The Department of Energy (DOE) will distribute up to $215 million through the Quantum Genesis Q Competition – pursuing development of the world’s first fault-tolerant quantum computer. Participants have until Oct. 19 to respond to the Request for Applications (RFA).
The application process will create new opportunities for public-private partnerships (P3) geared around developing cutting-edge quantum computers with at least 100 logical qubits. The competition’s goal is to create a fault-tolerant product that overcomes the current error-ridden limitations preventing industries from taking this technology to the next level.
While quantum computers are capable of complex calculations at stages far surpassing classical computers, their level of sophistication has hit a ceiling. Even if more qubits are added, the rate of errors will only scale in response. The creation of a fault-tolerant quantum computer would been creating a solution that operates correctly even with errors present, enabling users to run even deeper and more complex circuits and calculations.
Some organizations have already built fault-tolerant quantum computers, but only on a small scale. The Quantum Genesis Q Competition aims to innovate a computer capable of large-scale operations, capable of performing hundreds of millions of fault-tolerant operations and scientific demonstration programs.
The DOE is splitting the competition across two phases. The first phase will award up to $1.5 million in fixed awards for recipients that complete early milestones. The second phase will divvy out awards from a $100 million general incentive pool to multiple qualifying organizations. These entities must demonstrate their capacity to build a first-generation scientifically relevant quantum computer.
In addition to the general incentive pool, the DOE will also provide awards through two separate bonus incentive pools of $50 million each. The agency will distribute these funds to awardees that can demonstrate quantum computers capable of 150 and 200 logical qubits. Only private companies will be allowed to apply for the competition.
The federal government has taken a deep dive into pioneering the quantum computing field since the new administration took office as national leaders pursue discovery and innovation in STEM fields such as chemistry, materials, physics and applied mathematics. The president directed federal efforts by outlining goals in his June 22, 2026, Executing Order “Ushering in the Next Frontier of Quantum Innovation.”
The competition builds on the Office of Science Advisory Committee (SCAC) recent report on the future of integrated quantum development as well as the Office of Scientific and Technical Information’s (OSTI) blueprint on securing U.S. dominance in quantum supercomputing over the next decade. Other departments – such as the National Science Foundation (NSF) – have begun investing in core quantum research. In late August, the NSF delivered $290 million to help research institutes make scientific breakthroughs in quantum technology.
Federal agencies aren’t alone as states back their own quantum research and development projects. In mid-August, New York Gov. Katchy Hochul announced that it will dedicate $60 million to support commercialization and establishment of quantum startups. The funding builds on the state’s previous $300 million investment in the Quantum Research and Innovation Hub at SUNY Stony Brook. New Mexico dedicated $25 million in May 2025 toward boosting quantum technology development as well, prioritizing physical space development and operations for a quantum venture studio.
Photo by Jeremy Waterhouse from Pexels
For more of the latest from the expansive government marketplace, check Government Market News daily for new stories, insights and profiles from public sector professionals. Check out our national contracting newsletter here.
