NASHVILLE — Gov. Bill Lee and Deputy Gov. Stuart C. McWhorter announced a $3 million state funding commitment to support National Science Foundation X-Labs quantum research teams that establish operations in Tennessee. The initiative, called the Tennessee Quantum X-Labs Challenge, is designed to attract teams committed to commercializing their quantum technologies within the state.

The Tennessee Quantum X-Labs Challenge provides up to $3 million in state support to qualifying teams and offers access to research and testing infrastructure, commercialization support, partnerships with industry and laboratories, and workforce development resources. The funding is intended to help National Science Foundation X-Labs teams accelerate commercialization in Tennessee. McWhorter serves as both Deputy Governor and Commissioner of the Tennessee Department of Economic Development.

"Over the past few years, Tennessee has earned the reputation as having one of the strongest quantum ecosystems in the country," said Gov. Lee. "This investment will help ensure that the companies developing tomorrow’s quantum technologies will choose our state to grow, cultivate high-quality jobs and bring new innovations," he added.

"Tennessee is uniquely positioned to help quantum companies move from breakthrough research to real-world deployment," said Deputy Gov. and Commissioner McWhorter. He also stated, "We’re shifting our economic development strategy from simply recruiting projects to orchestrating ecosystems where companies and innovators can access the partners, infrastructure, and talent they need to succeed, and today’s announcement signals a clear message that we’re ready to do so."

LaunchTN is adding a support package to help X-Labs teams establish operations in Tennessee. X-Lab awardees that relocate to the state and companies emerging from the program receive priority consideration for LaunchTN’s SBIR/STTR Matching Fund, which augments federal non-dilutive awards with state capital. Eligible companies may also receive direct investment through InvestTN.

Tennessee’s quantum ecosystem includes Oak Ridge National Laboratory, the Tennessee Valley Authority, EPB, research universities, and the state's innovation and manufacturing base. Gov. Lee’s 2026 budget had previously approved and allocated $43 million for the state’s quantum infrastructure.