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

Commerce, Space, and Science NominationsSenate Appropriations Subcommittee on Commerce, Justice, Science, and Related Agencies · 2026-04-22 · 119th Congress
The Senate Appropriations Subcommittee on Commerce, Justice, Science convened to review Commerce Secretary Howard Lutnick's proposed fiscal year 2027 budget, which cuts overall department funding by 12.2% and proposes eliminating the Economic Development Administration and Manufacturing Extension Partnership while cutting NOAA and NIST [0:17:14]. Begins at 0:16:45
Transcript
Highlights

Title

FY2027 Commerce budget, BEAD broadband funds, and Epstein document disputes

Purpose

The Senate Appropriations Subcommittee on Commerce, Justice, Science convened to review Commerce Secretary Howard Lutnick's proposed fiscal year 2027 budget, which cuts overall department funding by 12.2% and proposes eliminating the Economic Development Administration and Manufacturing Extension Partnership while cutting NOAA and NIST0:17:06. Members pressed Lutnick on unanswered oversight letters, the $21 billion in undeployed BEAD broadband funds, tariffs, export controls on chips to China, fisheries management, and National Weather Service staffing after fatal Michigan tornadoes. Begins at0:16:45

Who spoke

Chair Jerry Moran (R-KS)0:16:45: Outlined the 12.2% budget cut and criticized the proposed elimination of the Hollings Manufacturing Extension Partnership0:17:32; pressed Lutnick on the $21 billion in undeployed BEAD funds and warned against diverting money from broadband deployment0:32:28; later raised phosphate fertilizer tariffs, GeoXO satellites, and jet fuel prices1:58:151:55:032:03:41.

Sen. Chris Van Hollen (D-MD), Ranking Member0:19:12: Said Lutnick had "totally misled" the public about his Epstein relationship and failed to respond to a February 27 letter with Sen. Merkley requesting records0:19:41; questioned the USA Rare Earth deal brokered partly by Lutnick's former firm Cantor Fitzgerald0:20:020:37:04; later pressed on reinstating the BIS "affiliates rule" to close China export-control loopholes0:24:24 and urged faster NOAA action on Mid-Atlantic recreational fishing limits1:26:37.

Sec. Howard Lutnick, Secretary of Commerce0:23:53: Touted trillions in manufacturing investment and trade deals with Japan, Korea, and the EU0:24:210:25:50; said 54 states/territories have executed BEAD agreements with $21 billion in non-deployment funds still under review0:30:36; on Epstein records said "that's right" he has nothing to hide but deferred to a separate House process0:34:580:35:22; said the U.S. is "not selling our best chips" to China and no H200 chips have yet been sold to PRC-affiliated firms0:51:451:17:56.

Sen. Jeanne Shaheen (D-NH)0:46:17: Cited a 30% drop in Canadian tourism and pressed Lutnick on calling Canada's economy "leeching"0:46:480:47:15; asked about BEAD non-deployment funding timelines for New Hampshire's ~$180 million0:49:16; questioned chip exports to China possibly aiding Chinese military modernization0:50:58.

Sen. Susan Collins (R-ME)0:52:46: Sought commitment to use updated, non-outdated right whale data before new lobster fishery regulations0:53:17; pressed on alternatives to costly "ropeless gear" for small lobster boats0:55:54; asked how EDA elimination would affect rural Maine investment0:58:21.

Sen. Brian Schatz (D-HI)1:00:10: Asked Lutnick to account for Hawaii's unique inter-island "middle mile" geography in BEAD non-deployment planning1:00:10; questioned the vague "onerous and burdensome" standard in the AI state-preemption executive order1:01:40; pressed on using the Postal Service to help conduct the 2026 census test, citing a GAO report questioning the plan1:04:42.

Sen. Katie Britt (R-AL)1:07:32: Asked Lutnick to reevaluate whether Rice's whale is a distinct species before continuing its endangered listing, citing national security concerns1:07:32; sought commitment to fund validating research1:09:57; raised NOAA flood-warning gaps after the July 4 Texas flooding1:10:52.

