Economic Development Administration:
December 17, 2021April 8, 2022
An Overview of Programs and Appropriations
Julie M. Lawhorn
(FY2011-FY2021FY2022)
Analyst in Economic
Analyst in Economic
Development Policy Development Policy
The Economic Development Administration (EDA), a bureau of the U.S. Department of
The Economic Development Administration (EDA), a bureau of the U.S. Department of
Commerce (DOC), is the only federal agency with economic development as its sole mission.
Commerce (DOC), is the only federal agency with economic development as its sole mission.
The agency was established pursuant to the enactment of the Public Works and Economic The agency was established pursuant to the enactment of the Public Works and Economic
Development Act (PWEDA) of 1965 (42 U.S.C. §3121 et seq.) to assist state and local
Development Act (PWEDA) of 1965 (42 U.S.C. §3121 et seq.) to assist state and local
stakeholders with developing the conditions and amenities to grow businesses, create jobs, and expand investment in stakeholders with developing the conditions and amenities to grow businesses, create jobs, and expand investment in
economically distressed areas. Changing industry dynamics, global competition, technological developments, and other economically distressed areas. Changing industry dynamics, global competition, technological developments, and other
events, conditions, and priorities have shifted EDA’s programs and priorities over time. During the agency’s first 30 years, its events, conditions, and priorities have shifted EDA’s programs and priorities over time. During the agency’s first 30 years, its
programs focused on industrial growth and emphasized public works, roads, and infrastructure. Since then, Congress has programs focused on industrial growth and emphasized public works, roads, and infrastructure. Since then, Congress has
supported an expanded portfolio of EDA programs to also advance existing and emerging industry clusters, develop human supported an expanded portfolio of EDA programs to also advance existing and emerging industry clusters, develop human
capital, strengthen supply chains, expand access to capital, build new types of capital, strengthen supply chains, expand access to capital, build new types of
in frastructureinfrastructure, and implement innovation and , and implement innovation and
technology strategies. Additionally, EDA has also taken on new roles in developing state and local capacity, resiliency, technology strategies. Additionally, EDA has also taken on new roles in developing state and local capacity, resiliency,
disaster and economic recovery, as well as economic development integration across federal agencies.disaster and economic recovery, as well as economic development integration across federal agencies.
Today, EDA administers nine core programs that fund a range of construction and non-construction activities in both urban
Today, EDA administers nine core programs that fund a range of construction and non-construction activities in both urban
and rural areas—primarily through competitive processes that solicit community-directed proposals aligned with the and rural areas—primarily through competitive processes that solicit community-directed proposals aligned with the
agency’s investment priorities. EDA administers both flexible and targeted programs focused on innovation, technical agency’s investment priorities. EDA administers both flexible and targeted programs focused on innovation, technical
assistance, and support for long-term, regional economic development planning. The major EDA programs includeassistance, and support for long-term, regional economic development planning. The major EDA programs include
:
Build to Scale (B2S),
Build to Scale (B2S),
Economic Adjustment Assistance (EAA), Economic Adjustment Assistance (EAA),
Local Technical Assistance, Local Technical Assistance,
Planning, Planning,
Public Works, Public Works,
Research and National Technical Assistance (RNTA), Research and National Technical Assistance (RNTA),
Science Technology Engineering and Math (STEM) Apprenticeships, Science Technology Engineering and Math (STEM) Apprenticeships,
Trade Adjustment Assistance for Firms (TAAF), and Trade Adjustment Assistance for Firms (TAAF), and
University Centers. University Centers.
Congress approves annual appropriations for EDA programs as well as administration expenses, and occasionally approves
Congress approves annual appropriations for EDA programs as well as administration expenses, and occasionally approves
supplemental appropriations for economic recovery purposes. Since FY2011, annual appropriations average approximately supplemental appropriations for economic recovery purposes. Since FY2011, annual appropriations average approximately
$$
283288 million. Annual appropriations decreased each year between FY2011 and FY2013, and have increased slightly each million. Annual appropriations decreased each year between FY2011 and FY2013, and have increased slightly each
year since FY2014. In year since FY2014. In
FY2021, FY2022, Congress approved $Congress approved $
346373.5 million in annual appropriations for the agency’s programs and million in annual appropriations for the agency’s programs and
administration. In FY2020 and FY2021,administration. In FY2020 and FY2021,
Congress also provided a total of $4.5 billion in supplemental appropriations for Congress also provided a total of $4.5 billion in supplemental appropriations for
EDA programs in response to the economic impact of the Coronavirus Disease 2019 (COVID-19)EDA programs in response to the economic impact of the Coronavirus Disease 2019 (COVID-19)
pandemic.pandemic.
For
For
FY2022, FY2023, the Biden Administration requested funding increases for several EDA programs and for salaries and expenses. the Biden Administration requested funding increases for several EDA programs and for salaries and expenses.
Under the Administration’s proposal, EDA would receive $Under the Administration’s proposal, EDA would receive $
433502.5 million, million,
an increase of $an increase of $
87129 million, million,
or 25 or 35%, over the amount %, over the amount
of FY2021 of FY2022 enacted appropriations, excluding the COVID-19 supplemental appropriations. The enacted appropriations, excluding the COVID-19 supplemental appropriations. The
FY2022FY2023 includes $50 million for a new Recompete pilot program. The FY2023 budget request budget request
also included significant increases in funding for the following programs and expenses: included significant increases in funding for the following programs and expenses:
Assistance to Coal Communities grants (through the EAA program), from $
Assistance to Coal Communities grants (through the EAA program), from $
3341.5 million to $80.5 million; .5 million to $80.5 million;
EAA program, from $37.5 million to $48 million; EAA program, from $37.5 million to $48 million;
Build to Scale grants, from $38 million to $45 million; the STEM Talent Challenge (“STEM Apprenticeships”), from $2 million to $10 million; and the STEM Talent Challenge (“STEM Apprenticeships”), from $2 million to $10 million; and
salaries and expenses, from $ salaries and expenses, from $
4043.5 million to $70.0 million. .5 million to $50.6 million.
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Economic Development Administration: An Overview of Programs and Appropriations
Congress may wish to consider policies to change, expand, or focus the distribution of the agency’s funding and related
Congress may wish to consider policies to change, expand, or focus the distribution of the agency’s funding and related
program requirements. Congress may also seek to adjust the overall role and authority of EDA and its programs in the program requirements. Congress may also seek to adjust the overall role and authority of EDA and its programs in the
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Economic Development Administration: An Overview of Programs and Appropriations
context of changing economic conditions, specific industry trends, innovation, and disaster economic recovery and resiliency context of changing economic conditions, specific industry trends, innovation, and disaster economic recovery and resiliency
funding. Congress may consider the role of broad-based and/or targeted approaches to the allocation of economic funding. Congress may consider the role of broad-based and/or targeted approaches to the allocation of economic
development resources. For instance, Congress has approved appropriations to address coal-impacted and nuclear closure development resources. For instance, Congress has approved appropriations to address coal-impacted and nuclear closure
communities as well as demands for a STEM-capable workforce and innovation-ready regions. Congressional debate on communities as well as demands for a STEM-capable workforce and innovation-ready regions. Congressional debate on
these and other EDA issues may be associated with or separate from discussions of the reauthorization of PWEDA. these and other EDA issues may be associated with or separate from discussions of the reauthorization of PWEDA.
PWEDA’s statutory authority lapsed on September 30, 2008. PWEDA’s statutory authority lapsed on September 30, 2008.
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2915 Economic Development Administration: An Overview of Programs and Appropriations
Contents
Introduction ..................................................................................................................................... 6 1
Agency Overview ............................................................................................................................ 8 2
EDA Mission and Origins ......................................................................................................... 8 3
Precursors to PWEDA and EDA Programs Since 1965 ............................................................ 9 3
EDA Structure .............................................................................................................. 5........... 10
EDA Regional Offices ............................................................................................. 7......... 12
EDA Staff Levels .............................................................................................................. 13 8
Economic Development Districts (EDDs) ........................................................................ 10...... 15
Investment Priorities, FY2011-Present ................................................................................... 16 11
Economic Development Integration (EDI) Role ..................................................................... 16 11
Disaster Economic Recovery Role .......................................................................................... 17 12
EDA Performance Metrics ...................................................................................................... 18 13
EDA Grant Programs ..................................................................................................................... 19 14
How to Apply .......................................................................................................................... 22 17
Select Grant Requirements ...................................................................................................... 23 18
Select Grant Requirements—Public Works and Economic Adjustment Assistance
Programs .............................................................................................................................. 25 20
Persistent Poverty and Distressed, Smal Small, Rural and Underserved Areas—Funding
and Technical Assistance ...................................................................................................... 27 21
Assistance to Tribal Communities .................................................................................... 23....... 28
EDA Appropriations, FY2011—FY2021 FY2022 ............................................................................... 23
Assistance to Coal and Nuclear Closure Communities ....... 28
Assistance to Energy Transition Communities ......................................................... 24.............. 29
Consolidated Appropriations Act of 2021, P.L. 116-260 ................................................. 26
Supplemental Appropriations ........ 31 Consolidated Appropriations Act of 2022, P.L. 117-103 ......................................................... 32 Supplemental Appropriations .................................................................................................. 2733
Disaster Economic Recovery Assistance, FY2011-FY2021 ....................................... 27...... 33
COVID-19 Economic Recovery Assistance, FY2020-FY2021 ...................................... 28
FY2022.. 34
FY2023 Funding Request .............................................................................................................. 36 29
Policy Considerations .................................................................................................................... 37 31
Changes to Program Requirements ................................................................................ 31... 37
Expanding or Establishing EDA Programs, Roles, Offices, and Capacity ....................... 38 32
Trade Adjustment Assistance for Firms (TAAF) .............................................................. 40 34
Preparing for Future Industries and EDA’s Role in Federal Innovation Policy ............... 40 34
Underserved Communities ........................................................................................ 36........ 42
Human Capital, STEM, and Workforce Development ..................................................... 43 Reauthorization ........... 37
Reauthorization.................................................................................................. 37.... 43
Concluding Remarks ..................................................................................................................... 44 38
Figures
Figure 1. Major EDA Programs ............................................................................................... 2........ 7
Figure 2. EDA Organizational Chart ........................................................................................ 6...... 11
Figure 3. EDA Regional Offices .............................................................................................. 8...... 13
Figure 4. EDA On-Board Employees, 2011-2021 ............................................................... 10
Figure 5. Funding for EDA Programs, FY2011- FY2021 and FY2022 Request ....................... 24.......... 15
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5657 Economic Development Administration: An Overview of Programs and Appropriations
Figure 5. Funding for EDA Programs, FY2011-FY2022 .............................................................. 29 Figure 6. EAA, ACC, NCC, and BCC6. EAA, ACC, NCC Funding History: FY2011-FY2021 and FY2022 Request FY2022 .................................. 2631
Figure 87. Annual and Supplemental and Disaster Recovery Appropriations, FY2011-
FY2021 FY2022 ............................................................................................................................ 29
........... 35
Tables
Table 1. Comparison of EDA Investment Priorities ............................................................. 11......... 16
Table 2. EDA Performance Goals and Metrics .............................................................................. 19 14
Table 3. Summary of Major EDA Programs ................................................................................. 20 15
Table 4. Core Elements of a Comprehensive Economic Development Strategy (CEDS) ............. 26 Table 5. FY2022 Annual Appropriations and FY2023 Request 21
Table 5. FY2021 Regular Appropriations, ARP Act, and FY2022 Request, House, Senate,
and House-Passed BBBA ............................................................................................ 30
36
Table B-1. Budget Requests and Annual Enacted Appropriations, FY2011-FY2021FY2022 and
FY2022FY2023 Request ......................................................................................................................... 53 47
Table B-2. Funding for EDA, by Program, FY2011-FY2021FY2022 ....................................................... 4854
Table B-3. Supplemental Funding, FY2011-FY2021 ................................................................ 50.... 56
Table C-1. EDA Employment, FY2011-FY2021 .......................................................................... 57 51
Appendixes
Appendix A. Grant Programs ........................................................................................................ 46 40
Appendix B. EDA Funding—Historical Tables ............................................................................ 53 47
Appendix C. Staff Level History ................................................................................................... 57
Contacts Author Information ................ 51
Contacts
Author Information ....................................................................................................... 51. 57
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Economic Development Administration: An Overview of Programs and Appropriations
Introduction
The Economic Development Administration
The Economic Development Administration
(EDA), a bureau of the U.S. Department of (EDA), a bureau of the U.S. Department of
EDA’s Definition of Economic
Commerce (DOC), provides financial and
Commerce (DOC), provides financial and
Development
technical assistance to support
technical assistance to support
local ylocally-driven, -driven,
The EDA defines economic
The EDA defines economic
development as creating development as creating
regional yregionally-oriented economic development -oriented economic development
“the conditions for economic growth and improved
“the conditions for economic growth and improved
strategies. The definitions of economic
strategies. The definitions of economic
quality of life by expanding the capacity of
quality of life by expanding the capacity of
individuals, firms,individuals, firms,
and communitiesand communities
to maximizeto maximize
the the
development and the local scope of practice have
development and the local scope of practice have
use of their talents and skil s
use of their talents and skil s
to support innovation, to support innovation,
changed in response to shifts in regional and
changed in response to shifts in regional and
lower
lower
transaction costs, and responsiblytransaction costs, and responsibly
produce produce
global economies, advances in technology, and
global economies, advances in technology, and
and trade valuable goods and services.”1
and trade valuable goods and services.”1
other conditions and circumstances. EDA’s
other conditions and circumstances. EDA’s
programs, roles, and investment priorities have also shifted since the agency was created over 56 programs, roles, and investment priorities have also shifted since the agency was created over 56
years ago. EDA’s programs continue to include support for infrastructure, public works, and years ago. EDA’s programs continue to include support for infrastructure, public works, and
distressed areas, but now also include strategies focused on entrepreneurship, innovation, disaster distressed areas, but now also include strategies focused on entrepreneurship, innovation, disaster
recovery, and facilitating state and local economic development capacity.2 In addition to recovery, and facilitating state and local economic development capacity.2 In addition to
administering and monitoring grant programs, EDA roles have expanded to include research, administering and monitoring grant programs, EDA roles have expanded to include research,
technical assistance, and economic development integration across agencies, among others. technical assistance, and economic development integration across agencies, among others.
Congress approves appropriations for EDA
Congress approves appropriations for EDA
annual yannually and directs the agency to and directs the agency to
al ocateallocate funding to funding to
the major programs outlined ithe major programs outlined i
n Figure 1. Congress occasional y Congress occasionally approves supplemental funding approves supplemental funding
as as
wel well. Supplemental funding in recent years has supported economic recovery assistance . Supplemental funding in recent years has supported economic recovery assistance
following selected natural disasters and the Coronavirus Disease 2019 (COVID-19) pandemic. following selected natural disasters and the Coronavirus Disease 2019 (COVID-19) pandemic.
Supplemental appropriations are Supplemental appropriations are
general ygenerally administered through one of the agency’s most administered through one of the agency’s most
flexible programs, the Economic Adjustment Assistance program. flexible programs, the Economic Adjustment Assistance program.
