Issue 85, September 2025
A Summary of Cutting-Edge Articles Affecting States
HEADLINES
SEDE News 🗞️
Webinars
Economy 💰
Trade 📈
Industry Trends 💡
Workforce ⚒️
Business Expansions and Incentives 📊
SEDE Hosts Meeting for Top Executives (SEDE) The State Economic Development Executives (SEDE) Network is holding its Fall meeting for state economic development executives or their deputies in New York City from October 14-15th, hosted by Empire State Development Corporation. The agenda will include discussions of current issues facing states and many opportunities for networking among the state economic development commissioners, secretaries and executive directors or their top deputy. Networking will be a key component during the meeting and outside activities. Top leaders or their deputies can offer input on the agenda and register here.
Call for Sponsorship Practices (SEDE) SEDE is interesting in potentially creating strategic relationships with economic development sponsor partners. Sponsors may gain visibility with SEDE leaders, broaden their promotional reach, and be recognized in event materials, signage, and digital channels. SEDE wants to learn more about the sponsor relationships that exist in the economic development ecosystem. Please contact Bob Isaacson, Senior Vice President with the Center for Regional Economic Competitiveness, if you have experiences, best practices, or lessons you’d like to share!
Webinars
Sep. 18, 2025 C2ER Webinar: Child Care Access as an Economic Development Strategy in North Carolina Access to affordable, high-quality child care and early education isn’t only a social issue – it drives economic development. Samantha Cole, Child Care Business Liaison for the North Carolina Department of Commerce, will lead a discussion on how access to affordable, high-quality childcare and early education drives economic development. The presentation will cover recent efforts in North Carolina, including the work of the North Carolina Task Force on Child Care and Early Education, as well as opportunities for employers to improve childcare access for their workers and communities. Register now to join on September 18, 2025, at 2:00PM ET!
Sept. 23, 2025 EIG Webinar: OZs 2.0: What State and Local Leaders Need to Know Join the Economic Innovation Group on Tuesday, September 23 at 1:00 PM ET for a timely webinar providing state and local policymakers and their staff with practical guidance on navigating the new era of Opportunity Zones, now permanent under the One Big Beautiful Bill Act. The session will cover the updated policy framework, key timelines, and the designation process, and will also highlight how states and localities can align designations with long-term community priorities while positioning themselves to attract private capital. Participants will come away with actionable insights on opportunities to improve their designation process, maximize impact, and ensure Opportunity Zones remain a powerful tool for driving economic growth and community development.
Sep. 30, 2025 SEDE Webinar: Strategies to Attract and Develop Rural Workforces Join us for a discussion on innovative strategies to build, attract, and retain talent in rural communities. Whether you’re a state economic development executive, policy director, program manager, or regional development specialist, this webinar will provide you with strategic frameworks and practical approaches to enhance your state’s rural workforce initiatives. Join us on September 30th at 3:00 PM ET!
SEDE Steering Committee Member Spotlight: Kurt Foreman, President & CEO, Delaware Prosperity Partnership
Kurt Foreman was appointed President and CEO of Delaware Prosperity Partnership (DPP) in the spring of 2018. DPP is the public-private economic development organization in the state and is a 501C3 nonprofit funded by the state and private-sector investors.
Foreman’s experience includes serving in various senior roles in economic development groups throughout the United States, including in Oklahoma, Louisiana, Pennsylvania, Wisconsin and in the Washington, D.C., metro area. Foreman has served as a site selection consultant working directly with companies to help assess and choose where to locate or expand throughout the nation. He also worked as an executive recruiter with a leading global executive search firm supporting senior-level searches across many sectors.
Foreman received his bachelor’s degree at Franklin & Marshall College in Lancaster, Pa., and his master’s degree from Wake Forest University in Winston-Salem, N.C. And perhaps most importantly, he and his wife, Julie, have four grown children and three grandchildren.
SEDE Members on the Move: Massachusetts Executive Office of Economic Development
We’re pleased to share recent leadership changes within the SEDE Network. Join us in celebrating these transitions and welcoming new leaders to our community!
