In a reversal of an earlier decision, the Trump administration has reinstated nearly US13m in funding to the Manufacturing Extension Partnership (MEP), a federal programme that supports small and medium-sized manufacturers across the United States.
The move follows sharp criticism from lawmakers, business leaders and local communities, who warned that the initial funding cuts risked harming domestic manufacturing jobs and regional economic growth.
The administration had earlier announced plans to withdraw support from MEP centres in ten states, including Delaware, Kansas, and New Mexico, as part of a wider effort to reduce federal spending and reprioritise agency funding. The decision triggered bipartisan backlash, with critics arguing that the cuts would jeopardise a programme that plays a key role in strengthening the manufacturing sector, particularly among smaller firms that lack access to large-scale resources.
On 15 April, following mounting pressure, the administration reversed course and confirmed that funding for the affected centres would be restored through the end of the current fiscal year.
The National Institute of Standards and Technology (NIST), which administers the MEP programme, said it had renewed contracts for the ten centres and would continue to evaluate the programme’s future.
Although the reinstated funding provides short-term stability, concerns remain about the programme’s long-term viability.
Representative Sharice Davids has introduced the Defend American Manufacturing Act, a bill aimed at ensuring consistent support by requiring annual renewals of MEP contracts. Proponents of the legislation argue it would shield the programme from abrupt political shifts and secure essential services for manufacturers nationwide.
Founded in 1988, the MEP is a public-private partnership that offers technical assistance, workforce development, and operational support to smaller manufacturers, who make up around 98% of all manufacturing firms in the US.
The programme has been widely credited with driving economic development and job creation. In New York State alone, MEP centres have contributed to more than 32,000 jobs and completed more than 4,400 projects between 2019 and 2023.
Despite the temporary restoration of funding, the administration’s proposed budget for fiscal year 2026 includes potential cuts to the MEP, raising fresh questions about the future of federal support for small manufacturers. While the current funding provides a reprieve, the debate over the MEP’s future is likely to continue as lawmakers weigh competing priorities and budget constraints.
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