1 EDA, “Key Definitions,” https://www.eda.gov/performance/key-definitions/. See also, Karl F Seidman,1 EDA, “Key Definitions,” https://www.eda.gov/performance/key-definitions/. See also, Karl F Seidman,
Economic Economic
Development FinanceDevelopment Finance
(Thousand (T housand Oaks, CA: Sage Oaks, CA: Sage
Publications, 2005), p. 5Publications, 2005), p. 5
,; International Economic Development International Economic Development
Council (IEDC), “Council (IEDC), “
What Economic Development Does for a Community,” https://www.iedconline.org/clientuploads/What Economic Development Does for a Community,” https://www.iedconline.org/clientuploads/
Downloads/IEDC_Why_and_Impact_Economic_Development.pdfDownloads/IEDC_Why_and_Impact_Economic_Development.pdf
; ; and Emil E. Malizia and EdwardEmil E. Malizia and Edward
Feser, Feser,
Understanding
Local Econom ic Developm entLocal Economic Development (New Brunswick, (New Brunswick,
NJ: Center for Urban Policy Research, Rutgers,NJ: Center for Urban Policy Research, Rutgers,
1999), pp. 12-13; 1999), pp. 12-13;
among others. among others.
2
2
T estimonyTestimony by Mr. Dennis Alvord, Acting Assistant Secretary of Commerce for EDA, U.S. by Mr. Dennis Alvord, Acting Assistant Secretary of Commerce for EDA, U.S.
House House of Representatives, of Representatives,
Committee on Committee on
T ransportationTransportation and Infrastructure, Subcommittee on Economic Development, Public Buildings and Infrastructure, Subcommittee on Economic Development, Public Buildings
and and
Emergency ManagementEmergency Management
,,
Investing in Am ericaAmerica: Reauthorization of the Econom ic Developm ent Adm inistration Economic Development Administration, 117th , 117th
Cong., 1st sess.,Cong., 1st sess.,
April 28, 2021, https://www.congress.gov/117/meeting/house/112512/witnesses/HHRG-117-PW13-April 28, 2021, https://www.congress.gov/117/meeting/house/112512/witnesses/HHRG-117-PW13-
Wstate-AlvordD-20210428.pdf. Wstate-AlvordD-20210428.pdf.
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Economic Development Administration: An Overview of Programs and Appropriations
Figure 1. Major EDA Programs
Source: CRS, using EDA “EDA Programs,” CRS, using EDA “EDA Programs,”
https://eda.gov/programs/eda-programs/.https://eda.gov/programs/eda-programs/.
Notes: The figure highlights the key feature of majorThe figure highlights the key feature of major
EDA programs.EDA programs.
Programs Programs may support multiplemay support multiple
purposes and purposes and
activities.activities.
For instance, the EAA and UniversityFor instance, the EAA and University
Centers programs may also promote innovation and entrepreneurship Centers programs may also promote innovation and entrepreneurship
and the EAA program may support planning or infrastructure activities.and the EAA program may support planning or infrastructure activities.
In recent years, Congress has directed EDA to administer additional funding through the EAA program for coal communities and nuclear closure communities and EDA created the Assistance to Coal Communities (ACC) and Assistance to Nuclear Closure Communities (NCC) Initiatives. Starting in FY2022, Congress further directed EDA to administer funding through the EAA program for biomass plant closure communities. EDA guidance for activities
to support biomass plant closure communities was not available at the time of this report’s publication and is not included under the EAA program in this figure.
In addition to providing appropriations, Congress performs oversight and conducts hearings on
In addition to providing appropriations, Congress performs oversight and conducts hearings on
EDA programs and administration. Recent hearings regarding the EDA have addressed agency EDA programs and administration. Recent hearings regarding the EDA have addressed agency
capacity, grant capacity, grant
al ocationsallocations, grant requirements, disaster recovery, and reauthorization of the Public , grant requirements, disaster recovery, and reauthorization of the Public
Works and Economic Development Act (PWEDA) of 1965 (42 U.S.C. §3121 et seq.), among Works and Economic Development Act (PWEDA) of 1965 (42 U.S.C. §3121 et seq.), among
other matters. other matters.
This report provides a broad overview of the EDA with a focus on its programs and
This report provides a broad overview of the EDA with a focus on its programs and
appropriations history since FY2011. Following an abbreviated history of the agency, the report appropriations history since FY2011. Following an abbreviated history of the agency, the report
discusses investment priorities, structure, and performance metrics, and outlines the programs that discusses investment priorities, structure, and performance metrics, and outlines the programs that
assist with state and local activities. The report includes an analysis of recent appropriations (see assist with state and local activities. The report includes an analysis of recent appropriations (see
Figure 5), including disaster and economic recovery assistance (se, including disaster and economic recovery assistance (se
e Figure 7), and concludes ), and concludes
with considerations for policymakers. For more information on the statutory history of the with considerations for policymakers. For more information on the statutory history of the
agency, see CRS Report R41241, agency, see CRS Report R41241,
Economic Development Administration: A Review of Elements
of Its Statutory History, by Julie M. Lawhorn. The EDA’s Trade Adjustment Assistance for Firms , by Julie M. Lawhorn. The EDA’s Trade Adjustment Assistance for Firms
(TAAF) program is outside the scope of this report. For more information on TAAF, see CRS (TAAF) program is outside the scope of this report. For more information on TAAF, see CRS
Report RS20210, Report RS20210,
Trade Adjustment Assistance for Firms, by Rachel F. Fefer. , by Rachel F. Fefer.
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Agency Overview
EDA programs support the development of capacity for communities to address the conditions, EDA programs support the development of capacity for communities to address the conditions,
circumstances, and opportunities that are unique to their region. Some EDA programs (e.g., circumstances, and opportunities that are unique to their region. Some EDA programs (e.g.,
Public Works, and Economic Adjustment Assistance, among others) prioritize areas experiencing Public Works, and Economic Adjustment Assistance, among others) prioritize areas experiencing
economic distress. The programs are economic distress. The programs are
general ygenerally flexible and support economic adjustment, flexible and support economic adjustment,
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economic resiliency, infrastructure, workforce, disaster economic recovery, innovation, planning, economic resiliency, infrastructure, workforce, disaster economic recovery, innovation, planning,
technical assistance, and related activities. In technical assistance, and related activities. In
al ocatingallocating most of its economic development most of its economic development
assistance program funds, EDA solicits competitive proposals to align with the agency’s program assistance program funds, EDA solicits competitive proposals to align with the agency’s program
goals and its seven investment priorities (see goals and its seven investment priorities (see
“Investment Priorities, FY2011-Present”” below). below).
EDA Mission and Origins
The EDA’s mission is to “lead the federal economic development agenda by promoting The EDA’s mission is to “lead the federal economic development agenda by promoting
innovation and competitiveness, preparing American regions for growth and success in the innovation and competitiveness, preparing American regions for growth and success in the
worldwide economy.”3 It is the only federal agency with economic development as its exclusive worldwide economy.”3 It is the only federal agency with economic development as its exclusive
mission.4 The EDA was created by the Public Works and Economic Development Act (PWEDA) mission.4 The EDA was created by the Public Works and Economic Development Act (PWEDA)
of 1965 (P.L. 89-136, 42 U.S.C. §3121 et seq.) to support job creation, job retention, and of 1965 (P.L. 89-136, 42 U.S.C. §3121 et seq.) to support job creation, job retention, and
investment in investment in
economical yeconomically distressed areas.5 The findings section of PWEDA reflect the origins distressed areas.5 The findings section of PWEDA reflect the origins
of the agency’s approach to of the agency’s approach to
local ylocally-driven economic development: -driven economic development:
... while economic development is an inherently local process, the Federal while economic development is an inherently local process, the Federal Government Government
should workshould work
in partnershipin partnership
with public and private State, with public and private State, regional, tribal, and local regional, tribal, and local
organizations to maximize the impact of existing resources and enable regions, organizations to maximize the impact of existing resources and enable regions,
communities, and citizenscommunities, and citizens
to participateto participate
more fullymore fully
in the in the American dream and national American dream and national
prosperity.6prosperity.6
The agency continues to describe its approach as working “directly with local economic
The agency continues to describe its approach as working “directly with local economic
development officials to support their bottom-up, development officials to support their bottom-up,
regional yregionally-owned economic development -owned economic development
initiatives”7initiatives”7
and helping communities “build capacity for economic development based on local and helping communities “build capacity for economic development based on local
business conditions and needs.”8 For instance, EDA programs business conditions and needs.”8 For instance, EDA programs
general ygenerally do not require applicants do not require applicants
to specialize in specific industries or strategies, and instead assist with to specialize in specific industries or strategies, and instead assist with
local ylocally-developed projects -developed projects
to advance industries or strategies based on a region’s particular assets and to advance industries or strategies based on a region’s particular assets and
chal enges.
Precursors to PWEDA and EDA Programs Since 1965
EDA programs focused on investments in infrastructure, public works, and basic services in the agency’s first thirty years, along with support for planning and technical assistance.9 The
challenges.
3 EDA, “Overview,” https://eda.gov/about/. 3 EDA, “Overview,” https://eda.gov/about/.
4 EDA, “EDA Informational Brochure,” https://eda.gov/pdf/about/EDA-trifold-2017.pdf. 4 EDA, “EDA Informational Brochure,” https://eda.gov/pdf/about/EDA-trifold-2017.pdf.
5 For information on the agency’s statutory history, see CRS5 For information on the agency’s statutory history, see CRS
Report R41241, Report R41241,
Economic Development Administration:
A Review of Elem entsElements of Its Statutory History,,
by Julieby Julie
M. Lawhorn. SeeM. Lawhorn. See
also EDA, “also EDA, “
History of EDA,” History of EDA,”
https://www.eda.gov/archives/2016/50/history/; and Robert W. Lake, Robin Leichenko, and Amy Glasmeier,https://www.eda.gov/archives/2016/50/history/; and Robert W. Lake, Robin Leichenko, and Amy Glasmeier,
“ “EDA EDA
and U.S.and U.S.
Economic Distress 1965–2000,” EDA Research Report, 99-07-13812, July 2004, http://www.ipsr.ku.edu/Economic Distress 1965–2000,” EDA Research Report, 99-07-13812, July 2004, http://www.ipsr.ku.edu/
KUforKS/2004julyEDAandUSeconomicdistressreport.pdf. KUforKS/2004julyEDAandUSeconomicdistressreport.pdf.
6 42 U.S.C.
6 42 U.S.C.
§3121(a)(4). See also, Maryann Feldman et al., “§3121(a)(4). See also, Maryann Feldman et al., “
T heThe Logic of Economic Development: A Definition and Logic of Economic Development: A Definition and
Model for Investment,” Model for Investment,”
Environment and Planning C: Governm entGovernment and Policy, vol. 34, no. 1 (2016), pp. 5-21; also , vol. 34, no. 1 (2016), pp. 5-21; also
available at https://www.eda.gov/files/tools/research-reports/investmentavailable at https://www.eda.gov/files/tools/research-reports/investment
-definition-model.pdf. -definition-model.pdf.
T heThe report defines report defines
economic development as “economic development as “
the development of capacities that expand economic actors’ capabilities.” the development of capacities that expand economic actors’ capabilities.”
7 DOC, EDA, 7 DOC, EDA,
FY2022 Congressional Budget Justification, p. 119, p. 119
, https://www.commerce.gov/sites/default/files/2021-https://www.commerce.gov/sites/default/files/2021-
05/fy2022_eda_congressional_budget_justification.pdf. 05/fy2022_eda_congressional_budget_justification.pdf.
8 EDA, “
8 EDA, “
2020 Disaster Assistance Brochure: Leading2020 Disaster Assistance Brochure: Leading
Economic Recovery in DisasterEconomic Recovery in Disaster
-Impacted Communities,” -Impacted Communities,”
https://eda.gov/files/programs/disaster-recovery/EDA-Disaster-Brochure.pdf. https://eda.gov/files/programs/disaster-recovery/EDA-Disaster-Brochure.pdf.
9 Robert W. Lake, Robin Leichenko, and Amy Glasmeier, “ EDA and U.S. Economic Distress 1965–2000,” EDA Research Report, 99-07-13812, July 2004, p. 5, http://www.ipsr.ku.edu/KUforKS/2004julyEDAandUSeconomicdistressreport.pdf.
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Precursors to PWEDA and EDA Programs Since 1965 EDA programs focused on investments in infrastructure, public works, and basic services in the agency’s first thirty years, along with support for planning and technical assistance.9 The following milestones highlight precursors to EDA programs as following milestones highlight precursors to EDA programs as
wel well as program and investment as program and investment
directions since the 1960s:directions since the 1960s:
In 1961, prior to the enactment of PWEDA, Congress approved appropriations
In 1961, prior to the enactment of PWEDA, Congress approved appropriations
for a set of loans and public works grants through the Area Redevelopment Act
for a set of loans and public works grants through the Area Redevelopment Act
(P.L. 87-27), which established the EDA’s predecessor agency, the Area (P.L. 87-27), which established the EDA’s predecessor agency, the Area
Redevelopment Administration (ARA).10 ARARedevelopment Administration (ARA).10 ARA
programs were programs were
smal ersmaller in scope in scope
and scale compared to later EDA programs, and expired just prior to the and scale compared to later EDA programs, and expired just prior to the
enactment of PWEDA. Economic development assistance programs during this enactment of PWEDA. Economic development assistance programs during this
time focused on commercial and industrial growth (often through investment in time focused on commercial and industrial growth (often through investment in
infrastructure and public works, business loans, and planning grants) at the state infrastructure and public works, business loans, and planning grants) at the state
and local levels.11 and local levels.11
In August 1965, PWEDA (P.L. 89-136) was enacted. PWEDA authorized grant
In August 1965, PWEDA (P.L. 89-136) was enacted. PWEDA authorized grant
and loan programs that continued support for industrial and commercial growth
and loan programs that continued support for industrial and commercial growth
in in
economical yeconomically depressed areas. Prior to PWEDA amendments in the late 1960s, depressed areas. Prior to PWEDA amendments in the late 1960s,
EDA programs focused assistance on rural areas experiencing economic distress. EDA programs focused assistance on rural areas experiencing economic distress.
EligibilityEligibility
criteria for economic distress were later changed by statutory and criteria for economic distress were later changed by statutory and
administrative changes through the 1970s.12administrative changes through the 1970s.12
In the 1970s, Congress authorized the Economic Adjustment Assistance (EAA)
In the 1970s, Congress authorized the Economic Adjustment Assistance (EAA)
and Trade Adjustment Assistance programs.13 Congress also began providing
and Trade Adjustment Assistance programs.13 Congress also began providing
appropriations for defense adjustment14 and disaster recovery through the EAA program.15
In the 1980s and 1990s, EDA initiated—and later expanded—the University
Center program. The agency also expanded its work on industry or regional
9 Robert W. Lake, Robin Leichenko, and Amy Glasmeier, “EDA and U.S. Economic Distress 1965–2000,” EDA Research Report, 99-07-13812, July 2004, p. 5, http://www.ipsr.ku.edu/KUforKS/2004julyEDAandUSeconomicdistressreport.pdf.