Incoming Leader: Eric Paley, Economic Development Secretary
Eric Paly is the new Secretary of Economic Development for Secretary for the Massachusetts Executive Office of Economic Development. Paley has worked to shape the innovation economy for more than 25 years as both a successful entrepreneur and a leading venture capitalist. As co-founder and Managing Partner of Founder Collective, Paley helped build one of the world’s highest-performing seed-stage venture capital funds. Paley started his new role in September.
Why It’s the Toughest Time to Be Searching for Work in America in Years (The Washington Post) New data showed a fourth month of tepid job growth and propelled joblessness to its highest level since late 2021, when the economy was still recovering from the effects of the coronavirus pandemic. Hardly any corner of the economy is untouched by jobs cuts and slowdown: employment in all goods-producing industries slumped in August, with the deepest losses coming from manufacturing and mining. The service sector was racked by steep layoffs in business and professional services, and IT. Employers added 22,000 jobs in August, the Bureau of Labor Statistics reported, pushing the unemployment rate up to 4.3 percent. Meanwhile, layoff announcements have risen. Federal workforce reductions, economic and market conditions, store, and plant closings, and restructuring and bankruptcies ranked among the most commonly cited motivations for layoffs. Interestingly, more than 10,000 cuts were explicitly tied to artificial intelligence.
Employers Added Nearly a Million Fewer Jobs than Believed, Data Shows (The New York Times) The U.S. economy probably added close to a million fewer jobs in 2024 and early 2025 than previously reported, the latest sign that the labor market, until recently a bright spot in the economy, may be weaker than it initially appeared. The revised data was released by the Bureau of Labor Statistics as part of a longstanding annual process known as benchmarking. The data showed that employers added 911,000 fewer jobs in the 12 months through March than had been indicated in the monthly payroll figures. That implies the economy added only about 850,000 jobs during that time — half as many as previously reported. The revision was large, but not surprising. Forecasters had anticipated a substantial downward adjustment based on quarterly data released earlier this year. The annual benchmarking process is necessary because the monthly jobs figures are estimates, based on a survey of more than 100,000 employers. Once a year, the Bureau of Labor Statistics reconciles those estimates with less timely but more authoritative records from state unemployment offices.
U.S. Economy Grows 3.3% in Second Quarter (AP News) In an upgrade from its first estimate in July, the Commerce Department said that U.S. gross domestic product — the nation’s output of goods and services — expanded at a 3.3% annual pace from April through June after shrinking 0.5% in the first three months of 2025. The department had initially estimated second-quarter growth at 3%. The first-quarter GDP drop, the first retreat of the U.S. economy in three years, was mainly caused by a surge in imports, which are subtracted from GDP, as a response to proposed tariffs. That trend reversed as expected in the second quarter: imports fell at a 29.8% pace, boosting April-June growth by more than 5 percentage points. The Commerce Department reported that consumer spending and private investment were a bit stronger in the second quarter than it had first estimated.
The Future of Foreign Trade (National Bureau of Economic Trade) Foreign trade has significantly contributed to global improvements in living standards, a reduction in global inequality since the mid-1990s, and the lifting of millions out of extreme poverty. However, these achievements have recently been challenged. This paper examines the evolution of public attitudes toward trade, the role and resilience of global value chains (GVCs), and the economic implications of recent trade policies, including tariffs and reshoring efforts. The report highlights that while reshaping trade for national security is increasingly common, such moves may undermine efficiency, harm lower-income countries, and fragment the global economy. It concludes by emphasizing the need for international cooperation to maintain the benefits of trade and prevent economic and geopolitical instability.
The Real Reason Americans Worry About Trade (The New York Times) In the stories Americans tell about the decimation of middle-class life, international trade tends to get a prominent role. Yet a look at the sources of American distress reveals another factor: a far less comprehensive social safety net than in the rest of the developed world. That defining feature of the American economy has left workers uniquely vulnerable to the pitfalls of joblessness. The stakes have grown as trade has expanded. Unlike many other developed nations, the U.S. provides fewer protections for workers facing unemployment, making job loss more economically disruptive. For instance, six months after losing a job, a U.S. family of four typically receives unemployment benefits equivalent to about 36% of its previous income. In Sweden, the same family might receive around 70%, not including publicly funded health care or higher education. These differences can shape public attitudes, not only toward trade, but also toward emerging technologies like automation and electric vehicles that may further disrupt employment.
