S. 1978 — Defense Technology Hubs Act of 2025

This section states the purpose of the Act 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, rapid development of defense-related technologies, and attraction of talent from across the United States.

This section defines terms used in the Act, including (1) anchor Federal defense institution (i.e., a defense manufacturing facility, an institution of higher education engaged with the Department of Defense on research, development, testing, and evaluation, or a military installation); (2) defense technology hub (i.e., a regional hub designated and supported under the Program); (3) eligible consortium (i.e., a consortium of universities, defense contractors, small businesses, nonprofit organizations, and state or local governments); (4) emerging technologies (i.e., scientific and engineering advancements with potential military applications, as identified by the Secretary of Defense); and (5) Program (i.e., the Defense Technology Hubs Program established under section 4(a)).

This section establishes the Defense Technology Hubs Program, under which the Secretary of Defense must solicit applications from eligible consortia and designate regional defense technology hubs based on criteria including demonstrated capability in defense-relevant technologies, regional collaboration, presence of anchor Department of Defense institutions (particularly in geospatial intelligence, data fusion, and artificial intelligence), innovation ecosystems, strategic priorities, and economic impact. The Secretary must ensure geographic distribution across the United States, with a goal of designating at least 10 hubs within three years of enactment. Hub objectives include accelerating research, development, prototyping, and transition of emerging technologies with military applications (such as artificial intelligence, quantum technologies, hypersonics, biotechnology, and advanced manufacturing); fostering partnerships among Department components, industry, academia, and state/local governments; promoting workforce development; and enhancing defense industrial base resilience. The section authorizes the Secretary to award grants to hubs for seed funding, research, prototyping, technology transition, and administrative expenses; requires cybersecurity, export control compliance, exclusion of foreign entities of concern (as identified by the intelligence community or the Commerce Department's Entity List), and mechanisms to protect sensitive research; directs development of intellectual property guidelines balancing national security and commercial incentives; and authorizes appropriations.

This section directs the Secretary of Defense to ensure the Program complements and does not duplicate existing efforts, including those of the Defense Advanced Research Projects Agency (DARPA), the Manufacturing USA Institutes, the Economic Development Administration's (EDA) Regional Technology and Innovation Hubs, the Defense Innovation Unit (DIU), and the National Science Foundation's (NSF) Regional Innovation Engines. The section further requires the Secretary, as appropriate, to align defense technology hub activities with existing defense and intelligence infrastructure to maximize use of established mission platforms and reduce redundant investments, particularly in areas where new federal campuses anchor defense innovation ecosystems.

This section directs the Secretary of Defense to (1) seek to contract with an independent entity to evaluate the Program's effectiveness annually for the first five years and biennially thereafter, assessing technology outputs, national security impacts, and return on investment; and (2) submit annual reports to the Senate and House Armed Services Committees detailing Program activities, defense technology hub performance, and recommendations for improvement.