Tennessee Commits $20M to New Quantum Initiative as EPB Secures $4M Federal Grant

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  • Tennessee officials and EPB announced $24 million in combined state and federal funding to support quantum computing initiatives.
  • Governor Bill Lee allocated $20 million to the newly formed Tennessee Quantum Initiative during his State of the State Address, while EPB disclosed a separate $4 million NIST-backed investment for quantum workforce development in Chattanooga.
  • The EPB-led funding supports a Quantum Computing Fellowship, expansion of quantum infrastructure, and partnerships with institutions including Vanderbilt University, as reported by Teknovation.

Tennessee officials and EPB have announced new funding allocations that together total $24 million for quantum computing initiatives in the state, according to Teknovation. The announcements were made separately by Governor Bill Lee and EPB and were disclosed on the same day.

During Tennessee Governor Bill Lee’s State of the State Address, he announced a $20 million allocation to the newly formed Tennessee Quantum Initiative. As reported by Teknovation, the governor said the funding is intended to accelerate Tennessee’s quantum computing industry by attracting federal and private-sector investment.

In a statement cited by Teknovation, Governor Lee said, “We also have a vision that Tennessee will both power America and be the catalyst for solving our nation’s most complex problems.” Teknovation noted that additional details about the $20 million allocation were not provided at the time of the announcement.

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On the same date as the governor’s address, EPB announced a separate $4 million federal investment to support quantum workforce development in Chattanooga.Teknovation reports that the funding comes from the National Institute of Standards and Technology (NIST) and will support the launch of a new Quantum Computing Fellowship program.

The fellowship program is designed to provide training and real-world experience to participants developing quantum solutions for EPB customers. Teknovation reports that eight fellows will participate in the program, which is intended to help build a local, quantum-ready workforce and support job creation within the emerging quantum industry.

Source reported that EPB Quantum Computing Manager Paul Smith leads the fellowship program and previously Smith has held leadership roles at EPB overseeing enterprise-scale systems and modernization initiatives.

EPB President and CEO-elect Janet Rehberg said: “This critical investment in workforce development will prepare a highly skilled workforce to lead the quantum future and keep Chattanooga’s innovation ecosystem on the cutting edge.”

Teknovation also reports that Rehberg spoke at the inaugural Tennessee Quantum Immersion Day in June 2025, where she discussed EPB’s involvement in quantum initiatives. EBP’s Quantum Center is scheduled for completion in early 2026 and will provide commercial access to quantum networking and quantum processing capabilities. The center builds on EPB’s Quantum Network launched in 2023 and expands capabilities through EPB’s partnership with IonQ.

According to Teknovation – Vanderbilt University has partnered with EPB to begin developing Tennessee’s first Institute for Quantum Innovation. Pending required approvals, the institute is expected to focus on research, innovation, and graduate-level education in quantum-related fields.

Additional regional efforts involving the Chattanooga Quantum Collaborative, CO.LAB, and the Chattanooga Chamber of Commerce are also contributing to the region’s quantum-focused initiatives, Teknovation reports.

Sources – Teknovation and Tennessee State Government.

Mohib Ur Rehman

Mohib has been tech-savvy since his teens, always tearing things apart to see how they worked. His curiosity for cybersecurity and privacy evolved from tinkering with code and hardware to writing about the hidden layers of digital life. Now, he brings that same analytical curiosity to quantum technologies, exploring how they will shape the next frontier of computing.

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