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Senators press nominee to review dismantling of Minority Business Development Agency and terminated grants
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Summary
Ranking Member Maria Cantwell and other senators pressed Paul DeBarr to investigate recent changes at the Minority Business Development Agency (MBDA), including staff reductions and canceled grants; DeBarr said he would look into grant termination notices and respond to the committee if confirmed.
Several senators raised the dismantling of the Minority Business Development Agency and the cancellation of MBDA grants during Paul DeBarr’s confirmation hearing, pressing the nominee to review grant termination notices and account for appropriated funds.
Sen. Maria Cantwell, the committee’s ranking member, said the MBDA ‘‘a 56‑year‑old agency that Congress permanently authorized in 2021 has been dismantled’’ and noted the agency ‘‘helped create and retain approximately 23,000 jobs in fiscal year 2024’’ under earlier management. Cantwell asked whether the nominee would be held accountable for restoring capacity and protecting the agency’s functions.
Sen. Tammy Baldwin and others asked DeBarr to examine grant termination notices that committee staff have tied to an individual named Nate Kavanaugh and to confirm whether those notices had proper approvals. Baldwin said the notices ‘‘may have potentially been sent without Mr. Sonderling’s approval,’’ and called that possibility ‘‘very serious.’’ DeBarr answered, ‘‘I will certainly look into it, senator,’’ and said he would respond to committee requests if confirmed.
Why it matters: MBDA was codified by Congress and funded in recent appropriations to provide technical assistance and access to capital for minority‑owned businesses. Senators said the agency’s operations directly affect small business support programs in multiple states.
DeBarr repeatedly said he lacked full visibility into current operations because he is not yet confirmed but pledged to ‘‘follow every dollar and report back’’ and to respond to written oversight requests. Senators signaled they will seek written follow‑up and expect a formal accounting of MBDA funds and decisions if DeBarr is confirmed.
