Budget Hearing – Fiscal Year 2026 Request for the Department of Commerce

Commerce, Space, and Science NominationsHouse Appropriations Subcommittee on Commerce, Justice, Science, and Related Agencies · June 5, 2025 · 119th Congress
The House Appropriations Subcommittee on Commerce, Justice, Science, and Related Agencies held this hearing to examine Secretary of Commerce Howard Lutnick's fiscal year 2026 budget request, which proposes an $8.4 billion topline, a 17% cut from current levels, including large increases for the Bureau of Industry and Security and Census Bureau alongside proposed eliminations of the Economic Development Administration, Minority Business Development Agency, and Manufacturing Extension Partnership. Begins at ▶ 0:00:00
Transcript
Highlights

Title

FY2026 Commerce Department budget: tariffs, NOAA staffing, and program cuts

Purpose

The House Appropriations Subcommittee on Commerce, Justice, Science, and Related Agencies held this hearing to examine Secretary of Commerce Howard Lutnick's fiscal year 2026 budget request, which proposes an $8.4 billion topline, a 17% cut from current levels, including large increases for the Bureau of Industry and Security and Census Bureau alongside proposed eliminations of the Economic Development Administration, Minority Business Development Agency, and Manufacturing Extension Partnership. Members questioned Lutnick on NOAA/National Weather Service staffing after recent tornado and flood disasters, tariff policy and its effect on consumer prices and business predictability, the U.S. Steel–Nippon Steel transaction, broadband (BEAD) implementation, and the department's compliance with legally required spending-plan disclosures. Begins at▶ 0:00:00

Who spoke

• Chairman Hal Rogers (R-KY)▶ 0:00:00: Outlined the $8.4B request, a 17% cut, with a 50% BIS increase to counter China and a 20% Census Bureau increase▶ 0:01:08; later pressed Lutnick on Kentucky NWS staffing after 20 deaths in his district's recent flooding▶ 0:19:27 and on the CCP's technology theft▶ 0:15:31.

• Ranking Member Grace Meng (D-NY)▶ 0:03:32: Said the administration was withholding legally required FY2025 operating-plan details▶ 0:04:01 and cited a former-directors' letter warning NWS staffing cuts risk "needless loss of life"▶ 0:07:01; opposed proposed elimination of EDA and MBDA despite Lutnick's confirmation-hearing commitments▶ 0:07:56; in a later round raised rising grocery prices for Asian-American small businesses from tariffs▶ 1:34:40.

• Secretary Howard Lutnick, Department of Commerce▶ 0:09:54: Touted trillions in new investment commitments, TSMC's Arizona semiconductor plant, and BIS enforcement actions (22 convictions, 32 arrests, $185.5M seized)▶ 0:12:48; said NWS has "no reduction in force," calling reports of firings "fake news"▶ 0:20:48; defended tariffs as reducing the $1.2 trillion trade deficit and said $34 billion a month is flowing to the Treasury▶ 1:41:05.

• Rep. John Carter (R-TX)▶ 0:27:59: Highlighted Texas semiconductor workforce partnerships▶ 0:28:28 and pressed on reducing reliance on Taiwan, which produces 90% of world wafers▶ 0:30:54.

• Rep. Glenn Ivey (D-MD)▶ 0:33:46: Challenged Lutnick's reversal on MBDA elimination despite his confirmation testimony▶ 0:34:31, disputed the "80 other programs" GAO justification▶ 0:35:47, and raised China's quantum-computing funding lead over the U.S.▶ 0:36:42.

• Rep. Ben Cline (R-VA)▶ 0:39:17: Asked about EU Digital Markets Act treatment of U.S. tech firms▶ 0:39:44 and about BEAD program "cheapest option" rebidding after Lutnick said the Biden administration got zero dollars out in 30 months▶ 0:42:50.

• Rep. Joe Morelle (D-NY)▶ 0:44:15: Pressed Lutnick on tariff unpredictability harming business investment decisions▶ 0:46:32, drawing Lutnick's reply that fixing the "bad deal" trade deficit will "take some time"▶ 0:47:31.

• Rep. Vicente/Tony Gonzalez▶ 0:50:18: Asked how to leverage the U.S.-Mexico relationship against China▶ 0:51:04 and about maintaining U.S. leadership in autonomous vehicle technology▶ 0:53:20.

• Rep. Madeleine Dean (D-PA)▶ 0:55:31: Argued the administration misunderstands trade deficits, using a banana example — Walmart raised banana prices 8% under a 10% tariff▶ 0:59:38 — and asked when the U.S. last ran a trade surplus (Lutnick: ~100 years ago, during the Depression)▶ 0:58:14; later entered several critical articles into the record▶ 2:01:26.

