Welcome to the May edition of A Capitol View!
SMI supports companies, research universities, and nonprofits across technology sectors and industries. A common challenge for many of our clients is recruiting and retaining the next generation of skilled workers.
From shipbuilding to textile manufacturing, forging, and advanced materials, workforce shortages and training gaps are one of the biggest hurdles to America’s national defense buildup and renewed efforts to onshore manufacturing and grow the tech economy more broadly.
‘Reorient’: The Trump Administration is taking on the challenge anew, in the form of an executive order, Preparing Americans for High-Paying Skilled Trade Jobs of the Future.
It directs the Labor, Education, and Commerce Departments “to review all federal workforce programs to modernize, integrate, and re-align programs to address critical workforce needs in emerging industries,” according to a fact sheet.
It also orders “a streamlined and integrated plan to reorient federal workforce programs to prepare the American economy for the opportunities presented by reshoring and re-industrialization.”
‘Promising solution’: One organization at the forefront of building and nurturing the necessary pipeline of human capital is SME, the nonprofit formerly known as the Society of Mechanical Engineers that is dedicated to educating and advancing the manufacturing workforce in North America.
The SMI client issued a report this month outlining new efforts to connect educational institutions and industry and expand career awareness to a new generation.
“One promising solution lies in the 8 million young adults aged 18–24 who are not currently pursuing post-secondary education,” SME concluded. “Tapping into this demographic, along with adults who have been overlooked in workforce training and employment, is key to meeting the immediate and future needs of manufacturing.
‘Head-on’: In its first year, SME’s Manufacturing Imperative Workforce Pipeline Challenge has engaged 25 community colleges across 17 states, with a goal of engaging 1,000 learners per college annually and 75,000 over three years.
“With over 460,000 open positions in the U.S. manufacturing sector — and a projected increase in the future,” the initiative is “tackling the industry’s growing workforce shortage head-on,” said SME Executive Director and CEO Jeannine Kuntz.
TUNE IN: SME’s Kuntz will moderate a panel on “Michigan’s Role in America’s Defense” at the 2025 Mackinac Policy Conference on May 29.
The discussion will feature Sen. Elissa Slotkin, a member of the Armed Services Committee; Erik Smith, President and CEO of Saab Defense and Security USA; and Col (ret.). John Gutierrez, Executive Director of the Office of Defense and Aerospace Innovation at the Michigan Economic Development Corporation.
SMI SPOTLIGHT
NEW ARRIVAL: SMI is deepening its bipartisan bench with our newest Director, Hannah Morrow, an experienced national security policy and legislative professional.
Hannah most recently served as government relations director for defense programs at Saildrone, which is pioneering autonomous technology to explore and safeguard the world’s oceans. She led federal engagement on emerging maritime technologies and developed and executed government affairs strategies for defense and other applications.
GOP veteran: Before transitioning to the private sector, Hannah spent nearly a decade on Capitol Hill. She most recently served as legislative director for Rep. John Rutherford (FL-04) and previously worked for former Reps. Bradley Byrne (AL-01) and J. Randy Forbes (VA-04).
“Hannah brings a strong background in defense policy, legislative strategy, and government relations — and we’re thrilled to have her on board,” said SMI COO Ken Wetzel.
“I am excited to join the SMI team to advance the work of our clients who are innovating in the defense industry every day,” said Morrow. “I look forward to applying my congressional experience to make meaningful investments at the Department of Defense.”
BUDGET
‘SCORCHED EARTH’: The White House released its initial spending proposal for the fiscal year that begins Oct. 1 that calls for $163 billion in cuts across federal agencies and programs that POLITICO called a “scorched-earth” budget plan.
The 46-page “skinny budget,” which will be followed by a more detailed proposal in the coming weeks, is already setting off alarms in Congress, which will formulate a final budget that it sends back to the president.
