Luján Presses Trump Administration to Provide Update on Status of Congressionally Appropriated Funding for Agency Dedicated to Growing Local Businesses

Washington, D.C. – Today, U.S. Senator Ben Ray Luján (D-N.M.), a member of the Senate Committee on Commerce, Science, and Transportation, called on United States Deputy Secretary of Commerce Paul Dabbar to provide an update on the status of the Minority Business Development Agency (MBDA), which the Trump administration has tried to illegally dismantle. Specifically, Senator Luján called on Deputy Secretary Dabbar to provide a detailed assessment of the status of all funding Congress appropriated to the MBDA.

In the letter, Senator Luján highlighted previous efforts to investigate the status of the MBDA, “During your confirmation hearing before the Senate Committee on Commerce, Science, and Transportation on May 1, 2025, I asked you to investigate and report back to the Committee on the status of the Minority Business Development Agency (MBDA), which the Trump Administration has tried to illegally dismantle.”

Seeking transparency, Senator Luján called for, “A detailed assessment of the status of all funding Congress appropriated to the MBDA. Please specify whether any such funds have been or ever were ‘repurposed’ to any program or activity outside MBDA.”

In May, during the Senate Commerce hearing on the nomination of Paul Dabbar to be U.S. Deputy Secretary of Commerce, Senator Luján pressed Mr. Dabbar on the dismantling of the MBDA by the Trump administration and highlighted the successes of the MBDA.

Senator Luján championed an amendment in the Bipartisan Infrastructure Law to make the MBDA permanent. He also secured passage of a provision to double the funding level for the MBDA’s Rural Business Development Center Program and to expand this program’s eligibility to include all Minority-Serving Institutions, which will expand opportunities for New Mexico’s colleges and universities. Additionally, in 2021, Senator Luján championed legislation to make permanent and expand the reach of the Minority Business Development Agency.

The text of the letter can be found HERE and below:

Deputy Secretary Dabbar:

Congratulations on your recent confirmation as Deputy Secretary of the Department of Commerce. 

During your confirmation hearing before the Senate Committee on Commerce, Science, and Transportation on May 1, 2025, I asked you to investigate and report back to the Committee on the status of the Minority Business Development Agency (MBDA), which the Trump Administration has tried to illegally dismantle. You testified: “I will commit to follow every dollar and report back as you request…” You reiterated this commitment in response to questions for the record regarding the MBDA, stating: “If granted the privilege of confirmation, I will promptly look into this matter.”

I appreciate your clear commitment to “promptly” investigate these matters of serious concern and report back to the Committee on your findings without delay. Accordingly, please provide the following information no later than July 28, 2025:

1. A detailed assessment of the status of all funding Congress appropriated to the MBDA. Please specify whether any such funds have been or ever were “repurposed” 4 to any program or activity outside MBDA. If so, please specify the programs or activities to which those funds were repurposed and the Department’s legal authority for doing so.
2. A detailed assessment of the status of all MBDA grants, including:
   1. All MBDA grants that have been terminated since January 20, 2025;
   2. All MBDA grants that have not been renewed since January 20, 2025;
   3. All funded activities that the Department determined are “consistent with the agency’s priorities” and that “serve the interests of the MBDA program.”
3. Based on your review and assessment, please certify whether the Department is in compliance with its statutory obligations under the MBDA Act of 2021, which was enacted as part of the Infrastructure Investment and Jobs Act. If you do not provide this certification, please explain why.
4. Did Mr. Nate Cavanaugh have the legal authority to issue termination notices to MBDA grantees?  If yes, please provide a complete description of the authority under which Mr. Cavanaugh was operating, including whether acting Undersecretary Keith Sonderling expressly delegated authority to Mr. Cavanaugh to issue termination notices to MBDA grantees and whether such delegation was lawful.
5. What steps, if any, has the Department taken to respond to the following letters from Committee Democrats requesting documents and information regarding the MBDA. Please detail the specific steps taken to respond to each letter and specify the date on which the Department anticipates providing a full and complete response to each letter:
   1. May 28, 2025, letter to Acting Deputy Secretary of Commerce for MBDA Keith Sonderling.
   2. April 30, 2025, letter to Acting Deputy Secretary of Commerce for MBDA Keith Sonderling.
   3. April 17, 2025, letter to Secretary Howard Lutnick.

Sincerely,

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