SENATE FINANCE COMMITTEE CONFIRMATION HEARING FOR COMMERCE DEPUTY SECRETARY
For questions on the note below, please contact the Delta Strategy Group team.
On May 1, the Senate Committee on Commerce, Science, and Transportation held a confirmation hearing for Paul Dabbar, nominated to serve as Deputy Secretary of Commerce. Dabbar’s testimony is available here.
Below is a summary of the hearing prepared by Delta Strategy Group. It includes several high-level takeaways, followed by summaries of opening statements.
Key Takeaways
The following is a summary of the main topics explored in the hearing, with further details in the Discussion section below.
- Chairman Cruz (R-TX) encouraged the Department of Commerce to strategically pursue trade policies that strengthen U.S. competitiveness and expand market access, raising how the administration holds leverage to negotiate agreements that address trade concerns. He outlined two possible outcomes of that reciprocal tariff reductions lead to a significant global decrease in trade barriers, and another where high U.S. tariffs are perpetual, with highs risks of retaliation from trading partners. While supporting the administration’s efforts to stand up to China and protect national economic interests, he warned against across-the-board protectionism as he called for a focus on freer trade with U.S. allies.
- Paul Dabbar affirmed his support for the President’s and the Secretary’s trade agenda negotiations as he criticized the annual increase in the U.S. trade deficit, praising the administration for taking further steps to address it through building on measures enacted during the first Trump administration. He highlighted how his experience in the first Trump administration and the private sector prepared him to support the administration’s agenda on trade and market access, alongside domestic manufacturing and competitiveness.
- Dabbar identified four main objectives in the current U.S. trade strategy: reducing trade barriers, including both tariffs and non-tariff barriers; reindustrializing the domestic economy; addressing national security risks linked to sustained trade deficits; and generating revenue. He who noted various trade negotiations may prioritize different objectives, stating that national security and reindustrialization are likely to be the central focus of negotiations with China in reference to the loss of industrial employment following China’s accession to the World Trade Organization (WTO).
- Chairman Cruz (R-TX) asked what lessons Commerce could apply to accelerate public-private partnerships and the commercialization of federally funded research and development (R&D) to stimulate economic innovation. Dabbar stated that his philosophy around federal spending is that it should function like venture money, triggering investment to stimulate the private sector, as he emphasized the importance of translating discovery science into practical application. Senator Moran (R-KS) outlined the Manufacturing Extension Partnership (MEP) program and its alignment with the administration’s goals to boost U.S. manufacturing, calling for Dabbar’s support.
- Democrats, led by Ranking Member Cantwell (D-WA), criticized the administration’s agenda on trade policy and tariff negotiations, citing substantial uncertainty and questioning whether potential agreements will be worth the detrimental effects on the U.S. economy. Senator Peters (D-MI) argued that indiscriminate tariffs raise consumer costs and cause supply chain disruptions, defending past tariff actions as necessary trade corrections to counter growing deficits and support industries’ development.
SUMMARY
Opening Statements and Testimony
Chairman Ted Cruz (R-TX)
The Deputy Secretary will help tackle a wide array of issues, from fixing Biden’s failed BEAD program to countering climate alarmism at NOAA. Dabbar has an impressive background, and during the first Trump administration, he was unanimously confirmed as the fourth Under Secretary for Science at the Department of Energy (DOE). He managed a workforce of tens of thousands of personnel across more than 100 sites, with a $14.5 billion budget, all while we faced a growing threat of Chinese espionage. He implemented the National Quantum Initiative Act and worked to spur the development of next-generation energy storage technologies. Based in his private sector experience, he can draw on his technical expertise and entrepreneurial experience to tackle complex challenges at the intersection of science, government, and industry. He also has the explicit support of five former Cabinet Secretaries from Republican and Democratic administrations. Commerce is working to preserve access to the Gulf for oil and gas exploration, expand commercial access to mid-band spectrum, and maintain U.S. leadership in artificial intelligence, quantum, commercial space, and advanced manufacturing. It also comes amid a public trade battle. President Trump is rightfully standing up to China and working to reshore industries vital to our national security. But we should be mindful that long-term tariffs on manufacturing inputs and other goods could function as a de-facto tax increase. Commerce will work alongside the President to steer a course that addresses our supply chain vulnerabilities, but aims for freer trade with our allies, not across-the-board protectionism. There are two paths before us: one that uses tariffs strategically to secure better trade deals, and one that locks them in place indefinitely. Secretary Lutnick has touted an international trade deal now in its final stages. The President has also signed a proclamation offering relief to the auto industry following the results of a Commerce Section 232 investigation into the import of automobiles and automobile parts. These are signals the administration wants to use its trade authorities to secure better deals for the American people. Dabbar is an experienced dealmaker who can assist in this effort under the direction of the President.
