On May 16, 2025, Commerce Secretary Howard Lutnick announced that the U.S. Department of Commerce has rescinded the latest six funding awards previously announced under the Tech Hubs Program and will be reopening the application process, with certain modifications. The previously awarded projects, announced in January 2025, were described by Secretary Lutnick as being “rushed, opaque, and unfair.” He noted that the awards were made without available funds and were based on “outdated applications, lacking proper competition.”
Timeline for New NOFO and Award Announcements
The Department of Commerce plans to release a new Notice of Funding Opportunity (NOFO) for the Tech Hubs Program in early 2026. This new NOFO will outline the criteria and application process for prospective applicants. Following the release of the NOFO, the Department will conduct a thorough evaluation of applications and anticipate announcing new awardees later in 2026. This timeline is designed to provide adequate time for applicants to prepare comprehensive proposals and for the Department to conduct a rigorous review process.
Impact to Tech Hubs Awardees
The Tech Hub awardees that are impacted by this development are the six Hubs (comprising 15 projects total) that were notified on January 14, 2025 that they had been selected and would receive Phase 2 implementation funding. For these specific awardees, the awards have been revoked and that portion of the Tech Hubs competition will be re-launched. All other previous Tech Hub awardees are unaffected.
Impact to NADO Members
NADO recognizes that the cancellation of previously announced awards is a development that may raise concerns for NADO members and stakeholders. However, it is important to understand that although the cancelled Tech Hubs awards had previously been announced, the funds had not yet been obligated, and grant agreements had not yet been signed. NADO anticipates that this is a relatively isolated situation that is limited to awards that were announced just prior to the change in the Administration. NADO anticipates that these circumstances are unlikely to impact many other previously announced awards. Similarly, NADO anticipates that it is unlikely that a pattern of award cancellations will continue in forthcoming grant award cycles.
About the Tech Hubs Program
Administered by the U.S. Economic Development Administration (EDA), the Tech Hubs Program aims to strengthen U.S. leadership in key technology areas by supporting regional consortia composed of businesses, state and local governments, academic institutions, labor organizations, and nonprofit organizations. These hubs are selected based on their potential to become globally competitive in technologies critical to national and economic security.
For more details on the recent announcement, click here. NADO will continue to monitor for updates and keep members informed as things materialize.