When the U.S. Economic Development Administration awarded $48 million to a large-scale aerospace project in Spokane in January, it represented a huge investment in the city’s economy. Now the project’s future could be imperiled, as the Trump administration attempts to scale it back.
The federally funded project, known as the American Aerospace Materials Manufacturing Center, would implement technology to manufacture more sustainable thermoplastic components used in aircraft. The Spokane project was one of six “Tech Hubs” selected by the federal agency for grants totaling $210 million.
The project was funded in the waning days of President Joe Biden’s administration as part of an ongoing effort to develop regional “Tech Hubs” for emerging technology and economic development.
Now the project in Spokane faces an uncertain future. On May 16, the U.S. Department of Commerce announced that it would not deliver the grants as promised. In a statement, Commerce Secretary Howard Lutnick said the selection process for grant recipients had been “rushed, opaque and unfair” and that the $210 million in funding wasn’t yet available.
The move was just the Trump administration’s latest rapid-fire effort to scale back Biden-era policies.
More than 50 businesses, government entities and academic institutions remain committed to the project, but it’s unclear how it will proceed.
“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,” said Spokane Mayor Lisa Brown in a statement last month. “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.”
Building on an established sector
The idea of Tech Hubs was first introduced as part of the CHIPS and Science Act of 2022, aimed at boosting domestic investment in technological development projects like increasing production of semiconductors.
The legislation, passed with bipartisan support, earmarked $10 billion for Tech Hubs, with $500 million allocated for the 2023 fiscal year.
This model of technological development relies on collaboration between private and academic partners, said Spokane city administrator Alex Scott.
Spokane’s Tech Hub program was meant to focus on aerospace, culminating in the opening of a new manufacturing center in a 386,000-square-foot facility near the Spokane International Airport.
The coalition looks to bolster the region’s existing aerospace manufacturing along Interstate 90 between the western suburbs of Spokane and Post Falls and Coeur d’ Alene in Idaho.
The Spokane region is home to more than 80 aerospace manufacturing companies, said Alisha Benson, CEO of Greater Spokane Inc., which serves as both a chamber of commerce and economic development organization for the region.
The city of Spokane is serving as the primary government partner, helping to secure necessary permits and align with regulations, Scott said.
Establishment as a tech hub
Making the AAMMC a reality has been two years in the making for the Spokane coalition behind it. Much of their initial effort was focused on securing a designation as a Tech Hub, a requirement for federal funding.
The Spokane region became one of 31 communities to receive the Tech Hub designation in 2023. The process for the designation alone was competitive — around 200 communities applied.
The 31 Tech Hubs then competed for grants. An initial round of grants, totaling $510 million, were awarded to 12 hubs last July.
The Spokane Tech Hub was among six hubs designated for a second round of grants of $210 million, doled out in $48 million sums among the chosen hubs. These are the grants paused by U.S. Department of Commerce.
The grant, along with additional funds from coalition partners, was going to be used to purchase equipment for the center. The equipment would be used to mass-produce lightweight thermoplastic composites used to make ribs, beams, doors and bulkhead components for commercial and military aircraft.
What’s next?
Spokane, along with the six Tech Hubs that received grants in January, will have to reapply for the funding, U.S. Department of Commerce officials said in a news release. The federal agency claimed that their applications will be given “heightened consideration.”
In a statement on the AAMMC website, the aerospace coalition behind the project said it will keep pushing for it to be funded, with support from legislators in Washington and Idaho.
“This new expertise will empower our domestic workforce to reverse American reliance on foreign aerospace suppliers and reestablish the United States as the global leader in aerospace component production,” the coalition said in its statement.
But with no clear timeline, the project could be diminished, Scott said.
Eventually, said Scott, private-sector partners in the coalition may eventually have to decide whether to endure delays or take their investments elsewhere, if funding doesn’t ultimately come together. “There’s a risk that the private sector says ‘This isn’t going to happen, let’s pivot,’” he said.
But for now, Scott said the city remains committed to the project. “We have no intention of backing off,” he said. “We’re going to continue the best we can.”
Nate Sanford
John Stang