The budget would cut one-third, or $18 billion, from the National Institutes of Health, in a significant hit to biomedical research funding. It also takes further aim at the Department of Education, proposing a $12 billion cut that would hobble the agency that President Trump wants to shutter.
Re-energized: Under the proposal, the Department of Energy would also see numerous cuts to reorient toward “research and development of technologies that could produce an abundance of domestic fossil energy and critical minerals, innovative concepts for nuclear reactors and advanced nuclear fuels, and technologies that promote firm baseload power,” according to a White House summary document.
However, as expected, defense spending would see a 13 percent increase, to roughly $1 trillion.
Battle lines: Rep. Melanie Stansbury, a New Mexico Democrat, offered a preview of the partisan debate in store this budget season on Capitol Hill in a speech on the House floor.
“This budget is only skinny on the cuts that it would cut for the American people – $163 billion for vital programs that serve our communities, Tribal programs, housing, healthcare, opioid reduction, and addiction recovery programs,” she said, adding that the budget only worsens unilateral cuts already made that impact veterans, teachers, and Social Security.
‘One big, beautiful bill’: Republicans who control the House and Senate, meanwhile, are trying to craft a reconciliation package that extends tax cuts but also slashes spending.
House Republicans fired the opening salvo with their reconciliation package. The proposed bill slashes clean energy credits and guts environmental rules, while proposing cuts to social programs such as Medicaid, which is generating growing concerns among rank-and-file members of the GOP.
The proposal would cut taxes for most Americans but would primarily benefit the highest earners, according to an analysis by the Urban Institute.
More spending news:
Trump administration health research cuts total $1.8 billion, analysis finds
Trump Administration’s FY 2026 “Skinny Budget” Signals Shift in Energy Priorities
Judge temporarily blocks Trump administration from laying off federal employees
TECHNLOGY
‘SUSTAINED FEDERAL SUPPORT’: SMI client Metamagnetics, which manufacturers advanced materials and devices for wireless and microwave systems, is featured in the Science Coalition’s latest Sparking American Economic Growth report for Congress.
The company, founded by Northeastern University Professor Vincent Harris in 2009, is building on research funded by the Office of Naval Research at the Naval Research Laboratory through the Small Business Innovation Research program.
‘Room for growth’: “Metamagnetics’ journey from relying on SBIR grants to working on larger Department of Defense programs showcases the importance of sustained federal support in nurturing defense technology innovation,” states the report from the nonpartisan organization of more than 50 public and private research universities. “As a veteran-owned small business, Metamagnetics exemplifies how federal funding can support both technological innovation and veteran entrepreneurship in the defense sector.”
Metamagnetics reported annual revenue of $15.8 million in 2024, up 37% from 2023, and it projects revenue to reach $21 million in 2025. “While market penetration remains low,” the report states, “increased adoption of their products suggests significant room for growth.”
ENERGY
‘LIKE A BUSINESS’: Energy Secretary Chris Wright wants to run the department “like a business,” he told the House Appropriations Subcommittee on Energy and Water Development this month. And that means slashing staff, regulations, and making bets only on investments that he believes will pay off.
The former fossil fuel executive also made clear that he does not agree with the widespread position that all forms of energy should be pursued. “I’ve never been ‘all of the above’ myself, because there’s energy sources that swallow money and don’t deliver value,” he said.
‘The next Manhattan Project’: Among the department’s priorities will be harnessing artificial intelligence. “AI is the next Manhattan Project,” Wright said. “AI technology will define the future of the world, and it is essential that the U.S. leads in the development of this technology. DOE has a significant role to play in driving AI innovation for scientific discovery, energy innovation, and national security.”
Another major priority is nuclear weapons development. “With $30 billion for the National Nuclear Security Administration,” according to Wright, “we will address critical upgrades for the U.S. nuclear stockpile and maintain our engine powerhouses for submarines and aircraft carriers. Both tasks will become even more crucial in the next few years.”