10 Peter K. Eisinger, 10 Peter K. Eisinger,
The Rise of the Entrepreneurial State: State and Local Economic Development Policy in the
United States, Robert M. La Follette Institute of Public Affairs (Madison, WI: University of Wisconsin Press, 1988), , Robert M. La Follette Institute of Public Affairs (Madison, WI: University of Wisconsin Press, 1988),
pp. 100-101. See also CRSpp. 100-101. See also CRS
Report R41241, Report R41241,
Econom icEconomic Development Administration: A Review of Elem entsElements of Its
Statutory History, by Julie, by Julie
M. Lawhorn. M. Lawhorn.
11 ARA focused
11 ARA focused
assistance on economically distressedassistance on economically distressed
areas impacted by chronic unemploymentareas impacted by chronic unemployment
. In addition to ARA, . In addition to ARA,
the two other lawsthe two other laws
considered precursors to PWEDA were the Public Works Acceleration Act of 1963 (PWAA; P.L. considered precursors to PWEDA were the Public Works Acceleration Act of 1963 (PWAA; P.L.
87-658) and the Appalachian Regional Development Act of 1965 (ARDA; P.L. 89-4). 87-658) and the Appalachian Regional Development Act of 1965 (ARDA; P.L. 89-4).
T heThe PWAA authorized an PWAA authorized an
appropriation of $900 million for federal public works programs to addressappropriation of $900 million for federal public works programs to address
the 1960the 1960
-1961 recession and support areas -1961 recession and support areas
with high unemployment. ARDA authorized $1.1 billion for assistance to the Appalachian region. See CRSwith high unemployment. ARDA authorized $1.1 billion for assistance to the Appalachian region. See CRS
Report Report
R41241, R41241,
Econom ic Developm ent Adm inistrationEconomic Development Administration: A Review of Elem entsElements of Its Statutory History , by Julie, by Julie
M. Lawhorn; M. Lawhorn;
and Robert W. Lake, Robin Leichenko, and Amy Glasmeier, “and Robert W. Lake, Robin Leichenko, and Amy Glasmeier, “
EDA and U.S.EDA and U.S.
Economic Distress 1965–2000,” EDA Economic Distress 1965–2000,” EDA
Research Report, 99-07-13812, July 2004, http://www.ipsr.ku.edu/KUforKS/Research Report, 99-07-13812, July 2004, http://www.ipsr.ku.edu/KUforKS/
2004julyEDAandUSeconomicdistressreport.pdf. 2004julyEDAandUSeconomicdistressreport.pdf.
12 For additional context, see CRS
12 For additional context, see CRS
Report R41241, Report R41241,
Economic Development Administration: A Review of Elements of Its
Statutory History, by Julie, by Julie
M. Lawhorn; and Peter K. Eisinger, M. Lawhorn; and Peter K. Eisinger,
The Rise of the Entrepreneurial State: State and Local
Econom ic Developm entEconomic Development Policy in the United States, Robert M. La Follette Institute of Public Affairs (Madison, WI: , Robert M. La Follette Institute of Public Affairs (Madison, WI:
University of Wisconsin Press, 1988), pp. 100-101, 123-124. University of Wisconsin Press, 1988), pp. 100-101, 123-124.
13 EDA, “History of EDA,” https://www.eda.gov/archives/2016/50/history/.
13 EDA, “History of EDA,” https://www.eda.gov/archives/2016/50/history/.
14 Defense adjustment refers to activities that assist communities affected by base closures, reductions in defense contract s, or reductions in Department of Energy defense-related funding. See Robert W. Lake, Robin Leich enko, and Amy Glasmeier, “ EDA and U.S. Economic Distress 1965–2000,” EDA Research Report, 99-07-13812, July 2004, pp. 118-121, http://www.ipsr.ku.edu/KUforKS/2004julyEDAandUSeconomicdistressreport.pdf.
15 Robert W. Lake, Robin Leichenko, and Amy Glasmeier, “ EDA and U.S. Economic Distress 1965–2000,” EDA Research Report, 99-07-13812, July 2004, p. 5, http://www.ipsr.ku.edu/KUforKS/2004julyEDAandUSeconomicdistressreport.pdf.
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appropriations for defense adjustment14 and disaster recovery through the EAA program.15
In the 1980s and 1990s, EDA initiated—and later expanded—the University
Center program. The agency also expanded its work on industry or regional clusters,16 Economic Development Districts, and efforts to assist communities clusters,16 Economic Development Districts, and efforts to assist communities
with regional economic development plans.17 with regional economic development plans.17
Since the 2000s, Congress has supported various types of policies to promote
Since the 2000s, Congress has supported various types of policies to promote
innovation and to prepare regions for expanded innovation- and technology-
innovation and to prepare regions for expanded innovation- and technology-
based development. Among other innovation-related policies, Congress has based development. Among other innovation-related policies, Congress has
authorized programs to promote regional competitive advantages through authorized programs to promote regional competitive advantages through
innovation clusters and similar programs administered by the EDA and other innovation clusters and similar programs administered by the EDA and other
agencies. During this time, Congress also has supported multiple rounds of agencies. During this time, Congress also has supported multiple rounds of
disaster recovery and COVID-19 economic recovery assistance (see disaster recovery and COVID-19 economic recovery assistance (see
“Supplemental Appropriations” below for a summary of appropriations between below for a summary of appropriations between
FY2011 and FY2021). EDA continues to lead select economic development FY2011 and FY2021). EDA continues to lead select economic development
integration efforts at federal, regional, and local levels and has done so since the integration efforts at federal, regional, and local levels and has done so since the
U.S. Office of Management and Budget (OMB) identified this role for EDA in U.S. Office of Management and Budget (OMB) identified this role for EDA in
the mid-2000s.18the mid-2000s.18
As noted in subsequent sections, EDA programs continue to support investments in infrastructure
As noted in subsequent sections, EDA programs continue to support investments in infrastructure
and public works and to assist communities experiencing economic distress.19 EDA’s activities and public works and to assist communities experiencing economic distress.19 EDA’s activities
have shifted to also include programs that address changing industry dynamics, global have shifted to also include programs that address changing industry dynamics, global
competition, technological developments, and other events, conditions, and priorities. Programs competition, technological developments, and other events, conditions, and priorities. Programs
are availableare available
to both urban and rural areas.20 to both urban and rural areas.20
EDA Structure
EDA locations include a headquarters office in Washington, DC, and six regional offices. EDA’s EDA locations include a headquarters office in Washington, DC, and six regional offices. EDA’s
organizational structure includes offices that administer programs at the headquarters and regional organizational structure includes offices that administer programs at the headquarters and regional
levels as wel as offices for finance management and external affairs and communications (see
Figure 2).
14 Defense adjustment refers to activities that assist communities affected by base closures, reductions in defense contracts, or reductions in Department of Energy defense-related funding. See Robert W. Lake, Robin Leichenko, and Amy Glasmeier, “EDA and U.S. Economic Distress 1965–2000,” EDA Research Report, 99-07-13812, July 2004, pp. 118-121, http://www.ipsr.ku.edu/KUforKS/2004julyEDAandUSeconomicdistressreport.pdf.
15 Robert W. Lake, Robin Leichenko, and Amy Glasmeier, “EDA and U.S. Economic Distress 1965–2000,” EDA Research Report, 99-07-13812, July 2004, p. 5, http://www.ipsr.ku.edu/KUforKS/2004julyEDAandUSeconomicdistressreport.pdf.
16 EDA defines regional clusters as 16 EDA defines regional clusters as
geographic concentrations of firms, workers and industries that do business
geographic concentrations of firms, workers and industries that do business
with each other and have common with each other and have common
needs for talent, technology, and infrastructure. Regional clusters are essentially networks of similar, synergistic, needs for talent, technology, and infrastructure. Regional clusters are essentially networks of similar, synergistic,
or complementary entities that are engaged in or with a particular industry sector; have active channels for or complementary entities that are engaged in or with a particular industry sector; have active channels for
businessbusiness
transactions and communication; share specialized infrastructure, labor markets, and services; and transactions and communication; share specialized infrastructure, labor markets, and services; and
leverage the region’s uniqueleverage the region’s unique
competitive strengths to stimulate innovation and create jobs. Regional clusters may competitive strengths to stimulate innovation and create jobs. Regional clusters may
cross municipal, county, and other jurisdictional boundaries.cross municipal, county, and other jurisdictional boundaries.
See
See
EDA, “Key Definitions,” https://eda.gov/performance/key-definitions/. EDA, “Key Definitions,” https://eda.gov/performance/key-definitions/.
17 EDA, “History of EDA,” https://www.eda.gov/archives/2016/50/history/. 17 EDA, “History of EDA,” https://www.eda.gov/archives/2016/50/history/.
18 EDA, “A Brief History of EDI,” https://eda.gov/integration/. 18 EDA, “A Brief History of EDI,” https://eda.gov/integration/.
19 For additional analysis on infrastructure and the economy, see CRS19 For additional analysis on infrastructure and the economy, see CRS
Report R46826, Report R46826,
Infrastructure and the Economy, ,
by Lida R.by Lida R.
Weinstock. Weinstock.
20 EDA’s 20 EDA’s
Informational Brochure (published 2017) notes that funds are awarded(published 2017) notes that funds are awarded
to both rural and urban communities to both rural and urban communities
with approximately two-thirds of assistance awardedwith approximately two-thirds of assistance awarded
to rural communities. Seeto rural communities. See
EDA, “EDA, “
EDA Informational Brochure,” EDA Informational Brochure,”
https://eda.gov/pdf/about/EDA-trifold-2017.pdf. https://eda.gov/pdf/about/EDA-trifold-2017.pdf.
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levels as well as offices for finance management and external affairs and communications (see Figure 2).
Figure 2. EDA Organizational Chart
Source: CRS with data fromCRS with data from
DOC, EDA, FY2023 CongressionalDOC, EDA, FY2022Congressional Budget Justification, p. 7,p. 7,
https://www.commerce.gov/sites/default/files/https://www.commerce.gov/sites/default/files/
2021-05/fy2022_eda_congressional_budget_justification2022-03/FY2023-EDA-Congressional-Budget-Submission.pdf. .pdf.
EDA’s four offices on national programs (se
EDA’s four offices on national programs (se
e Figure 2) include) include
:
The
The
Office of Performance, Research, and National Technical Assistance, ,
which administers research, evaluation, and national technical assistance
which administers research, evaluation, and national technical assistance
initiatives.21 initiatives.21
The
The
Office of Innovation and Entrepreneurship (OIE), which was established , which was established
by the America COMPETES Reauthorization Act of 2010 (P.L. 111-358). OIE
by the America COMPETES Reauthorization Act of 2010 (P.L. 111-358). OIE
facilitates EDA’s efforts to “empower communities so that entrepreneurs can facilitates EDA’s efforts to “empower communities so that entrepreneurs can
launch companies, scale technologies and create the jobs of tomorrow.” The OIE launch companies, scale technologies and create the jobs of tomorrow.” The OIE
administers programs (e.g., the Build to Scale, STEM Talent administers programs (e.g., the Build to Scale, STEM Talent
Chal engeChallenge, and , and
other programs), and coordinates inter-agency activities related to innovation, other programs), and coordinates inter-agency activities related to innovation,
commercialization, and entrepreneurship.22 For instance, OIE leads the National commercialization, and entrepreneurship.22 For instance, OIE leads the National
Advisory Council on Innovation and Entrepreneurship (NACIE), which was established in 2009 to “encourage the development and implementation of
21 EDA, “Performance, Research and National 21 EDA, “Performance, Research and National
T echnicalTechnical Assistance Program,” https://eda.gov/programs/rnta/. Assistance Program,” https://eda.gov/programs/rnta/.
22 EDA, “About OIE,” https://eda.gov/oie/. 22 EDA, “About OIE,” https://eda.gov/oie/.
OIE administered the first round of the Regional Innovation
OIE administered the first round of the Regional Innovation
P rogramProgram competitions in September 2014 (see EDA, U.S. competitions in September 2014 (see EDA, U.S.
Department of Commerce, “Department of Commerce, “
Regional Innovation Program,” 82 Regional Innovation Program,” 82
Federal Register 3131-3137, January 11, 2017, 3131-3137, January 11, 2017,
https://www.federalregister.gov/documents/2017/01/11/2017-00116/regional-innovation-program). OIE administered https://www.federalregister.gov/documents/2017/01/11/2017-00116/regional-innovation-program). OIE administered
the first round of the the first round of the
ST EM T alentSTEM Talent Challenge ( Challenge (
ST EMSTEM Apprenticeships) program in FY2020 Apprenticeships) program in FY2020
(see EDA, “(see EDA, “
ST EM T alentSTEM Talent Challenge,” https://www.eda.gov/oie/stem/).Challenge,” https://www.eda.gov/oie/stem/).
Additionally in FY2020, EDA administered the Accelerate R2 Network Additionally in FY2020, EDA administered the Accelerate R2 Network
competition in collaboration with the National Institute of Standards and competition in collaboration with the National Institute of Standards and
T echnologyTechnology (NIST (NIST
) and the First Responder ) and the First Responder
Network Authority (FirstNet) to develop a network of organizations Network Authority (FirstNet) to develop a network of organizations
wo rkingworking to address disaster to address disaster
response and resiliency response and resiliency
(R2) challenges(R2) challenges
with innovative technologies (see EDA, “with innovative technologies (see EDA, “
Accelerate R2 Network Challenge,” https://eda.gov/oie/Accelerate R2 Network Challenge,” https://eda.gov/oie/
accelerate-r2/).
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Advisory Council on Innovation and Entrepreneurship (NACIE), which was established in 2009 to “encourage the development and implementation of policies that cultivate technology commercialization.” NACIE was established by policies that cultivate technology commercialization.” NACIE was established by
Section 25(c) of the Stevenson-Wydler Technology Innovation Act of 1980, as Section 25(c) of the Stevenson-Wydler Technology Innovation Act of 1980, as
amended (15 U.S.C. §3720(c)).23amended (15 U.S.C. §3720(c)).23
The
The
Office of Trade Adjustment Assistance for Firms (TAAF),,
which which
administers the technical assistance grants that help trade-impacted U.S. firms to
administers the technical assistance grants that help trade-impacted U.S. firms to
become more competitive, expand markets, and increase profitability in become more competitive, expand markets, and increase profitability in
partnership with trade adjustment assistance centers and private consultants.24partnership with trade adjustment assistance centers and private consultants.24
The
The
Office of Economic Development Integration (EDI) and Disaster
Recovery,,
which promotes interagency coordination of resources and economic which promotes interagency coordination of resources and economic
recovery assistance. EDA leads integration activities designed to enhance recovery assistance. EDA leads integration activities designed to enhance
collaboration, increase access to resources, and reduce administrative burdens collaboration, increase access to resources, and reduce administrative burdens
across federal economic development programs across agencies.25 EDA is the across federal economic development programs across agencies.25 EDA is the
lead federal agency for economic recovery support and also administers program lead federal agency for economic recovery support and also administers program
funds for state and local entities to plan and implement disaster economic funds for state and local entities to plan and implement disaster economic
recovery efforts.26recovery efforts.26
EDA Regional Offices
EDA’s regional offices review and process grant applications for economic development
EDA’s regional offices review and process grant applications for economic development
assistance; monitor approved projects; and provide outreach and technical assistance services.27 assistance; monitor approved projects; and provide outreach and technical assistance services.27
Figure 3 il ustratesillustrates the six regions and locations of the regional offices. the six regions and locations of the regional offices.
accelerate-r2/).
