Baldwin Calls Out Trump Undermining Small Business Owners, Demands Admin Release Report on Proposed Cuts to the Bipartisan MBDA

WAHINSGTON, D.C. – As the Trump Administration seeks to dismantle the Minority Business Development Agency (MBDA), U.S. Senator Tammy Baldwin (D-WI) is demanding that they immediately release their report outlining the proposed cuts and its potential impact on small business owners across America. Senator Baldwin and her Republican colleagues helped make the MBDA permanent and she helped bring home Wisconsin’s first Business Center in 2023, ensuring entrepreneurs and business owners did not need to travel or use Chicago or Detroit’s Business Center. Local Business Centers provide small business owners technical assistance, assisting with access to capital and contracts, and supporting job creation and retention. 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.

“I fought hard to bring this support to Wisconsin, helping our entrepreneurs and small business owners access capital, contracts, and markets – creating jobs and growing our economy,” said Senator Baldwin. “Right now, behind closed doors, the Trump Administration is weighing what resources they can rip away from our local businesses, workers, and economies – and I’m not going to stand idly by. This is wrong and at the very least, they need to be transparent and let the people of our state see the impacts of these proposed cuts.”

Senator Baldwin worked to include the bipartisan Minority Business Development Act of 2021 as an amendment to the Infrastructure Investment and Jobs Act, making the MBDA permanent and increasing its funding and reach.  President Trump’s Executive Order seeks to eliminate MBDA’s “non-statutory components and functions…to the maximum extent consistent with applicable law.” The Executive Order required a report from MBDA to the Director of the Office of Management and Budget explaining which of its components or functions are statutorily required and to what extent, to determine what can be restructured or cut. As Ranking Member of the Senate Commerce subcommittee charged with oversight of MBDA, Baldwin is requesting a copy of that report by April 2^nd, 2025.

Senator Baldwin’s full letter can be found here and below:

Dear Deputy Under Secretary Latif:

I write regarding the Executive Order issued on March 14, 2025, which seeks to dismantle the Minority Business Development Agency (MBDA). This action by the Trump Administration undermines the work of the only federal agency exclusively dedicated to supporting the development and expansion of minority-owned businesses, which contribute trillions to the U.S. economy, employ millions of workers, and support local economies.

Congress affirmed its bipartisan support for MBDA by expanding its reach and making it permanent in the Bipartisan Infrastructure Investment and Jobs Act. Our bipartisan amendment made the MBDA more effective by putting into statute the mission and goals of the agency and giving it the proper tools to carry them out successfully. It also created a presidentially appointed and Senate-confirmed Under Secretary of Commerce for Minority Business Development to lead the agency. This allowed MBDA to increase their programs and outreach to minority-owned businesses and allowed for the expansion of MBDA business centers into additional states—including Wisconsin.

The Executive Order ignores Congress’s bipartisan commitment to MBDA’s reliability and geographic reach and would instead eliminate MBDA’s “non-statutory components and functions…to the maximum extent consistent with applicable law.” Any plans by this Administration to restructure MBDA should include input from Members of Congress who are familiar with its impact. The Executive Order required a report from MBDA to the Director of the Office of Management and Budget explaining which of its components or functions are statutorily required and to what extent. It is critical to include the Senators who represent states with MBDA Business Centers in this evaluation process, and the first step is providing me with a copy of the report to my Senate office to evaluate the scope of these proposed cuts. As Ranking Member of the Senate Commerce subcommittee charged with oversight of MBDA, I am requesting a copy of that report, which you would have already submitted to OMB, by April 2, 2025.

Sincerely,

###