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.”

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Photo of Holly Fechner Holly Fechner

Holly Fechner advises clients on complex public policy matters that combine legal and political opportunities and risks. She leads teams that represent companies, entities, and organizations in significant policy and regulatory matters before Congress and the Executive Branch.

She is a co-chair of…

Holly Fechner advises clients on complex public policy matters that combine legal and political opportunities and risks. She leads teams that represent companies, entities, and organizations in significant policy and regulatory matters before Congress and the Executive Branch.

She is a co-chair of the Covington’s Technology Industry Group and a member of the Covington Political Action Committee board of directors.

Holly works with clients to:

Develop compelling public policy strategies
Research law and draft legislation and policy
Draft testimony, comments, fact sheets, letters and other documents
Advocate before Congress and the Executive Branch
Form and manage coalitions
Develop communications strategies

She is the Executive Director of Invent Together and a visiting lecturer at the Harvard Kennedy School of Government. She serves on the board of directors of the American Constitution Society.

Holly served as Policy Director for Senator Edward M. Kennedy (D-MA) and Chief Labor and Pensions Counsel for the Senate Health, Education, Labor & Pensions Committee.

She received The American Lawyer, “Dealmaker of the Year” award in 2019. The Hill named her a “Top Lobbyist” from 2013 to the present, and she has been ranked by Chambers USA – America’s Leading Business Lawyers from 2012 to the present. One client noted to Chambers: “Holly is an exceptional attorney who excels in government relations and policy discussions. She has an incisive analytical skill set which gives her the capability of understanding extremely complex legal and institutional matters.” According to another client surveyed by Chambers, “Holly is incredibly intelligent, effective and responsive. She also leads the team in a way that brings out everyone’s best work.”

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Photo of Matthew Shapanka Matthew Shapanka

Matthew Shapanka practices at the intersection of law, policy, and politics, developing strategies to guide businesses facing complex legislative, regulatory, and investigative matters. Matt draws on more than 15 years of experience across Capitol Hill, private practice, state government, and political campaigns to…

Matthew Shapanka practices at the intersection of law, policy, and politics, developing strategies to guide businesses facing complex legislative, regulatory, and investigative matters. Matt draws on more than 15 years of experience across Capitol Hill, private practice, state government, and political campaigns to advise clients on leading-edge policy issues involving artificial intelligence, semiconductors, connected and autonomous vehicles, and other critical and emerging technologies.

Matt works with clients to develop and execute complex public policy initiatives that involve legal, political, and reputational risks. He regularly assists clients to:

Develop public policy strategies
Draft federal and state legislation and regulations
Analyze legislation, regulations, and other government initiatives
Craft testimony, regulatory comments, fact sheets, letters and other advocacy materials
Prepare company executives and other witnesses to testify before Congress, state legislatures, and regulatory bodies
Represent clients before Congress, the White House, federal agencies, state legislatures, and state regulatory agencies
Build and manage policy advocacy coalitions

He advises clients across multiple policy areas, including matters involving regulation of critical and emerging technologies like artificial intelligence, connected and autonomous vehicles, and semiconductors; national security; intellectual property; antitrust; financial services technologies (“fintech”); food and beverage regulation; COVID-19 pandemic response and recovery; and election administration and campaign finance.

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 before the Committee. Most significantly, Matt staffed the Committee in passing the Electoral Count Reform Act – a landmark bipartisan law that updates the procedures for certifying and counting votes in presidential elections—and the Committee’s bipartisan joint investigation (with the Homeland Security Committee) into the security planning and response to the January 6, 2021 attack on the Capitol.

Both in Congress and at Covington, Matt has prepared dozens of corporate and nonprofit executives, academics, government officials, and presidential nominees for testimony at congressional committee hearings and depositions. He is a skilled legislative drafter who has composed dozens of bills and amendments introduced in Congress and state legislatures, including several that have been enacted into law across multiple policy areas. Matt also leads the firm’s state policy practice, advising clients on complex multistate legislative and regulatory matters and managing state-level advocacy efforts.

In addition to his policy work, as a member of Covington’s nationally recognized (Chambers Band 1) Election and Political Law Practice Group, Matt advises and represents clients on the full range of political law compliance and enforcement matters, including:

Federal election, campaign finance, lobbying, and government ethics laws
The Securities and Exchange Commission’s “Pay-to-Play” rule
Election and political laws of states and municipalities across the country

Before law school, Matt served in the administration of former Governor Deval Patrick (D-MA), where he worked on policy, communications, and compliance matters for federal economic recovery funding awarded to the state. He has also staffed federal, state, and local political candidates in Massachusetts and New Hampshire.

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