NSF Expanding National AI Infrastructure with New Data Systems and Resources (NSF) The U.S. National Science Foundation announced two major advancements in America’s AI infrastructure: the launch of the Integrated Data Systems and Services (NSF IDSS) program to build out national-scale data systems and the selection of 10 datasets for integration into the National Artificial Intelligence Research Resource (NAIRR) Pilot. These efforts directly align with priorities outlined in the White House AI Action Plan, which calls for investments in research infrastructure and datasets to strengthen U.S. leadership in AI research, education, and innovation.
NSF Invests More Than $32M in Biotechnology (NSF) The U.S. National Science Foundation Directorate for Technology, Innovation and Partnerships (NSF TIP) announced an inaugural investment of $32.4 million to four teams to accelerate the adoption of cell-free systems, enable new applications of this technology and contribute to the growth of the U.S. bioeconomy. The NSF Advancing Cell-Free Systems Toward Increased Range of Use-Inspired Applications (NSF CFIRE) aims to reduce the cost of cell-free systems in biochemical processes, increase the range and capabilities of cell-free systems, and develop and demonstrate cost-effective use-inspired applications. Cell-free systems offer a promising alternative to traditional cell-based applications in biotechnology, advanced manufacturing, and other industries. NSF CFIRE awardees will develop technical approaches that mitigate these cost and application limitations of cell-free technology and enable ongoing cycles of improvement.
How AI is Changing Our Approach to Disasters (RAND) Artificial intelligence (AI) promises new ways to spot danger sooner, coordinate relief more quickly, and save lives and property. For example, during a disaster response, AI can provide a better picture of a crisis than traditional methods. Computer vision models using drone or satellite imagery can assess damage and help locate survivors. In the short term, using AI well requires overcoming implementation hurdles. In the longer term, using AI well comes back to classic governance questions of deciding who has legitimate authority and how to make collective decisions.
Clusters Feature Prominently in Local Strategies (Excel Regional Solutions) Using the State and Local Economic Development Strategies (SLEDS) Database, Excel Regional Solutions found that more than six in seven local economic development districts are pursuing at least one industry cluster goal. With a presence in 347 plans, industry cluster development is the 4th most prevalent economic development category across all CEDS. Industry cluster development has achieved broad diffusion across regional economic developers in the 25+ years in which it has been popularly espoused. However, this review of recent CEDS indicates also that many regions may not be maximizing the benefits that cluster approaches can offer. Resources that make sophisticated industry cluster development strategies easier to understand, develop, and articulate help ensure that more regions benefit from the types of economic outcomes that made cluster development achieve its wide adoption.
Commerce Cuts $7.4B CHIPS Funding from Natcast (Manufacturing Dive) The U.S. Department of Commerce has canceled up to $7.4 billion in CHIPS Act funding initially designated for Natcast, which intended to manage the National Semiconductor Technology Center (NSTC). The department stated that Natcast’s formation conflicted with federal legal requirements regarding the creation of new entities, and it has now shifted oversight of the NSTC to the National Institute of Standards and Technology (NIST). The change marks a significant administrative adjustment in the implementation of the CHIPS and Science Act and may complicate how economic developers plan investments, partnerships, and workforce strategies around semiconductor initiatives. Natcast staff learned in September that the majority of its staff they would be laid off this week.
DoE Announces Over $35M to Advance Emerging Energy Technologies (DoE) The U.S. Department of Energy (DOE) announced more than $35 million for 42 projects through DOE’s Technology Commercialization Fund (TCF) to help move emerging energy technologies related to grid security, artificial intelligence, nuclear energy, and advanced manufacturing from DOE National Laboratories, plants, and sites to market. The selected projects will leverage over $21 million in cost share from private and public partners, bringing total funding to more than $57.5 million. The TCF program strengthens America’s economic and national security by supporting public-private partnerships that maximize taxpayer investments, advance American innovation, and ensure the United States stays ahead in global competitiveness. This year’s selections span across 19 DOE National Labs, plants, and sites.
