is on the press release. And then with Governor Walz, you have the direct connection in his state. It's so unusual that this isn't made more of a campaign priority," stated Jyotishi. "Messaging is the biggest missing link."
The Trump campaign did not respond to inquiries regarding support for the program or plans for future funding. Meanwhile, the Harris campaign directed attention to a recent proposal for a network of incubators and innovation hubs aimed at ensuring small businesses benefit from investments in semiconductor factories and Tech Hubs.
Despite Republican lawmakers’ initial opposition to the CHIPS and Science Act, many have publicly backed projects in their states and expressed commitments to secure additional funding, albeit lacking specific strategies. Alabama GOP Senator Katie Britt celebrated her state's tech hub—a finalist that did not advance—expressing confidence in obtaining federal support.
Biden's administration has requested an additional $4 billion for Tech Hubs in the fiscal year 2025, but appropriations committees in both the House and Senate have proposed significantly lesser amounts of $41 million and $100 million, respectively.
While the program retains political favor, its inadequate rollout and funding shortages have led to disillusionment among its early supporters. Rob Atkinson, president of the Information Technology and Innovation Foundation and a key architect of the Tech Hubs concept, believes the current distribution of funds has weakened the program's impact. He feels it has diverged significantly from his original vision of a concentrated program in select metropolitan areas and has warned against further funding without reform.
“The administration looks at this as, if we're going to get more money, we got to get as many places getting money to get buy-in for it, without an overarching strategy or vision,” Atkinson posited. “This is not peanut butter. This is not everybody gets something. This is about a national goal. We're going to get three to five places that can really, really compete with Shanghai or compete with Bangalore."
EDA Deputy Assistant Secretary for Policy Cristina Killingsworth stated that the selection process was not politically influenced and acknowledged the ongoing challenges in securing substantial funding.
“Finding large sums of funding in this environment is never easy,” she stated. “But we are confident that with the bipartisan support we have for the program and with the president's robust support, that we will be able to do additional rounds of implementation grants in the future.”
Currently, the program's budget constraints do not allow for another significant funding round, leaving both existing awardees and new hopefuls in limbo as they await Congressional action. Some are exploring private investment and alternate federal funding sources while they wait.
The recipients of the July awards are unlikely to see their funds in full for some time. The EDA has begun contracts and will distribute grants on a rolling basis over the coming months. As projects begin to take shape, hub leaders are preparing to make investments, hire staff, and implement technologies.
"Getting all of the paperwork lined up is a pretty hefty effort,” said Tim VanReken, regional innovation officer for Montana’s Headwaters Tech Hub, which won $41 million. “The other thing that we're focusing a lot on is road mapping out what our actual implementation work is going to look like.”
Killingsworth expressed confidence in the program’s longevity, asserting that it would continue to receive support regardless of political officeholders. However, some hub leaders remain concerned that future administrations could attempt to withdraw funds.
“People are committed,” noted Beth Conerty, who leads Illinois' iFAB Tech Hub. She voiced her concerns about the funding’s security post-election, describing her communications with federal representatives over the issue.
Other hub leaders maintain a more optimistic view. Rob Simpson, CEO of CenterState, which oversees New York’s Tech Hub, is awaiting a $40 million grant.
“There’s a focus on getting contracts wrapped up, which hopefully will provide everybody with some certainty and predictability,” Simpson remarked. “But I'm not losing sleep over it. I look at the bipartisan nature.”
In the absence of heightened political attention, Commerce officials plan to visit the winning hubs and finalists by year’s end to boost visibility while simultaneously exploring additional funding pathways with lawmakers.
“It is important that we help connect the dots for our constituents,” said Ben Walsh, the independent mayor of Syracuse, part of the New York tech hub. “And help them understand what programs are funding what projects, and why.”
He added, “until some of these investments truly take off, I expect that people won't be completely satisfied.”
Anna Muller contributed to this report for TROIB News
Two years ago, the Regional Technology and Innovation Hubs program was established by Congress as a key component of a broader strategy endorsed by President Joe Biden to restore American tech manufacturing. The proposal garnered bipartisan support at its inception, promising potential political benefits for representatives from both red and blue states.
