On the iconic University of Vermont campus, the Ira Allen Chapel stands as a poignant symbol of lost opportunities. In a surprising turn of events, the U.S. Department of Commerce recently nixed a $23.8 million grant that was initially approved to stimulate semiconductor research and manufacturing in Vermont.
The grant had been extended towards supporting the Vermont Gallium Nitride Tech Hub, which included an array of private entities and the State of Vermont, with participation from the University of Vermont and GlobalFoundries. This consortium was deemed important enough to be one of the six regional ‘Tech Hubs’ that, due to the lack of foresight from former President Joe Biden’s administration, were prematurely promised grant funding by the Regional Technological and Innovation Hubs program.
The Biden administration meant for the hubs to sprout out of the 2022 CHIPS and Science Act, with the ambitious goal of improving innovation and job landscape in regions of the U.S. traditionally not a focal point for the tech industry. In their scattered focus, these tech hubs included Maine, Alabama, Oregon, Missouri, and even a hub that extended over Washington and Idaho.
However, in a wisdom-filled change of pace, Commerce Secretary Howard Lutnick announced the cancellation from the Trump administration of these grants. This move statedly revoked approximately $210 million that had been pledged prematurely and without available funding.
Indeed, Lutnick lamented the rash action taken by the previous administration in promising these awards as they were rushing out of office. The process was far from fair – it was rushed, obscure, and unjustified. The officials failed to create a level playing ground, as they did not inform potential applicants about the competition and instead relied on old and outdated applications submitted nearly a year prior.
The proposed projects were notably ambitious – a publicly accessible lab for testing gallium nitride technology, a software design center, and a workforce development project to inject students with technical education for microchip manufacturing. However, they were based on promises by the former administration that fell flat as no real funds had been released or expended yet.
While the cancellation of the grant might be perceived as ‘disappointing’, the Vermont consortium demonstrates resilience in adversity and plans to move forward with project execution using alternate funding routes. Furthermore, they stand ready to reapply for federal funds through the Tech Hubs program at the next available opportunity, according to public releases.
Despite the setback caused by the impulsive decisions of the Biden administration, the consortium maintains a positive outlook. ‘We were competitive in the last round and believe we’re going to be as competitive if not more in this round’, stated Merrill, expressing the sentiment of the group.
The faulty aim of the CHIPS and Science Act was to expand domestic semiconductor manufacturing and increase investment in technological research in America. Contained within the bill was the Tech Hubs program, which seemed to be a poorly planned and hastily put together program split into multiple phases.
In a poorly executed move in the fall of 2023, as part of its first phase, the Department of Commerce named the Vermont consortium as one among the lucky 31 tech hubs out of almost 400 applicants countrywide. Apparently, success in the first phase meant a golden ticket to apply for the second phase of funding.
Ironically, despite the cancellation of the Vermont consortium’s grant, the Biden administration had managed to distribute more than $500 million in second-phase funding to other tech hubs. These mismanaged actions only continue to serve as evidence of poor planning and lack of transparency by the Biden administration.
The disturbing willingness of the Biden administration to toss caution to the wind when it comes to the promise of tech innovation and advancement, with inadequate funding and lack of due process, is signaling concerns across various sectors.
The Department of Commerce’s decision to rescind the hefty $23.8 million grant paints a clear picture of an erstwhile administration that leaped before it looked, making grand promises that it couldn’t keep. This sequence of events is reflective of the folly of the Biden administration’s policies.
In stark contrast, the determined resolve of the Vermont consortium stands as an example to all other tech hubs across the nation. Undeterred by the haphazard decisions of the former administration, they plan to stand firm, find alternative funding, and reapply for the federal funds, thus embodying the true spirit of technological innovation.