  In the gauge-mediation framework the soft supersymmetry breaking mass
parameters of the supersymmetric standard model are induced by the gauge
interactions of some messenger fields. The parameters exhibit flavor
universality which is dictated by the gauge interactions and which efficiently
eliminates new dangerous contributions to flavor changing neutral currents.
However, the Higgs potential in this framework typically contains an
unacceptable hierarchy between its dimensionful parameters (the $\mu$-problem
of gauge mediation). We show that the problem can be resolved if the Higgs
potential arises dynamically once an intermediate U(1)' sector is integrated
out rather than arising radiatively from some Yukawa interactions at the
messenger scale. As an added benefit, such models may naturally avoid new
contribution to CP violating amplitudes. The proposed framework is described,
explicit examples are given and its phenomenology is explored. The $\mu$
problem is resolved in this case by the low-energy U(1)' dynamics which could
be tested in future collider experiments.
