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 Friday, 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 policy and labor policy to diversity, equity and inclusion.
U.S. Sens. Maria Cantwell and Patty Murray, D-Wash., both objected strenuously to the decision.
“This is an unnecessary delay in a very fast race for future aerospace jobs critical to America’s economic success,” Cantwell said in a news release. She noted that Lutnick told her during his confirmation hearing that funding would not be withheld from approved Tech Hub projects.
The turnabout “is causing us chaos and uncertainty in a race against world competitors to build high-rate manufactured composites likely to determine which country wins the aerospace future,” Cantwell said.
Murray criticized Lutnick as well as President Donald Trump.
“Let’s be clear: Donald Trump and his know-nothing commerce secretary are wrongfully ripping away federal dollars owed to Spokane — what is happening is unprecedented and nothing short of an outrage. This would have never happened under nearly any other administration — yet now we are all faced with a pointless and costly setback for Spokane’s economy and future,” she said in a news release.
Murray said she would “do everything within my power to fight for Spokane, and I do not plan to give this administration any cover for this outrageous decision.”
U.S. Rep. Michael Baumgartner, R-Wash., said the Commerce Department’s decision was “disappointing.”
“The American Aerospace Materials Manufacturing Center (AAMMC) isn’t closing today — but this delay, which could stretch a year or more, puts the entire effort at unnecessary and potentially irreversible risk,” Baumgartner, whose district includes Spokane, said in a statement. “The department is walking away from a selection process it has already completed, undermining the work of more than 50 committed local, academic, federal and industry partners who stepped up in good faith.”
Baumgartner added that if the Commerce Department insists on redoing the process, “Spokane will be ready.”
Spokane Mayor Lisa Brown urged the Trump administration to restore the funding. “This stunning reversal undermines the hard work of public and private partners who have spent years preparing for this investment and the economic opportunities it would bring,” she said in a news release. “This decision is a mistake for our regional and national economy. The $48 million in tech hub funding was a down payment to secure American competitiveness in aerospace manufacturing.”
The Spokane-based Tech Hub involved organizations in Washington state as well as Idaho. The five other Tech Hubs affected by Lutnick’s decision include:
- Birmingham Biotechnology Hub (Alabama), focusing on equitable AI-driven biotechnology. Estimated award amount: $44 million.
- Corvallis Microfluidics Tech Hub (Oregon), focusing on microfluidics. Estimated award amount: $45 million.
- Critical Minerals and Materials for Advanced Energy (CM2AE) Tech Hub (Missouri), focusing on critical mineral processing. Estimated award amount: $29 million.
- Forest Bioproducts Advanced Manufacturing Tech Hub (Maine), focusing on sustainable wood biomass polymers. Estimated award amount: $22 million.
- Vermont Gallium Nitride Tech Hub (Vermont), focusing on gallium nitride-based semiconductors. Estimated award amount: $23 million.
The EDA also set aside funding for a post-award support program known as the Builder Platform.
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