The U.S. Department of Commerce has rescinded funding for a $48 million tech hub in the Spokane-Coeur d'Alene region, citing a rushed and opaque selection process by the previous administration. The decision has sparked local concern about setbacks to economic development and aerospace industry opportunities, with officials calling for a reversal and upcoming reissuance of funding opportunities.
U.S. Department of Commerce Withdraws Funding for Spokane-Coeur d'Alene Tech Hub
A $48 million tech hub in the Spokane-Coeur d'Alene region was placed in a holding pattern after the U.S. Department of Commerce said the funding was being withdrawn.
"All federal investment must be strategic, smart, and result in the best return for the taxpayer," according to a Friday statement from U.S. Secretary of Commerce Howard Lutnick. "Regrettably, on its way out the door, the prior Administration announced awards to six Tech Hubs, even though the funds were not yet available. Moreover, the process was rushed, opaque, and unfair."
The press release said administration officials did not make prospective applicants aware of the competition and "chose awardees using outdated applications submitted nearly a year earlier. A rushed process using outdated information is no way to invest taxpayer funds."
Spokane Mayor Lisa Brown on Friday released a statement on the U.S. Department of Commerce’s decision to rescind funding for the tech hub.
“The U.S. Commerce Department’s decision to rescind promised funding for our regional tech hub delivers an unnecessary setback to the Spokane-Coeur d’Alene region,” she said. “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.”
Brown said the decision was a mistake for the regional and national economy. She said the $48 million in tech hub funding was a down payment to secure American competitiveness in aerospace manufacturing.
“We deserve better, and I am calling on our congressional delegation to join me in demanding the Trump Administration reverse this decision,” she said.
Earlier this year, the American Aerospace Materials Manufacturing Center announced that the test bed and training center would become a reality through the U.S. Department of Commerce Tech Hub award and industry commitments of nearly $50 million.
The center would combine applied education research, workforce training, and advanced production, principally located in a 386,000-square-foot repurposed manufacturing facility near Spokane International Airport.
The Spokane-Coeur d’Alene Tech Hub would create hundreds of high-paying jobs to work on advanced aerospace materials and equip new airplanes with lightweight aerospace parts that reduce carbon emissions.
Congress created the Tech Hubs Program in 2022 to strengthen U.S. economic and national security by commercializing the technologies of the future, the release said.
In 2023, a regional partnership of organizations from Washington and Idaho put together a proposal for the U.S. Economic Development Administration.
North Idaho members of the consortium included the cities of Coeur d’Alene and Post Falls, North Idaho College, the Coeur d’Alene Regional Chamber, the Coeur d’Alene Economic Development Corp., and the Coeur d’Alene Tribe.
Lutnick said at his direction, the Commerce Department is revamping the Tech Hubs program to prioritize national security, project quality, benefit to the taxpayer, and a fair process.
The EDA will release a new notice of funding opportunity this summer with the goal of announcing selections in early 2026.
"To be clear, this decision is not an indictment of the work that the previously selected Tech Hubs are doing," he said. "They can compete for funding alongside all other prospective applicants. This decision is about fairness and making prudent choices with hard earned taxpayer dollars."