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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WEBVTTX-TIMESTAMP-MAP=LOCAL:00:00:00.000,MPEGTS:000:00.100 --> 00:04.159The Trump administration reportedly plans toend funding for the manufacturing Extension00:04.159 --> 00:07.889Partnership Program, a public-privatepartnership that supports small and00:07.889 --> 00:11.960medium-sized manufacturers, which representnearly 98% of firms in the US.00:12.090 --> 00:14.840While the Department of Commerce did notofficially announce a funding cut,00:15.159 --> 00:19.129US Senator Tammy Baldwin issued a statementthat said the Trump administration would halt00:19.129 --> 00:22.649funding for 10 MEP centers.Baldwin's statement noted that the development00:22.649 --> 00:26.479would affect centers in Maine, Kansas, Iowa,Hawaii, Delaware,00:26.649 --> 00:29.982Nevada, Mississippi, Wyoming.North Dakota and New Mexico.00:30.111 --> 00:34.622The national network features 51 MEP centers,all of which now face an uncertain future.00:34.832 --> 00:38.402President Ronald Reagan authorized the MEPprogram in 1988.00:38.512 --> 00:41.172According to the National Institute forStandards and Technology,00:41.352 --> 00:46.431which oversees the program, the NationalNetwork has contributed to $152.2 billion in00:46.431 --> 00:52.111new sales, $34.2 billion in cost savings, andthe creation and retention of more than 1.700:52.111 --> 00:54.911million jobs.Baldwin and 14 other Senate colleagues00:54.911 --> 00:58.653co-signed a letter to Commerce Secretary.Howard Lutnick explaining that small00:58.653 --> 01:02.763manufacturers depend on MEP centers forassistance in adopting advanced technology,01:03.013 --> 01:06.103improving cybersecurity, addressing supplychain challenges,01:06.124 --> 01:07.564and accessing workforce training.01:07.774 --> 01:11.973The letter stated that dismantling the programwould undermine decades of federal investment01:11.973 --> 01:18.013in domestic manufacturing, including $175million in fiscal year 2025 to fund the MEP01:18.013 --> 01:20.814centers.The senators also cited a report by Summit01:20.814 --> 01:25.054Consulting and the Upjohn Institute that foundthat the MEP program generated a.01:25.475 --> 01:31.195Return ratio of more than 17 to 1 for the $175million in funding it received from the federal01:31.195 --> 01:33.956government in fiscal year 2023.Kurt Anderson,01:34.115 --> 01:38.755founder of manufacturing e-commerce consultancyfirm B2Btail and frequent collaborator with01:38.755 --> 01:42.555MEPs, called the network a powerhouseorganization that delivers value to01:42.555 --> 01:46.515manufacturers with 20 employees or less withlimited access to resources.01:46.636 --> 01:50.555During Trump's first term, he presented abudget proposal to end federal funding for MEP01:50.555 --> 01:53.475centers and transition it to solely non-federalrevenue source.01:54.057 --> 01:57.208which the document estimated would save $124million.01:57.617 --> 02:00.847Congress ultimately restored the funds.The Department of Commerce section of Project02:00.847 --> 02:04.5682025, a political initiative designed toreshape the federal government,02:04.977 --> 02:09.298addresses the MEP program and called on theadministration following President Joe Biden to02:09.298 --> 02:15.138propose legislation to zero out this $150million program and fully privatize existing02:15.138 --> 02:17.977MEP centers.The author of the commerce section is Thomas F.02:18.018 --> 02:21.658Gilman, who held two positions in theDepartment of Commerce during Trump's first02:21.658 --> 02:24.429term.I'm Nolan Bastein, this is manufacturing now.