Hearings to examine proposed budget estimates and justification for fiscal year 2027 for the Senate Sergeant at Arms and United States Capitol Police

Commerce, Space, and Science NominationsSenate Appropriations Subcommittee on Legislative Branch · 2026-04-22 · 119th Congress
The Senate Appropriations Subcommittee on Commerce, Justice, Science convened to examine Secretary of Commerce Howard Lutnick's fiscal year 2027 budget request, which proposes a 12.2% reduction in budget authority including elimination of the Economic Development Administration and Manufacturing Extension Partnership, and cuts to NOAA, NIST, and the International Trade Administration [0:17:14]. Begins at 0:16:45
Transcript
Highlights

Title

FY2027 Commerce Department budget, BEAD funds, and oversight hearing

Purpose

The Senate Appropriations Subcommittee on Commerce, Justice, Science convened to examine Secretary of Commerce Howard Lutnick's fiscal year 2027 budget request, which proposes a 12.2% reduction in budget authority including elimination of the Economic Development Administration and Manufacturing Extension Partnership, and cuts to NOAA, NIST, and the International Trade Administration0:17:06. Senators also pressed the Secretary on unresolved oversight matters, including his responses on Jeffrey Epstein-related records, a rare earths investment deal, and the unspent $21 billion in non-deployment BEAD broadband funds. Begins at0:16:45

Who spoke

Chair Jerry Moran (R-KS)0:16:45: Opened by flagging the proposed 12.2% Commerce cut and elimination of the Hollings Manufacturing Extension Partnership as harmful to Kansas manufacturers0:17:32; repeatedly pressed Lutnick on the delayed $21 billion in non-deployed BEAD funds, warning against use of a "catchall" statutory provision for non-broadband purposes0:32:28; closed by raising phosphate fertilizer tariffs, geostationary weather satellites, and jet fuel costs1:58:452:03:41.

Sen. Chris Van Hollen (D-MD), Ranking Member0:19:12: Said Lutnick had "totally misled" the public about his relationship with Jeffrey Epstein and had not responded to a February 27 letter seeking records0:19:41; asked about a $1.6 billion federal stake in USA Rare Earth arranged with help from Lutnick's former firm Cantor Fitzgerald, raising conflict-of-interest concerns0:37:04; later pressed on reinstating the BIS "affiliates rule" to close Chinese export-control loopholes0:24:24 and urged NOAA to speed approval of increased recreational black sea bass and summer flounder catch limits off Maryland1:26:37.

Sec. Howard Lutnick, Commerce Secretary0:23:53: Touted trade deals with Korea, Taiwan, Japan and the EU and semiconductor investments including a $200 billion Micron project0:24:21; said 54 states/territories have executed BEAD agreements and a plan for the remaining $21 billion will come "over the next two months"0:30:360:50:58; said he had "nothing to hide" on Epstein and would answer House questions voluntarily within two weeks0:34:580:35:22; said no H200 chips have been sold to China-linked companies1:17:441:17:56; defended MEP cuts by citing critical Inspector General findings0:43:24.

Sen. Shelley Moore Capito (R-WV)0:40:09: Asked about NOAA's unmanned aircraft plans for hurricane research0:41:04 and pressed on the Manufacturing Extension Partnership's importance to West Virginia manufacturers0:42:54.

Sen. Jeanne Shaheen (D-NH)0:46:17: Cited a 5.5% drop in international visitors and 30% drop in Canadian tourism, and confronted Lutnick over his comment that Canada's economy "sucks"0:46:48; pressed for a BEAD non-deployment guidance deadline0:50:29 and urged caution on advanced chip exports to China0:50:58.

Sen. Susan Collins (R-ME)0:52:46: Sought commitment to use updated right whale population data rather than outdated assumptions before new lobster fishery regulations0:53:17; pressed on alternatives to costly "ropeless gear" for lobstermen0:55:54 and on preserving EDA support for rural Maine0:58:21.

Sen. Brian Schatz (D-HI)1:00:10: Asked Lutnick to account for Hawaii's unique inter-island "middle mile" broadband geography in BEAD planning1:00:26; questioned the vague "onerous and burdensome" standard in the administration's AI preemption executive order1:01:40; challenged the plan to use postal carriers for the 2026 census test, citing a GAO report on training, confidentiality, and cost concerns1:04:42.

