Budget Hearing - Department of Commerce

Commerce, Space, and Science NominationsHouse Appropriations Subcommittee on Commerce, Justice, Science, and Related Agencies · 2026-04-23 · 119th Congress
The House Appropriations Subcommittee on Commerce, Justice, Science, and Related Agencies held a budget hearing to review the Department of Commerce's fiscal year 2027 budget request, which proposes a $9.2 billion topline, a 16.5% cut from current levels [0:02:13]. Begins at 0:01:15
Transcript
Highlights

Title

Commerce Department FY2027 budget: tariffs, EDA cuts, and Epstein ties

Purpose

The House Appropriations Subcommittee on Commerce, Justice, Science, and Related Agencies held a budget hearing to review the Department of Commerce's fiscal year 2027 budget request, which proposes a $9.2 billion topline, a 16.5% cut from current levels0:02:13. Secretary Howard Lutnick testified on trade policy, semiconductor and manufacturing investments, tariff enforcement, and NOAA modernization, while members questioned proposed cuts to the Economic Development Administration and Minority Business Development Agency, as well as Lutnick's past statements about his relationship with Jeffrey Epstein. Begins at0:01:15

Who spoke

Chairman (Rep. Hal Rogers, R-KY)0:01:15: Welcomed new subcommittee member Rep. Jefferson Shreve and Secretary Lutnick, outlined the $9.2 billion request and 16.5% decrease0:02:13, and pressed the department on late FY26 spend plans and FY27 budget documents0:04:22; later questioned Lutnick on BIS export-control funding0:25:04 and EDA's role in coal communities0:28:59.

Ranking Member Grace Meng (D-NY)0:04:50: Criticized proposed elimination of EDA grants, the Manufacturing Extension Partnership, and the Minority Business Development Agency, and rescission of Digital Equity Program funds0:05:38; cited a New York Times investigation into Lutnick family business dealings tied to Commerce Department deals0:06:36; said the department gave inaccurate information last year about National Weather Service firings0:07:00 and had ten-plus months of unanswered questions for the record0:07:47; raised Lutnick's Epstein ties from Epstein files disclosures0:08:41.

Rep. Rosa DeLauro (D-CT), Ranking Member of full committee0:09:24: Called the administration's trade policy "disastrous," citing a 10% tariff on islands populated by penguins0:10:19 and Yale Budget Lab data that tariffs raised food costs by $1,700 per family in 20250:11:03; noted the economy added fewer than 600,000 jobs in 2025 versus 2 million in 20240:11:30; cited an AP poll showing 70% disapproval of the administration's economic handling0:12:57; detailed proposed EDA elimination, a $63 million clawback, and a $10 million cut to the Inspector General's office0:12:380:15:16.

Secretary Howard Lutnick, Department of Commerce0:16:37: Touted Micron ($200B), TSMC ($165B), and Texas Instruments ($60B) semiconductor investments0:17:39; cited a $550 billion Japan trade deal and record-low 16-year trade deficit0:19:250:21:09; described BIS export-control agents as generating 3–10 times their cost in fines0:25:36; said the department executed the BEAD program for $21 billion, half the original $42 billion allocation, after removing fiber-only restrictions0:31:19; repeatedly declined to answer Epstein-related questions, citing a planned closed-door session with House colleagues within two weeks0:34:32; denied his sons profited from tariff refund rights, calling reporting on it false1:10:36.

Rep. Jefferson Shreve (R-IN)0:01:46: New subcommittee member, thanked the chairman for the welcome.

Rep. (Ms. May / New York)0:32:59: Noted continuity of chip investments from the Biden administration0:32:59; pressed Lutnick on why he claimed to have cut off Epstein contact in 2005 despite a 2012 island visit and 2018 emails0:33:46; asked about the Gold Card visa program, learning only one applicant had been approved so far with hundreds in queue0:36:49.

Rep. (Mr. Alford)0:38:17: Discussed NOAA weather forecasting improvements for Missouri tornado season, including a $70 million procurement increase for next-generation satellites and unmanned aircraft0:39:34; raised the University of Missouri's MURR research reactor and medical isotope production0:41:54.

Rep. (Mr. Clyde)0:42:57: Cited a $1,700 per-family tariff cost and a $62 billion higher manufacturing trade deficit in 2025 versus 20240:43:24; got Lutnick to admit he didn't know the daily manufacturing job-loss statistic, then cited BLS data showing over 100 jobs lost per day (88,000+ total) from February 2025 to February 20260:44:190:44:45; criticized elimination of EDA and Manufacturing Extension Partnership funding for small businesses0:47:17.

