In a reversal that underscores both the political sensitivity and economic importance of U.S. manufacturing, the Trump administration is walking back its April 1 decision to zero out millions in funding for Manufacturing Extension Partnership (MEP) centers whose contracts were up for renewal in ten states. While the decision to cut funding was not a surprise—it hails straight from the Project 2025 playbook, which calls for eliminating federal support for programs like the Manufacturing Extension Partnership—it triggered widespread alarm across the industrial base. The administration’s explanation to Congress that the investment was “no longer aligned with government priorities” left most analysts predicting the remaining states would see similar cuts as their funding renewal deadlines hit at quarterly intervals over the next twelve months.
While MEP funding for the ten state centers targeted is safe for now, the future of this vital support is definitely uncertain as small manufacturers and the centers that support them brace for further cuts as called for in the president’s proposed FY2026 budget.
Established in 1988 under the Omnibus Trade and Competitiveness Act in response to the 1980s trade pressures on US manufacturing, the MEP program is a public–private partnership administered by the National Institute of Standards and Technology (NIST). Its primary mission is to enhance the competitiveness of small- and medium-sized manufacturers (SMMs) by providing them with access to technology, resources, and industry best practices. MEP centers operate in all fifty states and Puerto Rico, offering services such as process improvements, workforce training, and supply chain optimization. The program is funded through a combination of federal appropriations, state dollars, and fees charged to client manufacturers.
Federal funding is the linchpin of MEPs, and the unilateral decision by the U.S. Department of Commerce appeared to be in direct conflict with a bipartisan appropriation of $175 million for fiscal year 2025. MEP has been targeted in the past for budget cuts by people who believe that the government should not intervene in the private economy. Yet eliminating the program goes against the growing bipartisan understanding that a strong industrial base is necessary for economic competitiveness and national security.
SMMs are essential links in the U.S. supply chain, providing the components, materials, and services that larger manufacturers and critical industries depend on. Despite their importance, many SMMs operate with thin margins and limited capacity to adopt new technologies or improve processes on their own. The MEP program plays a vital role in strengthening this segment of the supply chain by offering technical expertise and support, helping SMMs enhance productivity, create jobs, and contribute to economic growth. MEPs have taught thousands of SMMs lean manufacturing principles that larger firms have utilized to optimize output, and have in recent years enabled them to tackle automation and workforce shortages. In fiscal year 2024, MEP clients reported $15 billion in new and retained sales, $5 billion in new client investments, $2.6 billion in cost savings, and over 108,000 jobs created or retained.
The administration’s moves to cut funding for MEPs threatens to undermine decades of progress in manufacturing resilience—and stand in stark contrast to its own rhetoric about supporting small businesses, revitalizing American manufacturing, and boosting global competitiveness.
This is a particularly precarious moment for SMMs, as the administration’s trade agenda is scrambling the supply chains in which SMMs operate. There is no way to rebuild American manufacturing without supporting the small- and medium-sized manufacturers that form the foundation of the industrial base. The MEP program was created to help these essential firms compete, grow, and adapt in a shifting global economy. Simply put, U.S. manufacturing has no chance of making a comeback unless it is able to leverage technology and process innovation to become more productive. While the administration has since reversed course on the proposed cuts, the episode underscores how vital it is to safeguard programs like MEP—especially as the nation claims to prioritize industrial revitalization.
With a proven track record of boosting innovation, creating jobs, and strengthening supply chains, MEPs are indispensable to a resilient, competitive, and future-ready industrial base. If we’re serious about bringing manufacturing back, programs like MEP must be strengthened—not sidelined.
Tags: federal budget, donald trump, U.S. manufacturing
Safeguarding the MEP Program Is Critical to Revitalizing American Manufacturing
In a reversal that underscores both the political sensitivity and economic importance of U.S. manufacturing, the Trump administration is walking back its April 1 decision to zero out millions in funding for Manufacturing Extension Partnership (MEP) centers whose contracts were up for renewal in ten states. While the decision to cut funding was not a surprise—it hails straight from the Project 2025 playbook, which calls for eliminating federal support for programs like the Manufacturing Extension Partnership—it triggered widespread alarm across the industrial base. The administration’s explanation to Congress that the investment was “no longer aligned with government priorities” left most analysts predicting the remaining states would see similar cuts as their funding renewal deadlines hit at quarterly intervals over the next twelve months.
While MEP funding for the ten state centers targeted is safe for now, the future of this vital support is definitely uncertain as small manufacturers and the centers that support them brace for further cuts as called for in the president’s proposed FY2026 budget.
Established in 1988 under the Omnibus Trade and Competitiveness Act in response to the 1980s trade pressures on US manufacturing, the MEP program is a public–private partnership administered by the National Institute of Standards and Technology (NIST). Its primary mission is to enhance the competitiveness of small- and medium-sized manufacturers (SMMs) by providing them with access to technology, resources, and industry best practices. MEP centers operate in all fifty states and Puerto Rico, offering services such as process improvements, workforce training, and supply chain optimization. The program is funded through a combination of federal appropriations, state dollars, and fees charged to client manufacturers.
Federal funding is the linchpin of MEPs, and the unilateral decision by the U.S. Department of Commerce appeared to be in direct conflict with a bipartisan appropriation of $175 million for fiscal year 2025. MEP has been targeted in the past for budget cuts by people who believe that the government should not intervene in the private economy. Yet eliminating the program goes against the growing bipartisan understanding that a strong industrial base is necessary for economic competitiveness and national security.
SMMs are essential links in the U.S. supply chain, providing the components, materials, and services that larger manufacturers and critical industries depend on. Despite their importance, many SMMs operate with thin margins and limited capacity to adopt new technologies or improve processes on their own. The MEP program plays a vital role in strengthening this segment of the supply chain by offering technical expertise and support, helping SMMs enhance productivity, create jobs, and contribute to economic growth. MEPs have taught thousands of SMMs lean manufacturing principles that larger firms have utilized to optimize output, and have in recent years enabled them to tackle automation and workforce shortages. In fiscal year 2024, MEP clients reported $15 billion in new and retained sales, $5 billion in new client investments, $2.6 billion in cost savings, and over 108,000 jobs created or retained.
The administration’s moves to cut funding for MEPs threatens to undermine decades of progress in manufacturing resilience—and stand in stark contrast to its own rhetoric about supporting small businesses, revitalizing American manufacturing, and boosting global competitiveness.
This is a particularly precarious moment for SMMs, as the administration’s trade agenda is scrambling the supply chains in which SMMs operate. There is no way to rebuild American manufacturing without supporting the small- and medium-sized manufacturers that form the foundation of the industrial base. The MEP program was created to help these essential firms compete, grow, and adapt in a shifting global economy. Simply put, U.S. manufacturing has no chance of making a comeback unless it is able to leverage technology and process innovation to become more productive. While the administration has since reversed course on the proposed cuts, the episode underscores how vital it is to safeguard programs like MEP—especially as the nation claims to prioritize industrial revitalization.
With a proven track record of boosting innovation, creating jobs, and strengthening supply chains, MEPs are indispensable to a resilient, competitive, and future-ready industrial base. If we’re serious about bringing manufacturing back, programs like MEP must be strengthened—not sidelined.
Tags: federal budget, donald trump, U.S. manufacturing