ECONOMIC DEVELOPMENT ADMINISTRATION

The Economic Development Administration (EDA) is charged with investing in local communities to encourage and enable growth and innovation in the private sector, with particular focus on distressed or underserved areas. Over time, it has also served as a distribution mechanism for emergency relief funds (e.g., Hurricane Maria and COVID-19).

In the Trump Administration, the EDA served an important role for the CARES Act. It successfully disbursed approximately $1.5 billion in funding beginning in May 2020 and throughout the COVID-19 pandemic. However, this task revealed EDA’s shortcomings. On a capability level, EDA lacked the technical and financial systems and skills to disburse these funds in a compliant manner and required external contracts for advisory support to hire the personnel needed to accom- plish its goals.

Historically, EDA was a small bureau with an annual budget for $350 million in Public Works grants annually. EDA’s decision-making is decentralized to its six regional offices, which delayed the release of CARES Act funding by months. But more broadly, EDA is an impediment to coordinated campaigns that advance

Administration priorities. Rather than implementing the new Department Organi- zation Orders required to put conservative governance in place, it would be more efficient to abolish EDA and reallocate its funding to other overlapping federal grant programs.

If that proves unachievable, as has historically been the case due to political considerations in Congress, EDA would benefit from:

Leveraging of the direct hire authorities established in the Trump Administration for special initiatives or disaster/recovery funding. Leaving these programs to entrenched career employees with their ties to the regional offices will do little to advance the conservative agenda. Continuation of disaster funding with better coordinated capabilities and decision-making in accordance with the points above (e.g., maintaining contract vehicles for staff augmentation as needed).

Building on the initial success of Opportunity Zones, which incentivized over $75 billion in private sector investment in distressed communities by the end of 2020 with little up-front cost to the taxpayer.

MINORITY BUSINESS DEVELOPMENT AGENCY

The Minority Business Development Agency (MBDA) is the only federal agency solely dedicated to the growth and competitiveness of minority-owned businesses. The Minority Business Development Act of 2021 was signed into law as part of the Bipartisan Infrastructure Investment and Jobs Act. This legislation made MBDA a permanent federal agency, created a Senate-confirmed Under Secretary position, and expanded programs and outreach. The Act: l

Authorizes the creation of regional offices and rural business centers, increasing the number and scope of existing grant programs supporting MBDA business centers;

Mandates grants to minority serving institutions to cultivate future generations of minority entrepreneurs; and

Consolidation of decision-making to the Assistant Secretary’s office to better align funding with conservative political purposes. For example, funding initiatives in rural communities destroyed by the Biden Administration’s attack on domestic energy production would be well within the scope of EDA’s mission.

Establishes a Minority Business Advisory Council to advise the Under Secretary on supporting minority-owned businesses. MBDA was established in 1969 by President Richard Nixon under Executive Order 114584 as the Office of Minority Business Enterprise and the Advisory Council for Minority Business Enterprise. Its purpose was to strengthen and preserve minority business enterprises (MBEs) and to coordinate among MBEs and other groups such as state and local governments and trade asso- ciations. For over 50 years, the MBDA operated under executive order without clear congressional authorization, but was regularly recognized and promoted by every subsequent president, including Presidents Ronald Reagan and Donald Trump.5

MBDA has the appearance, on its face, of perpetuating racial bias by focusing on minority advancement rather than economic need or other criteria. This is why the Trump Administration proposed eliminating funding for the agency in 2017. Many conservatives ask why the government is funding this activity, which often amounts to business and management consulting services offered by private sector entities. Eventually, the Trump Administration changed course and pro- posed that MBDA continue to exist as a permanently authorized entity focused on policy rather than offering services. Despite this change, many conservatives understandably see MBDA as problematic on a philosophical level.

Nonetheless, Congress has spoken recently on this issue and is unlikely to change its position in the near term. In 2017, MBEs represented one-third of all U.S.-owned businesses, with almost 9 million employees, generating $1.7 trillion for the U.S. economy.6 As such, a conservative Administration is best served by approaching MBDA as a tool to be leveraged in the fight to deliver economic oppor- tunity to all Americans and to produce an economy centered on equal opportunity, free markets, innovation, and growth.

Conservative leadership at MBDA should focus the organization on:

Conducting policy analysis on the benefit of free markets, the evils of socialism and Communism, and the destructive effect of taxes and regulations on minority businesses; Ensuring MBDA business centers operate efficiently with strict oversight of funding, clear metrics for success, and consequences for poor performance; Creating policy-level operational priorities geared toward private sector action over government action with public–private partnerships serving as a necessary middle ground;

Establishing MBDA as a data and research clearinghouse for minority business enterprises and policymakers; Coordinating amongst Cabinet agencies, state and local government, and trade associations to best leverage resources and encourage growth and innovation; and Evaluating the harmful effects of unfair trade practices on minority-owned businesses and their employees.

U.S. PATENT AND TRADEMARK OFFICE

Support like-minded countries as candidates for leadership in the World Intellectual Property Organization and build strong relationships with international partners to strengthen intellectual property rights. Re-examine patent eligibility requirements in Section 101 of the Patent Act7 and support internal and/or legislative reforms to enable U.S. leadership in critical and emerging technologies such as quantum computing, 5G, and artificial intelligence.