Ranking Member Maria Cantwell (D-WA)
This nomination comes at a time when we have had a significant period of disruption and chaos at Commerce, with a series of alarming decisions and actions that are damaging the opportunities for economic growth, from dismantling agencies to canceling grants. Commerce continues to slash essential workers at NOAA, with approximately 2,500 employees of the 12,000-person workforce fired or otherwise departing since the start of this administration. These staffing shortages are already impacting NOAA’s core functions, including reduced and suspended weather balloon launches at many of our weather forecast offices. I cannot overstate NOAA’s importance as its weather activities provide essential data, but further cuts are expected in the coming weeks and potential major reorganizations of NOAA. The Trump administration is pursuing a 2026 budget proposal that would reduce NOAA’s budget by more than 27 percent, including a 75 percent cut to the Office of Oceanic and Atmospheric Research (OAR) and the closure of all its weather and climate labs. We are going to hold this administration accountable for these cuts to science because it is not acceptable. Innovation is how we grow our economy and how we protect our industries. There is also a proposal to eliminate the Economic Development Administration entirely, jeopardizing key programs that continue to help us grow our tech hubs and sustain important investments that support economic development. I probably would be more comfortable with you leading our tariff charge than the current Secretary. While I appreciate many of the points the Chairman mentioned in his statement on tariffs, they are hurting small businesses and significantly reducing our economic growth. They are severely constraining opportunities, and many people may not even be in business by the time these deals are done. Some may believe that is the price to pay, but I do not believe in that vision of an American economy. I believe in an economy where we lead through alliance-building and by expanding economic opportunities, particularly in front of the big opportunities we have today.
Paul Dabbar, Nominee For Deputy Secretary of Commerce
During President Trump’s first term, served as the fourth Under Secretary for Science at the DOE, managing research and operations at the National Labs. During my tenure, I worked with many members on driving America forward on science & technology, and I led robust environmental clean-up efforts from our nuclear weapons program. I was the lead on the exascale computing program, which led to four #1 global supercomputers, including ones that were completed ahead of schedule and under budget. I also led the National Quantum Initiative, completing large nuclear projects, including several ahead of schedule and under budget. As Under Secretary, I worked extensively with Commerce bureaus, including the U.S. Patent and Trademark Office (USPTO), National Institute of Standards and Technology (NIST), Bureau of Industry and Security (BIS), and NOAA. Earlier in my career, I was a senior executive at J.P.Morgan, leading several hundred billion dollars in global investment, and helped lead efforts in global commodities trading in energy and critical minerals. My experience is well fit for this position, with U.S. commercial competitiveness and trade are clearly front and center issues. The science and technology efforts, including AI, semiconductors, quantum, intellectual property, the Blue Economy, and technology security, are also at the forefront. My significant experience across Commerce’s scope will enable me to help manage and lead its varied bureaus. From my experience in trade in the private sector, time at NOAA, DOE on technology security efforts, BIS, NIST, and starting up NTIA, these show my deep experience in managing large government efforts. These experiences have prepared me to take on this role, with the persistence to get things done and take on challenges of any magnitude. I was honored and humbled to receive wide support from the Senate for my last confirmation, including being confirmed by unanimous consent.
DISCUSSION
Chairman Cruz (R-TX): Why do you want to be Deputy Secretary of Commerce? Dabbar: This is an exciting time for the scope of Commerce’s work, with trade front and center. BIS, the U.S. Patent and Trademark Office (USPTO), the Creating Helpful Incentives to Produce Semiconductors (CHIPS) Act, and the National Telecommunications and Information Administration (NTIA), are primarily science and technology efforts. While I have a great background in trade, I am also very passionate about each and every one of those areas.
Chairman Cruz (R-TX): Given the choice between using President Trump’s tariff leverage to negotiate lower global tariffs or maintaining high tariffs in perpetuity, which could invite retaliation from trading partners and harm the broader American economy, which path do you believe the administration should take? Dabbar: The President has been very clear in his support for the administration’s positions on the different drivers and potential accomplishments of trade. One objective may be to drive down barriers, both tariffs and non-tariff barriers, with our trading counterparties. Another is to reindustrialize the U.S., as we have lost a significant number of jobs, particularly since the PRC’s accession to the World Trade Organization (WTO), which led to a decline in industrial employment. A third objective is addressing the national security implications of trade deficits, with another of potential revenue. I am uncertain of the exact details of ongoing negotiations between various parties, but I can certainly see that some negotiations may focus more on one or two of these objectives, while others may emphasize different ones. I have testified many times before the Senate on China and national security issues. When we talk about the PRC, national security and reindustrialization are likely to be the central focus of those negotiations.
Chairman Cruz (R-TX): What lessons could the Commerce apply to accelerate public-private partnerships and the commercialization of federally funded R&D? Dabbar: My philosophy around federal government spending is that it should be the equivalent of venture money, triggering investment to get the private sector moving in a certain direction. Discovery science is certainly a big part of that, but translating that into application is vitally important. We need to look at the structure that enables that translation and ask: how do we make it easier? How do we create better communities for people to see what has been invented or supported, whether in the private sector or at universities, and make it easier for them to act on that? That is something I worked on at the DOE and would look to push forward at Commerce.
