BIRMINGHAM, Ala. (AP) — The Trump administration has rescinded a $44 million federal grant awarded to Southern Research and the University of Alabama at Birmingham to advance the Birmingham Biotechnology Hub, a move that threatens to stall a major initiative aimed at boosting the region’s biotech sector, creating jobs, and improving health outcomes for underserved communities.
The funding, initially awarded in January 2025 by the U.S. Department of Commerce’s Economic Development Administration, was set to support projects using artificial intelligence to accelerate drug development, produce affordable drugs and diagnostics, and increase diversity in clinical genomic data and trials. The hub, designated as a federal Tech Hub in 2023 under the Biden-Harris administration, was widely viewed as a game-changing opportunity for Birmingham and Alabama, with strong bipartisan support from state leaders and members of Congress.
The loss of the grant raises concerns about the city’s ability to remain at the forefront of biotechnology innovation and could have ripple effects across the state and beyond. The initiative was designed to train Alabamians for biotech jobs, improve access to genetic testing and precision medicine for rural and minority communities, and strengthen the region’s economic competitiveness by attracting private investment and fostering new research partnerships.
With the funding now canceled, Southern Research and its partners must recompete for the money under new federal guidelines. The abrupt reversal has alarmed local leaders, who say the investment was poised to create high-paying jobs, advance healthcare equity, and position Birmingham as a global leader in equitable, AI-driven biotechnology.
Critics argue that rescinding the grant undermines years of planning and collaboration among public and private institutions, potentially delaying progress on medical innovations that could benefit not just Alabama but also the broader healthcare landscape. The move comes despite the initiative’s potential to reduce reliance on foreign drug supplies and to make life-saving diagnostics and therapeutics more accessible to Americans.
The Birmingham Biotechnology Hub was among only six recipients nationwide to receive implementation grants from the U.S. Tech Hubs program, which was created to strengthen American leadership in critical technologies and bolster national security. The cancellation leaves unanswered questions about the future of biotech research and workforce development in the region.