The Congressional Black Caucus (CBC) has reached out to the US Department of Commerce urging Secretary Howard Lutnick to safeguard the Minority Business Development Agency (MBDA) from President Trump’s latest executive order.
“For numerous years, MBDA has delivered essential support to black-owned enterprises nationwide.” CBC correspondence is acknowledged. “Due to recent moves by this administration, minority-managed businesses are poised to encounter numerous obstacles introduced by President Trump.
Established during the tenure of former President Nixon, MBDA’s mission is to “encourage the expansion of minority firms and global competitiveness to tap into the nation’s full economic capacity.”
In 2021, with the enactment of the bipartisan infrastructure legislation, MBDA was made a permanent entity.
Trump’s executive order dated March 17th, Continuing reductions in federal bureaucracy, threatens to dismantle the agency. Certain conservatives contend that the agency discriminates against white individuals.
Nevertheless, the CBC emphasized that Black Americans own 3.5 million businesses and provide jobs for over 1.2 million individuals. The Caucus also underscored MBDA’s crucial part in generating work and capital. In 2023, the agency facilitated $1.2 billion in capital and secured $1.6 billion in contracts, creating and maintaining over 14,000 jobs.
“This administration’s attempts to regress our nation and strip away vital resources for economic advancement for ethnic minorities will hinder the potential economic progress of all communities across this country,” the CBC stated. “We request that you guarantee the survival of this institution, which has safeguarded and fostered this economic aspect and significantly contributed to our nation’s prosperity.”
The CBC remarked that dismantling such agencies not only affects the economy but is also unconstitutional. They argued that halting the services offered by MBDA breaches the Responsiveness Act and the Expenditure Act.
The CBC is requesting Lutnick to clarify how the Commerce Department intends to keep MBDA operational to prevent violations of the Anti-Success Act and justify the suggested closure of agencies due to the executive order.
The Caucus is also inquiring whether the department will reinstate employees placed on administrative leave. The CBC has set a deadline for Lutnick to reply to their letters by April 18th.
“We urge this administration not to completely overlook the rule of law,” the CBC stated. “Illegally disbanding federal entities like MBDA through enforcement measures poses a risk to our democracy.”
