U.S. Department of Commerce Invests Approximately $40 Million to Strengthen the Aerospace and Defense Sector in West Texas Through American Rescue Plan Regional Challenge

WASHINGTON – Today, President Biden will announce the West Texas Aerospace and Defense Manufacturing Coalition as one of 21 winners of the $1 billion Build Back Better Regional Challenge, the most impactful regional economic development competition in decades. Funded by President Biden’s American Rescue Plan and administered by the U.S. Department of Commerce’s Economic Development Administration (EDA), the Regional Challenge is awarding approximately $40 million in grants to the West Texas Aerospace and Defense Manufacturing Coalition, led by the University of Texas at El Paso, to strengthen America's aerospace and defense manufacturing capabilities by integrating legacy manufacturers in West Texas into the aerospace and defense (A&D) supply chain.

With $40 million in funding from EDA, the West Texas Aerospace and Defense Manufacturing Coalition will strengthen America's aerospace and defense manufacturing capabilities by integrating legacy manufacturers in West Texas into the aerospace and defense (A&D) supply chain. Projects funded as part of this award include establishing the El Paso Makes Advanced Manufacturing District where firms can co-locate with research and innovation assets while also benefiting from the physical and cybersecurity infrastructure required to participate in the A&D market.  EDA funding also will train and educate a diverse STEM workforce in a region that includes a large rural population and is 82 percent Hispanic. This strategy will give those skilled workers the chance to build their careers and their businesses in West Texas.

“The Build Back Better Regional Challenge will not only invigorate the aerospace and defense manufacturing industry – it will support and prioritize the minority and rural workers in Texas.” said U.S. Secretary of Commerce Gina Raimondo. “The West Texas Aerospace and Defense Manufacturing Coalition will strengthen a critical technology sector that will create many jobs and ensure U.S. global competitiveness for decades to come.”

“EDA is proud to support the vision of the University of Texas at El Paso and its coalition partners,” said Alejandra Y. Castillo, Assistant Secretary of Commerce for Economic Development. “This EDA investment will train and educate a diverse workforce in West Texas, which includes large rural and Hispanic populations, and give workers the chance to build their careers and businesses.”

“The Economic Development Administration’s investment in the West Texas Aerospace and Defense Manufacturing Coalition led by the University of Texas at El Paso will help equip Texans in the region with the knowledge and skills needed to thrive in the competitive aerospace and defense sector,” said Texas Governor Greg Abbott. “Home to innovative industry leaders, Texas’ aerospace, aviation, and civilian defense labor force is one of the largest in the nation, and we look forward to bringing even more opportunities for growth and career advancement to hardworking Texans across the state.”

“I’m absolutely thrilled for UTEP and the rest of the West Texas Aerospace and Defense Manufacturing Coalition for this funding,” said Congresswoman Veronica Escobar (TX-16). “As an enthusiastic supporter of this program who has facilitated conversations at every level of government, including with Secretary of Commerce Raimondo, I know the benefits of an investment of this scale for our community, our economy, and our university will be monumental. As the only federal elected official in the region to vote for the American Rescue Plan, I'm proud El Paso will continue to contribute to the talented workforce within the rapidly growing aerospace industry. The dedicated leadership of UTEP, especially Dr. Chodhuri and President Wilson, should be proud we’re quickly transforming El Paso to a formidable player that will bolster our national security.”

The West Texas Aerospace and Defense Manufacturing Coalition is one of 21 winners – each a regional coalition of partnering entities – that will receive awards between $25 million and $65 million to implement an average of six integrative projects that will enable each region's economic transformation and competitiveness.

The Build Back Better Regional Challenge (BBBRC) is an unprecedented competitive federal grant program that provides each regional coalition with significant investments to tackle a wide variety of projects – including entrepreneurial support, workforce development, infrastructure, and innovation – to drive inclusive economic growth. Each coalition’s collection of projects aims to develop and strengthen regional industry clusters – all while embracing economic equity, creating good-paying jobs, and enhancing U.S. competitiveness globally. Projects span 24 states and include $87 million to two primarily Tribal coalitions and over $150 million for projects serving communities impacted by the declining use of coal. 

The 21 BBBRC awardees were chosen from 60 EDA-designated finalists that each received approximately $500,000 in funding and technical assistance to continue developing their cluster strategies. The funding for each coalition is approximate, with awards to be signed later in September. Those 60 finalists were chosen from a Phase 1 applicant pool of 529 applications, which exemplifies the tremendous demand for transformational economic development approaches. EDA will continue to support all 60 finalists with the creation of a Community of Practice that will provide technical support, foster connectedness with peer regions and build capacity.

The Build Back Better Regional Challenge is one of EDA’s many programs aimed at building strong regional economies and supporting community-led economic development. EDA was allocated $3 billion in supplemental funding under the American Rescue Plan to assist communities nationwide in their efforts to build back better by accelerating economic recovery from the coronavirus pandemic and building local economies that will be resilient to future economic shocks. As a part of this funding, EDA allocated $300 million through a Coal Communities Commitment to support coal communities in pandemic recovery and help them create new jobs and opportunities, including through the creation or expansion of a new industry sector. Specifically, EDA has dedicated $100 million of its Build Back Better Regional Challenge funds and $200 million of its Economic Adjustment Assistance funds to directly support coal communities. Grantees for EDA’s full suite of American Rescue Plan programs will be awarded on a rolling basis through September 30, 2022. For more information, visit https://www.eda.gov/ARPA/.

About the U.S. Economic Development Administration (www.eda.gov)
The mission of the U.S. Economic Development Administration (EDA) is to lead the federal economic development agenda by promoting competitiveness and preparing the nation's regions for growth and success in the worldwide economy. An agency within the U.S. Department of Commerce, EDA invests in communities and supports regional collaboration in order to create jobs for U.S. workers, promote American innovation, and accelerate long-term sustainable economic growth.