Hearings to examine proposed budget estimates and justification for fiscal year 2027 for the Department of Agriculture

Commerce, Space, and Science NominationsSenate Appropriations Subcommittee on Agriculture, Rural Development, Food and Drug Administration, and Related Agencies · 2026-04-22 · 119th Congress
This Senate Appropriations subcommittee hearing examined the Department of Commerce's fiscal year 2027 budget request, including proposed cuts to NOAA, NIST, the Economic Development Administration, and the Manufacturing Extension Partnership, alongside the department's progress on deploying remaining BEAD broadband funds. Begins at 0:16:45
Transcript
Highlights

Title

Commerce Department FY2027 budget, broadband funds, and Epstein records

Purpose

This Senate Appropriations subcommittee hearing examined the Department of Commerce's fiscal year 2027 budget request, including proposed cuts to NOAA, NIST, the Economic Development Administration, and the Manufacturing Extension Partnership, alongside the department's progress on deploying remaining BEAD broadband funds. Secretary Howard Lutnick testified and also faced repeated questioning from Ranking Member Van Hollen over unanswered document requests related to his relationship with Jeffrey Epstein and a rare-earths investment deal. Begins at0:16:45

Who spoke

Chair Jerry Moran (R-KS)0:16:45: Outlined the 12.2% proposed cut to Commerce and criticized elimination of the Hollings Manufacturing Extension Partnership0:17:06; pressed Lutnick on the $21 billion in nondeployed BEAD funds and the missed March 11 guidance deadline0:29:120:31:30; closed by raising fertilizer countervailing duties, aviation fuel prices, and NOAA satellite/hurricane-hunter programs1:58:152:03:00.

Sen. Chris Van Hollen (D-MD), Ranking Member0:19:12: Said Lutnick had not responded to a February letter with Sen. Merkley seeking Epstein-related records despite saying he had "nothing to hide"0:19:41; questioned the no-bid process behind the government's $1.6 billion USA Rare Earth stake, brokered partly through Lutnick's former firm Cantor Fitzgerald0:37:04; later pressed on reinstating the BIS "affiliates rule" on chip export loopholes0:24:24 and on delayed NOAA action on Mid-Atlantic recreational fishing limits1:26:37.

Sec. Howard Lutnick, Secretary of Commerce0:23:53: Touted record manufacturing investment (e.g., $200B Micron, $6B Texas Instruments)0:24:21 and a $550 billion Japan trade deal0:25:50; said 54 states/territories have executed BEAD agreements and a plan for the $21B in nondeployment funds is coming "within two months"0:30:360:50:58; on Epstein records said he'd answer all questions "voluntarily" to the House within two weeks0:35:22; said the U.S. has not sold H200 chips to China-affiliated firms1:17:44.

Sen. Shelley Moore Capito (R-WV)0:40:09: Asked about NOAA's unmanned hurricane-hunter systems0:41:04 and pressed on plans to "reimagine" the Manufacturing Extension Partnership after IG criticism0:42:54.

Sen. Jeanne Shaheen (D-NH)0:46:17: Cited a 30% drop in Canadian tourism and pressed Lutnick on his remark that Canada's economy "sucks"0:46:48; raised delayed BEAD nondeployment guidance for New Hampshire's ~$180 million0:49:16 and unresolved concerns about H20 chip exports to China0:50:58.

Sen. Susan Collins (R-ME)0:52:46: Sought commitment to use updated right whale/lobster fishery data rather than outdated assumptions0:53:17; asked how EDA-supported rural Maine projects would be protected if EDA is eliminated0:58:21.

Sen. Brian Schatz (D-HI)1:00:10: Asked for acknowledgment that Hawaii's island geography differs from mainland "middle mile" broadband planning1:00:26; questioned the vague "onerous and burdensome" standard in the AI state-law preemption executive order1:01:40; challenged the plan to use postal carriers for the 2026 census test given GAO concerns1:04:42.

Sen. Katie Britt (R-AL)1:07:32: Asked Lutnick to reevaluate the science behind the Rice's whale endangered listing given a new peer-reviewed study1:07:32; raised gaps in NOAA radar coverage in Alabama and flood-warning technology partnerships1:10:52.

