119-s1978

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 1978 Introduced in Senate

    (IS) ]

<DOC>

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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