Category: Finance

Source: United States Senator for New York Charles E Schumer

NY’s Manufacturing Extension Partnership (MEP) Centers – Including NextCorps in Rochester, Center For Economic Growth & FuzeHub In Capital Region, Insyte In Western NY, And More – Rely On Fed Investment To Support Small Businesses And Create New Jobs

Senator Says These Centers Are One Of The Best Tools To Grow Upstate’s Economy – And Is Especially Needed As We Make Major Investments Thanks To His CHIPS & Science Law- And Cutting Support Now Would Be Double Whammy For Businesses Already Reeling From Trump’s Trade War

Schumer: Cutting Off Support For Upstate NY Businesses Is Not How You Rebuild American Manufacturing

After the Trump administration canceled funding for Manufacturing Extension Partnership (MEP) Centers across America and those in Upstate NY are fearing they are next, U.S. Senator Chuck Schumer today sounded the alarm to protect MEP centers that have helped hundreds of small manufacturers grow and create thousands of good-paying jobs in every region of New York. The senator said cutting off federal investment for Upstate NY manufacturing would hinder the growth the region is seeing thanks to his CHIPS & Science Law and threaten the next generation of American manufacturing and jobs across New York. Schumer called on the Trump administration to immediately reverse these cuts and keep MEP investments flowing for Upstate NY.

“Trump and ‘DOGE’ are threatening to defund a main federal support program for growing Upstate NY manufacturing. We cannot cut off this mainstay program for helping small businesses, attracting new supply chains, and creating new jobs just as we are seeing tremendous manufacturing growth across Upstate NY thanks to my CHIPS & Science Law,” said Senator Schumer. “From Buffalo to Albany, MEP Centers have proven to be one of the best bangs for your buck investments the federal government can make helping create thousands of new good-paying jobs and billions in new investment throughout New York. These centers are how we attract new supply chains, get workers the hands-on training they need, and bring back jobs from overseas. Trump can’t be ushering in the Golden Age of American manufacturing while simultaneously decimating the program that helps American manufacturers thrive. Trump’s haphazard trade war against allies like Canada is already wreaking havoc on New York’s economy and small manufacturers. These Trump cuts to manufacturing centers will only add to that chaos. These cuts are wrong, illegal, and should be immediately reversed.”

The Manufacturing Extension Program is authorized and appropriated by Congress, and Schumer said cutting these contracts without Congressional approval is most likely illegal. The MEP has a long track record of successfully boosting small American manufacturers in New York and across the country.

The New York Manufacturing Extension Partnership (NY MEP) is a network of 11 independent nonprofit organizations that help smaller manufacturers grow and create jobs. As a result of the federally-funded NY MEP network, over 32,000 manufacturing jobs in New York have been created or saved between 2019 and 2023. More than 4,400 projects have been completed between NY MEP and manufacturers in every region of the state to help those companies succeed and grow, increasing their sales by $1 billion, helping reduce costs by nearly $40 million, and increasing new investments by nearly $190 million, all in FY2024 alone.

Schumer explained the rising cost of foreign goods due to Trump’s tariffs is hurting small manufacturers that often already operate on razor-thin margins and ripping away this vital federal MEP assistance is just further insult to injury and threatens the jobs and growth of manufacturers across the state and country. According to WIRED, the U.S. Department of Commerce said they would not pay out nearly $13 million across ten MEP agreements because they were “no longer aligned with the priorities of the department,” and no clarity or certainty has been provided that the contract cuts won’t continue to happen across the country, including in New York, as the deadlines approach for contracts to be renewed.

A breakdown of contracts in New York State can be found below:

Every year, the Department spends nearly $200 million annually on MEP nationally. Though states also contribute to MEP programs, it will be difficult for them to compensate for the loss of federal funding. Schumer said cutting these contracts will prevent the United States from establishing manufacturing leadership and could lead to nationwide job losses. In a letter to U.S. Department of Commerce Secretary Howard Lutnick, Schumer highlighted the importance of MEP in supporting the growth of small manufacturers and demanded certainty that funding for New York’s MEP centers would not be cut.

“Saying that these critical investments are not aligned with the Department of Commerce’s priorities just doesn’t add up. Trump claims to care a lot about maintaining American manufacturing leadership, but his actions are doing the opposite. The MEP has delivered manufacturing growth in New York and America for years. We need to double down on investment in proven programs like this, not eliminate it,” Schumer added.

Elena Garuc, Executive Director of FuzeHub, the statewide NY MEP center, said, “The New York MEP serves as an economic engine for communities across our state. Local manufacturers rely on us as a vital resource to become more competitive, adopt new technologies, and create jobs. Occasionally we even step in as a safety net to help manufacturers solve tough challenges and protect their operations. When manufacturing leaders don’t know where to turn, they turn to us. Looking out on the economic horizon, I believe the New York MEP is needed now more than ever.  We’re grateful to Senator Schumer for recognizing the economic impact we deliver and for his determined advocacy for this essential program that strengthens American manufacturing and creates good-paying local jobs.”

