In his second term, President Donald J. Trump has reignited his “Made in America” agenda. Promising a resurgence of domestic manufacturing through aggressive deregulation, expanded access to capital, and targeted federal grants.
His administration’s policies aim to restore American industrial dominance, reduce reliance on foreign supply chains, and create high-paying jobs for U.S. workers. Central to this effort is the Made in America Manufacturing Initiative, launched by the U.S. Small Business Administration (SBA) in early 2025.
The initiative pledges to cut $100 billion in regulatory burdens, expand loan access. As well as provide infrastructure support for small manufacturers, who make up nearly 99% of U.S. manufacturing businesses.
In addition to grants, Trump’s administration has proposed:
- Doubling SBA loan limits for small manufacturers from $5 million to $10 million through the Made in America Manufacturing Finance Act.
- Tax incentives for companies that produce goods domestically, including a proposed reduction of the corporate tax rate from 21% to 15% for U.S.-based manufacturers.
- Tariffs and reshoring incentives to encourage domestic production in key sectors like aerospace, semiconductors, and industrial machinery.
Notable Grant & Incentives
Federal Grants
The Department of Energy (DOE), under President Trump’s energy-focused executive orders, plans to launch the Battery Materials Processing and Battery Manufacturing and Recycling Grant Program through its Office of Manufacturing and Energy Supply Chains (MESC).
This initiative, authorized under Section 40207 of the Infrastructure Investment and Jobs Act (IIJA), aims to strengthen America’s energy independence by expanding domestic processing, manufacturing, and recycling of critical minerals used in batteries, such as lithium, graphite, nickel, copper, aluminum, and rare earth elements.
Other opportunities with similar objectives include Mines and Minerals Capacity Expansion and Improving Efficiency, Reliability, and Flexibility of Coal-Based Power Plants.
While these grants have not been announced yet, we encourage you to sign up for the DOE’s email list.
SBA Grant Programs
The SBA’s State Trade Expansion Program (STEP) grant helps small manufacturers expand into international markets by covering costs like trade show participation, translation services, and export training.
It’s ideal for companies with scalable products and a readiness to enter global supply chains. Award amounts can vary from $5,000 to $15,000 depending on the state.
Meanwhile, the Empower to Grow (E2G) grant supports underserved and disadvantaged small businesses. Including minority-owned manufacturers, by providing funding for training and technical assistance.
E2G is best suited for early-stage manufacturers looking to modernize operations and access new markets with limited resources.
Applicants must be in areas of high unemployment or low income, owned by low-income individuals. And/or have been in business for at least two years or more to qualify for this opportunity.
$1.1 million was allocated amongst three applicants in 2025. The next application deadline has not been set but is forecasted for late May.
State-Sponsored Programs
Several states are bolstering the manufacturing push with their own grant programs, notably New Jersey and Rhode Island.
New Jersey’s Next NJ Manufacturing Program is a landmark initiative offering up to $150 million in tax credits per project, with a total allocation of $500 million. It targets advanced manufacturing, clean energy, defense, and life sciences sectors, requiring a minimum investment of $10 million and the creation of at least 20 full-time jobs.
Bonus incentives are available for minority, women, and veteran-owned businesses, as well as those located in Opportunity Zones.
Meanwhile, Rhode Island’s Manufacturing Equipment Grant Program provides up to $25,000 in reimbursement for equipment purchases, covering 50% of either a cash payment or downpayment on financed machinery.
It’s tailored for small manufacturers with under $5 million in annual revenue and fewer than 50 employees, aiming to modernize operations and boost competitiveness.
These state programs complement federal efforts by offering localized support to manufacturers ready to invest in innovation and job creation
R&D Tax Credit Benefits for Manufacturers
Manufacturers can significantly benefit from the federal Research & Development (R&D) Tax Credit. Which rewards companies for investing in innovation, process improvements, and new product development.
Eligible activities include designing new tools, improving manufacturing techniques, automating production lines, and developing prototypes.
The credit can offset payroll taxes for small businesses and reduce income tax liability for larger firms. Freeing up capital for further innovation.
By leveraging this incentive, manufacturers can reinvest in technology, workforce training, and infrastructure. All of which enhance competitiveness in domestic and global markets.
Conclusion
While critics warn of potential inflation and trade tensions, Trump’s supporters argue that these policies are essential to restoring American manufacturing and economic sovereignty.
As new programs incentivize made in america manufacturing, businesses can thrive by leveraging these opportunities.
If you’re interested in working with industry professionals to apply for these opportunities, we would love to hear from you!