U.S. Electric Grids Under Pressure from Energy – Data Centers are Changing Strategy (AP News) With the explosive growth of Big Tech’s data centers threatening to overload U.S. electricity grids, policymakers are taking a hard look at a tough-love solution: bumping the data centers off grids during power emergencies. Texas moved first, as state lawmakers try to protect residents in the data-center hotspot from another blackout, like the winter storm in 2021. A proposal similar to Texas’ has emerged from the nation’s biggest grid operator, PJM Interconnection, which runs the mid-Atlantic grid that serves 65 million people and data-center hotspots in Virginia, Ohio and Pennsylvania. PJM’s just-released proposal revolves around a concept in which proposed data centers may not be guaranteed to receive electricity during a power emergency. To an extent, bumping big users off the grid during high-demand periods presents a new approach to electricity. It could save money for regular ratepayers, since power is most expensive during peak usage periods. But, it may be too unpredictable to provide a permanent solution and could potentially be accompanied by incentives for data centers to build new power sources and voluntarily reduce electricity use.
Silicon Heartland: The Evolution of Ohio’s High-Tech Workforce (Economic Innovation Group) Rebuilding high-tech American manufacturing is back in vogue, and with good reason. The United States is falling behind China in a growing set of strategic industries, particularly in manufacturing. The state of Ohio is playing a key role in America’s drive to reassert technological supremacy across a range of industries, from semiconductors to drones. With support from JobsOhio, this new report, Silicon Heartland: The Evolution of Ohio’s High-Tech Workforce, analyzes the state’s workforce pipelines and makes recommendations to take full advantage of a new generation of industrial policy. The Midwest has a long history of developing innovative, practical models for high-tech talent development. Ohio and the broader region will need to draw on that tradition to revitalize high-tech manufacturing.
Tulsa Remote Study Shows Strong Economic Returns (SSTI) A recent study from the W.E. Upjohn Institute for Employment Research offers new insights on the effectiveness of resident/worker attraction programs by analyzing Tulsa Remote’s track record from its inception in 2018 to 2023. Tulsa Remote, launched in 2018 with funding from the George Kaiser Family Foundation, provides $10,000 to eligible remote workers who relocate to Tulsa and commit to stay for at least one year. According to their 2024 economic impact report, Tulsa Remote has attracted 3,475 remote workers, with 96% completing their one-year requirement and 70% continuing to live in Tulsa. The program spends roughly $15,000 per participant, including the incentive, administrative costs, and community benefits such as access to co-working spaces and other networking activities. This high effectiveness translates into strong economic returns, with the study modeling a benefit-cost ratio of 4:1 for existing Tulsa residents. Overall, the findings suggest that remote worker attraction programs can be cost-effective economic development tools when well-designed. Beyond the financial incentive, the study notes that Tulsa Remote’s networking activities, entrepreneurship support, and retention strategies may be equally important.
How the Midlife Crisis was Replaced by ‘Young Worker Despair’ – and What it Means for Gen Z (Fortune) The term “quarter-life crisis” is a millennial invention, referring to young adults’ period of anxiety, uncertainty, and self-doubt as they transition into adulthood. A new working paper from the National Bureau of Economic Research suggests that the long-standing pattern of midlife, being the peak age for despair, has shifted, with young people, especially those under 25, now reporting the highest levels of distress. Mental health challenges among Gen Z workers are linked to labor market pressures, social isolation, and broader economic insecurity, despite rising wages relative to older workers. The study draws on multiple national datasets and shows that youth despair has grown since the 1990s, worsening after the Great Recession and accelerating during the pandemic. Factors such as housing costs, student debt, job precarity, and digital monitoring at work contribute to the trend, with young women particularly affected. The authors argue that this “quarter-life crisis” may represent the disappearance of the traditional midlife crisis, raising concerns about long-term social and economic impacts.
New Mexico will be the First State to Make Child Care Free (The 19th News) In an unprecedented move, New Mexico is making child care free. Beginning in November, it will be the first state in the nation to provide child care to all residents regardless of income. The state has been working to lower child care costs since 2019, when it created the Early Childhood Education and Care Department and started to expand eligibility for universal child care. This latest change removes income eligibility requirements from the state’s child care assistance program altogether and waives all family copayments. The initiative is expected to save families $12,000 per child annually. The news also comes with improvements for child care facilities and, potentially, raises for their staff. As part of the rollout, the state will establish a $13 million loan fund to construct and expand facilities, launch a recruitment campaign for home-based providers, and incentivize programs to pay staff a minimum of $18 an hour. The state hopes the initiative will lead to the creation of 55 new child care centers and 1,120 home-based child care options.
