Innovate DC Amendment Act of 2025

COUNCIL OF THE DISTRICT OF COLUMBIA OFFICE OF COUNCILMEMBER BROOKE PINTO THE JOHN A. WILSON BUILDING 1350 PENNSYLVANIA AVENUE, N.W., SUITE 106 WASHINGTON, D.C. 20004

November 14, 2025 Nyasha Howard, Secretary Council of the District of Columbia 1350 Pennsylvania Avenue, N.W. Washington, DC 20004 Dear Secretary Howard, Today, along with Councilmembers Janeese Lewis George, Kenyan McDuffie, and Christina Henderson, I am introducing the “Innovate DC Amendment Act of 2025” to spur the development of new tech businesses by investing in research commercialization and innovation at District universities and hospitals. Washington, DC’s economy has historically been stabilized by the presence of the federal government, and educational and medical institutions.1 However, with the recent reduction in the federal workforce, there is an urgent need to diversify the local economy. This challenge is compounded by the city’s current fiscal constraints, which make competing with surrounding jurisdictions to attract and retain new industries particularly challenging. DC universities, which are home to brilliant academics and researchers, hold significant untapped potential to drive economic growth through research commercialization and technological innovation. The Innovate DC Amendment Act invests in the District’s research institutions that have deep roots in the city and a vested interest in its long-term success to grow the local tech economy. First, the bill would provide up to $2 million in matching grants to clusters of organizations––universities, hospitals, tech incubators and accelerators, economic development organizations, and tech companies––partnering together to support the development of infrastructure or programming to advance research commercialization. There are very few laboratory facilities available for commercialization research in the District, which limits opportunities for researchers and entrepreneurs to develop and test new technologies locally. This bill seeks to change that by strengthening the District’s innovation infrastructure and encouraging collaboration across institutions. The bill would also establish a University Proof to Product Research Grant to incentivize university technology licensing offices to increase investments in research commercialization in key sectors. The grant would provide matching funds to university researchers to support proof-of-concept studies, market analysis, and prototype development to advance their innovations to market. In addition to matching the 1Office of the Deputy Mayor for Planning and Economic Development, BUILDING THE FUTURE: DC's Economic Landscape, available here.

value of each grant, participating universities would also be required to commit to reinvesting at least 10% of licensing revenue into efforts to support research commercialization. Finally, the bill would direct the Deputy Mayor for Planning and Economic Development to convene cross-sector stakeholders to develop a unified marketing strategy to promote the District’s tech economy. The strategy would highlight investments made by DC institutions to strengthen the tech economy ecosystem and success stories of companies founded in DC. As cities across the country work to define and market their tech economies, it is critical that the District establish a distinct brand and communicate in a unified voice about what sets Washington, DC, apart. The Innovate DC Amendment Act will ensure that local leaders across industries are working together towards the same vision––making clear to innovators and entrepreneurs across the country that DC is the best place to start and scale a technology company. Should you have any questions about this legislation, please contact my Policy Advisor, Ella Hanson, at ehanson@dccouncil.gov. Thank you,
Brooke Pinto Councilmember, Ward 2 Chairwoman, Committee on the Judiciary and Public Safety Council of the District of Columbia

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_____________________________ _____________________________ Councilmember Janeese Lewis George Councilmember Brooke Pinto _____________________________ ______________________________ Councilmember Kenyan R. McDuffie Councilmember Christina Henderson A BILL __________ IN THE COUNCIL OF THE DISTRICT OF COLUMBIA _________________ To amend the Deputy Mayor for Planning and Economic Development Limited Grant-Making 1 Authority Act of 2012 to establish a Commercialization Lab Grant Program to be 2 administered by the Deputy Mayor for Planning and Economic Development for the 3 purpose of supporting the development of tech research and innovation facilities and 4 programs in the District, and to establish a University Proof to Product Research Grant 5 Program to support early-stage technology research at District universities for the 6 purpose of advancing technologies towards commercialization; and to require DMPED to 7 develop a marketing strategy for the District’s technology economy. 8 9 BE IT ENACTED BY THE COUNCIL OF THE DISTRICT OF COLUMBIA, That this 10 act may be cited as the “Innovate DC Amendment Act of 2025”. 11 Sec. 2. Section 2032 of the Deputy Mayor for Planning and Economic Development 12 Limited Grant-Making Authority Act of 2012, effective September 20, 2012 (D.C. Law 19-168; 13 D.C. Official Code § 1-328.04), is amended by adding new subsections (qq) and (rr) to read as 14 follows: 15 “(qq) The Commercialization Lab Grant Program. 16 “(1) There is established the Commercialization Lab Grant Program, which shall 17 be administered by the Deputy Mayor of Planning and Economic Development (“DMPED”) to 18

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support cross-sector collaboration and investment in the development of research and innovation 19 facilities and programs in the District of Columbia in targeted technology industries. 20 “(2) DMPED shall award grants of up to $2 million through a competitive 21 grant process to groups representing at least 2 of the following sectors: 22 “(A) Accelerators or incubators; 23 “(B) District-based non-profit organizations focused on supporting 24 entrepreneurs, workforce development, and ecosystem-building in technology and innovation 25 industries; 26 “(C) Economic development organizations, including Business 27 Improvement Districts; 28 “(D) Hospitals; 29 “(E) Independent research organizations; 30 “(F) Post-secondary educational institution; and 31 “(G) Technology firms in a sector defined in paragraph (3)(A) of this 32 subsection. 33 “(3) Grant applicants shall demonstrate the following in their application: 34 “(A) Proposal to establish or further develop a research and innovation 35 facility or program to advance at least one of the following technology sectors: 36 “(i) Artificial intelligence, 37 “(ii) Cybersecurity, 38 “(iii) Defense, 39 “(iv) Energy and sustainability, 40 “(v) Life Sciences, or 41

