Tennessee Quantum Initiative kicks off with $20 million from state, on heels of a $4 million federal grant
Two recent announcements, one from Governor Bill Lee and the other from EPB, will add a combined $24 million to the state’s quantum computing efforts.
Tennessee just put a major stake in the ground for quantum innovation.
During Monday’s State of the State Address, Governor Bill Lee announced an allocation of $20 million to the newly formed Tennessee Quantum Initiative to accelerate Tennessee’s quantum computing industry by attracting substantial federal and private-sector investment.
The funding was announced on the same date that EPBshared a $4 million federal investment in Chattanooga’s quantum workforce development.
If their potential is realized, quantum computers could solve problems that are impossible for today’s machines. That capability could transform medicine, logistics, security, defense, and nearly every major industry.
“We also have a vision that Tennessee will both power America and be the catalyst for solving our nation’s most complex problems,” said Governor Lee in his final address.
He did not outline specific uses for the $20 million. Teknovation will update readers as more details become available.
Here’s what we know – Chattanooga is at the center of the quantum conversion
Thanks to a $4 million federal investment from the National Institute of Standards and Technology (NIST), EPB is starting a new Quantum Computing Fellowship. It will provide valuable training and real-world experience to innovators who are determined to develop quantum solutions that benefit EPB customers.
The program is designed to build a local quantum-ready workforce and support new, local job creation from the rapidly emerging quantum industry. Eight fellows participate in the program, which provides hands-on experience and quantum-ready skills.
Quantum Computing Manager Paul Smith leads the Fellows program. Previously, Smith held leadership roles in technology and innovation at EPB, managing enterprise-scale systems and guiding teams through complex modernization efforts.
“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,” said EPB President and CEO-elect Janet Rehberg.
Since Rehberg came on board for EPB, she has also been central to the quantum conversion.
In June 2025, she spoke at the inaugural Tennessee Quantum Immersion Day, sharing her excitement for EPB’s part in quantum initiatives.
“We were wondering what could impact Chattanooga in the same way (or greater) than the Gig internet, and Fiber internet did… and we see Quantum as being the answer to that question,” Rehberg said at the event, adding that it will also serve as a valuable business attraction tool.
Chattanooga’s brand is changing from ‘gig city’ to the quantum city
Chattanooga remains the first commercially available quantum computing and networking hub in the United States. EPB’s Quantum Center is scheduled for completion in early 2026 and will provide commercial access to both quantum networking and quantum processing. This builds on the EPB Quantum Network launched in 2023 and expands capabilities via EPB’s partnership with IonQ.
Vanderbilt University also recently partnered with EPB to begin developing the state’s first Institute for Quantum Innovation. Pending necessary approvals, it will become a center for research, innovation, and graduate-level education in quantum and related fields. EPB and Vanderbilt each approved $750,000 over the next three years to kickstart the initiative.
Other unified efforts between the Chattanooga Quantum Collaborative (CQC), the Company Lab (CO.LAB), and the Chattanooga Chamber of Commerce contribute to that emerging regional branding effort.
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