From 2020 to 2022, the US Economic Development Administration (EDA) Build to Scale program catalyzed $262 million in private investment and helped companies secure 274 inventions.
The reality is that we have not yet seen the final outcome in the appropriations tug-of-war between Congress and the Trump administration.
EDA’s investments strengthened entrepreneur assistance, capital access and technology development in dozens of regions across the country, from Ag Launch’s farmer-focused agriculture tech innovation in Memphis to Launch NY’s local seed investment funds.
Now, EDA is sitting on $150 million for Build to Scale while the administration decides if, how, or when it will execute Congress’s intent for the program.
Build to Scale is just one federal initiative that regions use to advance tech, science and entrepreneurship initiatives — and it is not the only one that seems to have an uncertain future despite support in Congress. Many stakeholders breathed a sigh of relief after Congress used the FY 2026 budget largely to confirm the branch’s commitment to the direction of federal innovation policy that America has taken in the past few years.
The reality is that we have not yet seen the final outcome in the appropriations tug-of-war between Congress and the Trump administration, and so federal innovation stakeholders must remain attentive and ready to act.
How the FY 2026 budget invests in innovation
The appropriations bills passed in early 2026 have generally continued funding levels from FY 2025 and earlier.
Total federal research and development funding was down 0.2% (-$372 million) from the previous year after the White House had proposed significant cuts, according to the American Association for the Advancement of Science. Regional innovation programs with consistent funding include EDA’s Build to Scale and Tech Hubs, the National Institute of Standards and Technology Manufacturing Extension Partnership (MEP) and the Small Business Administration’s (SBA) Accelerators and Clusters initiatives.
Perhaps the greatest signs that Congress wants to continue supporting science and innovation programs were not in the amounts themselves. The FY 2026 appropriations include directions to cancel program changes, provide funding in a timely manner and report to Congress on next steps.
One example of this language covered the MEP and read in part: “The agreement directs that no funds are provided to execute or plan for a program that reduces the number of active MEP Centers and that the secretary shall minimize … the periods of time when no MEP Center is active in any state or Puerto Rico.”
The White House has the next word
Federal agencies should follow the FY 2026 appropriations bills and spend funds on the programs accordingly. To be clear: failing to do so violates America’s understanding of the balance of power between the legislative and executive branches, and the Impoundment Control Act of 1974 (ICA) provides only narrow exceptions to this understanding.
What will happen is less certain.
According to announcements on agency websites and grant records, spending in FY 2025 appears to have been more limited than should have been the case across multiple agencies, including EDA and SBA.
Due to legal nuances, some of these spending lapses may not constitute impoundments, but the administration certainly knew that its inaction went against congressional intent and the legislative branch’s power of the purse.
Not much has changed this year. The FY 2026 appropriations laws provide clear and codified spending directions.
However, the courts seem unlikely to address any impoundment violations. The ability to file ICA lawsuits lies solely in the hands of the comptroller general — a position that was vacated due to term limits at the end of 2025 and is unlikely to be filled soon.
In short, regions hoping to compete for federal funding may still have to wait to see what opportunities the administration will open.
This does not mean that the administration will approach spending in 2026 in the same way it did in 2025. The White House’s interest in passing legislation, securing nominations and supporting candidates could lead it to be more supportive of Congress’s priorities. This creates opportunities for Congress and the public to influence the administration’s decisions.
What can you do about it?
The bottom line is that more communication is needed.
Citizens, entrepreneurs, researchers, investors, service providers and anyone else who wants to see continued federal investment in research, development, startups, tech adoption, trade and any other innovation activity must advocate for these initiatives and outcomes.
Here are useful steps that people can take:
- Track the outcomes of federally funded activities. Data is helpful, but stories often better convey how assistance led to commercial success or hiring.
- Publish this information on public platforms. Make your story easy for policymakers and reporters to find.
- Share those stories with elected and career officials at all levels of government. Local and state governments talk with the federal government all the time.
- Look to combine your message with others. Contact your local entrepreneurship support organization, trade association, or advocacy group.
Taking one — or all — of these actions will help agencies decide to continue funding innovation programs, and ensure Congress continues to provide its support in FY 2027 (already under consideration) and beyond.
