Birmingham loses “groundbreaking” $44M federal biotech grant; what you need to know

A “groundbreaking” $44 million investment into the Birmingham Biotechnology Hub has been canceled, according to a recent statement from U.S. Congresswoman Terri Sewell. Initially awarded in January, the funding was set to support the growth of Alabama’s biotechnology ecosystem.

About the Birmingham Biotechnology Hub grant

In January 2025, the U.S. Economic Development Administration (EDA) awarded a $43.6 million grant to a public-private partnership in Birmingham to advance the state’s biotechnology ecosystem. Called the Birmingham Biotechnology Hub grant, the funding was split between several partners:

• $20M of the grant funded Southern Research’s Catalyst program, which offers free genetic testing and expands access to precision medicine to communities across Alabama with support from the State of Alabama and City of Birmingham.
• $10M of the grant was awarded to the UAB Center for Innovation Platforms and Therapeutics Acceleration to develop advanced AI biotech platforms that speed up drug discovery.
• $7.26M of the grant was awarded to Lawson State Community College’s Biotech Early Career Workforce Development Program.
• $5M of the grant funded The PROPEL Center’s Biotech Advanced Upskilling Project.

The Birmingham Biotechnology Hub was one of only 31 Tech Hubs designated in October 2023 by President Biden to encourage production of critical technologies, create new innovative jobs and strengthen U.S. economic competitiveness and national security. Of those 31 Tech Hubs, only six—including Birmingham—were awarded implementation grants by the U.S. EDA.

“This is a game changing opportunity.

Birmingham was the poster child of the industrial revolution in the south. Our legacy was carved out of the iron ore that was embedded in Red Mountain. In the years that followed, we pivoted from metal to medicine with UAB. Now, we’re taking our next steps toward another technological revolution.

This grant opens the door to equitable AI-driven biotechnology. This will be the breakthrough that can shatter the generational cycle of poverty.” 

Mayor Randall L. Woodfin, in a statement on January 16, 2025

What the loss of the Birmingham Biotechnology Hub grant means for Birmingham

The loss of the Birmingham Biotechnology Hub funding could have several long-term effects on the city of Birmingham and the state as a whole, including:

• The loss of significant job creation over the next decade through initiatives like Southern Research’s Catalyst program.
• The loss of a first-of-its-kind genomic biobank that would drive clinical trial representation in Black and rural communities across Alabama.
• The loss of educational opportunities and valuable workforce development training in the biotech sector from institutions like Lawson State Community College and The PROPEL Center.

Although the Birmingham Biotechnology Hub grant has been canceled, the Southern Research Institute and other affected organizations will have the opportunity to recompete for the funding under new guidelines from the Trump Administration.

How do you think the loss of the Birmingham Biotechnology Hub grant will affect Birmingham and Alabama? Tag us @bhamnow to let us know.