23 EDA announced a solicitation for NACIE members in September 2021. See EDA, U.S. Department of Commerce, 23 EDA announced a solicitation for NACIE members in September 2021. See EDA, U.S. Department of Commerce,
“National Advisory Council on Innovation and Entrepreneurship (NACIE); Solicitation of Applications,“National Advisory Council on Innovation and Entrepreneurship (NACIE); Solicitation of Applications,
” 86 ” 86
Federal
Register 50323-50324, September 8, 2021, https://www.federalregister.gov/documents/2021/09/08/2021-19169/50323-50324, September 8, 2021, https://www.federalregister.gov/documents/2021/09/08/2021-19169/
national-advisory-council-on-innovation-and-entrepreneurship-nacie-solicitation-of-applications. See also national-advisory-council-on-innovation-and-entrepreneurship-nacie-solicitation-of-applications. See also
https://www.eda.gov/oie/nacie/. https://www.eda.gov/oie/nacie/.
24 EDA, “24 EDA, “
T radeTrade Adjustment Assistance for Firms,” https://eda.gov/pdf/about/ Adjustment Assistance for Firms,” https://eda.gov/pdf/about/
T AAFTAAF-Program-1-Pager.pdf. For more -Program-1-Pager.pdf. For more
information on information on
T AAFTAAF, see CRS, see CRS
Report RS20210, Report RS20210,
Trade Adjustm entAdjustment Assistance for Firm sFirms, by Rachel F. Fefer. , by Rachel F. Fefer.
25 EDA, “Economic Development Integration,” https://www.eda.gov/integration/, and “Disaster Recovery,”
25 EDA, “Economic Development Integration,” https://www.eda.gov/integration/, and “Disaster Recovery,”
https://eda.gov/disaster-recovery/. EDA also maintains a matrix of selected federal programs that can assist economic https://eda.gov/disaster-recovery/. EDA also maintains a matrix of selected federal programs that can assist economic
development strategies on its EDI webpagedevelopment strategies on its EDI webpage
at https://www.eda.gov/integration/. at https://www.eda.gov/integration/.
26 EDA, “EDA and Disaster Recovery,” https://eda.gov/disaster-recovery/.
26 EDA, “EDA and Disaster Recovery,” https://eda.gov/disaster-recovery/.
27 EDA, “About,” https://eda.gov/about/. 27 EDA, “About,” https://eda.gov/about/.
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Figure 3. EDA Regional Offices
Source: CRS using information from CRS using information from
EDA, “Overview,”EDA, “Overview,”
https://www.eda.gov/about/. https://www.eda.gov/about/.
EDA Staff Levels
EDA staff levels ranged from 160 to 220 on-board employees between 2011 and 2019, and
EDA staff levels ranged from 160 to 220 on-board employees between 2011 and 2019, and
increased to 261 in 2020. In increased to 261 in 2020. In
JuneSeptember 2021, EDA had approximately 2021, EDA had approximately
272281 on-board employees.28 on-board employees.28
Figure 4 presents the number of on-board employees for 2011 presents the number of on-board employees for 2011
toto 2021 2021
. Table C-1 in the in the
Appendix provides additional on-board employment data since 2011.Appendix provides additional on-board employment data since 2011.
EDA may continue to add staff to implement recent supplemental recovery appropriations and
EDA may continue to add staff to implement recent supplemental recovery appropriations and
manage related oversight and technical assistance activities. The supplemental Coronavirus Aid, manage related oversight and technical assistance activities. The supplemental Coronavirus Aid,
Relief, and Economic Security (CARES) Act (P.L. 116-136) funding for EDA was nearly five Relief, and Economic Security (CARES) Act (P.L. 116-136) funding for EDA was nearly five
times the amount of the agency’s FY2020 annual appropriation (P.L. 116-93), and the American times the amount of the agency’s FY2020 annual appropriation (P.L. 116-93), and the American
Rescue Plan (ARP) Act (P.L. 117-2)Rescue Plan (ARP) Act (P.L. 117-2)
funding for EDA was over eight times the amount of the funding for EDA was over eight times the amount of the
agency’s FY2021 annual appropriation (P.L. 116-260)—agency’s FY2021 annual appropriation (P.L. 116-260)—
seesee Figure 7. EDA hired additional . EDA hired additional
staff in FY2020 using direct hiring authority granted under the CARES Act,29 and the agency staff in FY2020 using direct hiring authority granted under the CARES Act,29 and the agency
plans to transition 50 staff hired under the CARES Act into permanent full-time equivalent (FTE) plans to transition 50 staff hired under the CARES Act into permanent full-time equivalent (FTE)
28 Office of Personnel Management (OPM), FedScope, http://www.fedscope.opm.gov. 28 Office of Personnel Management (OPM), FedScope, http://www.fedscope.opm.gov.
29 U.S.29 U.S.
Department of Commerce, Office of Inspector General, Department of Commerce, Office of Inspector General,
EDA Was Effective in Implem entingImplementing the Requirements
for Awarding Funds Under the CARES Act, Final Report No. OIG-21-017-I, Washington, DC, January 5, 2021, p. 3, , Final Report No. OIG-21-017-I, Washington, DC, January 5, 2021, p. 3,
https://www.oig.doc.gov/OIGPublications/OIG-21-017-I.pdf. https://www.oig.doc.gov/OIGPublications/OIG-21-017-I.pdf.
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positions in FY2022.30 According to testimony by Assistant Secretary Alejandra
positions in FY2022.30 According to testimony by Assistant Secretary Alejandra
Castil o in
Castillo in November 2021November 2021
:
These new staff helped EDA obligate over two-thirds of the CARES Act funding within
These new staff helped EDA obligate over two-thirds of the CARES Act funding within
oneone
year of Congress enacting the CARES Act and, as of October 11, 2021, EDA year of Congress enacting the CARES Act and, as of October 11, 2021, EDA has has
obligated $1.385 billion of the $1.5 billion in CARES Act funding through 1,194 awards. obligated $1.385 billion of the $1.5 billion in CARES Act funding through 1,194 awards.
EDA also continues to evaluate 121 applications and expects that those selected for funding EDA also continues to evaluate 121 applications and expects that those selected for funding
will will exhaust all of EDA’s CARES Act supplemental appropriation.31 exhaust all of EDA’s CARES Act supplemental appropriation.31
30 DOC, EDA, 30 DOC, EDA,
FY2022 Congressional Budget Justification, pp. 121-124, https://www.commerce.gov/sites/default/files/, pp. 121-124, https://www.commerce.gov/sites/default/files/
2021-05/fy2022_eda_congressional_budget_justification.pdf. 2021-05/fy2022_eda_congressional_budget_justification.pdf.
As noted in CRS
As noted in CRS
Report R43590, Report R43590,
Federal Workforce Statistics Sources: OPM and OMB: :
T heThe term full-time equivalent employment ( term full-time equivalent employment (
FT EFTE) is used) is used
to quantify employment as a function of hours worked to quantify employment as a function of hours worked
rather than by the number of individualrather than by the number of individual
employees. One employees. One
FT EFTE is also known as is also known as
one work year. one work year.
T heThe number of number of
FT EsFTEs in an agency is calculated in an agency is calculated
by determining the by determining the
t otaltotal number of regular straight time hours (i.e., not including number of regular straight time hours (i.e., not including
overtime or holiday hours) workedovertime or holiday hours) worked
by employees and dividingby employees and dividing
that figure by the number of compensable hours that figure by the number of compensable hours
applicable to each fiscal year. One work year, or one applicable to each fiscal year. One work year, or one
FT EFTE, is equivalent to 2,080 hours of work. (, is equivalent to 2,080 hours of work. (
T heThe figure of figure of
2,080 hours in the work year is derived2,080 hours in the work year is derived
as follows:as follows:
8 hours per day multiplied by 10 days (in a 28 hours per day multiplied by 10 days (in a 2
-week pay period) -week pay period)
equalsequals
80 hours; 80 hours multiplied by80 hours; 80 hours multiplied by
26 pay periods (in a year) equals26 pay periods (in a year) equals
2,080 work hours.)2,080 work hours.)
and
and
FT EFTE employment numbers are used employment numbers are used
by OMBby OMB
to manage employment in departments and agencies. to manage employment in departments and agencies.
T he
The requirements for reporting requirements for reporting
FT EFTE employment in the President’s Budget are prescribed employment in the President’s Budget are prescribed
in Section 85 of OMB in Section 85 of OMB
CircularCircular
No. A-11 on “No. A-11 on “
Estimating Employment Levels and the Employment Estimating Employment Levels and the Employment
Summar ySummary (Schedule (Schedule
Q).”Q).”
(U.S. (U.S.
Executive Office of the President, Office of Management and Budget,Executive Office of the President, Office of Management and Budget,
Preparation, Submission, and Execution of Preparation, Submission, and Execution of
the Budgetthe Budget
(Washington: GPO, April 2021), available at https://www.whitehouse.gov/wp-content/uploads/2018/(Washington: GPO, April 2021), available at https://www.whitehouse.gov/wp-content/uploads/2018/
06/a11.pdf. See Section 85.5(c) for a detailed explanation of how 06/a11.pdf. See Section 85.5(c) for a detailed explanation of how
FT EsFTEs are calculated.) are calculated.)
31 U.S.
31 U.S.
Senate, Environment and Public Works Committee, Senate, Environment and Public Works Committee,
Examining Programs at the Economic Development
Adm inistrationAdministration, 117th Cong., 1st sess., Nov. 3, 2021, https://www.epw.senate.gov/public/index.cfm/hearings?ID=117th Cong., 1st sess., Nov. 3, 2021, https://www.epw.senate.gov/public/index.cfm/hearings?ID=
256D08CE-44DC-47B4-9663-F9AC5AA8950E. See also 256D08CE-44DC-47B4-9663-F9AC5AA8950E. See also
t estimonytestimony by Mr. Dennis Alvord, Acting Assistant Secretary by Mr. Dennis Alvord, Acting Assistant Secretary
of Commerce for EDA, U.S.of Commerce for EDA, U.S.
House of Representatives, Committee on House of Representatives, Committee on
T ransportationTransportation and Infrastructure, Subcommittee and Infrastructure, Subcommittee
on Economic Development, Public Buildingson Economic Development, Public Buildings
and Emergency Managementand Emergency Management
, April 28, 2021, https://ogc.commerce.gov/, April 28, 2021, https://ogc.commerce.gov/
sites/default/files/media/files/2021/04-28-21_final_eda_reauthorization_testimony_.pdf. sites/default/files/media/files/2021/04-28-21_final_eda_reauthorization_testimony_.pdf.
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Figure 4. EDA On-Board Employees, 2011-2021
Source: CRS using data fromCRS using data from
the U.S.the U.S.
Office of Personnel Management, FedScope database, Employment cubes, Office of Personnel Management, FedScope database, Employment cubes,
https://www.fedscope.opm.gov/employment.asp. https://www.fedscope.opm.gov/employment.asp.
NotesNote: Each total provides the number of on-board employees Each total provides the number of on-board employees
as of Septemberas of September
each yeareach year, except for 2021, which is as of June (most recent data available). .
Economic Development Districts (EDDs)
Economic Development Districts (EDDs) are multi-jurisdictional entities designated by the EDA Economic Development Districts (EDDs) are multi-jurisdictional entities designated by the EDA
that engage with the agency and local partners across multiple EDA programs and activity areas. that engage with the agency and local partners across multiple EDA programs and activity areas.
EDDs EDDs
general ygenerally lead, coordinate, and convene partners for the Comprehensive Economic lead, coordinate, and convene partners for the Comprehensive Economic
Development Strategy (CEDS) process; assist with project development; and provide outreach, Development Strategy (CEDS) process; assist with project development; and provide outreach,
technical assistance, and grant support to applicants and grantees.32 To be designated as an EDD, technical assistance, and grant support to applicants and grantees.32 To be designated as an EDD,
the entity must have a CEDS and cover “at least one geographical area within the designated the entity must have a CEDS and cover “at least one geographical area within the designated
service boundaries that meets EDA’s regional distress criteria.”33 According to the EDA, there are service boundaries that meets EDA’s regional distress criteria.”33 According to the EDA, there are
approximately 390 EDDs; some regions of the United States are not served by an EDA-approximately 390 EDDs; some regions of the United States are not served by an EDA-
designated EDD. Most EDD regions do not align with standard, designated EDD. Most EDD regions do not align with standard,
federal yfederally-defined regions, such -defined regions, such
as metropolitan statistical areas, and some EDDs cover regions that cross state borders.34as metropolitan statistical areas, and some EDDs cover regions that cross state borders.34
EDDs EDDs
may receive financial assistance through Partnership Planning and other programs, and may may receive financial assistance through Partnership Planning and other programs, and may
implement or manage projects.implement or manage projects.
32 See
32 See https://eda.gov/resources/directory/ for EDA’s directory of EDDs and other resources. For an analysis of EDDs https://eda.gov/resources/directory/ for EDA’s directory of EDDs and other resources. For an analysis of EDDs
in the context of regional development organizations, see CRSin the context of regional development organizations, see CRS
In FocusIn Focus
IF11511, IF11511,
The Role of Regional Developm entDevelopment
Organizations (RDOs) in Econom ic Developm entEconomic Development, by Julie M. Lawhorn. , by Julie M. Lawhorn.
33 EDA, “Economic Development Districts,” https://www.eda.gov/edd/.
33 EDA, “Economic Development Districts,” https://www.eda.gov/edd/.
See See also 42 U.S.C.also 42 U.S.C.
§3171.§3171.
34 EDA, “CEDS Content,” https://www.eda.gov/archives/2021/ceds/content/summary.htm. Also, EDA supports the 34 EDA, “CEDS Content,” https://www.eda.gov/archives/2021/ceds/content/summary.htm. Also, EDA supports the
CEDSCEDS
Resource Library at StatsAmerica.org where applicants can determine whether their region is served by an EDD Resource Library at StatsAmerica.org where applicants can determine whether their region is served by an EDD
and locate the most recent CEDS. Seeand locate the most recent CEDS. See
http://www.statsamerica.org/ceds/Default.aspx. http://www.statsamerica.org/ceds/Default.aspx.
