CAPAC Chair Meng Issues Statement on Executive Order Shutting Down Minority Business Development Agency
WASHINGTON, D.C. — U.S. Rep. Grace Meng (D-Queens), Chair of the Congressional Asian Pacific American Caucus and Ranking Member of the House Appropriations Subcommittee on Commerce, Justice, Science and Related Agencies, issued the following statement today in response to President Trump’s executive order to shut down the Minority Business Development Agency (MBDA).
“Since the agency’s founding under President Nixon and strengthening under President Reagan, the Minority Business Development Agency (MBDA) has been a lifeline for thousands of American entrepreneurs who are building businesses, creating jobs, and strengthening our communities. With relatively modest annual funding, every year the MBDA helps American businesses secure billions in contracts and financing and support tens of thousands of jobs. This isn’t government waste – it’s a smart down payment on economic opportunity and American competitiveness, with a fantastic return on investment.
“In recognition of MDBA’s decades of success as an engine of opportunity, Congress permanently authorized MBDA in the Bipartisan Infrastructure Law, and appropriated $68,250,000 for the agency for fiscal year 2025, which was signed into law by President Trump just last Saturday. This contradicted an action he took one day earlier: when urged on by Elon Musk, President Trump signed an executive order to unlawfully shut down MBDA’s services for small businesses. The executive order isn’t just illegal – it’s an attack by billionaires on vital programs that power the American dream for business owners and workers in every State. I expect President Trump and his Administration to abide by and implement the funding for MBDA that he approved and signed into law last Saturday.”
CAPAC Chair Meng also led a letter with the Congressional Hispanic Caucus Chair Adriano Espaillat urging Secretary Lutnick not to eliminate the MBDA. The letter can be found HERE.
BACKGROUND
The Minority Business Development Agency (MBDA) was founded in 1969 and aims to promote growth among Minority Business Enterprises, or MBEs, by providing access to capital and technical assistance programs.
An MBE is a for-profit business that is at least 51% owned or managed by a U.S. resident who is Asian-Indian, Asian-Pacific, Black, Hispanic, or Native American. During the 2023 fiscal year, the MBDA facilitated $1.5 billion worth of capital to MBEs and helped create 19,000 jobs.
President Trump issued an executive order on March 14 that seeks to gut seven government entities, including the MBDA, saying they each “shall be eliminated to the maximum extent consistent with applicable law.”
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Founded in 1994, the bicameral Congressional Asian Pacific American Caucus is composed of 79 members of Congress who advocate on behalf of Asian American, Native Hawaiian, and Pacific Islander (AANHPI) communities. The Caucus is led by Congresswoman Grace Meng, who was elected CAPAC Chair in 2024.