Biden Administration names Wisconsin a regional tech hub with opportunities for labor unions

The U.S. Department of Commerce on Monday announced it would designate 31 regional tech hubs across the nation, including in Wisconsin, making communities eligible for hundreds of millions of dollars in federal funding. The designated regional tech hub inside the state could enable a mix of private industry and local governments to compete for grants for up to $75 million to expand the tech field.

The U.S. Economic Development Administration (EDA) will give Wisconsin a $350,000 planning grant to execute a biotech health hub strategy, according to a statement from Gov. Tony Evers. The designation would focus on the biotechnology and personalized medicine industry in Wisconsin.

“Wisconsin’s designation as a Regional Tech Hub is a testament to the strength of our state’s biohealth and personalized medicine industry. As this sector continues to grow, it will mean more high-paying jobs and economic growth for our state, as well as innovations that will transform the future of medical care for people in Wisconsin and around the world,” Evers said in a statement.

Labor unions and workforce organizations will be engaged in economic development plans

Under the designation, private industries, local governments, higher education institutions, labor unions, nonprofit organizations and Tribal communities will be able to compete for up to $75 million in federal implementation grants, according to the White House. The EDA will announce funding for Phase 2 funding in the fall, federal officials added.

When Phase 2 is announced, the EDA will award grants to between five and 10 designated tech hubs. Each of those Hubs will receive approximately $40-$70 million across approximately three to eight projects, EDA officials explained.

According to the notice of funding opportunity, labor organizations or workforce training organizations are also eligible for funding. Every consortium that applies for funding must have a detailed plan for how they will engage labor unions.

The Tech Hubs program was authorized by the CHIPS and Science Act, which President Joe Biden signed in August 2022, White House officials noted.

Wisconsin tech consortium includes workforce development and transportation plans

In August, the Wisconsin Economic Development Corp. (WEDC) developed a consortium to pursue the EDA’s Regional Tech Hub (RTH) designation. Members included the WEDC, University of Wisconsin System Administration, GE HealthCare, Employ Milwaukee and WRTP | Big Step. BioForward Wisconsin was named the lead agency for the Wisconsin BioHealth Tech Hub which includes 15 public and private partners.

Lindsay Blumer, president and CEO of WRTP | BIG STEP and a member of the Biohealth Tech Hub Steering Committee, praised the investment and said in a statement it would help build sustainable career pathways.

“This investment in Wisconsin will assist us in creating sustainable career pathways for everyone and help focus our efforts on ensuring our talent pipeline is safe, skilled and diverse and has access to pre-apprenticeship and registered apprenticeship opportunities that have family-sustaining wages,” Blumer added.

The consortium believes federal support would let its stakeholders scale up operations to a “global level” by sharing data and systems, WEDC officials said. This plan touches on minority supplier participation, strategies to expand housing policies and transportation and establishing workforce strategies with attention to rural and underrepresented access, officials added.

The hub will be located in the Madison and Milwaukee-Waukesha metro areas, WEDC officials noted. The state was selected out of a total of 378 applications.