Trump Administration Moves to Gut Program that Helps Small Manufacturers

The administration looks to end the MEP program's funding despite its strong financial return.

Transcript

The Trump administration reportedly plans to end funding for the Manufacturing Extension Partnership (MEP) program, a public-private partnership that supports small and medium-sized manufacturers, which represent nearly 98% of firms in the U.S.

While the Department of Commerce did not officially announce a funding cut, U.S. Senator Tammy Baldwin (D-WI) issued a statement that said the Trump administration would halt funding for 10 MEP centers.

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Baldwin’s statement noted that the development would affect centers in Maine, Kansas, Iowa, Hawaii, Delaware, Nevada, Mississippi, Wyoming, North Dakota and New Mexico. The national network features 51 MEP centers, all of which now face an uncertain future.

President Ronald Reagan authorized the MEP program in 1988. According to the National Institute for Standards and Technology (NIST), which oversees the program, the national network has contributed to $152.2 billion in new sales, $34.2 billion in cost savings and the creation and retention of more than 1.7 million jobs.

Baldwin and 14 other Senate colleagues co-signed a letter to Commerce Secretary Howard Lutnick explaining that small manufacturers depend on MEP centers for assistance in adopting advanced technology, improving cybersecurity, addressing supply chain challenges and accessing workforce training.

The letter stated that dismantling the program would “undermine decades of federal investment in domestic manufacturing,” including $175 million in fiscal year 2025 to fund the MEP centers. 

The senators also cited a report by Summit Consulting and the Upjohn Institute that found that the MEP program generated a financial return ratio of more than 17:1 for the $175 million in funding it received from the federal government in fiscal year 2023.

Curt Anderson, founder of manufacturing e-commerce consultancy firm B2Btail and frequent collaborator with MEPs, called the network a “powerhouse organization” that delivers value to manufacturers with 20 employees or less and limited access to resources.

During Trump’s first term, he presented a budget proposal to end federal funding for MEP centers and transition it to solely non-federal revenue sources, which the document estimated would save $124 million. Congress ultimately restored the funds.

The Department of Commerce section of Project 2025, a political initiative designed to reshape the federal government, addresses the MEP program and called on the administration following President Joe Biden to propose legislation to “zero out this $150 million program and fully privatize existing MEP centers.”

The author of the Commerce section is Thomas F. Gilman, who held two positions in the Department of Commerce during Trump’s first term.

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