Baltimore Tech Hub Snubbed in $70 Million Federal Funding Decision

Baltimore tech hub loses out on funding
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  • Baltimore region misses out on $70 million federal tech hub funding
  • Baltimore and surrounding counties chosen for federal Tech Hubs Program
  • U.S. Department of Commerce awards grants to 12 tech hubs in other states
  • Biden administration initiative aims to boost tech economies in overlooked communities
  • Baltimore’s proposed projects aimed to create jobs and focus on AI and biotechnology

Baltimore Tech Hub Misses Out on Federal Funding

In a disappointing turn of events for the Baltimore region, the area failed to secure up to $70 million in federal funding designated for tech hubs. This setback comes as a blow to business leaders who were hopeful that the funding would not only drive additional investment but also pave the way for the creation of tens of thousands of jobs.

Initial Selection as a Federal Tech Hub

Back in October, Baltimore and seven surrounding counties were among the 31 cities or regions chosen for the federal Tech Hubs Program. This selection meant that the region was eligible to compete for a portion of the $10 billion in federal funding allocated over five years. The aim was to establish Baltimore as a prominent center for artificial intelligence and biotechnology.

Missed Opportunity for Baltimore

Unfortunately, Baltimore did not advance to the second round of the competition. The U.S. Department of Commerce revealed that approximately $504 million in grants would be distributed among 12 tech hubs in states like Colorado, Indiana, New Hampshire, New Mexico, and Montana. This development dealt a significant blow to the consortium leading Baltimore’s initiative, which had hoped for the maximum grant amount of $70 million, with a local match of $7.7 million.

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Published on: October 23, 2023 Description: Thanks to the Economic Development Administration program Baltimore has now been designated as a federal tech hub.
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Implications and Future Prospects

The Tech Hubs Program, spearheaded by the Biden administration, aims to bolster tech economies in underserved communities nationwide and position them as global players in emerging technologies. Vice President Kamala Harris emphasized the importance of supporting communities that are often overlooked, including rural, tribal, industrial, and disadvantaged areas. The program is designed to create high-quality jobs and foster innovation at the local level.

Moving forward, the Baltimore region’s proposed projects, if funded, were expected to generate over 32,700 direct jobs and an additional 65,600 supplier and induced jobs across various sectors and skill levels over a decade. The focus was on leveraging artificial intelligence and machine learning in health data applications such as diagnostics and drug development. Despite the setback, local tech firms, academic institutions, government bodies, economic development organizations, and workforce development groups have shown commitment to supporting Baltimore’s tech ambitions.

While missing out on the federal funding is undoubtedly a setback, the Baltimore region remains poised to continue its efforts in establishing itself as a hub for cutting-edge technologies. The collaboration and dedication of key stakeholders signal a collective determination to drive innovation and economic growth in the tech sector.

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