NEWS: Sens. Schiff, Husted, Kim, Moreno to Unveil Bipartisan Legislation to Protect Manufacturing Jobs, Enhance American Manufacturing Competitiveness

Bill would protect longstanding bipartisan manufacturing program at Commerce Department, compel release of pending funds to states Washington, D.C. — U.S. Senators Adam Schiff (D-Calif.), Jon Husted (R-Ohio), Andy Kim (D-N.J.), and Bernie Moreno (R-Ohio) will introduce bipartisan legislation to protect the Manufacturing Extension Partnership (MEP), a program that supports small and medium-sized manufacturers by improving productivity, reducing costs, accelerating technology adoption, and strengthening supply chains. The Senator’s legislation, the Defend American Manufacturing Act, requires the U.S. Department of Commerce to continue to operate the MEP program after the Department suspended funding nationwide despite its broad, longstanding bipartisan support. “American manufacturing is vital to our economy and our national security. It also provides good-paying jobs and stability for millions of American families. In order to help small manufacturers compete in an increasingly small and globalized world, it is important that they have the resources to grow and adapt. Our legislation requires the Department of Commerce to release funding that is essential to hundreds of thousands of workers and manufacturers across the country,” said Senator Schiff. “Ohio makes the things the world needs, and our strong history and future in the manufacturing industry has long been the backbone of our state’s economy. The Manufacturing Extension Partnership program has been a driver behind the success of many successful small businesses, and this bill ensures that success will continue, while also maintaining the ability to weed out waste, fraud, and abuse,” said Senator Husted. “New Jersey’s manufacturers not only drive our economy but continue to drive and grow a new era of incredible innovation. We must continue to answer the call to have our manufacturers’ backs across the country and use legislation like this to build the systems and support they need to continue to succeed,” said Senator Kim. In California and across the country, the U.S. Department of Commerce continues to suspend the disbursement of already-appropriated funds to several MEP centers. The Defend American Manufacturing Act will: Require the Department of Commerce to continue operating the MEP program by executing cooperative agreements, ensuring the Department cannot sidestep the program and stall funding; Protect Center funding by prohibiting the Department from suspending, canceling, or not renewing funding to a MEP Center unless the Center operator receives an evaluation other than positive; Mandate that a Center operator placed on probation – but actively remedying – continues to receive funding during the probationary period; Dictate that the Department must re-evaluate a probationary Center and make a final determination regarding the Center’s status within 180 days; Force the Department to launch a competition for a new operator within 30 days of canceling a contract, cap the application period at 90 days, and mandate a final award decision within 30 days of closing applications; Ensure any unspent funds allocated to a previous operator are automatically transferred to the newly selected operator; Codify assessments regarding financial management, including fraud monitoring and misuse of funds, as part of the formal “Evaluation of Centers” process. U.S. Representative Sharice Davids (D-Kan.-03) introduced companion legislation in the U.S. House of Representatives. The Defend American Manufacturing Act is endorsed by the American Small Manufacturers Coalition (ASMC). “The American Small Manufacturers Coalition strongly supports this legislation because it provides greater transparency, accountability, and consistency in the administration of the Manufacturing Extension Partnership program. MEP Centers operate under rigorous performance standards and deliver measurable results for small and medium-sized manufacturers nationwide. This bill strengthens oversight while ensuring that performance concerns are addressed through a clear, timely, and fair process that protects manufacturers from service disruptions. These improvements will help preserve the integrity and effectiveness of the nation’s most successful manufacturing assistance program,” said Carrie Hines, President of the American Small Manufacturers Coalition (ASMC). The full text of the legislation is available here . A one-pager for the legislation is available here . ###