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As part of the Trump administration's plan, the US Ministry of Trade has hired the financing of 10 programs for the production of extension partnership as part of the reduction in federal expenditure.
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The National Institute for Standards and Technology Division, which manages the MEP network, announced the affected centers last week that their contracts would not be renewed after the end of March. The program supports small and medium-sized US manufacturers who want to grow or make operational improvements.
- The step affected the programs in Delaware, Hawaii, Iowa, Kansas, Maine, Mississippi, Nevada, New Mexico, North Dakota and Wyoming. It is also the first step to reduce the financing of programs in 40 other states and Puerto Rico if their contracts are put to renewal later this year, according to the members of the House Committee for Science, Space and Technology.
Diver Insight:
This is not the first time that President Donald Trump tried to lower the MEP financing.
During Trump's first term in office, his administration made several budget proposals to eliminate almost all MEP funds that were between 130 and 146 million US dollars every year, so loudly Congress data From the financial years 2018 to 2021. However, the congress restored the program fund every time.
These recent efforts not to extend contracts have been received by legislators and shocked extension programs in several countries who claim that the time of moving violates Trump's strategy to restore US production.
“You cannot say to sign American manufacturers while at the same time broken down the programs that help you to survive and compete at the same time.” Rep. Grace Myfrom New York, said in an explanation. New York's Next conclusion for the renewal of MEP financial means is January 1, 2026.
The MEP program, founded in 1988, was signed by the former President Ronald Reagan as part of the Omnibus Commercial and Competition Act. Since then it has been important to support manufacturers for decades, Recently, companies that implement automation and artificial intelligence and strengthen the resilience of the supply chain.
In the 2024 financial year, the national network helped manufacturers to achieve $ 15 billion in new or retained sales and cost savings of 2.6 billion dollars. According to nist. In addition, more than 108,000 jobs were created or retained in the period.
However, critics have called MEP as called as “Corporate care” For years when the Trump administration argued that the centers could receive funds for their services from private companies and other sources.
Nist did not immediately answer an application for a statement on the contract extensions.
Mike O'Donnell, director of the Center for Industrial Research and Service at IOWA State University, which is part of the MEP network, has updated customers about the Unexpected cuts on TuesdayIn the foreseeable future, they will “influence the availability and affordability of the organization's services”.
“We are lucky enough to support outstanding support from Iowa and Iowa State University together with other federal finance sources,” said O'Donnell. “Because of this support and our spectacular team, we expect to fulfill all of our obligations and keep our employees.”
O'Donnell noticed that MEP was the largest federal finance source for the organization.
Meng has raised potential problems with the decision of the administration not to extend the contracts. Last month, the Congress appropriated 175 million US dollars for MEP, which Trump has already signed in the law, she said.
“Now his administration has informed these centers that their work no longer corresponds to their priorities to support American small companies and employees,” said Meng. “The elimination of the financing for the MEP program is not only wrong, it is clearly illegal.”
There are four further contract extension periods for the remaining 41 centers: July 1, 2025; October 1, 2025; January 1, 2026; and March 12, 2026 after the House under Committee for Research and Technology.
“Our manufacturers do not need empty promises and chaotic tariffs that increase the prices for the materials they use and the foods that feed their families – they need practical support to keep up with rapidly developing technologies and economic circumstances,” said Meng.