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Investment Priorities, FY2011-Present
EDA encourages grant applicants to align their proposals with its investment priorities.35 In April EDA encourages grant applicants to align their proposals with its investment priorities.35 In April
2021, EDA announced new investment priorities to support with the Administration’s economic 2021, EDA announced new investment priorities to support with the Administration’s economic
development goals. The agency highlights innovation and regional collaboration as two key development goals. The agency highlights innovation and regional collaboration as two key
economic drivers that inform the updated investment priorities.36 economic drivers that inform the updated investment priorities.36
Table 1. Comparison of EDA Investment Priorities
FY2011-FY2016
FY2017-April 2021
April 2021-Present
Col aborative
Col aborative
regional innovation regional innovation
Recovery and resilience
Recovery and resilience
Equity
Equity
Public private partnerships
Public private partnerships
Critical infrastructure
Critical infrastructure
Recovery and resilience
Recovery and resilience
National strategic priorities
National strategic priorities
Workforce
Workforce
development
development
Workforce
Workforce
development development
and manufacturing
and manufacturing
Global competitiveness
Global competitiveness
Manufacturing
Manufacturing
Environmental yEnvironmentally-sustainable -sustainable
Exports and foreign
Exports and foreign
Technology-based economic
Technology-based economic
development
development
direct investment (FDI)
direct investment (FDI)
development
development
Economical yEconomically distressed distressed
and and
Opportunity zones
Opportunity zones
Environmental yEnvironmentally-sustainable -sustainable
underserved communities
underserved communities
development
development
Exports and foreign direct
Exports and foreign direct
investment (FDI) investment (FDI)
Sources: EDA, “Investment Priorities,”EDA, “Investment Priorities,”
https://eda.gov/about/investment-priorities/;https://eda.gov/about/investment-priorities/;
and and
FY2014 Congressional
Budget Justification, https://www.osec.doc.gov/bmi/budget/FY14CJ/EDA_FY_2014_CJ_Final_508_Compliant.pdf. https://www.osec.doc.gov/bmi/budget/FY14CJ/EDA_FY_2014_CJ_Final_508_Compliant.pdf.
Recovery and Resiliency
EDA programs support state and local activities
EDA programs support state and local activities
that facilitate long-term strategies to drive economic that facilitate long-term strategies to drive economic
diversification,diversification,
promote promote sector and cluster development,sector and cluster development,
or otherwiseor otherwise
build a region’sbuild a region’s
capacity for economic capacity for economic
recoveryrecovery
and resilience.and resilience.
According to the EDA, “in the context of economic development,According to the EDA, “in the context of economic development,
economic economic resilience resilience
becomesbecomes
inclusive of three primary attributes: the ability to recover quickly from a shock, the ability to withstand inclusive of three primary attributes: the ability to recover quickly from a shock, the ability to withstand
a shock, and the ability to avoid the shock altogether.”37 Shocks may include national or global economic a shock, and the ability to avoid the shock altogether.”37 Shocks may include national or global economic
downturns; regional industry downturns; or external events, such as a natural or man-made disaster.downturns; regional industry downturns; or external events, such as a natural or man-made disaster.
For example, For example,
EDA projects may support resiliencyEDA projects may support resiliency
goals by assisting with business continuity and preparedness efforts or by goals by assisting with business continuity and preparedness efforts or by
facilitating long-term recoveryfacilitating long-term recovery
from natural disastersfrom natural disasters
and other economic shocks.38and other economic shocks.38
Economic Development Integration (EDI) Role
Following a 2011 U.S. Government Accountability Office (GAO) report on fragmentation and Following a 2011 U.S. Government Accountability Office (GAO) report on fragmentation and
overlap of economic development programs, the Office of Management and Budget (OMB) overlap of economic development programs, the Office of Management and Budget (OMB)
selected the EDA’s proposal for an economic development integration role.39 EDA now leads selected the EDA’s proposal for an economic development integration role.39 EDA now leads
integration activities across federal economic development programs in an effort to enhance collaboration, increase access to resources, and to reduce administrative burdens. The agency’s
35 EDA, “Investment Priorities,” https://eda.gov/about/investment-priorities/. 35 EDA, “Investment Priorities,” https://eda.gov/about/investment-priorities/.
36 DOC, EDA, 36 DOC, EDA,
FY2022FY2023 Congressional Budget Justification, p. , p.
1011, https://www.commerce.gov/sites/default/files/, https://www.commerce.gov/sites/default/files/
2021-05/fy2022_eda_congressional_budget_justification.pdf. 2022-03/FY2023-EDA-Congressional-Budget-Submission.pdf.
37 EDA, “CEDS Guidelines—Economic37 EDA, “CEDS Guidelines—Economic
Resilience,” https://www.eda.gov/ceds/content/economic-resilience.htm. Resilience,” https://www.eda.gov/ceds/content/economic-resilience.htm.
38 EDA, “Investment Priorities,” https://www.eda.gov/about/investment-priorities/. 38 EDA, “Investment Priorities,” https://www.eda.gov/about/investment-priorities/.
39 EDA, “A Brief History of EDI,” https://eda.gov/integration/; and GAO, “39 EDA, “A Brief History of EDI,” https://eda.gov/integration/; and GAO, “
Efficiency and Effectiveness of Fragmented Efficiency and Effectiveness of Fragmented
Economic Development Programs Are Unclear,” May 19, 2011, GAO-11-477R, https://www.gao.gov/products/gao-11-Economic Development Programs Are Unclear,” May 19, 2011, GAO-11-477R, https://www.gao.gov/products/gao-11-
477r. 477r.
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integration activities across federal economic development programs in an effort to enhance collaboration, increase access to resources, and to reduce administrative burdens. The agency’s
EDI activities occur at various levels—federal, state, regional, and local—and through various EDI activities occur at various levels—federal, state, regional, and local—and through various
types of partnership and coordination efforts. For instancetypes of partnership and coordination efforts. For instance
:
EDA’s regional offices work with Economic Development Districts (EDDs) to
EDA’s regional offices work with Economic Development Districts (EDDs) to
facilitate connections among local, state, and federal contacts and programs—
facilitate connections among local, state, and federal contacts and programs—
often convening for planning purposes or post-disaster recovery initiatives.40 often convening for planning purposes or post-disaster recovery initiatives.40
Regional offices have staff identified as regional integrators as Regional offices have staff identified as regional integrators as
wel .41 well.41
EDA headquarters staff and its operations support EDI goals through interagency
EDA headquarters staff and its operations support EDI goals through interagency
planning and efforts to align administrative requirements.42
planning and efforts to align administrative requirements.42
Eligible
Eligible
EDA grant recipients are EDA grant recipients are
al owedallowed to combine funding from other to combine funding from other
agencies and nonfederal sources to facilitate economic development goals
agencies and nonfederal sources to facilitate economic development goals
because state and local economic development practices are often implemented because state and local economic development practices are often implemented
in connection with other programs.43in connection with other programs.43
EDA partners with other federal agencies that administer economic development
EDA partners with other federal agencies that administer economic development
programs, including the U.S. Department of Agriculture, the Department of
programs, including the U.S. Department of Agriculture, the Department of
Housing and Urban Development, and the Department of Labor, among others.44Housing and Urban Development, and the Department of Labor, among others.44
Disaster Economic Recovery Role
EDA is the lead agency in the “Economic Recovery Support Function (ERSF)” under the EDA is the lead agency in the “Economic Recovery Support Function (ERSF)” under the
National Disaster Recovery Framework (NDRF).45 According to FEMA, “The NDRF National Disaster Recovery Framework (NDRF).45 According to FEMA, “The NDRF
identifies Recovery Support Functions that provide a structure to facilitate problem solving, identifies Recovery Support Functions that provide a structure to facilitate problem solving,
improve access to resources, and foster coordination among state and federal agencies, tribes, improve access to resources, and foster coordination among state and federal agencies, tribes,
territories nongovernmental partners and stakeholders.”46 Within the NDRF, EDA’s role is to territories nongovernmental partners and stakeholders.”46 Within the NDRF, EDA’s role is to
“facilitate the delivery of federal economic development assistance to support long-term
40 EDA, “Economic Development Integration,” https://eda.gov/integration/. For a description of economic development 40 EDA, “Economic Development Integration,” https://eda.gov/integration/. For a description of economic development
integration in disaster resiliency planning, see U.S.integration in disaster resiliency planning, see U.S.
House of Representatives, Select Climate CrisisHouse of Representatives, Select Climate Crisis
Committee, Committee,
“Creating a Climate Resilient America: Smart Finance for Strong Communities,” Serial“Creating a Climate Resilient America: Smart Finance for Strong Communities,” Serial
No. 116–16, December 11, No. 116–16, December 11,
2019, https://www.govinfo.gov/content/pkg/CHRG-116hhrg41272/pdf/CHRG-116hhrg41272.pdf. 2019, https://www.govinfo.gov/content/pkg/CHRG-116hhrg41272/pdf/CHRG-116hhrg41272.pdf.
41 EDA, “Regional Integrator Contacts,” https://eda.gov/integration/contact/. Regional integrators may help
41 EDA, “Regional Integrator Contacts,” https://eda.gov/integration/contact/. Regional integrators may help
stakeholders by convening meetings, buildingstakeholders by convening meetings, building
coalitions, coalitions,
ident ifyingidentifying resources, and other activities to facilitate resources, and other activities to facilitate
coordinated responses to state and local economic development issues. For an example, see EDA, “EDAcoordinated responses to state and local economic development issues. For an example, see EDA, “EDA
’s Economic ’s Economic
Integrator Catalyzes Interagency Investments in San Diego,” https://eda.gov/success-stories/integration/stories/edi-san-Integrator Catalyzes Interagency Investments in San Diego,” https://eda.gov/success-stories/integration/stories/edi-san-
diego.htm. diego.htm.
42 EDA, “Economic Development Integration,” https://eda.gov/integration/.
42 EDA, “Economic Development Integration,” https://eda.gov/integration/.
43 Limitations may apply to the total amount of federal project funding, depending43 Limitations may apply to the total amount of federal project funding, depending
on the program, type of applicant, on the program, type of applicant,
and determination of special need. Seeand determination of special need. See
42 U.S.C.42 U.S.C.
§3144. §3144.
T heThe FY2020 Notice of Funding Opportunity (NOFO) for the FY2020 Notice of Funding Opportunity (NOFO) for the
PublicPublic
Works and Economic Adjustment Assistance programs noted that, “Works and Economic Adjustment Assistance programs noted that, “
Funds from other federal financial Funds from other federal financial
assistance awardsassistance awards
may be consideredmay be considered
matching share fundsmatching share funds
only if authorized byonly if authorized by
statute, which may be determined by statute, which may be determined by
EDA’s reasonable interpretation of the statute.” See EDA, “NOFOEDA’s reasonable interpretation of the statute.” See EDA, “NOFO
—2020 Public Works and Economic Adjustment 2020 Public Works and Economic Adjustment
Assistance Programs,” EDA-PWEAA2020, https://www.grants.gov/web/grants/view-opportunity.html?oppId=321695, Assistance Programs,” EDA-PWEAA2020, https://www.grants.gov/web/grants/view-opportunity.html?oppId=321695,
and 13 C.F.R.and 13 C.F.R.
§300.3 and 2 C.F.R. §200.306. §300.3 and 2 C.F.R. §200.306.
44 EDA, “Multi-Agency Initiatives,” https://eda.gov/programs/multi-agency/, and “Economic Development 44 EDA, “Multi-Agency Initiatives,” https://eda.gov/programs/multi-agency/, and “Economic Development
Integration,” https://eda.gov/integration/. For an overview of federal resources for state and local economic Integration,” https://eda.gov/integration/. For an overview of federal resources for state and local economic
development, see CRSdevelopment, see CRS
Report R46683, Report R46683,
Federal Resources for State and Local Econom ic Developm entEconomic Development, by Julie M. , by Julie M.
Lawhorn. Lawhorn.
45 EDA, “EDA and Disaster Recovery,” https://eda.gov/disaster-recovery/.
45 EDA, “EDA and Disaster Recovery,” https://eda.gov/disaster-recovery/.
46 FEMA, “National Disaster Recovery Framework,” https://www.fema.gov/emergency-managers/national-46 FEMA, “National Disaster Recovery Framework,” https://www.fema.gov/emergency-managers/national-
preparedness/frameworks/recovery. preparedness/frameworks/recovery.
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3435 Economic Development Administration: An Overview of Programs and Appropriations
“facilitate the delivery of federal economic development assistance to support long-term
economic recovery planning and project implementation in communities across the nation.”47 As economic recovery planning and project implementation in communities across the nation.”47 As
a convener, EDA may bring together federal, state, and local stakeholders for post-disaster a convener, EDA may bring together federal, state, and local stakeholders for post-disaster
regional resource exchange events. In some post-disaster scenarios, EDA supports or leads efforts regional resource exchange events. In some post-disaster scenarios, EDA supports or leads efforts
to assess regional assets and to assess regional assets and
chal engeschallenges to facilitate long-term recovery.48 For instance to facilitate long-term recovery.48 For instance
,
Following Hurricane Harvey (August 2017), EDA collaborated with FEMA and
Following Hurricane Harvey (August 2017), EDA collaborated with FEMA and
state and local stakeholders to develop a Recovery Support Strategy (RSS). EDA
state and local stakeholders to develop a Recovery Support Strategy (RSS). EDA
also led regional workshops in Texas and provided recovery grants to impacted also led regional workshops in Texas and provided recovery grants to impacted
communities.49 communities.49
Through its ERSF, EDA deployed to Puerto Rico following Hurricanes Maria
Through its ERSF, EDA deployed to Puerto Rico following Hurricanes Maria
and Irma (September 2017) to provide support, coordination, and additional
and Irma (September 2017) to provide support, coordination, and additional
capacity to economic recovery efforts.50 capacity to economic recovery efforts.50
EDA coordinated a “Federal Interagency Resource Exchange” following
EDA coordinated a “Federal Interagency Resource Exchange” following
Hurricane Laura in August 2021.51
Hurricane Laura in August 2021.51
As a grant-making agency, the EDA also administers program funds for state and local entities to
As a grant-making agency, the EDA also administers program funds for state and local entities to
plan and implement disaster economic recovery efforts through its EAA program.52 For example, plan and implement disaster economic recovery efforts through its EAA program.52 For example,
since 2017, EDA has invested over $111 since 2017, EDA has invested over $111
mil ion million in 34 grants to Puerto Rico following hurricanes in 34 grants to Puerto Rico following hurricanes
Maria and Irma.53 After flooding in 2019, EDA provided a grant to the City of Moberly, MO, to Maria and Irma.53 After flooding in 2019, EDA provided a grant to the City of Moberly, MO, to
improve water and wastewater infrastructure and prevent future damage to downtown improve water and wastewater infrastructure and prevent future damage to downtown
businesses.54 EDA administers recovery assistance grants through its Regional Offices.55 businesses.54 EDA administers recovery assistance grants through its Regional Offices.55
EDA Performance Metrics
EDA collects and measures performance according to two Government Performance and Results EDA collects and measures performance according to two Government Performance and Results
Act (GPRA) goals. The first goal is connected to infrastructure investments and the second goal is Act (GPRA) goals. The first goal is connected to infrastructure investments and the second goal is
connected to non-infrastructure investments.56 By example, Public Works is an infrastructure connected to non-infrastructure investments.56 By example, Public Works is an infrastructure
program and Build to Scale is program and Build to Scale is
general ygenerally classified as a non-infrastructure program. The agency’s classified as a non-infrastructure program. The agency’s
goals and associated metrics are detailed igoals and associated metrics are detailed i
n Table 2.
