Department of Commerce reverses decision to withhold funds appropriated by Congress
It's a temporary reprieve for the Manufacturing Extension Partnership (MEP) program.
President Donald Trump’s administration plans to restore funding to the Manufacturing Extension Partnership (MEP) program, a public-private partnership that supports small and medium-sized businesses, according to at least one member of Congress.
As we first reported several weeks ago (see teknovation.biz article here), the first centers were notified at the end of March that the Department of Commerce intended to halt about $13 million in funding for MEP centers in Kansas, Hawaii, Mississippi, Delaware, Maine, Iowa, Nevada, Wyoming, North Dakota, and New Mexico. However, U.S. Rep. Sharice Davids announced that the funds will continue “through the end of the fiscal year.”
Although the funding will remain for the short term, potential cuts outlined in the Trump administration’s proposed 2026 budget create uncertainty for the MEP national network’s 51 centers. Davids said that her proposed “Defend American Manufacturing Act” would require the National Institute of Standards and Technology (NIST), a Commerce Department agency that oversees the MEP program, to renew and award contracts annually, creating long-term stability for the hubs.
President Ronald Reagan authorized the MEP program in 1988. According to NIST, the program has contributed approximately $152 billion in new sales, $34 billion in cost savings, and the creation and retention of nearly 1.7 million jobs. A report from Summit Consulting and the Upjohn Institute for Employment Research noted that the program generated a financial return of more than 17:1 on the $175 million in federal funds it received in fiscal year 2023.
Like what you've read?
Forward to a friend!