Trump’s March 14 EO guts the agency which has helped boost minority entrepreneurship, ignite economic opportunity & create jobs in rural, suburban & urban communities across the country

Senators to Lutnick: “…stay true to your testimony”

WASHINGTON, D.C. – Today, U.S. Senators Maria Cantwell (D-Wash.), Ranking Member of the Senate Committee on Commerce, Science and Transportation, and Lisa Blunt Rochester (D-Del.) called on U.S. Department of Commerce Secretary Howard Lutnick to stand up and protect the Minority Business Development Agency (MBDA) from Trump’s Executive Order that would functionally dismantle it.  

In a letter to the Secretary, the senators cited Lutnick’s response to Sen. Blunt Rochester during his nomination hearing that he did not support dismantling MBDA. The agency, which was created by President Nixon in 1969 and codified into law by Congress with bipartisan support in 2021, is responsible for promoting the growth and global competitiveness of minority owned businesses. The MBDA assists these businesses with access to capital, contracts, markets and business networks through partnerships with private and public entities.  In Fiscal Year 2024 alone, the MBDA helped the country’s more than 12 million minority businesses access over $1.5 billion in capital and create or retain approximately 23,000 jobs.

“We welcomed your clear commitment to upholding the law and protecting the MBDA’s vital mission,” the senators wrote. “Notwithstanding your testimony, President Trump has now ordered the MBDA to ‘be eliminated to the maximum extent consistent with applicable law.’ As the Cabinet Secretary ultimately responsible for executing the President’s directive, you should not allow the MBDA’s programs and duties to be compromised by the White House’s latest attempt to override congressional authority.”

“Simply put, such a move would reflect the exact type of ‘dismantling’ of the MBDA that you promised not to carry out,” their letter continued. “We urge you to stay true to your testimony.”

Today’s letter follows Sen. Cantwell’s statement on Friday, March 21, in which she noted both the contributions minority businesses make to the United States economy, and that as Commerce Secretary, Mr. Lutnick should be promoting small businesses rather than hawking Tesla stock.

“These businesses are engines of commerce—and we should be investing in their success,” Sen. Cantwell said Friday.  “I’m particularly troubled that Secretary Lutnick would eliminate the MBDA—whose mission is to support small minority businesses—while he’s spending time on TV trying to boost Tesla stock.”

Sens. Cantwell’s and Blunt Rochester’s full letter to Lutnick can be found HERE and below:

Secretary Lutnick:

When you appeared before the Senate Committee on Commerce, Science, and Transportation on January 29, 2025, you said you would not support the dismantling of the Minority Business Development Agency (MBDA).^[1]  We welcomed your clear commitment to upholding the law and protecting the MBDA’s vital mission.  Notwithstanding your testimony, President Trump has now ordered the MBDA to “be eliminated to the maximum extent consistent with applicable law.”^[2]  As the Cabinet Secretary ultimately responsible for executing the President’s directive, you should not allow the MBDA’s programs and duties to be compromised by the White House’s latest attempt to override congressional authority.

Congress statutorily authorized the MBDA in 2021 in a bipartisan manner.  As part of that work, Committee Democrats worked across the aisle to ensure the agency received the resources and leadership it needed to serve American entrepreneurs facing historical barriers to small business ownership—helping them innovate, start successful businesses, and create good-paying jobs.  Recognizing the importance of this mission, the Senate approved the amendment codifying the MBDA, its programs, and its duties, into federal law by unanimous consent.^[3]  In Fiscal Year 2024 alone, the agency helped the country’s more than 12 million minority businesses access over $1.5 billion in capital and create or retain approximately 23,000 jobs.^[4]

All of this progress and its benefit to the U.S. economy was placed at risk when President Trump issued an executive order (EO) on March 14, 2025, effectively eliminating the MBDA and certain other federal entities.  In so doing, the EO called for the head of the MBDA—who ultimately reports to you—to submit a report to the Office of Management and Budget within seven days “confirming full compliance with this order and explaining which components or functions of the governmental entity, if any, are statutorily required and to what extent.”^[5]  External stakeholders have contacted our offices warning that the agency is being pressured to reduce its personnel to as few as 3 full-time equivalent (FTE) employees—a stark departure from the 76 FTEs for which the agency is presently authorized.^[6]  We also have heard from external stakeholders that the MBDA already has put all employees on administrative leave as of March 21, 2025.

If a reduction in force of this magnitude were to occur, it would have devastating impacts on the MBDA’s ability to carry out its programs and duties as mandated by Congress.  And it would be fundamentally inconsistent with any plan to ensure the MBDA “operate[s] efficiently, effectively, and in compliance with the law,” which you claimed was your priority for the MBDA.^[7]  Finally, this reduction in force would be to the detriment of the U.S. economy, which you, as Commerce Secreatary, are responsible for strengthening, not weakening.

Simply put, such a move would reflect the exact type of “dismantling” of the MBDA that you promised not to carry out.  We urge you to stay true to your testimony. 

Sincerely,

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