I think the idea is that a private company will take the results of government produced meteorology and then have full rights for distribution. At least, that's the plan of one of the current private companies that does this, they want to be the monopoly.
Seems pretty clear to me - Trump is trying to cut costs for our government. He sees we’re spending all that money on forecasting and data that everyone else uses for free, and gets paid for it. Therefore, that data is worth something and the government should get a piece of the pie.
I don’t necessarily agree but it’s somewhat logical.
I don't think the "cut costs" is an accurate framing of intent or outcome here. High costs are not being cut, but individual programs that are cheap but have every high positive impact are getting completely whacked. Such as the National Weather Service, there are reports all across the country of not having enough staff to launch the necessary number of weather balloons or generate reports that cover 24 hours of the day, leading to very small cost savings but massive inefficiency. Meanwhile massive contracts out to failing defense programs are untouched, and military spending is being massively increased far beyond what the military even asks for. Add to that the massive IRS staff reductions and tax cheats are having a hey day, with more than $500B lost to that already, which is 10x our entire science budget, which is actively getting slashed.
The goal is to assert dominance and to punish anybody that, as a group, was unlikely to vote for Trump and who Trump voters don't like, such as scientists.