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Funding freeze needs another look

Ohio’s Manufacturing Extension Partnership is facing a sudden freeze on millions of dollars in federal funding after the U.S. Department of Commerce cited an ongoing federal review of the program. According to the Ohio Manufacturers Association, the loss of funding could mean several programs will be halted at the end of the year.

At issue is the Commerce Department’s Office of Inspector General looking into allegations of fraud or misconduct — and deviating from its usual procedure because it has not filed a report on preliminary findings that would give administrators of the MEP programs a chance to address concerns.

“Without warning, funding was suddenly pulled before there was a report, or any discussion,” Ethan Karp, president and CEO of the MEP program in northeast Ohio, said, according to a report by WCMH. “That’s not fairness or due process. It’s an unprecedented decision that punishes Ohio’s manufacturers first and asks questions later.”

Manufacturers across Ohio receive support from MEP programs, which according to WCMH’s report, has generated 24,000 jobs since 2020 in one region alone.

“MEPs play a critical role for Ohio’s small and mid-sized manufacturers, the lifeblood of the state’s economy,” Ryan Augsburger, Ohio Manufacturing Association president, told WCMH. “Abrupt funding cuts put jobs, competitiveness and local supply chains at risk.”

If there is fraud and misconduct to root out, of course the Commerce Department should be working to find it and help the MEP address it. But to deviate from standard procedure and shut off funding BEFORE filing a preliminary report that would help determine next steps seems irresponsible and detrimental to Buckeye State manufacturers.

According to Karp, the programs have been cooperative with the Inspector General over the course of the audit and investigation, but have gotten “no further details, supporting evidence or documentation” other than the suspension notice that went into effect Dec. 5.

Again, if the investigation has found significant problems, of course action should be taken to address them.

But, Gov. Mike DeWine is right, “A potential months-long suspension of all Ohio MEP funding, without actionable details and clarification on the decision to pause the funding, could amount to the permanent closure of these programs across the entire state. This would be detrimental to the future of manufacturing in Ohio.”

Surely U.S. Commerce Secretary Howard Lutnick and officials within his department will understand that, and take another look at the freeze — or be more transparent about the reasons for it — soon.

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