[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 1978 Introduced in Senate (IS)]
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119th CONGRESS
1st Session
S. 1978
To require the Secretary of Defense to establish a network of regional
hubs to foster innovation, collaboration, and rapid development of
defense-related technologies, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
June 5, 2025
Mr. Schmitt (for himself and Mr. Hickenlooper) introduced the following
bill; which was read twice and referred to the Committee on Armed
Services
_______________________________________________________________________
A BILL
To require the Secretary of Defense to establish a network of regional
hubs to foster innovation, collaboration, and rapid development of
defense-related technologies, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Defense Technology Hubs Act of
2025''.
SEC. 2. PURPOSE.
The purpose of this Act is to enhance national security and
technological superiority by requiring the Secretary of Defense to
establish a network of regional defense technology hubs to foster
innovation, collaboration, and rapid development of defense-related
technologies to attract talent from across the United States.
SEC. 3. DEFINITIONS.
In this Act:
(1) Anchor federal defense institution.--The term ``anchor
Federal defense institution'' means a defense manufacturing
facility, an institution of higher education that engages the
Department on research, development, testing, and evaluation,
or a military installation.
(2) Defense technology hub.--The term ``defense technology
hub'' means a regional hub designated and supported under the
Program.
(3) Eligible consortium.--The term ``eligible consortium''
means a consortium composed of universities, defense
contractors, small businesses, nonprofit organizations, and
State or local governments.
(4) Emerging technologies.--The term ``emerging
technologies'' means scientific and engineering advancements
with potential military applications as identified by the
Secretary of Defense.
(5) Program.--The term ``Program'' means the Defense
Technology Hubs Program established under section 4(a).
SEC. 4. ESTABLISHMENT OF DEFENSE TECHNOLOGY HUBS PROGRAM.
(a) Program Required.--
(1) In general.--The Secretary of Defense shall establish a
program to designate and support regional hubs focused on
advancing defense technologies critical to national security.
(2) Designation.--The program established pursuant to
paragraph (1) shall be known as the ``Defense Technology Hubs
Program''.
(b) Designation of Defense Technology Hubs.--
(1) Solicitation of applications.--Under the Program, the
Secretary shall solicit applications from eligible consortia to
be designated as defense technology hubs under the Program.
(2) Submittal of applications.--A consortium seeking
designation and support as a regional hub under subsection
(a)(1) shall submit to the Secretary an application therefor at
such time, in such manner, and containing such information as
the Secretary may require.
(3) Criteria.--The Secretary shall select eligible
consortia for designation and support under subsection (a)(1)
from among those submitting applications pursuant to paragraph
(2) of this subsection using the following criteria:
(A) Demonstrated capability in defense-relevant
technology areas.
(B) Evidence of regional collaboration and
stakeholder commitment.
(C) Presence of anchor Federal defense institutions
or mission-critical installations of the Department
that support or utilize emerging defense technologies,
particularly in areas such as geospatial intelligence,
data fusion, and artificial intelligence.
(D) Existence of regional innovation ecosystems
with demonstrated success in leveraging Federal, State,
and private sector collaboration, such as technology
innovation consortia, academic research clusters, and
specialized defense accelerators.
(E) Potential to address Department-identified
strategic priorities.
(F) Economic and workforce development impact.
(4) Geographic distribution.--In selecting eligible
consortia for designation and support under the Program, the
Secretary shall ensure that defense technology hubs are
distributed across diverse geographic regions of the United
States, with a goal of designating at least 10 defense
technology hubs before the date that is 3 years after the date
of the enactment of this Act. In considering geographic
distribution, the Secretary may give preference to regions with
demonstrated strategic relevance to national security missions,
including those with newly constructed or expanded Department
facilities and intelligence community investments.
(c) Objectives of Defense Technology Hubs.--The objectives of a
defense technology hub under the Program are as follows:
(1) To accelerate the research, development, prototyping,
and transition to operational use of emerging technologies with
military applications, including artificial intelligence,
quantum technologies, hypersonics, biotechnology, and advanced
manufacturing.
(2) To foster partnerships among components of the
Department of Defense, private industry, academic institutions,
and State and local governments.
(3) To address regional defense technology needs while
leveraging local expertise, infrastructure, and economic
strengths, including proximity to Federal mission partners such
as combat support agencies and participation in existing
innovation consortia or university-industry alliances.
(4) To promote workforce development and training programs
to build a skilled pipeline for defense innovation including
partnerships with research universities, community colleges,
and vocational programs.
(5) To enhance the resilience and security of the defense
industrial base.
(d) Grants.--
(1) Grants authorized.--Under the Program, the Secretary
may award grants to defense technology hubs.
