	Introduction

The Department of Commerce's Minority Business Development Agency (MBDA) is the lead federal agency dedicated to supporting the development and expansion of the minority business community. The MBDA's primary mission is to assist minority businesses in achieving entrepreneurial participation and parity in the nation's free enterprise system and in overcoming social and economic disadvantages that have limited their participation in the past. To these ends, the MBDA is charged with formulating and coordinating federal policies and programs in support of minority business enterprises by providing technical and managerial expertise, support, and resources through a network of local business development centers. The Trump Administration has proposed reducing the agency's funding from $34 million in FY2017 to $6 million for FY2018, with the intent of terminating the agency. The Senate Appropriations Committee also reported a bill ( S. 1662 ) that recommends an appropriation of $34 million for FY2018. Agency Origins and Authority: A Brief History

The MBDA was originally established as the Office of Minority Business Enterprises (OMBE) by President Richard Nixon with the signing of Executive Order (E.O.) Rebranding the Agency

During the Carter Administration, Congress considered, but did not pass, enabling legislation authorizing the agency and its mission. Evolving Delivery System

Successive Administrations since the Carter Administration have continued to support the mission of the MBDA by refining the agency's focus and reorganizing the delivery of assistance and services. In 1981, the Reagan Administration established the Minority Business Development Center program (MBDC), which became the MBDA's primary method for delivering technical and management services to minority businesses. President George H.W. Bush proposed eliminating the agency and transferring its mission to the Small Business Administration (SBA), but ultimately continued the agency as an entity within the Department of Commerce. The Clinton Administration supported substantial increases in the agency's budget. In seeking to expand the reach and capacity of the MBDA, the Clinton Administration sought increases to fund the establishment of Rural Business Development Centers, and the activities of the MBDCs and Minority Business Opportunity Committees (MBOC). The MBDA, under the George W. Bush Administration, continued efforts to coordinate its programs with the programs of the SBA supporting minority and disadvantaged firms. The Bush Administration, based on research findings, pledged to focus its resources on minority firms with $500,000 or more in annual revenues. During the Obama Administration, in addition to a focus on facilitating entry or expansion of minority firms into the global market place, increased emphasis was placed on quantifying the impact of MBDA activities, increasing the efficient delivery of services to minority business communities, and increasing coordination with other federal agencies. The agency provides a number of services principally through a network of business centers located in areas with the largest concentration of minority populations and the largest number of minority businesses. House-Passed Bill

On July 13, 2017, the House Appropriations Committee approved the FY2018 Commerce, Justice, Science and Related Agencies (CJS) appropriations bill ( H.R. This bill would provide an appropriation of $34 million for the MBDA activities and expenses for FY2018. 3354 , which passed the House on September 14, 2017. 278 , H.R.
The Department of Commerce's Minority Business Development Agency (MBDA) is the lead federal agency dedicated to supporting the development and expansion of the minority business community. President Richard Nixon originally established this agency as the Office of Minority Business Enterprises (OMBE), with the signing of Executive Order 11458. The MBDA's mission is to assist medium and large-scale minority businesses, specifically, but not exclusively, in overcoming social and economic disadvantages that have limited their participation in the nation's free enterprise system. Through a network of local business development centers, the MBDA carries out this mission by providing technical and managerial expertise, support and resources as well as advocacy and research on behalf of minority-controlled business enterprises.
Because the MBDA, and its predecessor OMBE, were created by executive order, the MBDA's continued survival has rested with each President, in the absence of Congress passing authorizing and enabling legislation. The Carter Administration renamed the agency and refocused its efforts on medium and large-scale businesses, particularly in growth industries. Successive administrations since the Carter Administration have continued to support the mission of the MBDA by refining the agency's focus and reorganizing the delivery of assistance and services. For example, in 1981, the Ronald Reagan Administration established the Minority Business Development Center program, which became the MBDA's primary method for delivering technical and management services to minority businesses. The George H.W. Bush Administration proposed eliminating the agency and transferring its mission to the Small Business Administration (SBA), but ultimately continued the agency as an entity within the Department of Commerce. The Clinton Administration supported substantial increases in the agency's budget to fund the establishment of Rural Business Development Centers, and the activities of the Minority Business Development Centers and Minority Business Opportunity Committees. The George W. Bush Administration continued efforts to coordinate the MBDA's programs with the programs of the SBA, pledged to focus its resources on minority firms with at least $500,000 or more in annual revenues, and to increase their presence in the global economy. The Obama Administration placed increased emphasis on quantifying the impact of MBDA activities, increasing the efficient delivery of its services to minority business communities, and increasing coordination with other federal agencies.
Currently, the MBDA provides a number of services principally through a network of business centers located in areas with the largest concentration of minority populations and the largest number of minority businesses. The Trump Administration's budget request for FY2018 proposes to reduce the agency's appropriation from $34 million appropriated for FY2017 to $6 million for FY2018. The proposed funds would be used to cover the cost of terminating the agency and its activities. Contrary to the Administration's request, the House Committee on Appropriations approved a Commerce, Justice, Science and Related Agencies Appropriations bill (H.R. 3267), which was later incorporated into H.R. 3357 that the House passed on September 14, 2017, and would provide $34 million for MBDA. On July 27, 2017, the Senate Committee on Appropriations approved S. 1662, its version of the Commerce, Justice, Science and Related Appropriations bill for FY2018. The bill also recommended an appropriation of $34 million for MBDA.
This report will be updated as events warrant.