Chairman Cruz (R-TX): What is at risk if the U.S. follows the path of Europe and the Biden administration by adopting heavy-handed AI regulations, such as requiring prior approval for innovation, instead of embracing entrepreneurial freedom? Dabbar: Regulating something with that breadth and that width, as well as the ability people have to invent across those and many other industries, would impede economic progress and sector productivity. Free enterprise and allowing everyone to develop across those and every other industry is vitally important for a broad set of reasons.
Ranking Member Cantwell (D-WA): Do you support the CHIPS and Science Act? If we have signed an agreement with a company and allocated resources, do you believe we have an obligation to fulfill that commitment? Dabbar: Yes, I have been on the record and testified in support of that when it was going through Congress but am not familiar with the actual agreements under the CHIPS and Science Act at Commerce. Secretary Raimondo and the President have been very clear about how to maximize the resources under the Act. The President, and the recent announcement from Secretary Raimondo in Arizona, highlighted this well. The TSMC went from one semiconductor fabrication facility supported with $6.6 billion in funding to three fabs and a total investment of $165 billion, serving as a great example of how to maximize the impact of CHIPS and Science Act support. While I am not familiar with all the specific TSMC agreements, I see that as a model for how to structure these deals effectively.
Senator Sullivan (R-AK): Can I get your commitment to work with our Asian allies to support purchases of Alaskan LNG from the large-scale project currently underway as a strategic opportunity? Dabbar: The U.S. strives to hold energy superpower status. We are in a better position than ever before on energy, and that is contributing positively to our trade balance.
Senator Klobuchar (D-MN): Do you commit to supporting Commerce ’s efforts to expand rural exports, including measures such as the Rural Export Center provisions in the Promoting Rural Exports Act, to ensure widespread access to international markets? Dabbar: Yes.
Senator Moreno (R-OH): If the bipartisan Deploying American Blockchain Act is enacted, will you commit to properly implementing it and helping position the U.S. as a global leader in blockchain innovation? Dabbar: I have not read your bill, but I certainly support American leadership on blockchain.
Senator Moreno (R-OH): Does allocating more money always equal better results in running complex programs? Dabbar: Not always, no. Sometimes the opposite. Assessments of different programs are essential to determine where money is used most efficiently. Setting up better processes, better systems, and leveraging technology is a much better approach than just throwing money at a problem. A lot of money was spent over a long period of time in many different directions, often without accomplishing much, exemplifying “programs heading in different directions without meaningful outcomes.”
Senator Moreno (R-OH): Looking back 25 years after the U.S.-China Normalization Act, with China’s GDP rising from $1.2 trillion to a projected $20 trillion, who won and who lost? Where will we be in ten years if we continue relying on cheap goods from elsewhere? Dabbar: The accession of China to the WTO and the normalization of trade relations were very damaging to the U.S. economy, particularly to millions of laid-off manufacturing workers. The trends we are seeing around fentanyl and the decline of small-town America really accelerated over the last twenty years because of that collapse of manufacturing and related jobs, which none of us wants to see continue.
Senator Moran (R-KS): Is it essential for NOAA weather service offices to remain fully staffed and open 24/7 to protect public safety and support industries such as agriculture? Will Commerce support and implement this priority? Dabbar: The support that we have from NOAA is vitally important. We must ensure that domestic industries, from producers to manufacturers, maintain or gain a comparative advantage. The net trade benefit should continue to expand in that sector for us at the benefit of the economy, particularly for export-dependent markets.
Senator Moran (R-KS): Given bipartisan support for the MEP program and its alignment with the administration’s goals to boost U.S. manufacturing, how do you see MEP fitting into the future of manufacturing, and what level of support can we expect from Commerce? Dabbar: When I was Under Secretary, we worked to support manufacturing R&D efforts for new advanced manufacturing. How we drive advanced manufacturing for the next step is vitally important, as are programs to support that. I would certainly look into that program and evaluate how it advances advanced manufacturing for the future.
Senator Kim (D-NJ): Beyond semiconductors, are there other critical technology sectors where we should apply the lessons from the CHIPS and Science Act to pursue a public-private partnership approach, and what are your thoughts on where we go from here? Dabbar: Energy technologies. Global leadership in energy is certainly in part about production, but it is also, in large part, about technology. Most of what we are deploying today in the energy sector did not exist in commercial form twenty years ago. Given my background, I know the pipeline of energy technologies quite well, and commit to thinking through how we move forward in using some of those types of tools.
Senator Kim (D-NJ): If you agree that we need to reindustrialize to compete with China, would you also agree that investing in basic research is essential to that competition? Dabbar: Yes.
Senator Peters (D-MI): How will you provide certainty, not chaos? Dabbar: I support the President’s and the Secretary’s positions on the negotiations. One of the great steps the President took previously was the implementation of tariffs on China, which helped prevent the U.S. car industry from being decimated the way Europe’s is right now by the Chinese. The trade deficit has been getting higher every year on an annual basis, so the President and the Secretary have taken action, building on the actions of the first administration of the President, to try to address that.