Federal funding cuts shut down New Mexico Minority Business Development Agency

Federal cuts, effective immediately, have shuttered the New Mexico Minority Business Development Agency.

Similar agencies around the country received funding termination notices in April. President Donald Trump in March released an executive order announcing the elimination of a slew of governmental entities, including the U.S. Minority Business Development Association.

The New Mexico Minority Business Development Agency, or MBDA, on Tuesday officially stopped offering its services, which included professional service resources, access to federal government contracting, software programs and free logo or website designs. The agency’s two staff members had their last day Friday, according to Gabriela Marques, now-former center director for the agency.

On a call on April 17 with other centers, she learned about termination letters coming from Elon Musk’s Department of Government Efficiency but thought the New Mexico MBDA could be exempted because the city of Albuquerque operated the agency.

And then last week, the agency lost access to its funds, Marques said, and got a termination letter on Tuesday.

Ten contracts with business advisers and partner organizations were terminated immediately, and the agency’s two staffers found jobs elsewhere with the city of Albuquerque, according to Marques.

“The impact goes much beyond just a program,” she said. “People’s lives are being affected.”

Over the past three years, the New Mexico MBDA supported more than 600 businesses, generated $230 million in revenue and helped create or retain almost 7,500 jobs, according to the agency.

The city of Albuquerque will keep operating its Business Resource Center, according to a news release.

New Mexico Sens. Ben Ray Luján and Martin Heinrich joined other Senate Democrats sending a letter to Keith Sonderling, the acting under secretary for MBDA, on Wednesday requesting information on the MBDA funding terminations. Specifically, they called into question the role of DOGE in dismantling the agency rather than the U.S. Department of Commerce, which housed MBDA.

“Who is actually running the (Commerce) Department: Secretary (Howard) Lutnick or Elon Musk and DOGE?” the senators wrote.

Albuquerque Mayor Tim Keller said the move is “about silencing progress.”

“But here in Albuquerque, we won’t back down,” he said in a statement. “We’ll keep fighting for every small business that’s been pushed aside by this administration.”