47 EDA, “
47 EDA, “Spotlight: EDA Investments Advance Economic Recovery in American Communities Impacted by Natural Spotlight: EDA Investments Advance Economic Recovery in American Communities Impacted by Natural
Disasters,” https://www.eda.gov/news/blogs/2020/09/01/spotlight.htm. Disasters,” https://www.eda.gov/news/blogs/2020/09/01/spotlight.htm.
48 EDA, “Recovering from Harvey: EDA Leads48 EDA, “Recovering from Harvey: EDA Leads
the Coordination of Federal Resources,”the Coordination of Federal Resources,”
January 2021, https://eda.gov/January 2021, https://eda.gov/
success-stories/disaster/stories/cog-hurricane-harvey.htm. success-stories/disaster/stories/cog-hurricane-harvey.htm.
49 EDA, “
49 EDA, “
T heThe Hurricane Harvey Long- Hurricane Harvey Long-
T ermTerm Economic Recovery Workshops—April 5, 2018-June 1, 2018,” Economic Recovery Workshops—April 5, 2018-June 1, 2018,”
https://www.eda.gov/files/programs/disaster-recovery/Economic-Workshops-Reporthttps://www.eda.gov/files/programs/disaster-recovery/Economic-Workshops-Report
-Harvey.pdf. -Harvey.pdf.
50 EDA, “EDA Continues to Support the Caribbean
50 EDA, “EDA Continues to Support the Caribbean
Following Following the Devastating 2017 Hurricane Season,” September 20, the Devastating 2017 Hurricane Season,” September 20,
2021, https://eda.gov/news/blogs/2021/09/20/supporting-the-caribbean-following-devastating-2017-hurricane-2021, https://eda.gov/news/blogs/2021/09/20/supporting-the-caribbean-following-devastating-2017-hurricane-
season.htm. season.htm.
51 See
51 See
EDA, “Where We Work,” https://eda.gov/disaster-recovery/where-we-work/#la. EDA, “Where We Work,” https://eda.gov/disaster-recovery/where-we-work/#la.
52 See52 See
Figure 7 for a summary of supplemental disaster appropriations during the FY2011 for a summary of supplemental disaster appropriations during the FY2011
-FY2021 time period. -FY2021 time period.
53 EDA, “EDA Continues to Support the Caribbean53 EDA, “EDA Continues to Support the Caribbean
Following Following the Devastating 2017 Hurricane Season,” September 20, the Devastating 2017 Hurricane Season,” September 20,
2021, https://eda.gov/news/blogs/2021/09/20/supporting-the-caribbean-following-devastating-2017-hurricane-2021, https://eda.gov/news/blogs/2021/09/20/supporting-the-caribbean-following-devastating-2017-hurricane-
season.htm. season.htm.
54 EDA “
54 EDA “
After Reoccurring Flooding, Moberly, Missouri,After Reoccurring Flooding, Moberly, Missouri,
Business Owners t o Business Owners to See Relief,” May 12, 2021, See Relief,” May 12, 2021,
https://eda.gov/success-stories/disaster/stories/moberly-mo.htm. https://eda.gov/success-stories/disaster/stories/moberly-mo.htm.
55 EDA, “Leading Economic Recovery Efforts in Disaster-Impacted Communities,” https://eda.gov/files/programs/
55 EDA, “Leading Economic Recovery Efforts in Disaster-Impacted Communities,” https://eda.gov/files/programs/
disaster-recovery/EDA-Disaster-Brochure.pdf. disaster-recovery/EDA-Disaster-Brochure.pdf.
56 EDA, “EDA Performance Measurement and Program Evaluation,” https://www.eda.gov/performance/. 56 EDA, “EDA Performance Measurement and Program Evaluation,” https://www.eda.gov/performance/.
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Table 2. EDA Performance Goals and Metrics
Performance Goal
Metric
Infrastructure investments that
Infrastructure investments that
Private sector dol ars invested in
Private sector dol ars invested in
economical y distressed economically distressed regions as a regions as a
promote private enterprise
promote private enterprise
and and
result of EDA’s
result of EDA’s
investments. investments.
job creation in
job creation in
economical yeconomically
distressed communities and
Jobs created or retained in
Jobs created or retained in
economical y distressed economically distressed regions as a result regions as a result
distressed communities and
of EDA’s of EDA’s investments. investments.
regions.
regions.
Non-infrastructure investments
Non-infrastructure investments
Percentage of Districts,
Percentage of Districts,
Organizations, and Indian TribesOrganizations, and Indian Tribes
implementing implementing
that build community capacity to
that build community capacity to
economic
economic
development initiatives fromdevelopment initiatives from
the Comprehensivethe Comprehensive
Economic Economic
achieve and sustain regional
achieve and sustain regional
Development
Development
Strategy (CEDS) process that lead to private investment Strategy (CEDS) process that lead to private investment
competitiveness
competitiveness
and economic and economic
and job creation and retention.
and job creation and retention.
growth.
growth.
Percentage of sub-state jurisdiction
Percentage of sub-state jurisdiction
members members actively participating in actively participating in
the Economic Developmentthe Economic Development
District (EDD) activities. District (EDD) activities.
Percentage of University Center (UC) clients taking action as a result of
Percentage of University Center (UC) clients taking action as a result of
the assistance facilitated by the UC. the assistance facilitated by the UC.
Percentage of those actions taken by UC clients that achieved the
Percentage of those actions taken by UC clients that achieved the
expected results. expected results.
Percentage of Trade Adjustment Assistance Center (TAAC) clients
Percentage of Trade Adjustment Assistance Center (TAAC) clients
taking action as a result of the assistance facilitated by the TAAC. taking action as a result of the assistance facilitated by the TAAC.
Percentage of those actions taken by TAAC clients that achieved the
Percentage of those actions taken by TAAC clients that achieved the
expected results. expected results.
Source: EDA, “EDA Performance MeasurementEDA, “EDA Performance Measurement
and Program Evaluation,” https://www.eda.gov/performance/. and Program Evaluation,” https://www.eda.gov/performance/.
Notes: Additional performance data is col ectedAdditional performance data is col ected
on local and regional economicon local and regional economic
development capacity for nondevelopment capacity for non
--
infrastructure investments for the fol owinginfrastructure investments for the fol owing
programs:programs:
Build to Scale,Build to Scale,
Local Technical Assistance,Local Technical Assistance,
Partnership Partnership
Planning, and Research and National Technical Assistance.Planning, and Research and National Technical Assistance.
For moreFor more
information,information,
see “New Performancesee “New Performance
Data Data
Col ectionCol ection
Instruments and Processes,”Instruments and Processes,”
https://eda.gov/performance/gpra/. https://eda.gov/performance/gpra/.
EDA Grant Programs
EDA grant programs, which are EDA grant programs, which are
general ygenerally flexible, flexible,
local ylocally-based and -based and
regional yregionally-oriented, are -oriented, are
designed to increase the capacitydesigned to increase the capacity
for state and local economic development.57 According to EDA, for state and local economic development.57 According to EDA,
between FY2012 and FY2019, the agency invested over $2.6 between FY2012 and FY2019, the agency invested over $2.6
bil ion billion in 5,445 projects.58 The in 5,445 projects.58 The
agency’s grant programs and investment priorities broadly support local initiatives that “leverage agency’s grant programs and investment priorities broadly support local initiatives that “leverage
economic assets in facilitating regional economic prosperity and resiliency as economic assets in facilitating regional economic prosperity and resiliency as
wel well as conditions as conditions
for business success.”59 Activities funded by EDA grant programs include infrastructure, for business success.”59 Activities funded by EDA grant programs include infrastructure,
planning, workforce development, disaster economic recovery, and funding for business planning, workforce development, disaster economic recovery, and funding for business
assistance programs such as revolving loan funds, business technical assistance, innovation, assistance programs such as revolving loan funds, business technical assistance, innovation,
entrepreneurship, and business incubator programs,60 among others. Grant programs may also entrepreneurship, and business incubator programs,60 among others. Grant programs may also
57 Capacity is a central component of EDA’s definition of economic development57 Capacity is a central component of EDA’s definition of economic development
. EDA defines economic development . EDA defines economic development
asas
creating “creating “
the conditions for economic growth and improved quality of life by expanding the capacity of individuals, the conditions for economic growth and improved quality of life by expanding the capacity of individuals,
firms, and communities to maximize the use of their talents and skills firms, and communities to maximize the use of their talents and skills
t oto support innovation, lower transaction costs, support innovation, lower transaction costs,
and responsibly produce and trade valuableand responsibly produce and trade valuable
goods goods and services.” EDA further defines economic development capacity and services.” EDA further defines economic development capacity
buildingbuilding
aa
s “developing or improving community assets that businessesdeveloping or improving community assets that businesses
need to succeed.need to succeed.
” See ” See EDA, “EDA, “
Key Key
Definitions,” https://eda.gov/performance/key-definitions/. Definitions,” https://eda.gov/performance/key-definitions/.
58 EDA, “Performance Measurement and Program Evaluation,” https://www.eda.gov/performance/. 58 EDA, “Performance Measurement and Program Evaluation,” https://www.eda.gov/performance/.
59 EDA, “Investment Priorities,” https://eda.gov/about/investment-priorities/. 59 EDA, “Investment Priorities,” https://eda.gov/about/investment-priorities/.
60 Business60 Business
incubator programs are defined asincubator programs are defined as
programs programs
designed
designed
to accelerate the developmentto accelerate the development
of entrepreneurial firms through an array of businessof entrepreneurial firms through an array of business
support resources support resources
and services, developed and/or orchestrated by incubator management, delivered both by incubation staff and and services, developed and/or orchestrated by incubator management, delivered both by incubation staff and
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link to page 20 link to page
45 link to page 4546 Economic Development Administration: An Overview of Programs and Appropriations
support regional economic development goals by facilitating existing and emerging industry
support regional economic development goals by facilitating existing and emerging industry
clusters, developing human capital, strengthening supply chains, expanding access to capital, and clusters, developing human capital, strengthening supply chains, expanding access to capital, and
building innovation and technology strategies.61 No minimum or maximum project amount is building innovation and technology strategies.61 No minimum or maximum project amount is
specified in law.62specified in law.62
Table 3 provides a summary of EDA programs. For detailed program information, provides a summary of EDA programs. For detailed program information,
see Appendix
see Appendix A.63 63
Table 3. Summary of Major EDA Programs
Program Name
(CFDA No.)
(CFDA No.)
Description
Project Examples
Public Works (11.300) (11.300)
The Public Works
The Public Works
program is designed to program is designed to
Construction of a workforce
Construction of a workforce
fund physical infrastructure projects such
fund physical infrastructure projects such
training center.
training center.
as water and sewer
as water and sewer
systems improvements,
systems improvements,
industrial parks, business incubator
industrial parks, business incubator
Water and wastewater
Water and wastewater
improvementsimprovements
in connection in connection
facilities,
facilities,
expansion of port and harbor expansion of port and harbor
with the development of an
with the development of an
facilities,
facilities,
skil -trainingskil -training
facilities,facilities,
and and
industrial park.
industrial park.
brownfields redevelopment.
brownfields redevelopment.
Economic Adjustment
The EAA program assists communities
The EAA program assists communities
and and
Capitalization of a Revolving
Capitalization of a Revolving
Assistance (EAA) (11.307) (EAA) (11.307)
regions affected by natural disasters,
regions affected by natural disasters,
Loan Fund for underserved
Loan Fund for underserved
natural resource
natural resource
depletion, mass layoffs, depletion, mass layoffs,
regional businesses.
regional businesses.
and other severe
and other severe
economic shocks caused economic shocks caused
by structural impacts to regional
A study to evaluate how to
A study to evaluate how to
by structural impacts to regional
develop, sustain, and promote develop, sustain, and promote
economies.
economies.
Revolving Loan Funds (RLFs) Revolving Loan Funds (RLFs)
businesses
businesses
including retail, including retail,
are capitalized by EAA grants. See CRS In
are capitalized by EAA grants. See CRS In
restaurants, services,
restaurants, services,
and and
Focus IF11449,
Focus IF11449,
Economic Development
others in a downtown area.
others in a downtown area.
Revolving Loan Funds (ED-RLFs), by Julie M. , by Julie M.
Lawhorn. Lawhorn.
Construction of a healthcare
Construction of a healthcare
simulationsimulation
lab and telemedicine lab and telemedicine
space at a community col ege. space at a community col ege.
through its networks of outside
through its networks of outside
service providers. Businessservice providers. Business
incubation programs usuallyincubation programs usually
provide client firms provide client firms
accessaccess
to shared basicto shared basic
services and equipment, improved accessservices and equipment, improved access
to capital, and businessto capital, and business
management training. management training.
See
See
EDA, “Incubating Success,”EDA, “Incubating Success,”
David A. Lewis,David A. Lewis,
Elsie Harper Anderson, and Lawrence A. Molnar, Elsie Harper Anderson, and Lawrence A. Molnar,
http://edaincubatortool.org/pdf/NBIS%20Brochure-Incubating%20Success_NBIA_FINAL-3.pdf. http://edaincubatortool.org/pdf/NBIS%20Brochure-Incubating%20Success_NBIA_FINAL-3.pdf.
61 DOC, EDA, 61 DOC, EDA,
FY2022 Congressional Budget Justification, p. 120, https://www.commerce.gov/sites/default/files/2021-, p. 120, https://www.commerce.gov/sites/default/files/2021-
05/fy2022_eda_congressional_budget_justification.pdf. 05/fy2022_eda_congressional_budget_justification.pdf.
62 42 U.S.C.
62 42 U.S.C.
§3121 et seq. §3121 et seq.
63 63
T hisThis report does not report does not
analyze EDA’s grant awardsanalyze EDA’s grant awards
by program. For an analysis of EDA funding awardedby program. For an analysis of EDA funding awarded
by program by program
and other analysis, see Brett and other analysis, see Brett
T heodosTheodos et al., “ et al., “
T heThe Economic Development Administration’s Programs and Projects Economic Development Administration’s Programs and Projects
T ypesTypes - EDA Program Evaluation,” - EDA Program Evaluation,”
T heThe Urban Institute, October 2021, p. 6, https://www.urban.org/sites/default/files/ Urban Institute, October 2021, p. 6, https://www.urban.org/sites/default/files/
publication/105006/economic-development-administration-programs-and-project-types_1_0.pdf. publication/105006/economic-development-administration-programs-and-project-types_1_0.pdf.
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Program Name
(CFDA No.)
(CFDA No.)
