City of El Paso takes over administration of $40 million aerospace award

EL PASO, Texas (KVIA) -- El Paso City Council approved a resolution today authorizing Mayor Renard Johnson to sign an Interlocal Agreement with UTEP. The agreement allows the city to take over the administration of a $40 million award that boosts the Borderland's aerospace and defense manufacturing capabilities. The money comes from the U.S. Economic Development Administration’s Build Back Better Regional Challenge (BBBRC).

The award was first issued in 2022. UTEP was the lead applicant, but since that time, the university's Aerospace Center has experienced a number of setback, including the departure of its leader Ahsan Choudhuri, and the loss of a National Science Foundation grant.

As part of the city and UTEP's new agreement, the city is getting $25 million to establish the Advanced Manufacturing District at the airport, making room for aerospace and defense companies, suppliers, and support services. UTEP also gets a $15 million award to provide programming and technical help to local manufacturers.

The city describes the new agreement as a step toward advancing El Paso's manufacturing strategy.

“This is a major step toward shaping El Paso’s future as a hub for advanced manufacturing and aerospace innovation,” said Mayor Renard U. Johnson. “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.”