A groundbreaking $44 million federal biotechnology grant that would have benefited several Birmingham institutions has been cancelled.

The Birmingham Biotechnology Hub, led by Southern Research, was to receive funding to use artificial intelligence to shorten drug development and provide affordable drugs, vaccines and diagnostics.

It would also have increased diverse representation in clinical genomic data and clinical trials.

The award came after the U.S. Department of Commerce in 2023 designated Birmingham as one of 31 federal Tech Hubs, paving the way for funding.

Southern Research was the lead agency in the application, working with UAB, the City of Birmingham, and more than 20 other educational, research and economic development institutions.

Southern Research will now have to recompete for the money under the Trump Administration’s new guidelines.

The institute released a joint statement with UAB about the decision.

“Southern Research and UAB are aware of our opportunity to compete for funding to support The Birmingham Biotechnology Hub alongside Hub partners and look forward to learning more about and participating in the process,” the statement reads.

The award was announced in January, five days before President Donald Trump was sworn in as president.

U.S. Rep. Terri Sewell called the decision “preposterous.”

“This investment was the result of years of planning and advocacy,” Sewell said in a statement.

Sewell said the grant was targeted because “somehow providing resources to make sure that clinical trials are diverse would be something not worthy of not getting funding.”

“It’s not fair. It’s not right,” the Democrat added.

”It had the strong backing of both Democrats and Republicans in Alabama because of its potential to create numerous jobs, improve health outcomes, and solidify the City of Birmingham as a biotechnology leader.”

In 2024, Sewell, along with Sen. Katie Britt, Gov. Kay Ivey and Birmingham Mayor Randall Woodfin, collaborated on an opinion piece in Fortune that touted Birmingham as the next great biotechnology center for American research.

“By nurturing biotech startups and supporting their growth, we will stimulate job creation, ensure regional economic competitiveness, and anchor the national bioeconomy,” the piece read.

In a statement, Britt said she remains “strongly supportive” of the project.

“Institutions like the University of Alabama at Birmingham, one of our nation’s leading biomedical research institutes, and Tuskegee University, together with partners like Southern Research, form a dynamic and collaborative innovation ecosystem,” she said. “However, this initiative is more than just an investment in the state of Alabama—it is a strategic investment in our national security.

“As our country faces rising threats from the Chinese Communist Party, Birmingham is uniquely positioned to advance President Trump’s goal of global biomedical leadership, all while onshoring our domestic supply chain of life-saving diagnostics and therapeutics and reducing reliance on foreign adversaries. For the safety and security of Americans now and for generations to come, I believe a Birmingham Biotech Hub will be a win for our nation’s future.”

Attempts to contact the City of Birmingham were not immediately successful.