Sen. Chris Coons (D-DE)1:12:49: Pressed on the proposed $350 million NIST operating cut, including $120 million from research programs1:13:46; asked how many H200 chips have been licensed for export to China-linked firms, warning that dual-use policy means any commercial sale reaches the PLA1:16:27.

Sen. Deb Fischer (R-NE)1:18:41: Noted Nebraska's BEAD allocation dropped from $405 million to about $340 million in usable nondeployment funds and no guidance has been issued1:19:08; pushed for precision-agriculture connectivity to be deemed an eligible BEAD use1:21:03.

Sen. Jack Reed (D-RI)1:29:32: Asked which agency coordinates critical minerals investment across Commerce, Defense, and Interior1:29:32; questioned a proposed 32% cut to NIST's quantum budget given China's investments1:32:27.

Sen. Lisa Murkowski (R-AK)1:34:06: Sought assurance that FY2027 funding will sustain fisheries stock assessments amid staffing shortages1:34:45; flagged a backlog of fishery disaster declarations dating to 20221:36:40.

Sen. Kirsten Gillibrand (D-NY)1:39:11: Warned against over-reliance on private-sector quantum investment for national security and requested a classified briefing with Sen. Reed1:39:42; argued tariffs are hurting small manufacturers reliant on foreign inputs like Canadian lumber and questioned MEP cuts given New York's 10 centers created ~33,000 jobs1:44:01.

Sen. Gary Peters (D-MI)1:45:21: Said no tornado watch was issued before a March 6 storm that killed four in Michigan, including a 12-year-old boy, and the tornado warning came five minutes after touchdown1:45:50; asked Lutnick to provide written answers and confirm the Warn-on-Forecast system's operational status1:50:09.

Key moments

Van Hollen said Lutnick has failed to respond to four separate committee requests, including a February 27 letter on Epstein-related records and a February 25 letter on the USA Rare Earth deal, calling it "a pattern"0:20:56.

Van Hollen noted the rare earths deal, involving $1.6 billion in federal support, reportedly originated in a November 2025 conversation between Lutnick and the company's CEO with no formal application or competitive process, and that Lutnick's former firm Cantor Fitzgerald arranged the private side of the transaction0:37:040:38:58.

Lutnick confirmed BEAD is now at 54 states/territories with agreements executed, but the remaining $21 billion in nondeployment funds still lacks guidance more than a month after a promised March 11 release date; Moran told him "don't tell me the answer is soon or shortly"0:30:360:31:30.

Shaheen confronted Lutnick over his public comment that Canada's economic strategy "sucks," linking it to a 30% drop in Canadian tourism and lost cross-border business, which Lutnick did not directly walk back0:46:480:47:28.

Lutnick said "we are not selling our best chips to China under any circumstance" and that no H200 chips have yet been sold to China-affiliated firms, though Coons countered that dual-use policy means any commercial sale is effectively accessible to the PLA0:51:451:17:58.

Peters said the National Weather Service issued no tornado watch and only a warning five minutes after a fatal March 6 Michigan tornado that killed a 12-year-old boy; Lutnick disputed that no warning existed and denied any staffing shortfall, calling it "terrible" but declining to concede a process failure on the spot1:46:201:47:41.

Lutnick defended MEP cuts by citing Inspector General findings of overpayment to executives and inaccurate reporting, proposing to "reimagine" the decades-old program rather than fund it as-is0:43:241:44:18.

Collins secured a commitment from Lutnick to use the "best, most precise data" on North Atlantic right whales for lobster fishery rulemaking as the 2028 regulatory moratorium approaches0:53:170:55:29.

Moran and Capito proposed inviting the Inspector General to brief the subcommittee on MEP program problems before deciding its future funding0:45:371:18:30.

Lutnick said BIS generated $308 million in fines last year and expects over $250 million this year, framing new export-enforcement hires as "intellectual police officers" protecting U.S. innovation1:57:16.

Metadata

CommitteeSenate Appropriations Subcommittee on Agriculture, Rural Development, Food and Drug Administration, and Related Agencies
Chamber / CongressSenate · 119th Congress
Date2026-04-22
TypeOpen Hearing
Witnesses
(none listed in event metadata)
Videosenate-isvp
Transcript329 caption blocks · 14,901 words · 2:05:42 runtime
EventCongress.gov 338300