U.S. Department of Commerce Invests Approximately $62.7 Million to Strengthen the Robotics and Autonomy Cluster in Southwestern Pennsylvania Through American Rescue Plan Regional Challenge

WASHINGTON – Today, President Biden will announce the Southwestern Pennsylvania New Economy Collaborative 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 $62.7 million in grants to the Southwestern Pennsylvania New Economy Collaborative to supercharge the region’s globally recognized robotics and autonomy cluster.

With $62.7 million in funding from EDA, Southwestern Pennsylvania New Economy Collaborative projects include expanding robotics and artificial intelligence (AI) training opportunities to reach rural and coal-impacted communities in the 11-county region. EDA funding will also assist small- and medium-sized businesses in adopting robotics and AI technology to build efficiency and competitiveness. This effort represents the first time the region has developed a truly systemic approach to creating opportunity for workers and employers, weaving together five comprehensive, interdependent projects to encourage the adoption, upskilling, and innovation of robotics and autonomous technologies.

“The robotics and artificial intelligence industries are critical to our global competitiveness, innovation, and job creation. This funding will ensure these opportunities reach rural and coal-impacted communities while solidifying the U.S.’s leadership in the industry” said U.S. Secretary of Commerce Gina Raimondo. “The Southwestern Pennsylvania New Economy Collaborative coalition will strengthen this critical technology and innovation sector and create jobs and economic opportunity for decades to come.”

“EDA is proud to support the vision of the Southwestern Pennsylvania New Economy Collaborative and its coalition partners,” said Alejandra Y. Castillo, Assistant Secretary of Commerce for Economic Development. “This EDA investment will enable employers from across the region to be more competitive, allow a broad range of workers to be more highly skilled and restore a higher quality of life for all communities.”

“This $62.7 million will further fuel Pennsylvania as a hub for innovation and technology,” said Pennsylvania Governor Tom Wolf. “President Biden is making transformative investments here in Pennsylvania to secure prosperity and opportunity for all.”

“The Southwestern Pennsylvania New Economy Collaborative is an embodiment of the spirit of the entire Pittsburgh region,” said Pennsylvania Senator Bob Casey. “When Southwestern Pennsylvania was knocked down, they didn’t wait for someone else to pick them back up. They reinvented themselves to become leaders in technology and winning the Build Back Better Regional Challenge will allow workers and small and family-owned businesses to take advantage of the region’s robotics and AI industries to modernize their own businesses and keep them growing in a 21st century economy. By working together to invest in the region, the Collaborative’s efforts are going to support thousands of jobs and generate hundreds of millions of dollars of new economic prosperity across Southwestern Pennsylvania.”

“No region in the country is better positioned than southwestern PA to create the jobs and economy of the future.  We have the best workers, outstanding educational institutions, a partnership among public and private sector leaders, and an unrivaled manufacturing sector.  This $62.7 million federal investment – made possible by the American Rescue Plan – will help create new jobs in the robotics field and protect existing jobs in manufacturing,” said Congressman Conor Lamb (PA-17).

“I’m pleased but not surprised that Southwestern Pennsylvania’s entry was one of only 21 winners among more than 500 contenders that entered this competition,” said Congressman Mike Doyle (PA-18). “Pittsburgh is already recognized as a world leader in robotics and autonomous vehicle technology, and the potential for growing our economy with a smart targeted investment like this is clear. Strengthening and expanding this promising industry won’t just bring economic growth and new jobs to our region, improving our quality of life; it will also benefit the entire nation by increasing America’s competitiveness globally. The Build Back Better Regional Challenge is representative of the kind of smart, targeted investments being made through President Biden’s American Rescue Plan, which Congress approved with my strong support last year.”

The Southwestern Pennsylvania New Economy Collaborative is one of 21 winners – each a regional coalition of partnering entities – that will receive awards between $25 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.