The vision was to cultivate new innovation centers in at least 20 regions nationwide. Part of the 2022 CHIPS and Science Act, the initiative called for a $10 billion investment over five years to elevate these regions into global leaders in fields such as quantum technology, biotech, and lithium battery manufacturing.
However, funding has fallen drastically short; Congress has allocated less than a fifth of the intended financial support for the Tech Hubs, with the Commerce Department disbursing significant grants to only 12 locations. The uncertainty surrounding the program's fate has led some selected regions to seek assurances from Washington regarding the promised funds as the new administration approaches.
“Knock on wood they get it done before the election,” remarked Zachary Yerushalmi, a leader of the Elevate Quantum Tech Hub in Colorado and New Mexico.
The Tech Hubs initiative aims to leverage federal investment to stimulate economic recovery and spur innovation in crucial sectors, although previous similar government efforts have produced mixed results. For instance, a $500 million biomedical hub project in Florida fell short of its job creation goals and did not achieve financial sustainability.
Mark Muro, a senior fellow at Brookings Metro and contributor to the research inspiring Tech Hubs, expressed that the program emerged from a desire for more substantial investments, stating, “an impatience with small ball,” and the aspiration of “making some really big investments and see what happens.”
Unfortunately, the program’s funding has turned into a series of modest investments despite grand ambitions. It was perceived to be a significant talking point for political candidates, as indicated by former Nevada Governor Brian Sandoval, who noted, “I'd be campaigning on it. It was a big, big win for the state,” referring to the $21 million allocated to advance lithium-ion and EV battery initiatives in Nevada.
Yet, the announcement of the program's winners received limited coverage, overshadowed by political upheaval, including Biden’s disappointing debate performance shortly before the announcement. The president did not deliver a speech for the occasion, as he had for previous milestones, with only a brief mention afforded by Vice President Kamala Harris in a press release.
“This is a missed opportunity,” commented Shalin Jyotishi, a policy strategist at the New America think tank. “If these appropriations don’t come to be … it's not going to be a successful pilot of science and tech-based industrial policy if that happens, and the political impetus of that is there might be even more of a reluctance for certain members to support programs like this in the future.”
While the Tech Hubs program enjoys general popularity among those familiar with it, actual engagement with the program remains limited. Commerce Secretary Gina Raimondo noted it’s the program she hears about most from lawmakers, and Democrats are keen to leverage its potential in securing national support. Still, it has not prominently featured in candidates' messaging.
The Democratic Party's 2024 platform touches upon the initiative, asserting, “We’ve designated more than 30 tech hubs in communities from Reno, Nevada; to Charlotte, North Carolina; to North Central Pennsylvania,” listing both funded projects and those designated as finalists. The platform emphasizes maintaining U.S. leadership in “fields of the future, like AI, biotech, quantum computing, advanced materials, and more,” areas central to the Tech Hubs initiative.
Although the GOP platform does not name Tech Hubs, it similarly promises to support innovation in emerging industries, aligning with the goal of the program.
Despite substantial theoretical backing, the program's rollout has been limited. According to the original CHIPS Act, Tech Hubs should have received $2.95 billion over two years, yet it has only obtained $541 million, or 18% of the original proposal.
This drastic reduction is attributed to broader underfunding of the CHIPS Act itself, which allocated nearly $53 billion for semiconductor industry subsidies, while the remaining science programs and research investments have received minimal funding. Key agencies like the National Science Foundation and the Commerce Department’s Economic Development Administration, the body managing Tech Hubs, have been particularly impacted by these shortfalls.
Appropriators often cite last summer’s debt ceiling deal as a reason for the reduced funding, which limited non-defense spending. In March, House Science Chair Frank Lucas expressed his disappointment over the inability to provide the promised funding for the Tech Hubs despite his committee’s authorization, noting, “unfortunately, in our current fiscal environment we have to make difficult decisions and that’s reflected in the budgets for these agencies.”
Some commentators suggest the White House has not effectively communicated the program's significance, citing Biden's difficulty in conveying its benefits. In October 2023, Biden unveiled 31 finalists for the tech hubs indicating their eligibility for larger grants. In a related interview, radio host Charlamagne tha God criticized Biden for lacking specifics about the jobs these hubs could generate.
“Yeah, it’s good that you’re making all these investments in tech and everything else,” Charlamagne remarked. “But what does this mean, for regular everyday people?”
