Congresswoman Maxine Waters (D-CA), the top Democrat on the House Financial Services Committee, and members of the Committee’s Diversity, Equity, and Inclusion Working Group, Representatives Al Green (D-TX), Joyce Beatty (D-OH), Sylvia Garcia (D-TX), Ayanna Pressley (D-MA), and Nikema Williams (D-GA), sent a letter to U.S. Department of Commerce Secretary Howard Lutnick in response to a recent Executive Order signed by President Trump eliminating the Minority Business Development Agency (MBDA).

In the letter, the lawmakers raise serious concerns about the harmful consequences of dismantling the MBDA, particularly for Minority Business Enterprises. The MBDA was established to support businesses owned by people of color, who have historically faced the greatest barriers to accessing capital, resources, and opportunities needed to start and sustain their businesses. With a nationwide network of centers, the MBDA has played a critical role in helping minority-owned businesses secure funding, create and retain jobs, and navigate economic challenges—including during the COVID-19 pandemic. Eliminating the MBDA would not only undermine the progress of small businesses across the country but would also have far-reaching consequences as small businesses are the backbone of our nation’s economy.

“I am writing in profound concern regarding the March 14, 2025, executive order that aims to eliminate non-statutory components of several federal agencies, including the Minority Business Development Agency (MBDA). This action represents yet another unlawful and dangerous attempt to undermine a congressionally established institution vital to our nation’s economy,” wrote the lawmakers. “…Our country’s economy cannot thrive without small businesses, and we saw that more than ever during the COVID-19 pandemic, particularly with minority-owned small businesses who struggled to access Payment Protection Program loans to keep their doors open.”

In addition, the lawmakers condemned the administration’s move to scale back the MBDA’s workforce, emphasizing that these cuts would severely disrupt the agency’s ability to support small businesses and carry out its mission effectively.

“What is most concerning about this executive order is its directive that ‘such entities shall reduce the performance of their statutory functions and associated personnel to the minimum presence and function required by law…’ It demonstrates a fundamental misunderstanding, or deliberate disregard, for how federal agencies like the MBDA actually function and serve our communities,” said the lawmakers.

The lawmakers concluded by reaffirming the importance of the statutory law and called on Secretary Lutnick to immediately reverse his decision to place MBDA staffers on administrative leave and more critically continue prioritizing the mission of the Minority Business Development Act.

See the letter HERE.

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