U.S. Secretary of Commerce nominee Howard Lutnick delivered a detailed preview of what to expect from the Trump Administration on key issues around technology, trade, and intellectual property.  At his nomination hearing before the Senate Committee on Commerce, Science, and Transportation on Wednesday, January 29, Lutnick faced questions from senators about the future of the CHIPS and Science Act, global trade, and particularly U.S. technological competition with China, including export controls and artificial intelligence after the release of China’s AI model “DeepSeek.”  Lutnick, who was introduced by Vice President J.D. Vance, committed to implementing the Trump Administration’s America First agenda. 

If confirmed, Lutnick will lead the Commerce Department’s vast policy portfolio, including export controls for emerging technologies, broadband spectrum access and deployment, AI innovation, and climate and weather issues through the National Oceanic and Atmospheric Administration (“NOAA”).  In his responses to senators’ questions, Lutnick emphasized his pro-business approach and his intent to implement President Trump’s policy objectives including bringing manufacturing—particularly of semiconductors—back to the United States and establishing “reciprocity” with China in response to what he called “unfair” treatment of U.S. businesses.

Technology Competition with China, Export Controls, and Intellectual Property

Senators on both sides of the aisle asked Lutnick about the threat of Chinese competition in emerging technologies, such as AI.  Lutnick stated that it is evident the Chinese used “stolen” and “leveraged” U.S. technologies to develop DeepSeek and that the United States needs to stop China from “using our tools to compete with us.” 

Lutnick noted that China has found ways to evade U.S. export controls and that, under his direction, the Commerce Department will reinforce these controls with punitive tariffs to ensure compliance.  Lutnick also criticized the Chinese for refusing to respect U.S. innovators’ IP in China, stating that the Chinese should expect the same treatment in the United States under a new policy of “reciprocity.”  As Commerce Secretary, Lutnick will oversee the Bureau of Industry and Security (“BIS”) and the U.S. Patent and Trademark Office (“USPTO”), which he noted will carry out the Trump Administration’s America First agenda, including by preventing the Chinese from “abusing” the U.S. patent system.  In response to questioning from Senator Marsha Blackburn (R-TN), Lutnick also stated that he would work to reduce the backlog of patent applications pending at the USPTO. 

Artificial Intelligence Standards

Lutnick expressed optimism about the future of U.S. innovation in AI and stated his support for a “light touch” regulatory model to allow U.S. AI innovators to flourish and establish global dominance.  Lutnick believes the United States should set AI standards for the world will follow, as the government did by instituting the now globally-adopted U.S. cybersecurity standards.  Lutnick stated these standards “will encourage [the] private sector to be the dominant winner.”  In response to senators’ questions about the National Institute of Standards and Technology (“NIST”), Lutnick called NIST the “central hub of knowledge of the American government” and shared his excitement to support NIST’s standards work.

Global Trade

In response to significant challenges from Republican and Democratic senators, Lutnick demonstrated his intention to implement President Trump’s tariff agenda.  He said that the United States—especially its farmers, ranchers, and fishers—are being treated poorly in global trade and that tariffs are an important way to protect American businesses and create “reciprocity” between the United States and its trading partners.  Lutnick said that tariffs on Chinese goods and services should be the highest priority for the Trump administration and that tariffs would be vital in bringing semiconductor and pharmaceutical manufacturing back to the United States.

Broadband Spectrum Access

Multiple senators asked Lutnick about the Commerce Department’s Broadband Equity, Access, and Deployment (“BEAD”) Program to expand high-speed Internet access across the country.  Lutnick agreed with senators’ concerns that the BEAD program had yet to be fully implemented and committed to implementing the program in an efficient and cost-effective manner.  Lutnick criticized the Biden Administration for not delivering broadband under the program and highlighted the importance of U.S. leadership in 5G/6G wireless technologies and the need to expand commercial access to mid-band wireless spectrum.

CHIPS and Science Act and Semiconductor Manufacturing

Despite President Trump’s frequent criticism of the CHIPS and Science Act and promises to defund the law, Lutnick called the CHIPS Act an “excellent down payment” towards the important goal of bringing semiconductor manufacturing back to the United States.  Lutnick emphasized that where Congress has appropriated funds to the Commerce Department he will ensure Congress receives “the benefit of the bargain,” but indicated the Department would review CHIPS Act spending carefully in accordance with President Trump’s directives on federal funding.  However, Lutnick did not commit to fully implement the CHIPS Act in all respects: in response to questioning from Senator Ben Ray Luján (D-NM), he stated that if directed to suspend funding for certain programs, even if appropriated by Congress, “I work for the President.”