In early July, significant awards ranging from $19 million to $51 million were announced for a dozen winning proposals across 14 states. This was an opportunity for the administration to spotlight its investments in key swing states. However, the moment faded amidst the controversy around Biden's late June debate performance. While Harris briefly praised the selections in a press release, Biden did not promote the program again, leaving communications to lower-level officials.
"Literally, Vice President Harris gave the remarks for the Tech Hubs announcement, like her name is on the press release. And then with Governor Walz, you have the direct connection in his state. It's so unusual that this isn't made more of a campaign priority," stated Jyotishi. "Messaging is the biggest missing link."
The Trump campaign did not respond to inquiries regarding support for the program or plans for future funding. Meanwhile, the Harris campaign directed attention to a recent proposal for a network of incubators and innovation hubs aimed at ensuring small businesses benefit from investments in semiconductor factories and Tech Hubs.
Despite Republican lawmakers’ initial opposition to the CHIPS and Science Act, many have publicly backed projects in their states and expressed commitments to secure additional funding, albeit lacking specific strategies. Alabama GOP Senator Katie Britt celebrated her state's tech hub—a finalist that did not advance—expressing confidence in obtaining federal support.
Biden's administration has requested an additional $4 billion for Tech Hubs in the fiscal year 2025, but appropriations committees in both the House and Senate have proposed significantly lesser amounts of $41 million and $100 million, respectively.
While the program retains political favor, its inadequate rollout and funding shortages have led to disillusionment among its early supporters. Rob Atkinson, president of the Information Technology and Innovation Foundation and a key architect of the Tech Hubs concept, believes the current distribution of funds has weakened the program's impact. He feels it has diverged significantly from his original vision of a concentrated program in select metropolitan areas and has warned against further funding without reform.
“The administration looks at this as, if we're going to get more money, we got to get as many places getting money to get buy-in for it, without an overarching strategy or vision,” Atkinson posited. “This is not peanut butter. This is not everybody gets something. This is about a national goal. We're going to get three to five places that can really, really compete with Shanghai or compete with Bangalore."
EDA Deputy Assistant Secretary for Policy Cristina Killingsworth stated that the selection process was not politically influenced and acknowledged the ongoing challenges in securing substantial funding.
“Finding large sums of funding in this environment is never easy,” she stated. “But we are confident that with the bipartisan support we have for the program and with the president's robust support, that we will be able to do additional rounds of implementation grants in the future.”
Currently, the program's budget constraints do not allow for another significant funding round, leaving both existing awardees and new hopefuls in limbo as they await Congressional action. Some are exploring private investment and alternate federal funding sources while they wait.
The recipients of the July awards are unlikely to see their funds in full for some time. The EDA has begun contracts and will distribute grants on a rolling basis over the coming months. As projects begin to take shape, hub leaders are preparing to make investments, hire staff, and implement technologies.
"Getting all of the paperwork lined up is a pretty hefty effort,” said Tim VanReken, regional innovation officer for Montana’s Headwaters Tech Hub, which won $41 million. “The other thing that we're focusing a lot on is road mapping out what our actual implementation work is going to look like.”
Killingsworth expressed confidence in the program’s longevity, asserting that it would continue to receive support regardless of political officeholders. However, some hub leaders remain concerned that future administrations could attempt to withdraw funds.
“People are committed,” noted Beth Conerty, who leads Illinois' iFAB Tech Hub. She voiced her concerns about the funding’s security post-election, describing her communications with federal representatives over the issue.
Other hub leaders maintain a more optimistic view. Rob Simpson, CEO of CenterState, which oversees New York’s Tech Hub, is awaiting a $40 million grant.
“There’s a focus on getting contracts wrapped up, which hopefully will provide everybody with some certainty and predictability,” Simpson remarked. “But I'm not losing sleep over it. I look at the bipartisan nature.”
In the absence of heightened political attention, Commerce officials plan to visit the winning hubs and finalists by year’s end to boost visibility while simultaneously exploring additional funding pathways with lawmakers.
“It is important that we help connect the dots for our constituents,” said Ben Walsh, the independent mayor of Syracuse, part of the New York tech hub. “And help them understand what programs are funding what projects, and why.”
He added, “until some of these investments truly take off, I expect that people won't be completely satisfied.”
Anna Muller contributed to this report for TROIB News