Rep. (Mr. [Loudermilk], R-GA)0:49:04: Praised BIS's rescission of a Biden-era firearm export rule0:49:04 and the $21 billion BEAD savings0:49:26; raised a Blue Ridge Mountain EMC broadband cooperative dispute over FCC pole-attachment rules, securing Lutnick's confirmation the cooperative is exempt0:50:220:52:02; asked Lutnick to detail EDA/MBDA "waste," prompting Lutnick to cite an IG report finding 92% of MBDA awards should never have been made0:53:130:53:40.

Rep. (Mr. Morelli)0:54:57: Quoted Lutnick's "strongest and most resilient economy" claim skeptically; cited a $34 billion drop in factory construction investment and 89,000 manufacturing jobs lost, with only 30% approval of the administration's economic handling0:56:430:57:10; described a Rochester optics manufacturer facing a $1 million tariff cost on a $10 million machine purchase0:58:33; disputed Lutnick's denial that Chinese automakers could build and sell in the U.S.1:00:00.

Rep. Schrader (Indiana, new member)1:00:25: Raised foreign scam centers victimizing constituents, asking what Commerce is doing on authentication standards for foreign digital traffic1:01:58; connected AI-enabled "pig butchering" scams to BIS chip export enforcement funding1:03:39.

Rep. (Ms. Dean)1:05:54: Recounted meeting Epstein survivors through RAINN and pressed Lutnick on his 2005 Epstein-contact claim versus the 2012 island visit and 2018 business dealings1:06:19; alleged Lutnick's sons profited from buying tariff refund rights1:10:08; called for his resignation1:11:06.

Rep. (Mr. Mervyn)1:11:32: Cited Lutnick's pro-union comment on auto plants moving to Mexico1:11:32; challenged him on an executive order restricting Commerce Department employees' collective bargaining rights1:12:17; raised a British Petroleum lockout of ~1,000 United Steelworkers in his district and got Lutnick's agreement to meet on it1:13:201:14:31; questioned inconsistency between celebrating natural gas plants elsewhere and a forced $100 million coal plant reopening raising his constituents' electricity rates1:15:29.

Rep. (final questioner)1:17:45: Asked about the $166 billion in tariffs the Supreme Court declared illegal and whether refunds would reach small businesses and consumers, not just large importers1:17:45; Lutnick said tariff refund portals are run by Customs and Border Protection under DHS, not Commerce1:19:40, and agreed it "makes perfect sense" to participate in ensuring refunds reach small businesses1:22:27.

Key moments

Lutnick repeatedly declined to answer questions about his relationship with Jeffrey Epstein, citing a planned closed-door session with House Oversight Committee members within two weeks instead0:34:321:07:58.

Rep. Dean detailed that Lutnick told the New York Post he last saw Epstein in 2005, but Epstein files showed a 2012 visit to Epstein's private island with family, a business deal signed five days later, and emails as late as 20181:06:431:07:07.

Rep. Dean alleged Lutnick's sons profited from buying tariff refund rights at a discount after the Supreme Court ruled the tariffs illegal; Lutnick called the claim "false"1:10:081:10:36.

Lutnick said the BEAD broadband program was re-executed for $21 billion — half of the original $42 billion allocation — after removing a fiber-only requirement, with the remaining $21 billion still to be allocated pending public comment0:31:190:32:15.

Rep. Clyde got Lutnick to admit he did not know the daily manufacturing job-loss figure; Clyde cited BLS data showing over 100 manufacturing jobs lost per day (88,000+ total) from February 2025 to February 20260:44:190:44:45.

DeLauro cited Yale Budget Lab data that tariffs cost American families $1,700 in 2025 and noted a $63 million clawback of previously appropriated EDA funds plus $2.3 billion in total proposed rescissions from Commerce0:11:030:13:26.

Lutnick cited an IG report finding over 92% of Minority Business Development Agency awards "should never have been made," used to justify zeroing out the agency0:53:40.

Rep. Morelli described a Rochester optics manufacturer facing roughly $1 million in added tariff costs on a $10 million equipment purchase, and another firm shifting manufacturing to Berlin because it is cheaper than expanding in the U.S.0:58:330:59:04.

Lutnick said BIS law-enforcement agents return 3 to 10 times their cost in fines from export-control violations, citing a recent criminal case over billions of dollars of chips destined for China0:25:580:28:11.

Rep. Mervyn secured Lutnick's agreement to meet regarding a British Petroleum lockout of roughly 1,000 United Steelworkers in his district1:14:311:15:00.

Metadata

CommitteeHouse Appropriations Subcommittee on Commerce, Justice, Science, and Related Agencies
Chamber / CongressHouse · 119th Congress
Date2026-04-23
TypeHearing
Witnesses
The Honorable Howard Lutnick — Secretary, U.S. Department of Commerce
Videoyoutube
Transcript189 caption blocks · 11,829 words · 1:23:30 runtime
EventCongress.gov 119193