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reductionmoderate impact Budget PDF p. 15

National Institute of Standards and Technology

(NIST)

Department of Commerce
Proposed Cut
$993M
% Reduction
45.0%
Action Type
reduction
Who Is Served

Manufacturing Extension Partnership centers in all 50 states (~33,000 manufacturers served annually); standards researchers

Summary

The National Institute of Standards and Technology (NIST), part of the Department of Commerce, funds core measurement science research and runs the Manufacturing Extension Partnership (MEP), a network of centers in every state that helps small and mid-size factories improve their operations. The FY2027 budget proposes cutting NIST's funding by $993 million, a 45% reduction, largely by eliminating funding for MEP and other manufacturing-support programs while keeping core measurement research intact.

Who Is Affected

MEP centers operating in all 50 states and Puerto Rico serve roughly 33,000 manufacturers a year, mostly small and mid-size factories that rely on the centers for help with process improvement, technology adoption, and workforce training. NIST researchers working on measurement standards, and Manufacturing USA institutes and the Circular Economy Program that are also targeted for elimination, would lose federal support as well.

What this cut would actually mean

If MEP loses its federal funding, many of the roughly 60 state and regional centers would have to shrink staff or close, cutting off the hands-on technical help that small manufacturers use to cut costs, boost sales, and keep production in the U.S. In FY2024 alone, MEP-assisted companies reported $2.6 billion in cost savings and more than 108,000 jobs created or retained nationwide, gains that outside studies estimate return more than $10 for every $1 in federal spending; losing that support would mean fewer small factories get affordable expert help, likely slowing job creation and competitiveness gains in local manufacturing communities.

Sources

Administration's Stated Rationale

Streamlines NIST to core measurement science; reduces Manufacturing Extension Partnership.