Hearings to examine proposed budget estimates for fiscal year 2026 for the Department of Commerce.

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

2025-06-04

Summary

This hearing of the Subcommittee on Commerce, Justice, Science, and Related Agencies convened to consider the President's Fiscal Year 2026 budget request for the Department of Commerce, with Secretary Lutnick as the key witness.[ 00:25:12-00:25:19 ]

Senators expressed concerns about proposed budget cuts and departmental transparency, while the Secretary highlighted the administration's "America First" agenda focusing on economic growth and efficiency.[ 00:26:07-00:26:45 ]

Budget Cuts and Departmental Oversight

Senators raised significant concerns about proposed budget reductions, including a 16.5% cut for the department, a $1.5 billion reduction for NOAA, and potential elimination of the Economic Development Administration.[ 00:26:35-00:26:40 ]

There was strong criticism regarding the lack of detailed FY26 budget justification and the overdue FY25 spend plan.[ 00:26:11-00:26:31 ] Ranking Member Van Hollen highlighted alleged illegal firings of federal employees and the withholding of appropriated funds, citing a federal court ruling against large-scale reorganizations without Congressional partnership.[ 00:29:32-00:29:37 ] [ 00:30:15-00:30:23 ] Secretary Lutnick defended the cuts by emphasizing the elimination of wasteful programs, such as those writing children's books for climate anxiety, and his personal review of all contracts over $100,000 to ensure efficiency and identify fraud or abuse.

National Weather Service (NOAA)

Senators voiced apprehension about staffing shortages at National Weather Service offices, with some locations unable to operate 24/7, particularly in Kansas, Alaska, and Oregon.[ 00:45:19-00:45:19 ]

The Secretary asserted that NOAA is fully staffed with 2,100 meteorologists and ready for hurricane season, committing to protect public safety and forecasting.[ 00:43:51-00:44:07 ] He also promised to modernize outdated technology, including green screens and hard drives, and make the system more efficient.[ 01:50:39-01:51:03 ] Specific concerns were raised about the Seal Rocks Weather Buoy in Alaska being out of commission, impacting maritime safety and commerce.

Trade and Tariffs

Secretary Lutnick highlighted the administration's focus on reshoring manufacturing, citing trillions of dollars in new investment commitments and the goal to narrow the trade deficit. He emphasized using tariffs to ensure fair and reciprocal trade, particularly in industries like aerospace and steel, and to address issues like fentanyl trafficking and currency manipulation. Senators expressed concerns that tariffs could increase costs for small businesses, disrupt supply chains, and harm relationships with allies like Canada. The Secretary clarified that the USMCA agreement ensures tariff-free trade for products made in Canada and the U.S., but other goods would be subject to tariffs.[ 00:38:00-00:38:11 ]

Manufacturing and CHIPS Act Implementation

The Hollings Manufacturing Extension Partnership (MEP) program faced scrutiny, with the Secretary describing it as outdated and citing an Inspector General report on waste and abuse.[ 00:48:47-00:49:11 ]

[ 01:07:35-01:07:44 ] Several senators, however, strongly defended the MEP, highlighting its effectiveness in helping small manufacturers with technology adoption and job creation. Regarding the CHIPS Act, the Secretary stated he is renegotiating contracts to secure better value for taxpayers, resulting in increased commitments from chipmakers for the same federal funding.[ 01:39:05-01:39:24 ] [ 01:40:14-01:40:37 ] Concerns were raised about potential delays in funding and discouraging companies by renegotiating deals post-contract.[ 01:39:30-01:39:40 ] [ 01:42:09-01:42:13 ]

Broadband Deployment (BEAD Program)

The Secretary outlined an expedited plan for the BEAD program, aiming for a 90-day application period and all awards disbursed by the end of 2025, emphasizing technologically agnostic and cost-efficient solutions.[ 01:10:58-01:11:21 ]

[ 01:15:00-01:15:01 ] Senators expressed frustration over previous delays and concerns that new rules might force states to restart bidding processes, potentially wasting time and money.[ 01:10:03-01:10:03 ] The Secretary reiterated a commitment to ensure efficient deployment and maximize funding for underserved areas.[ 01:09:34-01:09:41 ] [ 01:12:12-01:12:12 ]

Intellectual Property (USPTO)

Secretary Lutnick noted progress in reducing the backlog of patent applications and removing fraudulent trademarks, highlighting the value of the Patent and Trademark Office. He expressed openness to proposals, such as bipartisan legislation to prevent fee diversion, which historically impacted the USPTO's resources.

The meeting's tone was largely contentious and direct, with senators frequently challenging the Secretary on budget decisions, departmental transparency, and policy impacts. The Secretary remained assertive and defensive, often emphasizing efficiency and the administration's "America First" strategy.[ 00:41:06-00:41:08 ]

While there were moments of strong disagreement, an aspirational collaborative tone emerged, particularly towards the end, with commitments to hold further discussions on specific issues.