Congressional Black Caucus calls on Lutnick to protect Minority Business Development Agency

The Congressional Black Caucus (CBC) has sent a letter to the U.S. Department of Commerce demanding Secretary Howard Lutnick protect the Minority Business Development Agency (MBDA) from President Trump’s latest executive order. 

“For years, the MBDA has provided critical resources for Black-owned businesses across the nation,” the CBC’s letter reads. “As a result of recent actions taken by this administration, minority-owned businesses are set to face a number of hurdles imposed by President Trump that will further cripple our already buckling economy. It is imperative that we protect hard-working Americans by investing in opportunities that an agency like the MBDA provides.”

The MBDA, created under former President Nixon’s administration, aims “to promote the growth and global competitiveness of Minority Business Enterprises in order to unlock the country’s full economic potential.” 

In 2021, when Congress passed the Bipartisan Infrastructure Law, it made the MBDA a permanent agency.

Trump’s March 17 executive order, Continuing the Reduction of The Federal Bureaucracy, seeks to dismantle the agency. Some conservatives have argued the agency is discriminatory toward white people.

But the CBC emphasized that Black Americans own 3.5 million businesses and employ more than 1.2 million people. The caucus also highlighted that the MBDA plays a vital role in generating capital and jobs. In 2023, the agency facilitated $1.2 billion in capital, secured $1.6 billion in contracts, and generated or saved more than 14,000 jobs.

“This administration’s efforts to take our country back in time and remove critical tools of economic success for minority populations will hinder the potential economic growth of every community in this nation,” the CBC wrote. “We ask that you protect and promote this economic driver and ensure that this agency, which has significantly contributed to our nation’s success, continues to thrive.”

The CBC said dismantling the agency would not only undermine the economy, but is also unconstitutional. Halting services provided by the MBDA would also violate the Anti-Deficiency Act and appropriations laws, the caucus said.

The CBC is calling for Lutnick to explain how the Department of Commerce plans to continue the operations of the MBDA to avoid violating the Anti-Deficiency Act, as well as to defend the proposed closure of the Agency under the executive order. 

The caucus is also seeking answers to whether the department will reinstate staff that have been placed on administrative leave. The CBC gave Lutnick until April 18 to respond to the letter. 

“We urge you not to be complicit in this administration’s complete disregard for the letter of the law,” the CBC wrote. “Unlawfully dissolving federal agencies like MBDA by executive action is a threat to our democracy.”