Administration moves to eliminate federal MEP program, sources indicate

Numerous reports across the country indicate the National Institute of Standards and Technology (NIST) has taken the first step toward eliminating the Manufacturing Extension Partnership (MEP) program, which, for nearly 40 years, has provided technical assistance, training, research and strategic direction to tens of thousands of small and medium manufacturers across the country. Reports vary as to whether 10 or 11 of the 51 centers across the U.S. and Puerto Rico were told they would not receive current funding already appropriated and expected per the terms of their existing multi-year agreements with NIST. While news reports for individual state centers have surfaced, the most detailed coverage of the action to eliminate MEP that SSTI has yet to see is provided in an April 2 Wired posting by Paresh Dave and Louise Matsakis.

The move, along with several recent Administration actions, is consistent with recommendations outlined in Mandate for Leadership: The Conservative Promise, a 2023 publication of the Heritage Foundation. The book advocates for the private market to address many of the public goods and services presently supported by the federal government. Regarding MEP, on page 686 of the Mandate, one finds: 

Privatize the Hollings Manufacturing Extension Partnership. The Hollings Manufacturing Extension Partnership (MEP) establishes and manages a network of centers focused on advising small- and medium-sized manufacturers in order to improve processes and thereby strengthen the U.S. industrial base. When Congress created the program, MEP centers were intended to transition to self-sustaining private institutions after using government funds to begin operations, but the prohibition on long-term funding was abolished in 1998. MEP’s business advisory services would be more properly carried out by the private sector. The next Administration should propose legislation to zero out this $150 million program and fully privatize existing MEP centers. 

It remains to be seen how Congress will respond to the move since it recently approved appropriations to be spent in support of the MEP network of approximately 475 service locations through the FY25 continuing resolution through the balance of the federal fiscal year, which ends September 30, 2025.