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Defend American Manufacturing Act 2.0 Introduced to Protect Small Manufacturers
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Key points
- H.R. 10979 requires the U.S. Department of Commerce to allocate congressionally approved funding to local manufacturing extension centers.
- The bill establishes a 180-day deadline for federal program reviews to prevent administrative delays and funding cancellations.
- Nearly 90 percent of state manufacturing extension centers implemented hiring freezes or staff layoffs over the past year due to funding freezes.
NewsWK — Bipartisan lawmakers in the House of Representatives introduced new legislation on November 10, 2026, to protect federal support for small domestic factories. Also, the bill establishes strict funding rules for federal manufacturing programs across the country.
What Is the Defend American Manufacturing Act 2.0?
The Defend American Manufacturing Act 2.0 is a bipartisan bill designated as H.R. 10979. Representative Sharice Davids introduced the measure alongside Republican and Democratic co-leads. The legislation protects the Hollings Manufacturing Extension Partnership by preventing administrative delays and funding freezes from disrupting local manufacturing assistance centers.
Representative David Joyce, Representative Mike Turner, Representative Zoe Lofgren, and Representative Sarah McBride joined Davids as original co-leads. And these lawmakers seek to ensure reliable federal resources for small industrial businesses.
How Would H.R. 10979 Protect Federal MEP Funding?
H.R. 10979 mandates that the U.S. Department of Commerce allocate congressionally approved dollars to state extension centers. The bill replaces discretionary funding language with mandatory directives. Therefore, federal agencies cannot arbitrarily freeze or cancel local grant distributions without formal negative reviews and impartial appeals.
What Are the Key Goals of the Sharice Davids Manufacturing Bill?
Because small businesses face operational challenges, the Sharice Davids manufacturing bill reforms administrative procedures to give local centers financial stability. The legislation focuses on three main statutory changes to preserve active federal MEP funding for state operations.
- Mandatory funding: The bill changes statutory funding language from “may” to “shall” fund centers.
- Strict evaluation timelines: Agencies must complete center re-evaluations within 180 days while funding continues.
- Cancellation protections: Officials cannot stop funding without a formal negative evaluation and review.
What Is the Background of the Hollings Manufacturing Extension Partnership?
Congress created the Hollings Manufacturing Extension Partnership under the Omnibus Trade and Competitiveness Act of 1988. The National Institute of Standards and Technology also oversees the program. For example, Congress currently allocates $175 million annually to support small manufacturers through state centers.
However, recent federal funding freezes created severe operational strain for state programs. Officials reported that nearly 90 percent of state centers implemented hiring freezes or lay offs over the past year. Meanwhile, the Trump Administration proposed eliminating federal program funding in its Fiscal Year 2027 budget request. Still, lawmakers previously introduced related legislation in April 2025 and July 2026 to stabilize operations.
This article was produced with the assistance of AI and reviewed by our editorial team.
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