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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X-TIMESTAMP-MAP=LOCAL:00:00:00.000,MPEGTS:0
00:00.100 --> 00:04.159
The Trump administration reportedly plans to
end funding for the manufacturing Extension
00:04.159 --> 00:07.889
Partnership Program, a public-private
partnership that supports small and
00:07.889 --> 00:11.960
medium-sized manufacturers, which represent
nearly 98% of firms in the US.
00:12.090 --> 00:14.840
While the Department of Commerce did not
officially announce a funding cut,
00:15.159 --> 00:19.129
US Senator Tammy Baldwin issued a statement
that said the Trump administration would halt
00:19.129 --> 00:22.649
funding for 10 MEP centers.
Baldwin's statement noted that the development
00:22.649 --> 00:26.479
would affect centers in Maine, Kansas, Iowa,
Hawaii, Delaware,
00:26.649 --> 00:29.982
Nevada, Mississippi, Wyoming.
North Dakota and New Mexico.
00:30.111 --> 00:34.622
The national network features 51 MEP centers,
all of which now face an uncertain future.
00:34.832 --> 00:38.402
President Ronald Reagan authorized the MEP
program in 1988.
00:38.512 --> 00:41.172
According to the National Institute for
Standards and Technology,
00:41.352 --> 00:46.431
which oversees the program, the National
Network has contributed to $152.2 billion in
00:46.431 --> 00:52.111
new sales, $34.2 billion in cost savings, and
the creation and retention of more than 1.7
00:52.111 --> 00:54.911
million jobs.
Baldwin and 14 other Senate colleagues
00:54.911 --> 00:58.653
co-signed a letter to Commerce Secretary.
Howard Lutnick explaining that small
00:58.653 --> 01:02.763
manufacturers depend on MEP centers for
assistance in adopting advanced technology,
01:03.013 --> 01:06.103
improving cybersecurity, addressing supply
chain challenges,
01:06.124 --> 01:07.564
and accessing workforce training.
01:07.774 --> 01:11.973
The letter stated that dismantling the program
would undermine decades of federal investment
01:11.973 --> 01:18.013
in domestic manufacturing, including $175
million in fiscal year 2025 to fund the MEP
01:18.013 --> 01:20.814
centers.
The senators also cited a report by Summit
01:20.814 --> 01:25.054
Consulting and the Upjohn Institute that found
that the MEP program generated a.
01:25.475 --> 01:31.195
Return ratio of more than 17 to 1 for the $175
million in funding it received from the federal
01:31.195 --> 01:33.956
government in fiscal year 2023.
Kurt Anderson,
01:34.115 --> 01:38.755
founder of manufacturing e-commerce consultancy
firm B2Btail and frequent collaborator with
01:38.755 --> 01:42.555
MEPs, called the network a powerhouse
organization that delivers value to
01:42.555 --> 01:46.515
manufacturers with 20 employees or less with
limited access to resources.
01:46.636 --> 01:50.555
During Trump's first term, he presented a
budget proposal to end federal funding for MEP
01:50.555 --> 01:53.475
centers and transition it to solely non-federal
revenue source.
01:54.057 --> 01:57.208
which the document estimated would save $124
million.
01:57.617 --> 02:00.847
Congress ultimately restored the funds.
The Department of Commerce section of Project
02:00.847 --> 02:04.568
2025, a political initiative designed to
reshape the federal government,
02:04.977 --> 02:09.298
addresses the MEP program and called on the
administration following President Joe Biden to
02:09.298 --> 02:15.138
propose legislation to zero out this $150
million program and fully privatize existing
02:15.138 --> 02:17.977
MEP centers.
The author of the commerce section is Thomas F.
02:18.018 --> 02:21.658
Gilman, who held two positions in the
Department of Commerce during Trump's first
02:21.658 --> 02:24.429
term.
I'm Nolan Bastein, this is manufacturing now.