Last month, the American Aerospace Materials Manufacturing Center Tech Hub reapplied for federal funding through the U.S. Department of Commerce, seeking $39 million to help establish a national test bed for next-generation aerospace prototypes in Spokane.

The consortium was competing against 18 other Tech Hubs across the country for a share of $220 million in funding. 

However, in late December, the U.S. Economic Development Administration notified the Spokane-Coeur d’Alene Tech Hub that its latest application would not advance to Stage II, says the consortium’s director, Patrick McHail.

“While this is not the outcome or result we anticipated, it is most certainly not the end of our pursuit to bring advanced aerospace manufacturing technology and workforce opportunities to our region,” McHail says. “Our team is actively working on additional funding methods and will pursue additional opportunities as they arise.”

The Economic Development Administration did not give the consortium much reason or context about the decision, McHail says. He anticipates receiving more information on the decision in mid-January.

The news is the latest blow to the Spokane-Coeur d’Alene group over the past couple years. As previously reported by the Journal, the consortium has experienced a series of roller coaster-like developments in its pursuit to build a national test bed for next-generation aerospace prototypes in Spokane.

In October 2023, the consortium celebrated its official Tech Hub designation, beating out hundreds of other applicants across the country. The following year, it was denied an initial round of funding of up to $70 million; followed by the elation of landing a $48 million grant last January, only to have it rescinded four months later.

Commerce Secretary Howard Lutnick released a statement in May announcing the rescission of funding to the Inland Northwest consortium and five other Tech Hubs across the U.S. that had been awarded tens of millions of dollars in January. Lutnick’s decision did not affect the 12 other Tech Hub projects that had been approved in July 2024.

In his statement, Lutnick said the process was “rushed, opaque, and unfair,” and added that the Economic Development Association would create a new process to select grant recipients by early 2026, allowing the six tech hubs to reapply for funding in the new selection round.

After this initial upset, the group raised $10 million in private funds and began to prepare to apply once again, McHail says.

In its second bid for Stage II funding, the consortium proposed to bring the world’s largest composites press and advanced composites equipment to the Inland Northwest to accelerate prototyping of advanced material aerospace parts and train a pipeline of engineers and suppliers so that the next generation of aerospace parts remain in the region for decades to come, according to press release details. The proposed 5,000-ton press would enable high-pressure forming of fuselage frames, wings, ribs, and beams, the group’s website states.

In a letter to Lutnick from Washington state Sens. Patty Murray and Maria Cantwell, Idaho Sens. Mike Crapo and Jim Risch, and Washington Congressman Michael Baumgartner, the political leaders describe the 5,000-ton press as being “capable of producing thermoplastic composite parts at scales currently impossible domestically,” adding that Asia and Europe are positioned ahead of the U.S. in research, development, and manufacturing of advanced aero parts.

The vision for that test bed would take shape at the consortium's 386,000-square-foot former Triumph Composite Systems Inc. building at 1514 S. Flint in Airway Heights. As previously reported, the facility will be a test bed for companies and agencies to develop their proofs of concept.

The Aerospace Prototype Testbed plans are coordinated with major industry partners, McHail says. Those include Virginia-based The Boeing Co., NASA, Kansas-based Spirit AeroSystems Holdings Inc., Japan-based Toray Industries Inc., and Belgium-based multinational materials company Syensqo.

Inland Northwest partner manufacturers and employers include Post Falls-based ATC Manufacturing, Liberty Lake-based Altek Inc., and Hayden-based Unitech Composites Inc., among others.

Beyond manufacturing, the consortium plans to build a technical education job training center in Post Falls, McHail says. According to the release, the proposed Advanced Manufacturing & AI Training Center would expand the current campus and equipment at North Idaho College, in partnership with the University of Idaho, Gonzaga University, Washington State University, and Spokane Community College.

While the denial of funding at this stage is another setback for the consortium, it doesn’t intend to stop anytime soon. McHail declines to give further details on the group’s next steps except to say it will continue to actively work toward the vision they’ve created for the region.