Spokane’s aerospace Tech Hub loses $48M federal grant, sparking congressional outcry

Commerce Secretary Howard Lutnick has blocked $48 million in federal funding for an advanced aerospace materials testbed in Spokane, resulting in protests from lawmakers.

The decision also affects five other Tech Hub projects around the country that were approved for federal support in the final days of the Biden administration. In March, Lutnick had approved a $220 million loan from the Treasury Department as part of a plan to make funding available for the six projects — but in a statement released Friday, he said he was rescinding the grants.

Lutnick said the process was “rushed, opaque and unfair,” and added that the Economic Development Administration would come up with a new process to select grant recipients by early 2026. The six blocked projects would be allowed to reapply for funding in that selection round, and Lutnick’s decision does not affect 12 other Tech Hub projects that were approved last July,

Last year, A fact sheet from the EDA said the six awards that were made in January “resulted in some criticism from those Tech Hubs that did not receive awards and their members of Congress.” It said the new selection process would follow the Trump administration’s directives on issues ranging from energy policy and labor policy to diversity, equity and inclusion.

U.S. Sens. Maria Cantwell and Patty Murray, D-Wash., both objected strenuously to the decision.

“This is an unnecessary delay in a very fast race for future aerospace jobs critical to America’s economic success,” Cantwell said in a news release. She noted that Lutnick told her during his confirmation hearing that funding would not be withheld from approved Tech Hub projects.

The turnabout “is causing us chaos and uncertainty in a race against world competitors to build high-rate manufactured composites likely to determine which country wins the aerospace future,” Cantwell said.

Murray criticized Lutnick as well as President Donald Trump.

“Let’s be clear: Donald Trump and his know-nothing commerce secretary are wrongfully ripping away federal dollars owed to Spokane — what is happening is unprecedented and nothing short of an outrage. This would have never happened under nearly any other administration — yet now we are all faced with a pointless and costly setback for Spokane’s economy and future,” she said in a news release.

Murray said she would “do everything within my power to fight for Spokane, and I do not plan to give this administration any cover for this outrageous decision.”