Budget Hearing - Department of Commerce

Commerce, Space, and Science NominationsHouse Appropriations Subcommittee on Commerce, Justice, Science, and Related Agencies · April 23, 2026 · 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 levels▶ 0:02:13. 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 at▶ 0:01:15

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% decrease▶ 0:02:13, and pressed the department on late FY26 spend plans and FY27 budget documents▶ 0:04:22; later questioned Lutnick on BIS export-control funding▶ 0:25:04 and EDA's role in coal communities▶ 0:28:59.

• 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 funds▶ 0:05:38; cited a New York Times investigation into Lutnick family business dealings tied to Commerce Department deals▶ 0:06:36; said the department gave inaccurate information last year about National Weather Service firings▶ 0:07:00 and had ten-plus months of unanswered questions for the record▶ 0:07:47; raised Lutnick's Epstein ties from Epstein files disclosures▶ 0:08:41.

• Rep. Rosa DeLauro (D-CT), Ranking Member of full committee▶ 0:09:24: Called the administration's trade policy "disastrous," citing a 10% tariff on islands populated by penguins▶ 0:10:19 and Yale Budget Lab data that tariffs raised food costs by $1,700 per family in 2025▶ 0:11:03; noted the economy added fewer than 600,000 jobs in 2025 versus 2 million in 2024▶ 0:11:30; cited an AP poll showing 70% disapproval of the administration's economic handling▶ 0:12:57; detailed proposed EDA elimination, a $63 million clawback, and a $10 million cut to the Inspector General's office▶ 0:12:38▶ 0:15:16.

• Secretary Howard Lutnick, Department of Commerce▶ 0:16:37: Touted Micron ($200B), TSMC ($165B), and Texas Instruments ($60B) semiconductor investments▶ 0:17:39; cited a $550 billion Japan trade deal and record-low 16-year trade deficit▶ 0:19:25▶ 0:21:09; described BIS export-control agents as generating 3–10 times their cost in fines▶ 0:25:36; said the department executed the BEAD program for $21 billion, half the original $42 billion allocation, after removing fiber-only restrictions▶ 0:31:19; repeatedly declined to answer Epstein-related questions, citing a planned closed-door session with House colleagues within two weeks▶ 0:34:32; denied his sons profited from tariff refund rights, calling reporting on it false▶ 1:10:36.

• 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 administration▶ 0:32:59; pressed Lutnick on why he claimed to have cut off Epstein contact in 2005 despite a 2012 island visit and 2018 emails▶ 0:33:46; asked about the Gold Card visa program, learning only one applicant had been approved so far with hundreds in queue▶ 0:36:49.

• 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 aircraft▶ 0:39:34; raised the University of Missouri's MURR research reactor and medical isotope production▶ 0:41:54.

• 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 2024▶ 0:43:24; 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 2026▶ 0:44:19▶ 0:44:45; criticized elimination of EDA and Manufacturing Extension Partnership funding for small businesses▶ 0:47:17.

• Rep. (Mr. [Loudermilk], R-GA)▶ 0:49:04: Praised BIS's rescission of a Biden-era firearm export rule▶ 0:49:04 and the $21 billion BEAD savings▶ 0:49:26; raised a Blue Ridge Mountain EMC broadband cooperative dispute over FCC pole-attachment rules, securing Lutnick's confirmation the cooperative is exempt▶ 0:50:22▶ 0:52:02; asked Lutnick to detail EDA/MBDA "waste," prompting Lutnick to cite an IG report finding 92% of MBDA awards should never have been made▶ 0:53:13▶ 0:53:40.

• 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 handling▶ 0:56:43▶ 0:57:10; described a Rochester optics manufacturer facing a $1 million tariff cost on a $10 million machine purchase▶ 0:58:33; 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 traffic▶ 1:01:58; connected AI-enabled "pig butchering" scams to BIS chip export enforcement funding▶ 1:03:39.

• 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 dealings▶ 1:06:19; alleged Lutnick's sons profited from buying tariff refund rights▶ 1:10:08; called for his resignation▶ 1:11:06.

• Rep. (Mr. Mervyn)▶ 1:11:32: Cited Lutnick's pro-union comment on auto plants moving to Mexico▶ 1:11:32; challenged him on an executive order restricting Commerce Department employees' collective bargaining rights▶ 1:12:17; raised a British Petroleum lockout of ~1,000 United Steelworkers in his district and got Lutnick's agreement to meet on it▶ 1:13:20▶ 1:14:31; questioned inconsistency between celebrating natural gas plants elsewhere and a forced $100 million coal plant reopening raising his constituents' electricity rates▶ 1:15:29.

• 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 importers▶ 1:17:45; Lutnick said tariff refund portals are run by Customs and Border Protection under DHS, not Commerce▶ 1:19:40, and agreed it "makes perfect sense" to participate in ensuring refunds reach small businesses▶ 1:22:27.

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 instead▶ 0:34:32▶ 1:07:58.

• 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 2018▶ 1:06:43▶ 1:07:07.

• 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"▶ 1:10:08▶ 1:10:36.

• 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 comment▶ 0:31:19▶ 0:32:15.

• 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 2026▶ 0:44:19▶ 0:44:45.

• 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 Commerce▶ 0:11:03▶ 0:13:26.

• 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 agency▶ 0:53:40.

• 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.▶ 0:58:33▶ 0:59:04.

• 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 China▶ 0:25:58▶ 0:28:11.

• Rep. Mervyn secured Lutnick's agreement to meet regarding a British Petroleum lockout of roughly 1,000 United Steelworkers in his district▶ 1:14:31▶ 1:15:00.

Metadata

CommitteeHouse Appropriations Subcommittee on Commerce, Justice, Science, and Related Agencies
Chamber / CongressHouse · 119th Congress
DateApril 23, 2026
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