The city is stepping in as a grant partner on a major aerospace manufacturing initiative with the University of Texas at El Paso.
The El Paso City Council unanimously approved a plan to sign on as a co-applicant for UTEP’s Build Back Better Regional Challenge grant from the U.S. Economic Development Administration during its meeting Tuesday, Oct. 14.
The move comes after UTEP dropped the ball on a $15 million National Science Foundation grant aimed at growing the aerospace and defense manufacturing industries in the El Paso region.
The NSF grant was suspended in 2024 after UTEP officials reported their grant proposal had incorrect information that “committed resources that do not exist.” By Aug. 12, the grant for UTEP was officially terminated.
“This is a major step toward shaping El Paso’s future as a hub for advanced manufacturing and aerospace innovation,” said Mayor Renard Johnson in a news release after the vote. “By investing in our workforce and strengthening local supply chains, we’re opening doors to high-quality jobs, helping our small and medium-sized manufacturers grow, and positioning El Paso as a key player in industries that will define the next generation of economic opportunity.”
The federal Build Back Better Regional Challenge grant, awarded to a UTEP-led coalition in 2022, included a total of $40 million — $15 million to assist small and medium-sized manufacturers and $25 million for the city to make site improvements on a 250-acre parcel near the El Paso International Airport to be transformed into an Advanced Manufacturing District.
Tuesday’s vote means most of the funds bound for UTEP and the Manufacturing District will now be in the city’s hands to get the stalled initiative back on track.
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Along with the $10 million the city will be administering, matching funds have already been contributed to the project.
In February 2023, the city approved $1.875 million in additional funds and the El Paso County Commissioners Court approved an additional $375,000. In August 2023, the Commissioners Court approved another $1.875 million for the project, bringing the total to nearly $13.17 million.
While the other $25 million award will go toward preparing the Manufacturing District site, the remaining $13 million will be used as follows:
“We have been working closely with the city on this project since 2023,” UTEP President Heather Wilson said in the release. “This change deepens our partnership so that we leverage our strengths for the long term ― even after this grant is complete. UTEP’s cutting-edge advanced manufacturing know-how and aerospace research will continue to advance discovery, spin out companies and educate students ― all of which are important for economic impact.
“The City of El Paso will focus on working with companies and providing technical assistance as they develop,” she added. “We are grateful to be leading this effort with El Paso.”
Officials are expected to report back to the City Council on the project’s progress in December.
Adam Powell covers government and politics for the El Paso Times and can be reached via email at apowell@elpasotimes.com.
This article originally appeared on El Paso Times: Can El Paso reenergize $40M aerospace manufacturing grant critical to city’s job growth?
Reporting by Adam Powell, El Paso Times / El Paso Times
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