• Rep. Andrew Clyde (R-GA)▶ 1:01:34: Praised the 22.6% non-defense discretionary cut and asked whether Commerce would rescind a 2024 rule restricting firearm export licenses▶ 1:03:44; Lutnick said the department was "examining it now"▶ 1:04:14.

• Rep. Frank Mrvan (D-IN)▶ 1:06:55: Pressed on 50% steel tariffs' effect on Northwest Indiana steelworkers▶ 1:07:55 and, in a second round, sought commitments that U.S. Steel Workers Union would have a "seat at the table" on Nippon Steel investment commitments▶ 2:06:06, which Lutnick did not specifically guarantee▶ 2:09:10.

• Rep. Dale Strong (R-AL)▶ 1:12:25: Asked what sectors beyond autos Commerce is prioritizing for reshoring — Lutnick named pharmaceuticals, semiconductors, and aircraft parts▶ 1:12:54; later discussed Huntsville's role in the 2026 census test▶ 1:16:37 and NOAA's experimental AI forecasting system▶ 1:51:06.

• Rep. Rosa DeLauro (D-CT)▶ 1:17:56: Said Commerce is roughly 30 days late on a legally required detailed spend plan and pressed Lutnick to commit to a timeline, which he did not provide▶ 1:22:34; in a second round criticized cuts to USAID food-for-farmers programs▶ 1:45:40.

• Rep. Riley Moore (R-WV)▶ 1:23:33: Described West Virginia's tin-plate steel plant closure after tariffs were denied under the Biden administration, leaving only one U.S. blast furnace for that product▶ 1:24:30; asked about reviewing the Obama-era export control reform initiative's "600 series" gaps▶ 1:25:21.

• Rep. Mark Alford (R-MO)▶ 1:39:42: Cited CBO estimates that tariffs will reduce the federal deficit by $2.8 trillion▶ 1:40:12 and asked whether regional NWS offices like Pleasant Hill, Missouri risk closure under automation▶ 1:41:35.

Key moments

• Lutnick said fewer than 5% of NWS staff took early retirement and called reports of firings "fake news," insisting the service is "at full staff" and he "will not sleep" if that were untrue▶ 0:20:48▶ 0:22:41.

• Meng noted five former NWS directors warned of an "impossible task" and possible "needless loss of life" from understaffing amid hurricane and wildfire season▶ 0:07:01.

• Lutnick confirmed MBDA is being cut to its "statutory minimum size" — from 65 employees to fewer than 10 — despite telling the Senate during confirmation he did not support dismantling it▶ 0:35:04▶ 0:35:47.

• Dean's banana exchange: a 10% tariff correlated with an 8% Walmart price increase, and Lutnick maintained "there is no uncertainty" for goods produced in America▶ 0:59:38▶ 1:01:04.

• Lutnick stated Taiwan produces 90% of the world's high-end wafers and the U.S. will only reach about 12% domestic production despite a $100 billion TSMC investment▶ 0:30:54▶ 0:31:24.

• DeLauro stated Commerce's spend plan was submitted more than five weeks after the legal deadline with only account-level detail, and Lutnick could not commit to a date for full compliance▶ 1:21:42▶ 1:22:34.

• On the U.S. Steel–Nippon Steel deal, Mrvan pressed for a guaranteed USW "seat at the table" on the $14 billion investment; Lutnick said only that "the president understands their concerns" without a specific commitment▶ 2:09:10▶ 2:10:30.

• Lutnick said BIS currently has just two agents covering China and is requesting more enforcement personnel rather than new initiatives in the budget request▶ 0:18:31▶ 1:15:12.

• Moore said the U.S. now has only one blast furnace producing tin-plate steel after West Virginia's plant closed when the Biden administration denied requested tariffs▶ 1:24:30▶ 1:24:51.

• Lutnick cited $250 billion in new automotive reshoring commitments and cited Hyundai ($7.5B) and Nippon Steel ($14.1B) as examples tied to the 50% steel tariffs▶ 1:09:44▶ 1:10:14.

Metadata

CommitteeHouse Appropriations Subcommittee on Commerce, Justice, Science, and Related Agencies
Chamber / CongressHouse · 119th Congress
DateJune 5, 2025
TypeHearing
Witnesses
The Honorable Howard Lutnick — Secretary, Department of Commerce
Videoyoutube
Transcript303 caption blocks · 19,947 words · 2:13:12 runtime
EventCongress.gov 118326