(2) Use of funds.--A defense technology hub receiving a
grant under paragraph (1) shall use the amounts of the grant
for the following purposes:
(A) As seed funding for establishment of the
defense technology hub.
(B) For research, prototyping, and technology
transition projects consistent with the objectives set
forth in subsection (c).
(C) Administrative and evaluation expenses of the
defense technology hub relating activities under the
Program.
(e) Security and Compliance Requirements.--
(1) In general.--Under the Program, each defense technology
hub shall do the following:
(A) Implement cybersecurity measures consistent
with Department cybersecurity standards.
(B) Ensure all research and technology transfers
comply with the International Traffic in Arms
Regulations (ITAR) and the Export Administration
Regulations (EAR).
(C) Prevent participation by foreign entities of
concern, as identified by the Secretary in coordination
with the heads of the elements of the intelligence
community (as defined in section 3 of the National
Security Act of 1947 (50 U.S.C. 3003)) or identified in
the Entity List maintained by the Bureau of Industry
and Security of the Department of Commerce and set
forth in Supplement No. 4 to part 744 of title 15, Code
of Federal Regulations, and consistent with existing
Federal designations.
(D) Establish mechanisms to prevent unauthorized
access to sensitive defense-related research and
technology.
(2) Monitoring and enforcement.--The Secretary shall, in
coordination with the Director of the Defense
Counterintelligence and Security Agency, establish procedures
to monitor and enforce compliance with the requirements set
forth in paragraph (1).
(f) Intellectual Property Management.--
(1) Guidelines required.--The Secretary shall develop
guidelines under the Program for intellectual property
ownership and licensing within the defense technology hubs,
balancing national security needs with commercial incentives
for private sector participation.
(2) Retention of rights.--The guidelines developed pursuant
to paragraph (1) shall include provisions for the Department to
retain necessary rights for defense applications while allowing
members of consortia that are defense technology hubs to pursue
commercial opportunities as may be appropriate.
(g) Funding.--
(1) Authorization of appropriations.--There is authorized
to be appropriated to the Department of Defense to carry out
the Program $375,000,000 for the period of fiscal years 2026
through 2030.
(2) Availability.--Of the amounts appropriated pursuant to
the authorization in paragraph (1), $75,000,000 shall be
available to the Secretary to award grants under subsection
(d).
(3) Federal share.--The Federal share of support provided
to a defense technology hub under the Program in a fiscal year
may not exceed 50 percent of the total cost of the operations
and activities of the defense technology hub under the Program
in that fiscal year.
(h) Administration.--
(1) In general.--The Secretary shall administer the Program
through the Under Secretary of Defense for Research and
Engineering, in coordination with the Director of the Defense
Innovation Unit and the heads of such other elements of the
Department as the Secretary considers appropriate.
(2) Waiver of acquisition regulations.--For any project of
a defense technology hub under the Program that the Secretary
determines has a total cost of less than $10,000,000, the
Secretary may waive applicable acquisition regulations to
expedite development and prototyping, consistent with similar
authorities of the Secretary that were in effect on the day
before the date of the enactment of this Act.
(3) Annual progress reports.--Each defense technology hub
shall, not less frequently than once each year, submit to the
Secretary an annual progress report detailing technological
advancements, partnerships, and economic outcomes.
SEC. 5. COORDINATION WITH EXISTING PROGRAM.
The Secretary of Defense shall ensure the Program complements, and
does not duplicate, existing efforts such as efforts of the Defense
Advanced Research Projects Agency (DARPA), the Manufacturing USA
Institutes, the Regional Technology and Innovation Hubs of the Economic
Development Administration (EDA), the Defense Innovation Unit (DIU),
and the Regional Innovation Engines of the National Science Foundation.
The Secretary shall, as the Secretary determines appropriate, align
defense technology hub activities with existing defense and
intelligence infrastructure to maximize the use of established mission
platforms and reduce redundant investments, particularly in areas where
new Federal campuses are designed to serve as long-term anchors for
defense innovation ecosystems.
SEC. 6. EVALUATION AND REPORTING.
(a) Independent Evaluations.--The Secretary of Defense shall seek
to enter into a contract with an independent entity to evaluate the
effectiveness of the Program annually for the first 5 years of the
Program, and biennially thereafter, assessing technology outputs,
national security impacts, and return on investment.
(b) Annual Reports.--Not less frequently than once each year, the
Secretary shall submit to the Committee on Armed Services of the Senate
and the Committee on Armed Services of the House of Representatives an
annual report detailing Program activities, defense technology hub
performance, and recommendations for improvement to the Program.
SEC. 7. EFFECTIVE DATE.
The provisions of this Act shall take effect on the date that is
180 days after the date of the enactment of this Act.
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