Take a balanced approach to the Patent Trial and Appeal Board and prioritize rapid and transparent processing of applications and appeals. Work with Administration partners and Congress to find and punish trademark infringers and counterfeiters. Oppose efforts to provide intellectual property waivers for cutting-edge technologies, including for COVID-19 vaccines and therapeutics, through the World Trade Organization’s Trade-Related Aspects of Intellectual Property Rights agreement or any other mechanism. — 685 —  The U.S. Patent and Trademark Office carries out a core constitutional man- date from Section 8, Article 1: “The Congress shall have Power…[t]o promote the Progress of Science and useful Arts, by securing for limited Times to Authors and Inventors the exclusive Right to their respective Writings and Discover- ies.” Strong intellectual property (IP) protections form the bedrock of American business and are a key factor in making the U.S. economy the most innovative in the world. As such, a conservative Administration must constantly work to strengthen IP rights and combat the incorrect view that strong IP rights some- how limit innovation.

Political leadership in a new conservative Administration should:

NATIONAL INSTITUTE OF STANDARDS AND TECHNOLOGY

The National Institute of Standards and Technology is charged with promoting U.S. innovation and competitiveness by “advancing measurement science, standards, and technology.”8 NIST carries out cutting edge research, helps industry establish standards and best practices, and is the nation’s foremost authority on measurements. NIST’s atomic clock, for instance, maintains the official time of the United States. An incoming Administration should evaluate the federal government’s civilian research footprint and consolidate those functions while ensuring that any research conducted with taxpayer dollars serves the national interest in a concrete way in line with conservative principles. Beyond this, an incoming Administration should:

Privatize the Hollings Manufacturing Extension Partnership. The Hollings Manufacturing Extension Partnership (MEP) establishes and manages a network of centers focused on advising small- and medium-sized manufacturers in order to improve processes and thereby strengthen the U.S. industrial base. When Congress created the program, MEP centers were intended to transition to self-sustaining private institutions after using government funds to begin operations, but the prohibition on long-term funding was abolished in 1998. MEP’s business advisory services would be more properly carried out by the private sector. The next Administration should propose legislation to zero out this $150 million program and fully privatize existing MEP centers.

Transfer the Baldridge Performance Excellence Program. This program’s “process” assists companies in improving management and operations, a function more properly and effectively carried out by the private sector. This program operates at a cost to taxpayers, despite thousands of dollars in fees charged to each participating company or entity and long-term plans to make the program self-sufficient. Maintenance and operation of the program should be entirely handed over to the Baldridge Award Foundation to be run by non-government staff via fees. Increase value to taxpayers. NIST should reinvigorate the Technology Transfer and ROI (return on investment) initiatives begun under the Trump Administration. These initiatives help speed the process of commercializing science funded by the federal government.

Reestablish U.S. dominance in international standards. NIST should explore ways to incentivize broader U.S. participation in standards-setting bodies and the exclusion of participants from adversaries like China. Standards are set to facilitate trade in countries that utilize those standards: Countries — 686 —Department of Commerce that do not allow open access to their markets should not be setting the standards for markets that do allow open access. The incoming Administration should consider increased government-sponsored participation by private companies and government employees with relevant expertise.

NATIONAL TELECOMMUNICATIONS AND INFORMATION SERVICE

The independent National Telecommunications and Information Service (NTIS) is charged with ensuring that federally funded research and data are accessible to the public. NTIS operates through user fees but is largely obsolete due to modern usage of the internet by federal agencies and researchers. NTIS’s functions should be moved to NIST and consolidated with the Tech Transfer and ROI initiatives.

NATIONAL TELECOMMUNICATIONS AND INFORMATION ADMINISTRATION

Support free speech and hold big tech accountable. Immediately conduct a thorough review of federal policy regarding free speech online and provide policy solutions to address big tech’s censorship of speech. Utilize new tools to eliminate threats to national security. Fully implement the Trump Administration’s Information and Communications Technology and Services (ICTS) Executive Order authorities in a way that ensures long-term success and the legal viability of this new national security tool.9 Expand utilization of federal spectrum. Begin short term, temporary leasing of government allocated spectrum to ensure optimum utilization while preserving federal agency use rights. Support the commercial space industry. Advocate for licensing decisions at the Federal Communications Commission that continue to enable U.S. dominance in the commercial space industry.

The National Telecommunications and Information Agency (NTIA) is the exec- utive branch’s statutory lead on telecommunications and information policy. It focuses on broadband access, spectrum utilization, and other issues that are crucial to the high-tech economy. For decades, NTIA has suffered from organizational malaise and will require strong and energetic leadership by political appointees to implement conservative policies. The next Administration will face the primary challenge of rapidly deploying 5G without compromising other priorities. Further recommendations include:

Defend U.S. interests in international bodies. Strong representation at the International Telecommunication Union should protect the interests of both private and government users of spectrum. The U.S. has differing needs from many other countries, for instance, because of U.S. government satellites and commercial space industry. NTIA should work with the U.S. delegation to ensure maximum adoption of the U.S. position. Set fresh priorities in broadband grant programs. Reevaluate broadband grant programs and, when possible, establish Administration priorities in how each grant is structured. First and foremost, widespread deployment of infrastructure is needed for 5G adoption in rural and exurban areas, which will be a key factor in future economic competitiveness for these under-served communities. Review FirstNet. Evaluate the performance and long-term value proposition of FirstNet in view of modern technologies that will render it obsolete.

CONCLUSION The above policies, strategies, and tactics will set a new Administration on firm footing that allows the Department of Commerce to assist the President in implementing a bold agenda that delivers economic prosperity and strong national security to the American people. While many of the department’s functions fall outside the remit of the federal government, its unique authorities in diverse areas provide critical tools that can and should be brought to bear in implementing a conservative governing philosophy that keeps Americans safe and provides oppor- tunity for all.