Bipartisan Congress Moves To Boost Quantum Funding

IonQ completed its $1.8 billion acquisition of SkyWater Technology after federal regulators ended their review without blocking the deal, signaling approval in a sensitive technology area. This move coincides with Congress preparing to debate legislation increasing annual military spending on quantum development and application by 68%, reaching $567 million. Despite this investment and recent breakthroughs, investor confidence remains mixed; shares of D-Wave Quantum, Infleqtion, and Rigetti Computing have all fallen this year, as Philip Singerman, senior adviser at the Center for Strategic and International Studies, notes.

Congressional Action Drives 68% Increase in Quantum Funding

Federal regulators completed their review of IonQ’s $1.8 billion acquisition. The completed purchase allows IonQ, based in College Park, Maryland, to integrate SkyWater’s semiconductor manufacturing capabilities, which is expected to accelerate the production of quantum processors. This acquisition coincides with lawmakers considering legislation to substantially increase federal funding for quantum development, responding to growing international competition. The proposed House defense bill includes a 68% increase in annual military spending on quantum, bringing the total to $567 million.

A bipartisan effort is underway to expand federal investment in quantum computing, driven by concerns about rivals accelerating their programs in defense, cybersecurity, and intelligence. Parallel funding initiatives are also progressing in the Senate, recognizing the potential for quantum technology to revolutionize fields ranging from pharmaceutical discovery to encryption methods. The congressional push builds upon over $2 billion in federal investments directed toward the quantum industry announced by the previous administration in May.

That administration also issued executive orders in June to advance quantum research and require federal agencies to safeguard IT systems against potential quantum-based cyberattacks. Despite these investments and recent technological advancements, investor confidence in the near-term commercial viability of quantum computing remains mixed. Philip Singerman, senior adviser for Strategic and International Studies, noted a cooling of investor enthusiasm, reflected in the declining share prices of leading quantum companies.

“When your concern is access, not just your own access, but your competitors’ access, you’re forced to consider and play that game,” said Tad DeHaven, a policy analyst at the Cato Institute, commenting on the competitive landscape. The growing engagement between quantum executives and elected officials demonstrates a shift in the industry’s approach to securing government support.

Matt Kinsella, Chief Executive Officer of Infleqtion, observed a significant change in access to policymakers. “When we first started doing this two years ago, we struggled to get meetings with staffers on the Hill,” Kinsella said. “Now, we’re meeting directly with senators and representatives.” This increased lobbying effort is reflected in the doubled annual spending, now totaling $2.2 million, by the four quantum companies poised to receive Commerce Department grants: Infleqtion, D-Wave, PsiQuantum, and Quantinuum. The urgency to bolster domestic quantum capabilities is further underscored by China’s substantial investment in the field.

Dario Gil, under secretary for science at the Department of Energy, emphasized the competitive threat. “In China, you see a massive push toward quantum leadership,” Gil said.

“That’s the one that I’m most focused on.” Estimates from industry consultancy QBN indicate that Europe and the United Kingdom combined have committed nearly three times as much public funding to quantum research as the United States, intensifying the pressure to maintain a competitive edge. The White House hosted a quantum tech summit in July, bringing together industry leaders and government officials to address domestic supply chains, workforce development, and private sector input.