Speaker 2 opened the session by thanking panelists and framing the discussion around building a strong economy through technology and innovation. The senator singled out Tennessee and Chattanooga as emerging centers for quantum research and commercial networking, and asked a panelist to explain why a federal 20sandbox20for quantum applications would help innovators move quickly from prototype to product.

Speaker 1, a panelist who identified a partnership with the Electric Power Board of Tennessee (EPB) in Chattanooga, credited local and national collaborations for recent progress. "We're proud of our partnership with Electric Power Board of Tennessee in Chattanooga," the panelist said, and described the region as again leading in computing and networking capacity.

The panelist argued that the primary value in quantum will come from software and applications that solve problems classical computers cannot. Citing sectors such as pharmaceuticals, financial services, supply-chain management and predictive maintenance, the panelist said these applications could drive new industries and jobs nationwide. "This is the industry of the future," the panelist said.

On federal support, Speaker 1 said most R&D dollars come from the private sector but emphasized the catalytic role of federal funding for early-stage projects. "Nine out of 10 dollars spent on R and D are coming from the private sector, but that 1 out of 10 is really important for sparking progress, particularly in early-stage projects," the panelist said, citing recent discussions with Under Secretary Gill at the Department of Energy.

Speaker 2 noted Oak Ridge National Laboratory's capabilities and asked why partnerships with national labs and local utilities matter. The panelist said ORNL and local partners create an ecosystem that helps startups and established companies develop and scale quantum hardware, networking, and secure data transmission. The company the panelist represented (referred to in the transcript as INQ) described work on quantum computing, networking and sensing across multiple operational "theaters," including projects that extend quantum key distribution using infrastructure such as the Golden Dome.

The session included a proposal for a near-term federal 20sandbox20intended to enable demonstrable applications within an "about 18 to 24 months" timeframe. Panelists framed the sandbox as a way to give innovators access to hardware, networking, and test environments so companies and developers can build practical software and services quickly.

The discussion closed with brief thanks from Speaker 2. No formal motions or votes were recorded in this segment.