Description
Project Examples
EAA——
Assistance to
The ACC and NCC initiatives support
The ACC and NCC initiatives support
A broadband mapping project
A broadband mapping project
Coal Communities
communities
communities
and regions that have been and regions that have been
to address current business
to address current business
(ACC), Assistance to
negatively impacted by changes in the coal
negatively impacted by changes in the coal
access, an assessment
access, an assessment
of future of future
Nuclear Closure
economy or by nuclear plant closures,
economy or by nuclear plant closures,
needs, and regulatory matters
needs, and regulatory matters
Communities (NCC)
respectively.
respectively.
In addition to ongoing annual In addition to ongoing annual
for a coal-impacted
for a coal-impacted
initiatives,,
and Disaster
appropriations for the discretionary
appropriations for the discretionary
EAA EAA
community.
community.
Economic Recovery
grant program, Congress has authorized
grant program, Congress has authorized
Development of a post-
programs (11.307) (11.307)
supplemental appropriations for EAA
supplemental appropriations for EAA
ACC ACC
Development of a post-disaster roadmap to improve disaster roadmap to improve
and NCC initiatives
and NCC initiatives
as wel as well as for post-as for post-
regional economic
regional economic
resiliency. resiliency.
disaster economic
disaster economic
recovery recovery and COVID-19 and COVID-19
economiceconomic
recovery efforts.recovery efforts.
EDA makes EDA makes
Storm water upgrades to
Storm water upgrades to
ACC and NCC funding available through
ACC and NCC funding available through
minimize
minimize
flooding hazards in a flooding hazards in a
the Notice of Funding Opportunity
the Notice of Funding Opportunity
commercial y commercially zoned area in zoned area in
(NOFO) for the Public Works
(NOFO) for the Public Works
and EAA and EAA
order to support job creation
order to support job creation
programs,
programs,
usual y usually on an annual basis. on an annual basis.
and economic
and economic
resiliency resiliency goals. goals.
Partnership
The Partnership Planning program supports
The Partnership Planning program supports
Funds to support the
Funds to support the
Planning (11.302)(11.302)
a national network of EDA-designated
a national network of EDA-designated
development and
development and
Economic Development
Economic Development
Districts Districts (EDDs) (EDDs)
implementation
implementation
of the CEDS of the CEDS
as
as
wel well as local organizations (Indian Tribes as local organizations (Indian Tribes
planning process.
planning process.
and other eligible
and other eligible
recipients) with long-recipients) with long-
term strategic economicterm strategic economic
development development
planning efforts,planning efforts,
and helps communities and helps communities
undertake focused, project-specific undertake focused, project-specific
planning activities. planning activities.
Local Technical
The Local Technical Assistance
The Local Technical Assistance
program program
A feasibility study for a
A feasibility study for a
Assistance (11.303)(11.303)
provides grants for management and
provides grants for management and
proposed, regional
proposed, regional
technical services,
technical services,
including feasibility including feasibility
entrepreneurship center.
entrepreneurship center.
studies or impact analyses.
studies or impact analyses.
University Centers
Institutions of higher education operate
Institutions of higher education operate
Operational support for a UC
Operational support for a UC
(UCs) (11.303) (11.303)
University Centers that provide technical
University Centers that provide technical
that assists local communities
that assists local communities
assistance to public and private sector
assistance to public and private sector
with an asset-based planning
with an asset-based planning
organizations with the goal of enhancing
organizations with the goal of enhancing
process to expand economic
process to expand economic
local economic
local economic
development. development.
development opportunities in
development opportunities in
partnership with the state partnership with the state
agencies and regional EDDs.agencies and regional EDDs.
Operational support for a UC
Operational support for a UC
to help firmsto help firms
with technology with technology
transfer and transfer and
commercialization. commercialization.
Research and National
The RNTA program funds research,
The RNTA program funds research,
A program evaluation of
A program evaluation of
Technical Assistance
evaluation, and national technical assistance
evaluation, and national technical assistance
infrastructure and non-
infrastructure and non-
(RNTA) (11.312 and (11.312 and
projects that promote
projects that promote
competitiveness competitiveness and and
infrastructure EDA grants.
infrastructure EDA grants.
11.303)
11.303)
innovation in distressed
innovation in distressed
rural and urban rural and urban
regions.
A grant to national
A grant to national
regions.
organizations to provide organizations to provide
technical assistance and technical assistance and
disseminatedisseminate
promising promising
strategiesstrategies
among coal-among coal-
impacted and nuclear closure impacted and nuclear closure
communities.communities.
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Program Name
(CFDA No.)
(CFDA No.)
Description
Project Examples
Build to Scale (Section
The Build to Scale program funds efforts to
The Build to Scale program funds efforts to
Implementing regional
Implementing regional
27) (11.020)) (11.020)
facilitate innovation and entrepreneurship
facilitate innovation and entrepreneurship
strategies
strategies
that support that support
and increase
and increase
access to risk capital. B2S is access to risk capital. B2S is
entrepreneurship,
entrepreneurship,
technology technology
composed of the Venture
composed of the Venture
Chal engeChallenge and and
development,
development,
the Capital
the Capital
Chal engeChallenge. The Venture . The Venture
commercialization,
commercialization,
and and
Chal engeChallenge supports entrepreneurship supports entrepreneurship
increased access to capital for
increased access to capital for
support programs and other models
support programs and other models
to to
biomedical
biomedical
products, products,
accelerate high-growth entrepreneurship
accelerate high-growth entrepreneurship
agricultural technologies,
agricultural technologies,
activities.
activities.
The Capital The Capital
Chal engeChallenge provides provides
advanced manufacturing, and
advanced manufacturing, and
operational support to help organizations
operational support to help organizations
other technology- and
other technology- and
and regions
and regions
expand access to risk capital. expand access to risk capital.
innovation-based industries.
innovation-based industries.
EDA’s OIE administers
EDA’s OIE administers
the B2S program, the B2S program,
Operational support for a
Operational support for a
which is authorized under Section 27 of
which is authorized under Section 27 of
Prototype-to-Production
Prototype-to-Production
the Stevenson-Wydler
the Stevenson-Wydler
Technology Act of Technology Act of
Hardware Accelerator
Hardware Accelerator
1980 (15 U.S.C. §3722).
1980 (15 U.S.C. §3722).
program to help entrepreneurs
program to help entrepreneurs
scale their business and scale their business and
manufacture their products. manufacture their products.
STEM Talent Challenge/
The STEM Talent
The STEM Talent
Chal engeChallenge program funds program funds
Development
Development
of a virtual smart of a virtual smart
STEM Apprenticeships
efforts that expand career pathways and
efforts that expand career pathways and
factory environment to build
factory environment to build
(Section 28) (11.023)(11.023)
meet employers’
meet employers’
needs for a STEM capable needs for a STEM capable
advanced manufacturing skil s
advanced manufacturing skil s
workforce.
workforce.
EDA’s OIE administers EDA’s OIE administers
and facilitate workforce
and facilitate workforce
the STEM Talent
the STEM Talent
Chal engeChallenge program, program,
which which
development.
development.
is authorized under Section 28 of the
is authorized under Section 28 of the
Stevenson-WydlerStevenson-Wydler
Technology Act of 1980 Technology Act of 1980
(15 U.S.C.(15 U.S.C.
§3723). §3723).
Trade Adjustment
EDA partners with nonprofit or university-
EDA partners with nonprofit or university-
Technical assistance for
Technical assistance for
Assistance for Firms
affiliated Trade Adjustment Assistance
affiliated Trade Adjustment Assistance
import-impacted companies to
import-impacted companies to
(TAAF) (11.313)(11.313)
Centers (TAACs) to provide technical
Centers (TAACs) to provide technical
develop business recovery
develop business recovery
assistance to import-impacted U.S.
assistance to import-impacted U.S.
plans and strategies
plans and strategies
such as such as
manufacturing, production and service
manufacturing, production and service
new product lines,
new product lines,
updated updated
firms.
firms.
TAAF TAAF is authorized under the Trade is authorized under the Trade
information systems,
information systems,
and and
Act of 1974, as amended (19 U.S.C.
Act of 1974, as amended (19 U.S.C.
§2341 §2341
revised
revised
marketing campaigns. marketing campaigns.
et seq.).
et seq.).
Sources: EDA, “Programs,”EDA, “Programs,”
https://eda.gov/programs/eda-programs/;https://eda.gov/programs/eda-programs/;
“Annual Reports,” https://eda.gov/annual-“Annual Reports,” https://eda.gov/annual-
reports; “Funding Opportunities,” https://eda.gov/funding-opportunities/; and “Press Releases”reports; “Funding Opportunities,” https://eda.gov/funding-opportunities/; and “Press Releases”
https://eda.gov/https://eda.gov/
news/press-releases/. news/press-releases/.
Notes: CFDA No. refersCFDA No. refers
to the Catalog of Federal Domesticto the Catalog of Federal Domestic
Assistance,Assistance,
a searchable database of federal a searchable database of federal
domesticdomestic
assistance programsassistance programs
(https://beta.sam.gov). Each program is identified by name and a five-digit number. (https://beta.sam.gov). Each program is identified by name and a five-digit number.
ProgramsPrograms
are authorized by PWEDA,are authorized by PWEDA,
except where otherwiseexcept where otherwise
noted.noted.
Project examples provided below are for Project examples provided below are for
il ustrativeil ustrative
purposes only and do not representpurposes only and do not represent
al all potential uses of funds. potential uses of funds.
How to Apply
Application guidance for EDA’s competitive grant programs is outlined in the agency’s Notices Application guidance for EDA’s competitive grant programs is outlined in the agency’s Notices
of Funding Opportunities (NOFOs), which are explanations of available grant funding and of Funding Opportunities (NOFOs), which are explanations of available grant funding and
procedures.64 Applicants may also contact Economic Development Districts (EDDs) or EDA state procedures.64 Applicants may also contact Economic Development Districts (EDDs) or EDA state
and regional representatives for assistance. EDA maintains an online directory, organized by state, and regional representatives for assistance. EDA maintains an online directory, organized by state,
of EDDs and other resources and agency contacts.65 of EDDs and other resources and agency contacts.65
64 Information on EDA grant competitions is available at https://eda.gov/funding-opportunities/ and 64 Information on EDA grant competitions is available at https://eda.gov/funding-opportunities/ and
http://www.grants.gov. http://www.grants.gov.
65 EDA, “Economic Development Directory,” https://eda.gov/resources/directory/. 65 EDA, “Economic Development Directory,” https://eda.gov/resources/directory/.
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Select Grant Requirements
In order to receive EDA grant assistance, applicants must meet program criteria related to types of In order to receive EDA grant assistance, applicants must meet program criteria related to types of
eligible eligible applicants, cost sharing, and other requirements.66 Requirements vary by program, applicants, cost sharing, and other requirements.66 Requirements vary by program,
authorizing statute, and agency regulations.67authorizing statute, and agency regulations.67
Eligible Recipients
For an entity to be eligibleFor an entity to be eligible
for EDA assistance for programs authorized by PWEDA (42 U.S.C. for EDA assistance for programs authorized by PWEDA (42 U.S.C.
§3121 et seq.), the recipient must be§3121 et seq.), the recipient must be
:
an economic development district (EDD);
an economic development district (EDD);
an Indian tribe or a consortium of Indian tribes and for-profit entities that is an Indian tribe or a consortium of Indian tribes and for-profit entities that is
wholly owned by and established for the benefit of a tribe;68
wholly owned by and established for the benefit of a tribe;68
a state;69
a state;69
a city or other political subdivision of a state, including a special purpose unit of a city or other political subdivision of a state, including a special purpose unit of
a state or local government engaged in economic or infrastructure development
a state or local government engaged in economic or infrastructure development
activities, or a consortium of political subdivisions; activities, or a consortium of political subdivisions;
an institution of higher education or a consortium of institutions of higher
an institution of higher education or a consortium of institutions of higher
education; or
education; or
a public or private nonprofit organization or association acting in cooperation
a public or private nonprofit organization or association acting in cooperation
with officials of a political subdivision of a state.70
with officials of a political subdivision of a state.70
Businesses are not eligible
Businesses are not eligible
for most grants authorized by PWEDA, but may be eligiblefor most grants authorized by PWEDA, but may be eligible
for for
Training, Research, and Technical Assistance grants.71Training, Research, and Technical Assistance grants.71
66 Recipients of EDA awards66 Recipients of EDA awards
follow the Uniform Administrative Requirements, Cost Principles, and Audit follow the Uniform Administrative Requirements, Cost Principles, and Audit
Requirements for FederalRequirements for Federal
Awards Awards (Uniform Guidance)(Uniform Guidance)
as set forth in 2 C.F.R. Part 200, https://www.gpo.gov/fdsys/as set forth in 2 C.F.R. Part 200, https://www.gpo.gov/fdsys/
pkg/CFR-2016-title2-vol1/pdf/CFR-2016-title2-vol1-part200.pdf; DOC pkg/CFR-2016-title2-vol1/pdf/CFR-2016-title2-vol1-part200.pdf; DOC
T ermsTerms and Conditions; and other and Conditions; and other
requirements.requirements.
67 Detailed program requirements are outlined in Notice of Funding
67 Detailed program requirements are outlined in Notice of Funding
Opportunities (NOFOs) (seeOpportunities (NOFOs) (see
https://eda.gov/https://eda.gov/
funding-opportunities/) and in agency regulations (see 13 C.F.R. Part 300). funding-opportunities/) and in agency regulations (see 13 C.F.R. Part 300).
68 The68 T he term term
Indian tribe means an entity on the list of recognized tribes published means an entity on the list of recognized tribes published
pursuant to the Federally Recognized pursuant to the Federally Recognized
Indian Indian
T ribeTribe List Act of 1994, as amended (P.L. 103-454) (25 U.S.C. §479a et seq.), and any Alaska Native Village List Act of 1994, as amended (P.L. 103-454) (25 U.S.C. §479a et seq.), and any Alaska Native Village
or or
Regional Corporation (as defined in or establishedRegional Corporation (as defined in or established
under the Alaska Native Claims Settlement Act (under the Alaska Native Claims Settlement Act (
43 U.S.C. §1601 et 43 U.S.C. §1601 et
seq.). seq.).
T hisThis term includes term includes
t he the governing body of an Indian governing body of an Indian
t ribetribe, Indian corporation (restricted to Indians), Indian , Indian corporation (restricted to Indians), Indian
authority, or other nonprofit Indian tribal organization or entity; provided that the Indian tribal organization, authority, or other nonprofit Indian tribal organization or entity; provided that the Indian tribal organization,
corporation, or entity is wholly ownedcorporation, or entity is wholly owned
by, and establishedby, and established
for the benefit of, the Indian for the benefit of, the Indian
t ribetribe or Alaska Native Village. or Alaska Native Village.
13 C.F.R.13 C.F.R.
§300.3. A rule published§300.3. A rule published
in the in the
Federal Register on September 24, 2021, extended EDA on September 24, 2021, extended EDA
t ribaltribal eligibility to eligibility to
includeinclude
for-profit entities that are wholly owned by and establishedfor-profit entities that are wholly owned by and established
for the benefit of a tribe. Seefor the benefit of a tribe. See
EDA, U.S. EDA, U.S.