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Business Expansions and Incentives 📊
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2025 State Business Incentives Update (C2ER) C2ER’s State Business Incentives Update for 2025 is now complete! Be sure to check out the latest blogs, Incentivizing Innovation and Incentives Updates: General Trends to dive into emerging trends and key insights shaping the landscape of state-level incentives.
Intel Amends CHIPS Act Deal with Commerce, Gets $5.7B Early (Reuters) Intel amended the CHIPS Act funding deal with the U.S. Department of Commerce to remove earlier project milestones and received about $5.7 billion in cash sooner than planned. The move will give Intel more flexibility over the funds. The amended agreement, which revises a November 2024 funding deal, retains some guardrails that prevent the chipmaker from using the funds for dividends and buybacks, doing certain control-changing deals and from expanding in certain countries. The company has spent at least $7.87 billion on eligible CHIPS Act-funded projects.
Illinois Incentives Bolster Battery, Solar Manufacturing Growth (PV Magazine) Illinois’ state incentives are paying off. Battery and electric vehicle manufacturers are continuing to move or expand production in Illinois, with several new announcements made this summer. One example is a 100% solar-powered manufacturing plant for solar and EV components opened in an underserved area of Southern Illinois recently, bolstered by a $4.6 million clean-energy state-incentive package. Manner Polymers will produce all of the electricity it uses. The Manner Polymers manufacturing facility was bolstered by the Reimagining Energy and Vehicles in Illinois (REV Illinois) incentive package, while Manner Polymers invested $54 million to support the facility’s construction. REV Illinois provides tax credits to businesses that will support the development and growth of electric vehicles and other products essential to the renewable energy sector. Illinois provides additional benefits through REV for clean energy and advanced manufacturing investments made in underserved or energy transition areas.
The State Economic Development Executives (SEDE) Network engages in regular events throughout the year. State Economic Development.org lists these activities and offers an interactive forum for discussion among peers. The SEDE Steering Committee includes: Sandra Watson (AZ), Chair; Clint O’Neal (AR); Kurt Foreman (DE); Quentin Messer (MI), Kevin McKinnon (MN); Michelle Hataway (MO); Thomas Burns (NV) Hope Knight (NY); Christopher Chung (NC); Andrew Deye (OH); Sophorn Cheang (OR); Ashely Teasdel (SC), Adriana Cruz (TX).
Allison Ulaky of the Center for Regional Economic Competitiveness (CREC) led the development of this Bulletin; for questions on the content in this Bulletin or for information on the SEDE Network contact Bob Isaacson, CREC Senior Vice President.
SEDE Member Spotlight: Eric Paley, Secretary of Economic Development, 
Outgoing Leader: Grace Yoo, Assistant Director, Economic Development
Incoming Leader: Andrea Chartock, Assistant Director, Economic Development
Tom Burns was appointed as Executive Director of Nevada Governor’s Office of Economic Development (GOED) in 2023. Burns started his career by attaining his Certified Public Accountant designation with Deloitte and was subsequently the Assistant Corporate Controller at United Gaming, the predecessor of Light & Wonder. For more than 30 years he was an insurance executive in Southern Nevada, specializing in commercial insurance surety.
Belitz served as director of Nebraska DED for two years. Belitz oversaw the review and awarding of hundreds of millions of dollars in grants through state and local programs. His focus was on how to attract people and businesses to the state, and the launch of the “6 Regions, One Nebraska” initiative, an effort that encouraged communities within each region to work together to identify and address key shared economic development needs.
Larsen was named Director in November after serving as interim director since July 2025. During that time, Larsen has focused on career opportunities for Nebraska youth, expanding international trade and strengthening public-private partnerships. Prior to her role at DED, Larsen was general counsel to the governor and deputy director of the governor’s Policy Research Office.
SEDE Steering Committee Member Spotlight: Hope Knight, President, CEO, and Commissioner of 
SEDE Members on the Move: 
SEDE Steering Committee Member Spotlight: Kevin McKinnon, Deputy Commissioner, 
Clint O’Neal is the Executive Director of the Arkansas Economic Development Commission (AEDC). O’Neal has 17 years of economic development experience and is passionate about making a difference by helping communities win economic development projects and helping companies to be successful in Arkansas.