Photo of Holly Fechner Holly Fechner

Holly Fechner has two decades of legal, legislative and public policy experience in the public and private sectors.  Ms. Fechner has a broad-based practice handling legislative and regulatory matters for clients in areas including healthcare, tax, intellectual property, education, and employee benefits.  Drawing…

Holly Fechner has two decades of legal, legislative and public policy experience in the public and private sectors.  Ms. Fechner has a broad-based practice handling legislative and regulatory matters for clients in areas including healthcare, tax, intellectual property, education, and employee benefits.  Drawing on her extensive congressional and private sector experience, Ms. Fechner offers clients comprehensive advocacy services, including strategic advice, substantive legal and regulatory expertise, and policy and message development.  She has a proven track record in assisting clients fulfill their government affairs goals.

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Matthew Shapanka

Matthew Shapanka draws on more than 15 years of experience – including on Capitol Hill, at Covington, and in state government – to advise and counsel clients across a range of industries on significant legislative, regulatory, and enforcement matters. He develops and executes…

Matthew Shapanka draws on more than 15 years of experience – including on Capitol Hill, at Covington, and in state government – to advise and counsel clients across a range of industries on significant legislative, regulatory, and enforcement matters. He develops and executes complex, multifaceted public policy initiatives for clients seeking actions by Congress, state legislatures, and federal and state government agencies, many with significant legal and political opportunities and risks.

Matt rejoined Covington after serving as Chief Counsel for the U.S. Senate Committee on Rules and Administration, where he advised Chairwoman Amy Klobuchar (D-MN) on all legal, policy, and oversight matters within the Committee’s jurisdiction, including federal election law and campaign finance, and oversight of the Federal Election Commission, legislative branch agencies, security and maintenance of the U.S. Capitol Complex, and Senate rules and regulations.

Most significantly, Matt led the Rules Committee staff work on the Electoral Count Reform and Presidential Transition Improvement Act – landmark bipartisan legislation to update the antiquated process of certifying and counting electoral votes in presidential elections that President Biden signed into law in 2022.

As Chief Counsel, Matt was a lead attorney on the joint bipartisan investigation (with the Homeland Security and Governmental Affairs Committee) into the security planning and response to the January 6, 2021 attack on the Capitol. In that role, he oversaw the collection review of documents, led interviews and depositions of key government officials, advised the Chairwoman and Committee members on two high-profile joint hearings, and drafted substantial portions of the Committees’ staff report on the attack. He also led oversight of the Capitol Police, Architect of the Capitol, Senate Sergeant at Arms, and executive branch agencies involved in implementing the Committees’ recommendations, including additional legislation and hearings.

Both in Congress and at the firm, Matt has prepared many corporate and nonprofit executives, academics, government officials, and presidential nominees for testimony at legislative, oversight, or nomination hearings before congressional committees, as well as witnesses appearing at congressional depositions and transcribed interviews. He is also an experienced legislative drafter who has composed dozens of bills introduced in Congress and state legislatures, including several that have been enacted into law across multiple policy areas.

In addition to his policy work, Matt advises and represents clients on the full range of political law compliance and enforcement matters involving federal election, campaign finance, lobbying, and government ethics laws, the Securities and Exchange Commission’s “Pay-to-Play” rule, as well as the election and political laws of states and municipalities across the country.

Before law school, Matt worked as a research analyst in the Massachusetts Recovery & Reinvestment Office, where he worked on all aspects of state-level policy, communications, and compliance for federal stimulus funding awarded to Massachusetts under the American Recovery & Reinvestment Act of 2009. He has also worked for federal, state, and local political candidates in Massachusetts and New Hampshire.

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Morgan Hurst

Morgan Hurst is an associate in the firm’s Washington, DC office. She is a member of the Election and Political Law, Congressional Investigations, and Public Policy Practice Groups. She also assists with white collar defense matters.

Morgan maintains an active pro bono litigation…

Morgan Hurst is an associate in the firm’s Washington, DC office. She is a member of the Election and Political Law, Congressional Investigations, and Public Policy Practice Groups. She also assists with white collar defense matters.

Morgan maintains an active pro bono litigation practice with a focus on criminal justice issues.

Prior to law school, Morgan was a Paralegal Specialist at the U.S. Attorney’s Office for the Southern District of New York in the National Security & International Narcotics Unit.

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