Salinas Calls for More Tech Hub Funding on CHIPS and Science Act Anniversary
Washington, DC – Today, on the two year anniversary of the CHIPS and Science Act becoming law, U.S. Representative Andrea Salinas (OR-06) called on congressional leadership to deliver more funding for the Regional Technology and Innovation Hubs (Tech Hubs) program at the U.S. Economic Development Administration (EDA).
“Two years ago, President Biden signed the bipartisan CHIPS and Science Act into law. Already, this legislation has helped spur immense private investment in our nation’s industrial capacity and secure our future economic competitiveness. Industrial incentives alone, however, are not enough,” writes Salinas. “The CHIPS and Science Act put forth a bold vision for an innovation ecosystem that underlies our economic strength. Congress must follow through with this vision and fully fund the R&D and economic development provisions in the legislation to truly support our innovation economy from lab to market.”
The CHIPS and Science Act created the Tech Hubs program to strengthen U.S. economic and national security with investments in the technologies and industries of the future. Last year, the EDA designated 31 Tech Hubs across the country, including two in Oregon. The Corvallis Microfluidics (CorMic) Tech Hub focuses on microfluidics technology that helps cool computer chips, which in turn can help advance critical sectors like biotechnology, clean energy, and advanced manufacturing. The Pacific Northwest Mass Timber Tech Hub is working to advance the role of mass timber as a viable and sustainable construction material.
However, Congress has failed to provide sufficient appropriations to fully support these and other EDA-designated Tech Hubs.
“Even though it is authorized at $2 billion per year, the Tech Hubs program received only $500 million in Fiscal Year 2023. Congress followed suit by appropriating a meager $41 million in FY24, and legislation recently advanced by the House Appropriations Committee would maintain that level in FY25,” continues Salinas. “Strong, ongoing funding is needed for Tech Hubs to reach their full potential to drive innovation- based economic growth. It will enable them to build regional capacity to manufacture and commercialize new technologies, and build the networks between academia, community, and industry to develop a robust and accessible workforce pipeline that benefits workers and industry alike.”
Salinas closed her letter by calling for more robust Tech Hub funding in the final Fiscal Year 2025 spending package.
Read the full letter below or click here.
August 9, 2024
The Honorable Mike Johnson
Speaker of the House
H-232, The Capitol
Washington, DC 20515
The Honorable Hakeem Jeffries
Democratic Leader
H-204, The Capitol
Washington, DC 20515
Dear Speaker Johnson and Leader Jeffries,
Two years ago, President Biden signed the bipartisan CHIPS and Science Act into law. Already, this legislation has helped spur immense private investment in our nation’s industrial capacity and secure our future economic competitiveness. Federal investments in semiconductor manufacturing have been enormously successful. In Oregon, Intel and Microchip have received support that will help them expand and add thousands of good jobs, and we are advocating strongly for additional funding for the semiconductor ecosystem in Oregon’s “Silicon Forest.”
Industrial incentives alone, however, are not enough. The CHIPS and Science Act put forth a bold vision for an innovation ecosystem that underlies our economic strength. Congress must follow through with this vision and fully fund the R&D and economic development provisions in the legislation to truly support our innovation economy from lab to market.
The Regional Technology and Innovation Hubs (Tech Hubs) program at the Economic Development Administration (EDA) is a glaring example of where Congress’ failure to follow through has hamstrung our ability to deliver on the promise of the CHIPS and Science Act.
Even though it is authorized at $2 billion per year, the Tech Hubs program received only $500 million in Fiscal Year 2023. Congress followed suit by appropriating a meager $41 million in FY24, and legislation recently advanced by the House Appropriations Committee would maintain that level in FY25.
Oregon is home to two EDA-designated Tech Hubs. The Corvallis Microfluidics (CorMic) Tech Hub focuses on microfluidics technology that helps cool computer chips – and thus improve their performance – with potential benefits for advancing critical sectors like biotechnology, clean energy, and advanced manufacturing. The Pacific Northwest Mass Timber Tech Hub is working to advance the role of mass timber as a viable and sustainable construction material.
On July 29, the EDA announced awards to each of these Tech Hubs of $500,000 in Consortium Accelerator Awards to continue their work. However, this funding comes as a consolation prize, as Congress did not provide sufficient appropriations to fully support all 31 EDA-designated Tech Hubs across the country.
Strong, ongoing funding is needed for Tech Hubs to reach their full potential to drive innovation- based economic growth. It will enable them to build regional capacity to manufacture and commercialize new technologies, and build the networks between academia, community, and industry to develop a robust and accessible workforce pipeline that benefits workers and industry alike.
I am incredibly excited about the impact of the CHIPS and Science Act on Oregon’s semiconductor industry, but it would be shortsighted to allow this law to simply be a one-time incentive for new semiconductor manufacturing. Rather, this is a once in a lifetime opportunity to deliver a robust domestic science and technology ecosystem that will sustain our economic competitiveness across a broad range of industries for decades to come.
As you negotiate a final FY25 spending package, I respectfully request that you include strong funding for CHIPS and Science Act programs, including at least $100 million for the EDA Tech Hubs program, as agreed to by the Senate Appropriations Committee.
Sincerely,
Andrea Salinas
Member of Congress
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