Dive Brief:
- The Trump administration reversed its decision to cut federal funding for 10 state Manufacturing Extension Partnership centers that support small and medium-sized manufacturers, following pushback from lawmakers and industry advocates.
- Delaware Rep. Sarah McBride, who spearheaded a letter against the cuts to her state’s program as well as others, said in a statement the move was a “major win.” However, concerns remain as support from the MEP program is only guaranteed for affected centers through the next six months, McBride said.
- More than 40 other centers across the United States, whose contracts are up for renewal later this year, also face uncertainty as the Department of Commerce evaluates the future of the program.
Dive Insight:
President Donald Trump has tried for years to defund the National Institute of Standards and Technology’s MEP, which supports 51 centers across the country that offer small and medium-sized manufacturers the resources to grow and stay competitive in dynamic markets.
During his first term, Trump proposed eliminating nearly all MEP funds each year, which ranged from $130 million to $146 million, according to congressional data from fiscal years 2018 to 2021. However, Congress ultimately restored the funds.
Recently, his administration opted not to renew contracts for 10 centers — including those in Delaware, Hawai’i, Iowa, Kansas, Maine, Mississippi, Nevada, New Mexico, North Dakota and Wyoming. The move sparked backlash from 86 House Democrats, who sent a joint letter addressed to Commerce Secretary Howard Lutnick and Craig Burkhardt, acting undersecretary for NIST, on April 9, calling the lapse in funding counterproductive.
A few days later, the administration walked back its funding decision in order to allow more time to evaluate the MEP program as lawmakers seek to find a permanent funding solution.
“This funding only gets us through the end of the fiscal year,” McBride said in a statement. “I will keep working to ensure that support for...MEP centers nationwide is not just restored — but protected for good.”
In an update on its website, the Center for Industrial Research and Service in Iowa said it was notified by the NIST on April 15 that it would receive six months of funding while the Department of Commerce evaluates next steps for the program.
A spokesperson with CIRAS declined to comment on the reversal. Prior to the change, Director Mike O’Donnell wrote in a blog post that his organization had enough support from Iowa State University and other funding sources to avoid disruptions to staffing or business commitments. However, changes to the current business model would have been necessary.
“The MEP is the largest federal funding source at CIRAS, and this unexpected cut impacts the availability and affordability of our services in both the near and long term,” O’Donnell wrote April 8.
Since 1988, the MEP network has worked with more than 154,000 manufacturers, according to a 2023 annual report. This has led to $148.7 billion in new sales and $31.6 billion in cost savings so far. It has also helped create and retain more than 1.6 million jobs.