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“(vi) Quantum; 42 “(B) Private sector participation in their research and innovation facility or 43 program will support the efficient commercialization of research and innovation findings, with 44 preference given to applicant groups that include a technology firm in the relevant technology 45 sector; 46 “(C) Total requested grant funding over a 3-year period and other 47 anticipated sources of funding over at least a 5-year period that together will cover the full cost 48 of the project or a clearly delineated phase of a larger project; 49 “(D) The ability to match the total value of the grant in the year it is 50 distributed, with preference given to projects with non-restrictive matching funds; and 51 “(E) The benefits the project will provide District residents, especially 52 those from disadvantaged and underrepresented populations. 53 “(4) For the purpose of this section, the term “post-secondary educational 54 institution” means an accredited college or university whose principal campus is located in the 55 District.”. 56 “(rr) University Proof to Product Research Grant Program. 57 “(1) There is established the University Proof to Product Research Grant Program, 58 which shall be administered by the Deputy Mayor of Planning and Economic Development 59 (“DMPED”) to support early-stage technology research at post-secondary educational 60 institutions, as defined in for the purpose of advancing technologies towards commercialization. 61 “(2) DMPED shall award grants to eligible researchers at post-secondary 62 educational institutions who have developed a technology under a sector defined in subsection 63 (qq)(3)(A) of this section, according to the following criteria: 64

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“(A) Tier 1 grants shall be a maximum of $100,000 and be used to support 65 pre-commercialization research, including proof-of-concept studies. Applicants shall 66 demonstrate the following: 67 “(i) The formal disclosure of the technology to the university 68 technology licensing office (“TLO”); 69 “(ii) Plans for how grant funding would support the technology’s 70 pathway to commercialization; and 71 “(iii) The technology addresses an unmet scientific need. 72 “(B) Tier 2 grants shall be a maximum of $200,000 and be used to support 73 commercialization planning and research, including a preliminary business plan, a working 74 prototype, and commercial opportunity assessments. Applicants shall demonstrate the following: 75 “(i) Tier 1 application requirements; 76 “(ii) Proof-of-concept data; and 77 “(iii) A patent has been filed or issued. 78 “(C) Tier 3 grants shall be a maximum of $300,000 and be used to support 79 early-stage development of University start-ups. Applicants shall demonstrate the following: 80 “(i) Tier 1 and Tier 2 application requirements; and 81 “(ii) A patent has been issued. 82 “(4) DMPED shall only distribute grants to researchers at post-secondary 83 educational institutions that: 84 “(A) Invest at least 10% of licensing revenue into activities that support 85 research commercialization; 86

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“(B) Provide matching funds in an amount equal or greater to the grant 87 award; 88 “(C) Identify priority sector or sectors for research commercialization 89 from those defined in subsection (qq)(3)(A) of this section; and 90 “(D) Identify a plan to increase the number of patents filed by students and 91 researchers from underrepresented backgrounds. 92 “(5) The applicant’s post-secondary educational institution shall be responsible 93 for demonstrating all grant-related compliance, including submission of documentation required 94 by DMPED.”. 95 Sec. 4. DC Tech marketing strategy. 96 (a) The Deputy Mayor for Planning and Economic Development (“DMPED”) shall 97 convene a working group of representatives from the sectors identified in section 2032(qq)(2) of 98 the Deputy Mayor for Planning and Economic Development Limited Grant-Making Authority 99 Act of 2012, effective September 20, 2012 (D.C. Law 19-168; D.C. Official Code § 1-100 328.04(qq)(2)), to develop a comprehensive marketing strategy to promote the District as an 101 innovation and technology hub. 102 (b) The marketing strategy shall include, at a minimum: 103 (1) The creation of a distinct identity or brand for the District, focused on the 104 sectors identified in section 2032(qq)(3)(A) of the Deputy Mayor for Planning and Economic 105 Development Limited Grant-Making Authority Act of 2012, effective September 20, 2012 (D.C. 106 Law 19-168; D.C. Official Code § 1-328.04(qq)(3)(A)), that differentiates the District from other 107 jurisdictions; and 108 (2) The development of promotional materials that highlight: 109

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(A) Success stories of technology companies founded in the District; and 110 (B) Programming and resources provided organizations and institutions in 111 the District that support the expansion of the District’s technology ecosystem. 112 (c) Based on the recommendations of the working group, by no later than October, 2026, 113 DMPED shall develop and distribute promotional materials designed to attract researchers, 114 entrepreneurs, and investors to the District. 115 Sec. 5. Fiscal impact statement. 116 The Council adopts the fiscal impact statement in the committee report as the fiscal 117 impact statement required by section 4a of the General Legislative Procedures Act of 1975, 118 approved October 16, 2006 (120 Stat. 2038; D.C. Official Code § 1-301.47a). 119 Sec. 4. Effective date. 120 This act shall take effect following approval by the Mayor (or in the event of veto by the 121 Mayor, action by the Council to override the veto) and a 30-day period of congressional review 122 as provided in section 602(c)(l) of the District of Columbia Home Rule Act, approved December 123 24, 1973 (87 Stat. 813; D.C. Official Code§ l-206.02(c)(l)). 124