SBA administrator defends 2026 budget, staff cuts and program realignment at Senate subcommittee hearing

SBA Administrator Loeffler defended the agency's fiscal 2026 discretionary budget request and a broad reorganization at a Senate Appropriations Subcommittee hearing, telling senators the changes will streamline operations and put more resources into local district offices.

Loeffler said the proposal "reflects our agency's return to its mission with a clear strategy, streamline services, eliminate waste, and ensure every taxpayer dollar delivered measurable results for America's small businesses and taxpayers." She told the subcommittee the reorganization moves resources from Washington back into the field and seeks to restore underwriting standards and fiscal controls.

The discussion mattered because lawmakers said proposed cuts and program changes could affect counseling, grants and outreach that small businesses rely on. Ranking Member Reid said the subcommittee had not been briefed after the SBA announced it would reduce its workforce by 43% and pressed for more responsiveness from the agency. "We were a bit, troubled when SBA didn't bother to brief the…