The Trump administration’s proposed 2027 budget would dismantle a support system for U.S. manufacturers, while funneling billions into defense, drones and critical minerals.
The Department of Commerce plans to cut $993 million from the National Institute of Standards and Technology (NIST), which would eliminate the Manufacturing Extension Partnership (MEP), a program launched in 1988 that helps small and medium-sized manufacturers navigate supply chains, develop workforce talent and cut costs. In fiscal year 2024, the national network helped companies achieve $15 billion in new and retained sales and over 108,000 jobs created.
An NIST spokesperson declined to comment on the proposal.
READ MORE: Trump Administration Moves to Gut Program that Helps Small Manufacturers
During his first term, President Donald Trump proposed ending federal funding for MEP centers and transitioning support to solely non-federal revenue sources. In April 2025, reports indicated the administration planned to cut about $13 million for 10 MEP centers, but later rescinded the decision and continued funding through the end of the fiscal year.
The 2027 budget underscores a shift from general manufacturing support to targeted investments in energy security and defense, including $1.1 billion to the Office of Critical Minerals and Energy Innovation to strengthen the U.S.’s critical minerals supply chains, support next-generation energy and advance manufacturing technologies. It also includes $100 million to establish the United States Investment Accelerator, which aims to “fast-track trillions in investment in the U.S., creating jobs and strengthening the manufacturing and defense industrial base.”
The budget also called for "unprecedented" investments in unmanned and counter-unmanned systems to expand the U.S. drone manufacturing base.
READ MORE: Drone Maker Backed By Trump Sons Seeks Gulf Deals Amid Iran War
The focus on drone production could benefit companies like Powerus, a firm partly owned by Donald Trump Jr. and Eric Trump. The venture hopes to secure a portion of $1.1 billion the Pentagon set aside to build a domestic manufacturing base for armed drones following the administration’s ban on imports from China. Powerus recently pitched drone interceptors to several Gulf countries that rely on U.S. military support since the war in Iran began.
