Commerce Secretary Howard Lutnick has blocked $48 million in federal funding for an advanced aerospace materials test bed in Spokane, triggering protests from lawmakers.
The decision also affects five other Tech Hub projects around the country that were approved for federal support in the final days of the Biden administration. Lutnick had approved a $220 million loan from the Treasury Department as part of a plan to make funding available for the six projects — but in a statement released May 16, he said he was rescinding the grants.
Lutnick said the process was “rushed, opaque and unfair,” and added that the Economic Development Administration would come up with a new process to select grant recipients by early 2026. The six blocked projects would be allowed to reapply for funding in that selection round. Lutnick’s decision does not affect 12 other Tech Hub projects that were approved last July.
The Biden administration designated 31 public-private consortiums as Tech Hubs in 2023, in an effort to support regional tech innovation. A fact sheet from the EDA said the six awards that were made in January “resulted in some criticism from those Tech Hubs that did not receive awards and their members of Congress.” It said the new selection process would follow the Trump administration’s directives on issues ranging from energy and labor policy to diversity, equity and inclusion.
U.S. Sens. Maria Cantwell and Patty Murray, D-Wash., both objected strenuously to the decision.