“Small manufacturers are vital to the economy, driving innovation, creating high-quality jobs, and strengthening local and regional supply chains. In New York City, rising operational costs present added challenges. The success of the MEP program, both locally and nationally, lies in its ability to produce tangible results—whether by helping manufacturers adopt technologies tailored to their unique needs and resources, or by implementing strategies that enhance efficiency, reduce costs, and boost profitability,” said Kinda Younes, Executive Director of ITAC, New York City’s NY-MEP Center.

“LIMEP, operating out of Stony Brook University,  works with the many small and medium-sized manufacturers on Long Island supplying key Department of Defense programs.  By leveraging the NIST MEP resources in cyber security, technical resources and hands-on manufacturing engineering support with Stony Brook University’s vast research capabilities, manufacturers on Long Island are able to accelerate the development and adoption of advanced technologies that support DoD programs.  Our Long Island region helps to sustain the DoD supply chain that is so vital to our nation.  LIMEP is actively working with our regional manufacturers and the Bell Flight & Textron team to make the LI Supply Chain an important spoke in the national defense industrial base and the V-280 Valor Tiltrotor Program,” said Amy Erickson, Executive Director of the Long Island Manufacturing Extension Partnership Program.

“If you look at our mission statement “To grow and strengthen manufacturing in the Capital Region”, that is why we exist and have taken great pride in it for over 20 years. Many manufacturing CEO’s have to come to rely on the MEP network for assistance with finding domestic supply chain partners, workforce challenges, Industry 4.0 adoption, operational excellence… and the list goes on. Bipartisan support including that from Congressman Schumer has been a hallmark of the MEP program because by any measure we have delivered results,” said Don Weisenforth, President of Center for Economic Growth, the Capital Region’s NY-MEP center.

“Small manufacturers have been in the forefront of Buffalo’s and Western New York’s renaissance, with NYMEP providing critical support ranging from advanced technology and cybersecurity to workforce and supply chain.  We couldn’t provide these vital services without the MEP Program funding and bipartisan support provided by our Congressional Delegation, led by Senator Schumer,” said Ben Rand, President of Insyte Consulting, Western New York’s NY-MEP center.

“The NIST Manufacturing Extension Partnership (MEP) program is a cornerstone of American manufacturing, empowering small and mid-sized manufacturers with the tools, expertise, and resources they need to compete, grow, and innovate. These companies are the backbone of our economy and the heart of our communities. We are grateful for Senator Schumer’s leadership in urging the administration to restore full funding to this critical program—because investing in MEP is investing in jobs, resilience, and the future of U.S. manufacturing,” said James Senall, President of NextCorps, the Rochester/Finger Lakes Region’s NY-MEP center.

“The Manufacturing Extension Partnership (MEP) program is a critical resource for small and medium-sized manufacturers, especially in Central New York. No other program has MEP’s track record, documented history of success, or independently verified impacts. CNYTDO wouldn’t be able to provide these vital services without the MEP Program funding and bipartisan support provided by our Congressional Delegation, led by Senator Schumer,” said James A. D’Agostino, Center Director of CNYTDO, Central New York’s NY-MEP center.

“The MEP National Network is a critical driver of America’s manufacturing resurgence, directly supporting the administration’s efforts to rebuild our industrial base. The Alliance for Manufacturing & Technology, part of the NY MEP, delivers that impact in the Southern Tier of NY – helping small and mid-sized manufacturers increase productivity, adopt advanced technologies, and address workforce and supply chain challenges head-on. Cutting the MEP program would have immediate consequences, including job losses and hindered growth at a time when these businesses are critical to America’s future in manufacturing. We deeply appreciate Senator Schumer’s leadership in championing this vital program and his unwavering commitment to strengthening American manufacturing,” said Carol Miller, Executive Director of the Alliance for Manufacturing and Technology, the Southern Tier’s NY-MEP center.

“We must continue supporting Hudson Valley manufacturers with the tools they need to compete globally—not just nationally. After more than 30 years working alongside global manufacturers, I’ve seen firsthand how aggressive and integrated their supply chains can be. If we’re serious about reshoring, we must invest in the smaller manufacturers that form the backbone of those supply chains—while also strengthening workforce, cybersecurity, and technology readiness. The MEP program is critical to this work and deserves continued bipartisan support,” said David Carter, Executive Director of MTEC, the Hudson Valley’s NY-MEP center.

“The NIST Manufacturing Extension Partnership Program is critical to the success of Mohawk Valley Regional manufacturers. This investment and parentship has allowed for MVCC’s Advanced Institute for Manufacturing to assist more than 200 manufacturers and create and retain more than 2,900 Mohawk Valley advanced manufacturing jobs. We extend our deepest gratitude to Senator Schumer for advocating for this essential investment. This initiative underscores our dedication to innovation and community collaboration, promising a transformative influence on our workforce and students in the entire six-county region,” said Cory Albrecht, Director of Advanced Institute for Manufacturing, the Mohawk Valleys NY-MEP Center.