Read Wright’s written testimony.
NEW WAVE: Marine energy remains one of the largest untapped natural resources and SMI is proud to support a new collaboration between California Polytechnic State University-San Luis Obispo and the Department of Energy’s U.S. Testing Expertise and Access for Marine Energy Research, or TEAMER, program.
Cal Poly recently was selected to build the first open water research pier in San Luis Obispo Bay that will offer developers unsurpassed access to the open ocean to deploy and test new marine energy technologies.
“The Cal Poly Pier is set up extremely well to test equipment from an easily accessible, shore-based facility without the expense and complications of chartering vessels,” said Ben Ruttenberg, director of Cal Poly’s Center for Coastal Marine Sciences.
Read more: Cal Poly Pier Designated for Wave Energy Testing Site by U.S. Department of Energy-Funded Program
DEFENSE
LEANER AND MEANER: Even as its budget is slated to increase, the Pentagon leadership is taking aim at the U.S. Army.
In a memo to Pentagon leaders this month, Defense Secretary Pete Hegseth called for a “leaner, more lethal force” by “divesting outdated, redundant, and inefficient programs, as well as restructuring headquarters and acquisition systems.”
Hegseth wants to scale back manned aircraft, excess ground vehicles, and older models of drones, and “reduce spending on legacy sustainment, including outdated weapons systems and unnecessary climate-related initiatives.”
New emphasis: Instead, Hegseth writes, the service must prioritize long-range precision weapons, air and missile defense, cyber operations, electronic warfare, and counter-space capabilities.
Among other priorities are “extend[ing] advanced manufacturing, including 3D printing and additive manufacturing, to operational units” by 2026 and “moderniz[ing] the organic industrial base to generate the ammunition stockpiles necessary to sustain national defense during wartime” by 2028.
Meanwhile, the plan also directs the Army to “downsize, consolidate, or close redundant headquarters,” including merge the Army Training and Doctrine Command with the Army Futures Command.
Not so fast: Expect members of Congress from both parties to push back on key aspects of the plan, particularly those that squeeze their local defense contractors or military facilities.
Read more: Hegseth orders ‘comprehensive transformation’ of US Army, merging offices and cutting weapons
Plus: Hegseth Orders 20 Percent Cut in Military’s Senior Ranks
More aerospace news: Trump administration to revive National Space Council
‘UNPRECEDENTED VISIBILITY’: SMI client Govini, the defense software company, has inked a new partnership with the U.S. Navy to deploy its flagship Ark platform to help identify supply chain vulnerabilities — including production capacity and foreign influence — to make more informed acquisition decisions.
“We’re proud to empower the stewards of our nation’s strategic deterrence with unprecedented visibility into their industrial base and supply chains,” said Govini CEO Tara Murphy Dougherty. “With AI-powered Applications and proprietary data, Ark gives the Navy the ability to make production and sustainment decisions with unmatched speed and precision.”
SMI is proud to support Govini as it helps pioneer a much more agile defense acquisition system to outpace our adversaries.
Read more: U.S. Navy Deploys Govini Software to Support the Revitalization of America’s Defense Industrial Base
‘INNOVATIVE SOLUTIONS’: Florida Atlantic University was recently awarded a $2.1 million grant from the Air Force Research Laboratory to establish the FAU Center of Excellence for Research and Education in Programmable Wireless Networks.
“This center will advance Florida Atlantic’s position as a leader in secure, adaptive wireless communication systems — technologies that are critical to the future of national defense,” the SMI client said in a statement. “Through this partnership, we will help move the Department of Defense from legacy systems to innovative solutions that are agile, adaptive and secure.”
CLIENTS IN THE NEWS
Bipartisan bill would shield climate law tax credit
Louisiana Tech and Archem JetPace Showcase advances regional aerospace innovation
Launched by NASA, a High-Tech UMass Lowell Camera Aims to Help Predict Space Weather