Sen. Katie Britt (R-AL)1:07:32: Asked Lutnick to reevaluate Rice's whale endangered-species listing science and consider delisting pending stronger research1:07:32; raised gaps in flood-warning technology after the July 4 Texas flooding and Alabama radar coverage1:10:52.

Sen. Chris Coons (D-DE)1:12:49: Pressed for restoration of $175 million in MEP funding1:13:17 and questioned a proposed $350 million NIST cut, including $120 million from scientific research programs1:14:14; challenged the administration's approval of H200 chip exports as empowering Chinese military AI capability1:16:27.

Sen. Deb Fischer (R-NE)1:18:41: Noted Nebraska's BEAD allocation fell from $405 million to about $340 million in remaining non-deployment funds and pressed for guidance, including on precision-agriculture connectivity as an eligible use1:18:411:21:45.

Sen. Jack Reed (D-RI)1:29:32: Asked which agency coordinates critical minerals investment across Commerce, Defense, and the Export-Import Bank1:30:02; questioned a proposed 32% cut to NIST's quantum budget given China's quantum investments1:32:27.

Sen. Lisa Murkowski (R-AK)1:34:06: Sought assurance that FY2027 funding will sustain NOAA fishery stock assessments1:35:09; flagged a backlog of fishery disaster declarations dating to 2022 still unpaid1:36:40.

Sen. Kirsten Gillibrand (D-NY)1:39:11: Warned against over-reliance on the private sector for quantum computing given national security risks and requested a classified briefing1:39:42; challenged the rationale for MEP cuts given New York's 10 MEP centers created nearly 33,000 jobs and $7.6 billion in economic contribution1:44:01.

Sen. Gary Peters (D-MI)1:45:21: Described a March 6 tornado that killed four in Michigan, including a 12-year-old boy, before any tornado watch or timely warning was issued1:45:501:46:42; sought written answers to March 13 questions to the National Weather Service that remained unanswered after 30 days1:47:09.

Key moments

Van Hollen said Lutnick had not responded to a February 27 letter with Sen. Merkley on Epstein-related records, despite saying he had "nothing to hide"0:19:41; Lutnick said he had answered all such questions in the prior hearing and would answer more in a House proceeding within two weeks0:35:22.

Van Hollen detailed a $1.6 billion federal stake in USA Rare Earth arranged partly through Lutnick's former firm Cantor Fitzgerald, with the deal reportedly originating from a November conversation between Lutnick and the company's CEO with no public solicitation or competitive process0:37:040:37:32.

Moran said $21 billion in non-deployed BEAD funds remain unspent, with promised March 11 guidance still not released two months later; Lutnick said 54 states/territories have executed agreements and a plan would come "over the next two months," prompting Moran's remark, "thank you for not using the word soon"0:30:360:31:30.

Shaheen confronted Lutnick over his public comment that Canada's economy "sucks," citing a 30% drop in Canadian tourism to New Hampshire; Lutnick responded by criticizing Canada's restrictions on U.S. spirits and dairy0:46:480:48:02.

Coons asked how many H200 chips (six times more powerful than previously approved H20s) had been licensed for export to China; Lutnick said Chinese cloud companies want to buy them but China's government has not yet allowed purchases, so none have been sold1:16:271:17:44.

Peters said a March 6 tornado in Niles, Michigan killed a 12-year-old boy five minutes before any warning was issued and no tornado watch had been in place; Lutnick disputed the account, saying "there was of course a warning" and that staffing was not an issue1:46:421:47:41.

Multiple senators (Capito, Coons, Gillibrand) challenged the proposed elimination of the Manufacturing Extension Partnership, funded at $175 million last year; Lutnick cited Inspector General findings of overpayment to executives and said the 1980s-era program needs to be "reimagined"0:43:241:13:33.

Collins secured a commitment from Lutnick to use the "best," most current data — not outdated assumptions — on North Atlantic right whale populations before new lobster fishery regulations take effect0:53:491:09:13.

Murkowski said fishery disaster declarations from as far back as 2022 remain backlogged and unpaid, risking fishermen losing their boats; Lutnick committed to making the process more transparent1:36:401:37:41.

Chair Moran and Sen. Collins both proposed inviting the Commerce Inspector General to brief the subcommittee on MEP program problems identified in IG reports0:45:371:18:30.

Metadata

CommitteeSenate Appropriations Subcommittee on Legislative Branch
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 338260