Cantwell Leads Pushback Against Cuts To Small Business Funding

U.S. Senator Maria Cantwell (D-WA) has joined a group of Senate colleagues in demanding answers from the Trump administration regarding recent decisions to dismantle or cut funding for programs that support small businesses, including those owned by minorities and women.

In a letter to Small Business Administration Administrator Kelly Loeffler and Secretary of Commerce Howard Lutnick, Cantwell and other senators questioned the administration’s decision to reduce the Minority Business Development Agency (MBDA) to minimum operations and to propose abolishing it entirely in the Fiscal Year 2026 budget.

The MBDA has operated for over 50 years to support minority-owned businesses through public-private partnerships, technical assistance, and access to capital. In Tacoma, the MBDA Business Center was recently forced to close after its grant was terminated. Since receiving a $2 million MBDA grant in July 2021, the Tacoma center helped minority-owned businesses create and retain nearly 1,500 jobs, secure $190.8 million in contracts, and obtain $216.9 million in financing.

“We demand answers from the Administration about how it intends to properly serve small business entrepreneurs from minority and underserved communities and follow Federal laws establishing support for such entrepreneurs,” the senators wrote. “A failure to support small businesses, including minority-owned small businesses, will be a detriment to the entire American economy.”

The letter also criticizes the administration’s broader approach to small business programs, including proposed eliminations of Women’s Business Centers, SCORE mentorship programs, and technical assistance for the Microloan program. The senators argued that these cuts would undermine entrepreneurship, reduce job creation, and damage local communities.

“The Administration actions to eliminate the MBDA is part of an overall attack on federal support to business owned by socially or economically disadvantaged individuals,” they wrote.

Federal agencies set annual contracting goals to include small businesses generally and specific goals for Small Disadvantaged Businesses (SDBs), women-owned small businesses, and veteran-owned small businesses. The senators warned that weakening these programs will harm efforts to ensure inclusive economic growth.

In March, President Trump issued an executive order directing the MBDA and other agencies to reduce their functions to only what is legally required. In April, nearly all MBDA employees were laid off or reassigned, and termination letters were sent to MBDA grantees and Business Centers. The Rhode Island Federal District Court later issued a preliminary injunction halting implementation of the executive order, but questions remain about future operations.

The senators also noted that in January 2025, the SBA lowered the SDB contracting goal to 5 percent, down from 15 percent under the Biden administration. Reports have indicated that agencies such as the Department of Health and Human Services have also cut staffing in their Offices of Small and Disadvantaged Business Utilization (OSDBUs), which help small businesses compete for federal contracts.

“Undermining and dismantling targeted federal programs that recognize the historic challenges faced by minority business owners will ultimately hurt local communities and weaken the U.S. economy,” the senators concluded.

Senator Cantwell has been a longstanding defender of the MBDA, previously demanding compliance with court orders halting its dismantling and urging the Department of Commerce to honor its commitments to the agency’s mission.

Other senators signing the letter included Edward J. Markey (D-MA), Tammy Baldwin (D-WI), Jacky Rosen (D-NV), Ben Ray Luján (D-NM), John Hickenlooper (D-CO), Lisa Blunt Rochester (D-DE), Cory Booker (D-NJ), Mazie Hirono (D-HI), Adam Schiff (D-CA), and Martin Heinrich (D-NM).

The senators have requested that the administration provide written answers by July 10, detailing how it plans to use congressionally appropriated MBDA funds, reasons for terminating staff and grants, plans to meet SDB contracting goals, and explanations for proposed eliminations of small business programs.