US grants $504 million for 'tech hubs' in neglected regions

Biden administration officials hope the money will help propel technological innovation in areas that have historically received less government funding.

The Biden administration on Tuesday awarded $504 million to a dozen projects across the country in an effort to transform historically neglected communities into tech powerhouses.

Grants will fund “technology hubs” that aim to strengthen the production of critical technologies in regions including western Montana, central Indiana, southern of Florida and upstate New York. These hubs 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 U.S. science and technology funding beyond Silicon Valley and a few coastal regions, a move that Biden administration officials say will help revitalize areas that have traditionally received less funding. government investments. Supporters say the projects will help create “good-paying” jobs and tap underutilized pools of workers and resources across the country.

The program of $10 billion was authorized by CHIPS. and Science Act, which Congress passed in 2022 to accelerate domestic semiconductor manufacturing and increase funding for scientific research. The idea of ​​expanding tech funding beyond Silicon Valley helped the legislation gain broader support from lawmakers representing parts of the country eager to benefit.

The Ministry of Commerce initially considered nearly 400 projects. applications, limiting them to a pool of 31 projects that received the “technology hub” designation in October. As of Tuesday, 12 regions obtained grants ranging from $19 million to $51 million.

However, it is not clear how much additional funds will be available. Although Congress authorized $10 billion for the five-year program when it passed the CHIPS Act, only about $541 million, or about 5 percent, has been appropriated so far, which some say could hinder the success of the program.

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