“On behalf of CITEC and North Country Manufacturing I would like to thank Senator Schumer in his efforts to save the MEP system. As part of the NY MEP, CITEC can leverage the strength and resources of the entire national network to bring world class expertise to small and medium manufacturers in our remote rural region. CITEC raises the level of our expertise, of our talent, of our skills,” said Jay Ward, President and CEO of Ward Lumber in Jay, NY. “I would highly recommend CITEC for gaining skills and expertise and improving the overall operation of most any company I can think of, certainly ours.”

Schumer and colleagues wrote a letter urging Commerce Secretary Lutnick not to cancel funding for ten MEP Centers across the country, which is creating uncertainty for all MEP centers. The Trump administration’s action cutting MEP came on April 1, one day before Trump announced sweeping tariffs on imports, which tanked the stock market and raised warnings from experts of a recession.  

Schumer led to passage of the bipartisan CHIPS & Science Law, which included $2.23 billion for the Manufacturing Extension Partnership program over five years. The CHIPS & Science Law also established a pilot program of expansion awards for MEP Centers to provide services for workforce development, resiliency of domestic supply chains, and expanded support for adopting advanced technology upgrades at small and medium manufacturers. The Law also established a voluntary national supply chain database under MEP.

Schumer’s letter to Commerce Secretary Lutnick can be found below:

Dear Secretary Lutnick,

We write to express our deep concern regarding the Department of Commerce’s recent decision to cancel future funding for ten National Institute of Standards and Technology (NIST) Hollings Manufacturing Extension Partnership (MEP) Centers in Delaware, Hawaii, Iowa, Kansas, Maine, Mississippi, Nevada, New Mexico, North Dakota, and Wyoming. This decision has raised widespread concern across the entire national network of MEP Centers, prompting fears about whether these initial cancellations are the first step in a broader effort to dismantle the program and eliminate federal funding for all 51 centers, with centers in Colorado, Connecticut, Illinois, Indiana, Maryland, Michigan, New York, New Hampshire, North Carolina, Oklahoma, Oregon, Tennessee, Texas, Virginia, Washington, and Wisconsin expected to be notified about their status shortly. Given the MEP program’s long-standing, bipartisan support in strengthening small and medium-sized American manufacturers, we share these concerns and urge you to provide clarity and certainty on your plans for the future of the MEP program.

According to the National Association of Manufacturers, 93% of manufacturers have fewer than 100 employees, while 75% have fewer than 20 employees. Small manufacturers rely on MEP Centers for essential support in adopting the latest advanced technologies, updating their cybersecurity, navigating supply chain challenges, and accessing workforce training—resources that are often out of reach for small businesses without this dedicated assistance. These centers drive innovation, boost productivity, and create high-quality jobs, strengthening both local economies and America’s global competitiveness. Without this critical federal support, MEP Centers—especially those with the fewest resources, and those serving rural and underserved communities—will be at the greatest risk of closure.

Dismantling this program would not only disrupt benefits for small businesses but also undermine decades of federal investment in domestic manufacturing resilience, which Congress prioritized in the MEP program in the Omnibus Trade and Competitiveness Act of 1988. Congress also reauthorized the MEP program in the CHIPS and Science Act of 2022. NIST was provided $175 million in Fiscal Year (FY) 2025 to fund the MEP Centers. In FY2024 alone, the MEP National Network resulted in $2.6 billion in cost savings, $15 billion in new and retained sales, $5 billion in new client investments, and over 108,000 jobs created or retained. Additionally, a report by Summit Consulting and the Upjohn Institute found that the MEP program generated a substantial economic and financial return ratio of more than 17:1 for the $175 million funding invested by the federal government in FY2023. The study also determined that MEP Center projects contributed to an overall increase of nearly 309,000 jobs across the United States.

Given these benefits and the funding in the FY 2025 Continuing Resolution, we request a full explanation of the rationale behind this funding decision and ask that you promptly reconsider. Additionally, we urge the Department of Commerce to provide Congress with an impact assessment detailing how this decision will affect manufacturers in the affected states and regions. This action has caused tremendous uncertainty for all MEP Centers and the thousands of American manufacturing companies and their workers.  Therefore, to better understand your plans for renewals across other states in the future, we request a briefing on the way ahead for the overall MEP program prior to making any final non-renewal decisions by April 30, 2025. 

Eliminating federal support for MEP Centers would hamper American small and medium-sized manufacturers. We urge you to take immediate action to protect the MEP program and the manufacturers that rely on it. We look forward to your response no later than April 30, 2025, and are ready to work with you to find solutions that maintain and enhance the MEP program’s ability to serve America’s manufacturing sector.