Budget Hearing – Fiscal Year 2026 Request for the Department of Commerce

House Subcommittee on Commerce, Justice, Science, and Related Agencies

2025-06-05

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Summary

This meeting focused on the Department of Commerce's fiscal year 2026 budget request and its implications for various national priorities, including economic growth, trade, national security, and essential services[ 00:04:11-00:04:36 ] [ 00:10:00 ]

. Secretary Lutnick testified on the administration's "America First" agenda, while members raised questions regarding budget transparency, specific program cuts, and the economic impact of trade policies.

Themes

Commerce Department Budget and Priorities

The fiscal year 2026 budget request for the Department of Commerce totals $8.4 billion, representing a 17% decrease from current levels[ 00:04:25 ] . The budget aims to ensure efficient use of taxpayer dollars and reduce duplication across agencies[ 00:04:11-00:04:19 ] . Specific areas targeted for increased funding include a 50% increase for the Bureau of Industry and Security (BIS) to counter threats from China and a 20% increase for the Census Bureau to ensure reliable statistics[ 00:04:39-00:05:14 ] . However, some members expressed strong disappointment and concerns about the delayed release of complete budget details and the fiscal year 2025 operating plan, citing these as an unacceptable pattern of federal agency actions. Secretary Lutnick affirmed that the budget is designed to drive economic growth, narrow the deficit, and usher in a new era of American innovation[ 00:15:53-00:15:55 ]

Trade Policy and Tariffs

A significant portion of the discussion revolved around the administration's trade policy and the use of tariffs. The Secretary highlighted efforts to protect American industries from one-sided trade practices and strengthen supply chains, including ending the "de minimis loophole" and imposing tariffs. He stated that businesses are now choosing to invest in America first due to renewed commitment to fair trade, referencing billions in new investment commitments. Conversely, some members voiced strong concerns that the chaotic tariff policies create instability and uncertainty for businesses, increase costs for consumers, and deter investment. The Secretary contended that tariffs force countries to negotiate fairer deals and bring manufacturing back to the U.S., projecting resolution of many trade deals by July 9th[ 00:49:32-00:50:02 ]

[ 01:39:14 ] [ 01:41:25 ] .

National Weather Service (NWS) and NOAA Staffing

The state of the National Weather Service and NOAA's staffing levels drew considerable attention. Members expressed concerns over reports of meteorologists and other employees being fired or pressured to resign, leading to staffing shortages and reduced weather balloon deployments. This, they argued, could jeopardize accurate forecasting, particularly during hurricane and wildfire seasons. Secretary Lutnick strongly refuted claims of firings, stating that less than 5% of meteorologists took early retirement, and these positions are being refilled[ 00:25:04 ]

. He emphasized that all weather collection technology is fully operational and highlighted plans to automate services, utilize AI-based forecasting, and centralize some operations to enhance efficiency and accuracy across the country[ 00:23:14-00:23:29 ] .

Investment and Manufacturing Reshoring

A core theme was the administration's focus on revitalizing American manufacturing and attracting domestic and foreign investment[ 00:15:53 ]

[ 00:16:21 ] . The Secretary announced trillions of dollars in new commitments, particularly in the semiconductor industry, driven by initiatives like the investment accelerator to streamline building processes. Key sectors identified for reshoring due to national security concerns include pharmaceuticals, semiconductors, aircraft parts, steel, and aluminum[ 01:28:25-01:28:37 ] . There was also an emphasis on workforce training to support the influx of new manufacturing jobs.

Specific Agency Concerns and Budget Cuts

Several members raised alarms about proposed budget cuts to specific agencies and programs. The potential elimination of funding for the Economic Development Administration (EDA) and the Minority Business Development Agency (MBDA) was questioned, given previous assurances to maintain them. Secretary Lutnick clarified that MBDA would be reduced to its statutory minimum size, arguing that it is too small and inefficient compared to 80 other programs with similar outcomes. Concerns were also voiced about cuts to the Manufacturing Extension Partnership Program (MEP), the International Trade Administration (ITA), and the National Institute of Standards and Technology (NIST). The Secretary stated NIST cuts would not impact quantum or AI research, but would target older, less efficient programs.

Competition with China and AI Supremacy

The challenge posed by China's economic and technological ambitions was a significant focus[ 00:17:24-00:17:38 ]

. The Secretary emphasized China's intent to become the dominant global power by copying U.S. innovation and seeking AI supremacy. The proposed 50% increase for the Bureau of Industry and Security (BIS) is intended to enhance enforcement, protect American intellectual property, and rigorously enforce export controls to prevent critical technologies from falling into adversary hands[ 00:19:40-00:20:04 ] . The discussion also touched on China's "distant water fishing fleet" and efforts to enforce trade restrictions against Chinese food products linked to illegal fishing.

Transparency and Accountability

A point of contention was the lack of detailed budget information and spend plans provided by the Department of Commerce[ 00:10:04-00:10:06 ]

. Several members accused the department of non-compliance with legal requirements for public posting of budget documents and detailed spend plans, which are crucial for congressional oversight. The Secretary maintained that his department was following the Continuing Resolution (CR) requirements and committed to reviewing requests for more detailed information[ 01:21:56 ] [ 01:22:48 ] [ 01:47:13 ] [ 01:48:00 ] .

Tone of the Meeting

The meeting exhibited a generally contentious and assertive tone, particularly between the Secretary and members of the opposing party. Secretary Lutnick maintained a confident and often unyielding posture, vigorously defending the administration's policies and budget decisions against criticism[ 00:23:44-00:23:54 ]

[ 00:49:05-00:50:02 ] [ 00:59:45-00:59:53 ] . There were sharp disagreements regarding the impact of tariffs, claims of staffing shortages at NOAA, and the department's compliance with transparency requirements, with accusations of "fake news" and "illegal" actions exchanged[ 00:23:51 ] [ 01:23:16-01:23:41 ] . Conversely, members of the administration's party were largely supportive, commending the Secretary's business acumen and the "America First" agenda[ 00:51:42-00:52:16 ] [ 01:07:07-01:07:08 ] . Despite the tension, there were also areas of bipartisan agreement on the importance of countering threats from China and promoting domestic manufacturing[ 00:17:24-00:17:38 ] [ 00:29:19-00:29:40 ] . The meeting concluded with an acknowledgment of the Secretary's "exuberance" and a commitment to continued collaboration.