U.S. Senators Maria Cantwell, Ed Markey, Tammy Baldwin, Ben Ray Luján, Lisa Blunt Rochester, and Martin Heinrich have requested that the Government Accountability Office (GAO) broaden its ongoing investigation into the Department of Commerce’s handling of the Minority Business Development Agency (MBDA). The senators are seeking an assessment of whether Secretary Howard Lutnick and other officials may have violated federal court orders related to the agency.
The request follows new information suggesting that Secretary Lutnick and others could be in violation of a May 13, 2025 Preliminary Injunction and a November 21, 2025 Permanent Injunction issued by a federal district court. These orders required the Trump Administration to reverse actions taken against the MBDA and restore its staff and grantmaking abilities.
“[N]ew information has come to light indicating Secretary Lutnick and other Department officials may have violated—and may continue to violate—a May 13, 2025, Preliminary Injunction and subsequent November 21, 2025, Permanent Injunction issued by a federal district court ordering the Trump Administration to reverse its actions against the MBDA and restore its personnel and grantmaking capacities,” wrote the senators in their letter to GAO Acting Comptroller General Orice Williams Brown. “Congress has a compelling interest in ensuring executive branch officials comply with court orders guarding against unlawful attempts to dismantle federal agencies like the MBDA, which Congress statutorily authorized and funded on a bipartisan basis.”
President Trump signed an Executive Order on March 14, 2025 aiming to eliminate the MBDA along with other agencies. This action was carried out despite earlier assurances from Secretary Lutnick that he would not support such measures. The MBDA was established by Congress to assist American entrepreneurs who face barriers in starting businesses.
In response to these developments, state attorneys general from 21 states filed suit in April 2025 seeking an injunction against further implementation of the Executive Order. The court subsequently issued both preliminary and permanent injunctions prohibiting further action toward dismantling the agency.
Despite these legal directives, reports indicate that funding for at least nine MBDA business centers was terminated after the injunctions were issued. Additionally, Reduction in Force notices were sent out for remaining employees at MBDA before being rescinded following congressional intervention.
“Although the Department later rescinded the RIFs after Congress passed legislation requiring it do so and before the district court could rule on whether the Department’s actions violated the court’s order, the court admonished the Administration ‘that it is never acceptable to violate a court order’ and warned any such violations may ‘warrant further Court action,’” stated the senators.
The letter also highlights concerns about transparency within the Department regarding compliance with these orders: “These developments, coupled with the Department’s lack of transparency regarding its actions toward the MBDA, raise serious questions about the sufficiency of the Department’s protocols for ensuring compliance with the district court’s orders and whether Department leadership is violating the court’s clear commands.”
The senators are requesting that GAO evaluate whether any violations occurred regarding these judicial mandates as part of its review into how Commerce leadership handled efforts concerning MBDA.
