CLEVELAND — In early December, federal funding was halted for the Manufacturing Advocacy and Growth Network (MAGNET). Now, senators are speaking out—demanding an explanation for why the money was stopped.
Every day MAGNET’s funding isn’t restored, more people are losing their jobs. President and CEO Ethan Karp says organizations are already shutting down.
"So my estimate is about 40 jobs lost. The Toledo Manufacturing Ascension Partnership MEP just closed. The Dayton one has announced its closing, and the one in Cincinnati is preparing—like us—for a major downsizing in January,” said Karp.
For 40 years, MAGNET has helped small and medium-sized manufacturers with technical assistance, workforce development, and training. But that work was dramatically affected when federal funding was halted in early December.
RELATED: MAGNET faces possible layoffs and closures after abrupt federal funding halt
The pause comes amid an ongoing audit of the U.S. Department of Commerce’s Manufacturing Extension Partnership program by the Department’s Office of Inspector General. However, MAGNET says it has not been given any details or a report.
About two weeks later, Karp tells News 5 there has been no change.
“We have gotten nothing," said Karp.
The same goes for U.S. senators, who are now demanding answers.
"They’re alleging there has been some misuse of funds. Well, then, let’s see the evidence and get it corrected. If that’s true, if it's not, let's don't besmirch people. Let's restore the funding and get this going again,” said Senator Jon Husted, a Republican from Ohio.
That lack of explanation—and the impact it’s having—is why Senator Husted led a group of lawmakers this week in sending a letter to the Department of Commerce, calling for the issue to be resolved.
“If there are misuse of funds that some people were part of, we don't want that to destroy the overall program. Because the manufacturing extension partnership helps prepare people for work,” said Sen Husted.
In the letter, the senator highlights the importance of manufacturing—especially in Ohio, which ranks third in the nation. The industry employs 12 percent of the state’s workforce, contributes nearly $138 billion to Ohio’s GDP, and drives $55.8 billion in annual exports.
"This is a very valuable part of Ohio’s and America’s manufacturing economy, and I’m asking the Department of Commerce to act swiftly to bring this issue to resolution,” said Husted.
As for Karp, he says MAGNET will continue pushing forward with the funding it has, hoping for relief soon.
"All of this groundswell of support means that while I think we need a miracle right now, we might just get one,” said Karp.
