Spokane-area Tech Hub consortium passed over again for funding

About seven months after learning its previously awarded $48 million in grant funding had been rescinded, officials seeking to create an aerospace manufacturing hub in Spokane have been rejected again as part of its latest bid to revive the project.

Patrick McHail, executive director of the American Aerospace Materials Manufacturing Center Tech Hub, said the group submitted its latest application on Nov. 7 and was among 19 communities seeking the federal funding through the federal Economic Development Administration’s tech hub programs.

McHail received word around Christmas that Spokane’s effort did not advance to the second round.

“Having been awarded, losing the funding and competing again and not being successful, it’s disappointing,” McHail said. “It’s a lot of work from the whole consortium and the entire team.”

The effort was put forth to compete for the Tech Hubs Program created by Congress under the CHIPS and Science Act of 2022. The goal was to strengthen the nation’s economy and national security by pumping $10 billion into the local economy to boost technology in critical industries and create jobs and educational opportunities.

The local push focused on the massive factory at 1514 S. Flint Road that was built by Boeing in 1990 and later became a Triumph Composite Systems Inc. property. The 386,000-square-foot facility was purchased by Lakeside Properties in 2021.

The effort to build a tech hub then began a rollercoaster of success and failures leading to the most recent rejection.

In 2023, the Spokane -based effort was among 31 other groups selected from a pool of almost 400 aspirants attempting to tap into federal funds.

Then in 2024, officials as part of the effort learned that Spokane was not among the list of 12 groups selected to receive funds as part of the program.

That changed months later when the U.S. Department of Commerce in January 2025 awarded $48 million to the tech hub.

That funding then was rescinded in May 2025 by Commerce Secretary Howard Lutnick, who wrote in a statement that Spokane’s grant was “rushed.”

“Regrettably, on its way out the door, the prior Administration announced awards to six Tech Hubs, even though the funds were not yet available,” Lutnick wrote. “Moreover, the process was rushed, opaque, and unfair – administration officials did not make prospective applicants aware of the competition and chose awardees using outdated applications submitted nearly a year earlier.

“A rushed process using outdated information is no way to invest taxpayer funds,” he continued.

Despite that setback, Spokane’s Tech Hub officials tried again with the latest effort submitted on Nov. 7.

“The Aerospace Tech Hub represents exactly the type of place-based innovation-focused investment envisioned by Congress in the CHIPS and Science Act. It harnesses existing regional expertise, addresses real market demands, and positions American manufacturers to compete and win in the global aerospace market,” according to a letter signed by Idaho Sens. Mike Crapo and Jim Risch, Washington Sens. Patty Murray and Maria Cantwell, and U.S. Rep. Michael Baumgartner.

“We are convinced that the Aerospace Tech Hub can help America seize this opportunity to lead in the aerospace technologies of tomorrow, to the great benefit of the U.S. economy, our national defense, and working families across the Inland Northwest region,” the endorsement letter continued.

McHail said the plan submitted, and recently rejected, called for about $10 million from the consortium, which included Boeing, Lockheed Martin, NASA, U.S. Air Force, Gonzaga University and the city of Spokane among its membership. The request would have included another $39 million from the Economic Development Administration.

The goal was to use the federal funding to purchase the world’s largest composite press and equipment that could have built advanced aerospace parts. The goal was to use the 5,000-ton press to build next-generation fuselage frames, aircraft wings, ribs and beams to keep the region competitive for decades to come, according to the tech hub’s website.

McHail said the $10 million pledged by consortium members was contingent upon obtaining the larger pool of federal funds.

“We are just thankful for the all the consortium members in the region and the support we’ve had from the delegations from both Washington and Idaho,” he said. “It’s just a matter of time before we get one of these grants or the funding we need to stand up the program.”

Crapo, of Idaho, noted in a statement Thursday that the tech hub would position the region to become a leader in an industry dominated by international markets.

“Although I am disappointed in the EDA’s decision not to move forward with its Tech Hub designation, I will continue looking for ways to support the AAMMC’s efforts to build a domestic aerospace supply chain,” Crapo said.

Reporter Orion Donovan Smith contributed to this report.