Sen. Chris Coons (D-DE)1:12:49: Noted $175 million appropriated for MEP last year despite the budget zeroing it out1:13:17; questioned a proposed $350 million NIST cut, including $120 million from research programs1:13:46; pressed on how many H200 chips have been licensed for export to China-linked firms like Alibaba1:16:27.

Sen. Deb Fischer (R-NE)1:18:41: Said Nebraska's BEAD allocation dropped to $405 million with only $4 million spent so far, leaving ~$340 million in limbo without NTIA guidance1:18:41; pushed for precision-agriculture connectivity to be deemed an eligible non-deployment use1:21:18.

Sen. Jack Reed (D-RI)1:29:32: Asked which agency coordinates critical minerals investment across Commerce, Defense, and Ex-Im Bank1:29:32; questioned a proposed 32% cut to NIST's quantum budget given China's investment in the field1:32:27.

Sen. Lisa Murkowski (R-AK)1:34:06: Sought assurance that FY2027 funding will sustain Alaska 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: Urged Lutnick to bring quantum computing capability in-house for national security rather than relying on the private sector1:39:11; challenged him on tariff cost impacts on small manufacturers and the proposed MEP cuts, citing 33,000 jobs and $7.6 billion tied to New York's 10 MEP centers1:44:01.

Sen. Gary Peters (D-MI)1:45:21: Described a March 6 Michigan tornado outbreak that killed four people, including a 12-year-old boy, with no tornado watch issued and a warning delayed five minutes after touchdown1:45:501:46:42; pressed for written answers from NOAA and asked why the "Warn-on-Forecast" modeling system was reportedly not operational that day1:50:09.

Key moments

Van Hollen said Lutnick failed to respond to four separate committee inquiries, including Epstein-related records, a rare earths deal letter, questions for the record, and the FY26 NOAA spending plan0:34:22.

Lutnick confirmed the USA Rare Earth deal originated from an introduction by banker Ken Mullis and was not run through a formal application or competitive process; Van Hollen noted the company's prior federal contracting history totaled less than $100,0000:37:320:38:40.

Chair Moran said guidance on $21 billion in remaining BEAD non-deployment funds, promised by March 11, still had not been issued, and pointedly told Lutnick "next time, don't tell me the answer is soon or shortly"0:30:090:31:30.

Sen. Shaheen quoted Lutnick's remark that Canada's economic strategy "sucks," which he defended by saying Canada "leans on" the U.S. economy and criticized Canada for not stocking U.S. spirits0:46:480:48:02.

Lutnick said an Inspector General found MEP hubs overpaying executives and misusing funds, arguing the 1980s-era program needs to be "reimagined" rather than simply funded0:43:241:44:18.

Peters disputed Lutnick's claim there was adequate warning before the fatal March 6 Michigan tornado, noting the warning came five minutes after the tornado hit and after a 12-year-old was killed1:46:421:48:30.

Coons pressed on H200 chip exports to China; Lutnick said Chinese cloud companies want to buy them but China's own government has not yet let them, meaning no sales have occurred1:17:261:17:56.

Lutnick said NOAA plans to replace crewed hurricane-hunter aircraft with unmanned systems using sensors already ordered by other agencies, at "wildly less money" and risk0:41:430:42:13.

Lutnick proposed piggybacking NOAA sensors on other agencies' satellites and renegotiating the NASA contract to save billions while increasing data volume for the GeoXO weather satellite program1:55:03.

Van Hollen and Lutnick sparred over the BIS "affiliates rule" meant to stop Chinese firms evading export controls; Lutnick called it "smart" but deferred the decision to the broader trade team led by Secretary Bessent and Ambassador Greer1:24:241:25:54.

Metadata

CommitteeSenate Appropriations Subcommittee on Commerce, Justice, Science, 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 338322