Department of Commerce, “Department of Commerce, “
Permitting Additional EligiblePermitting Additional Eligible
T ribal Tribal Entities,” 86 Entities,” 86
Federal Register 52957-52959, 52957-52959,
September 24, 2021, https://www.federalregister.gov/documents/2021/09/24/2021-20633/permitting-additional-September 24, 2021, https://www.federalregister.gov/documents/2021/09/24/2021-20633/permitting-additional-
eligible-tribal-entities. eligible-tribal-entities.
69 A
69 A
state means a state, the District of Columbia, the Commonwealth of Puerto Rico, the Virgin Islands, Guam, means a state, the District of Columbia, the Commonwealth of Puerto Rico, the Virgin Islands, Guam,
American Samoa, the Commonwealth of the Northern Mariana Islands, the RepublicAmerican Samoa, the Commonwealth of the Northern Mariana Islands, the Republic
of the Marshall Islands,of the Marshall Islands,
the the
Federated States of Micronesia, and the RepublicFederated States of Micronesia, and the Republic
of Palau. 42 U.S.C.of Palau. 42 U.S.C.
§3122. §3122.
70
70
T heThe Economic Development Administration Reauthorization Act of 2004 ( Economic Development Administration Reauthorization Act of 2004 (
P.L. 108-373) authorized select nonprofits P.L. 108-373) authorized select nonprofits
as eligibleas eligible
recipients. recipients.
71 42 U.S.C.
71 42 U.S.C.
§3122(4) and 13 C.F.R.§3122(4) and 13 C.F.R.
§300.3. §300.3.
T rainingTraining, Research, and , Research, and
T echnicalTechnical Assistance Investment grants are Assistance Investment grants are
authorized underauthorized under
42 U.S.C.42 U.S.C.
§3147. §3147.
Businesses
Businesses
may receive EDA-supported loans and technical assistance to support expansion and entrepreneurial may receive EDA-supported loans and technical assistance to support expansion and entrepreneurial
activities. For instance, qualifying businesses may receive a loan from an intermediary operating an EDA-supported
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The types of applicants eligible
The types of applicants eligible
for the Buildfor the Build
to Scale (B2S) and STEM Talent to Scale (B2S) and STEM Talent
Chal engeChallenge programs, which are authorized by the Stevenson-Wydler Technology Innovation Act of 1980 (15 programs, which are authorized by the Stevenson-Wydler Technology Innovation Act of 1980 (15
U.S.C. §§3722 and 3723), not PWEDA, includeU.S.C. §§3722 and 3723), not PWEDA, include
:
A state;
A state;
An Indian tribe; An Indian tribe;
A city or other political subdivision of a state; A city or other political subdivision of a state;
An entity that is— An entity that is—
a nonprofit organization,
a nonprofit organization,
an institution of higher education, an institution of higher education,
a public-private partnership, a public-private partnership,
a science or research park, a science or research park,
a federal laboratory, or a federal laboratory, or
an economic development organization or similar; and an economic development organization or similar; and
A consortium of any of the immediately aforementioned entities.
A consortium of any of the immediately aforementioned entities.
Additional y, Additionally, a venture development organization may be an eligiblea venture development organization may be an eligible
applicant for the B2S applicant for the B2S
program. According to the EDA, select entities may be required to demonstrate that the program. According to the EDA, select entities may be required to demonstrate that the
application is supported by a state or a political subdivision of a state for the B2S and STEM application is supported by a state or a political subdivision of a state for the B2S and STEM
Talent Talent
Chal engeChallenge programs.72 programs.72
For the TAAF program, which is authorized by the Trade Act of 1974, as amended (19 U.S.C.
For the TAAF program, which is authorized by the Trade Act of 1974, as amended (19 U.S.C.
§2341 et seq.), the following types of entities can apply to operate a TAAC: §2341 et seq.), the following types of entities can apply to operate a TAAC:
Universities or affiliated organizations;
Universities or affiliated organizations;
States or local governments; and States or local governments; and
Nonprofit organizations.73 Nonprofit organizations.73
Cost Sharing Requirements
Cost sharing is required for most EDA grant programs although some exceptions may apply. Cost sharing is required for most EDA grant programs although some exceptions may apply.
General yGenerally, EDA investment funds 50% of total project costs. Requirements may vary based on the , EDA investment funds 50% of total project costs. Requirements may vary based on the
program, a determination of special need, type of applicant, and other factors. The Secretary may program, a determination of special need, type of applicant, and other factors. The Secretary may
increase the federal share for a grant to Indian tribes or when certain grantees have exhausted increase the federal share for a grant to Indian tribes or when certain grantees have exhausted
their effective taxing and borrowing capacity or for other circumstances.74 The Secretary may also their effective taxing and borrowing capacity or for other circumstances.74 The Secretary may also
increase the federal share up to 100% for RNTA grants. Agency regulations describe the increase the federal share up to 100% for RNTA grants. Agency regulations describe the
activities. For instance, qualifying businesses may receive a loan from an intermediary operating an EDA -supported Revolving Loan Fund (RLF) and conditions in which “projects subject to a Special Need” may receive a higher investment rate. Revolving Loan Fund (RLF) and the loan must be repaid with interest.the loan must be repaid with interest.
T here There are approximately 400 are approximately 400
organizations administering EDA-fundedorganizations administering EDA-funded
RLFs.RLFs.
See See EDA, “EDA, “
Revolving Loan FundRevolving Loan Fund
Program,” https://www.eda.gov/rlf/. Program,” https://www.eda.gov/rlf/.
For more information, see CRSFor more information, see CRS
In Focus IF11449, In Focus IF11449,
Econom icEconomic Development Revolving Loan Funds (ED-RLFs), by Julie , by Julie
M. Lawhorn; and CRSM. Lawhorn; and CRS
Insight IN11419, Insight IN11419,
COVID-19: Selected Federal Resources for Businesses Seeking to Assist with
Research and Manufacturing Efforts, by Maria Kreiser. Businesses, by Maria Kreiser. Businesses
may also receive direct may also receive direct
technical assistance through projects funded by EDA grants, University Center, or through projects funded by EDA grants, University Center, or
T radeTrade Adjustment Assistance Center partners. Adjustment Assistance Center partners.
72 EDA, “NOFO72 EDA, “NOFO
—2020 Build2020 Build
to Scale Program—Concept Proposal,” EDA-HDQ-OIE-2020, https://www.grants.gov/to Scale Program—Concept Proposal,” EDA-HDQ-OIE-2020, https://www.grants.gov/
web/grants/view-opportunity.html?oppId=324375, and “web/grants/view-opportunity.html?oppId=324375, and “
NOFONOFO
—2020 2020
ST EMSTEM, EDA-HDQ-OIE-2020-2006617, , EDA-HDQ-OIE-2020-2006617,
https://eda.gov/files/oie/stem/Section-28-https://eda.gov/files/oie/stem/Section-28-
ST EMSTEM-Talent-Challenge-NOFO.pdf. -Talent-Challenge-NOFO.pdf.
73 13 C.F.R. §315.4.
73 13 C.F.R. §315.4.
74 42 U.S.C.74 42 U.S.C.
§3144. §3144.
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conditions in which “projects subject to a Special Need” may receive a higher investment rate.
This includes, but is not limitedThis includes, but is not limited
to, post-disaster economic recovery projects and, as noted, to, post-disaster economic recovery projects and, as noted,
projects by Indian tribes, among other circumstances and conditions.75projects by Indian tribes, among other circumstances and conditions.75
Select Grant Requirements—Public Works and Economic
Adjustment Assistance Programs
The following select grant program requirements apply to two of the EDA’s economic The following select grant program requirements apply to two of the EDA’s economic
development assistance programs, the Public Works and Economic Adjustment Assistance development assistance programs, the Public Works and Economic Adjustment Assistance
(PWEAA) programs, which accounted for over half of EDA’s program funding in FY2021 (see (PWEAA) programs, which accounted for over half of EDA’s program funding in FY2021 (see
Figure 5).76 76
Economic Distress Criteria
For a project to be eligibleFor a project to be eligible
for assistance under the PWEAA programs, for assistance under the PWEAA programs,
The project shall be located in an area that, on the date of submission of the application,
The project shall be located in an area that, on the date of submission of the application,
meets one or more of the following criteria: meets one or more of the following criteria:
- An unemployment rate that is, for the most recent 24-month period for which data are
- An unemployment rate that is, for the most recent 24-month period for which data are
available, at least one percentage pointavailable, at least one percentage point
greater than thegreater than the
national averagenational average
unemployment unemployment
rate; rate;
- Per
- Per
capita income that is, for the most recent period for which data are available, capita income that is, for the most recent period for which data are available, 80 80
percent or less of the national average per capita income; or percent or less of the national average per capita income; or
- A special need, as determined by EDA.”77
- A special need, as determined by EDA.”77
These criteria are also used for the EDD designation. An EDD must “contain at least one
These criteria are also used for the EDD designation. An EDD must “contain at least one
geographic area that geographic area that
fulfil sfulfills the economic distress criteria” among other requirements.78 the economic distress criteria” among other requirements.78
For additional information about area eligibility and measures of economic distress in PWEDA, see CRS In Focus IF12074, Areas of Economic Distress for EDA Activities and Programs, by Julie M. Lawhorn.
Comprehensive Economic
Comprehensive Economic Development Strategies (CEDS)
The Comprehensive Economic Development Strategy (CEDS) is a The Comprehensive Economic Development Strategy (CEDS) is a
local ylocally-developed, long-term -developed, long-term
regional economic development plan. Projects must serve an area that has a CEDS or equivalent regional economic development plan. Projects must serve an area that has a CEDS or equivalent
strategy in order to be eligiblestrategy in order to be eligible
for Public Works and Economic Adjustment Assistance funding.79 for Public Works and Economic Adjustment Assistance funding.79
However, the CEDS requirement may be waived in some instances.80 The EDA provides funding
to EDDs to carry out and implement the CEDS under its Partnership Planning program.81
75 13 C.F.R. §301.4, Subpart75 13 C.F.R. §301.4, Subpart
D—Investment Rates and Matching Share Requirements. D—Investment Rates and Matching Share Requirements.
76 See76 See
agency regulations (13 C.F.R.agency regulations (13 C.F.R.
Chapter III) for detailed program requirements. SeeChapter III) for detailed program requirements. See
also EDA, “EDA also EDA, “EDA
Informational Brochure,” https://eda.gov/pdf/about/EDA-trifold-2017.pdf. Informational Brochure,” https://eda.gov/pdf/about/EDA-trifold-2017.pdf.
77 42 U.S.C.77 42 U.S.C.
§3121 et seq.§3121 et seq.
EDA’s regulations describeEDA’s regulations describe
the economic distress criteria at 13 C.F.R. §300, Subpart C—the economic distress criteria at 13 C.F.R. §300, Subpart C—
Economic Distress Criteria. Economic Distress Criteria.
78 42 U.S.C.
78 42 U.S.C.
§3171. The EDA also encourages§3171. The EDA also encourages
University Centers (42 U.S.C. §3147(a)(2)(D)) to provide services that University Centers (42 U.S.C. §3147(a)(2)(D)) to provide services that
benefit distressedbenefit distressed
areas in their region (13 C.F.R. §306.5(a)). See EDA, areas in their region (13 C.F.R. §306.5(a)). See EDA,
NOFO—FY 2021 EDA University Center
Econom ic Developm ent Program Com petition , EDA-CHI-T A Center Economic Development Program Competition, EDA-CHI-TA-CRO-2021-2006893 and EDA-CHI--CRO-2021-2006893 and EDA-CHI-
T ATA-CRO-2021--CRO-2021-
2006894, https://www.grants.gov/web/grants/view-opportunity.html?oppId=332622. 2006894, https://www.grants.gov/web/grants/view-opportunity.html?oppId=332622.
79 EDA, “Comprehensive Economic Development Strategies,” https://eda.gov/ceds/. According79 EDA, “Comprehensive Economic Development Strategies,” https://eda.gov/ceds/. According
to EDA, “EDA to EDA, “EDA
supports the CEDSsupports the CEDS
Resource Resource Library at http://www.statsamerica.org/ceds/Default.aspx where applicants can determine Library at http://www.statsamerica.org/ceds/Default.aspx where applicants can determine
whether their region is servedwhether their region is served
by an EDD and locate the mostby an EDD and locate the most
recent CEDS”—see http://www.statsamerica.org/cedsrecent CEDS”—see http://www.statsamerica.org/ceds
.
80 42 U.S.C. §3149(b)(2); 42 U.S.C §3162; 13 C.F.R. §307.5. 81 EDA, “Planning Program,” https://eda.gov/pdf/about/Planning-Program-1-Pager.pdf. .
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However, the CEDS requirement may be waived in some instances.80 The EDA provides funding to EDDs to carry out and implement the CEDS under its Partnership Planning program.81
CEDS involves both a planning process and the development of a regional framework for CEDS involves both a planning process and the development of a regional framework for
selecting and prioritizing economic development strategies—selecting and prioritizing economic development strategies—
general ygenerally developed with an asset- developed with an asset-
based approach. To complete the CEDS, regional stakeholders engage local leaders, private sector based approach. To complete the CEDS, regional stakeholders engage local leaders, private sector
firms, individuals, organizations, institutions of learning, and other participants. An organization firms, individuals, organizations, institutions of learning, and other participants. An organization
must have a CEDS in order to receive EDA’s EDD designation.82 The EDA requires a CEDS must have a CEDS in order to receive EDA’s EDD designation.82 The EDA requires a CEDS
update every five years.83 EDA regulations require that CEDS include elements outlined iupdate every five years.83 EDA regulations require that CEDS include elements outlined i
n Table
4. According to the EDA, CEDS must also incorporate the concept of economic resilience.84 According to the EDA, CEDS must also incorporate the concept of economic resilience.84
Table 4. Core Elements of a Comprehensive Economic Development Strategy
(CEDS)
CEDS Element
Description
Summary Background
A summary of the economic
A summary of the economic
conditions of the region. conditions of the region.
SWOT Analysis
An in-depth analysis of regional
An in-depth analysis of regional
strengths, weaknesses,strengths, weaknesses,
opportunities and threats. opportunities and threats.
Strategic Direction/Action Plan
The strategic direction and action plan should build on findings from the SWOT
The strategic direction and action plan should build on findings from the SWOT
analysis and incorporate elementsanalysis and incorporate elements
from from other regional plans (e.g.,other regional plans (e.g.,
land use and land use and
transportation, workforcetransportation, workforce
development,development,
etc.) where appropriate, as determined etc.) where appropriate, as determined
by the EDD or community/regionby the EDD or community/region
engaged in development of the CEDS. The engaged in development of the CEDS. The
action plan should also identify the stakeholder(s) responsibleaction plan should also identify the stakeholder(s) responsible
for implementation, for implementation,
timetables,timetables,
and opportunities for the integrated use of other local,and opportunities for the integrated use of other local,
state, and state, and
federal funds. federal funds.
Evaluation
The strategic direction and action plan should build on findings from the SWOT
The strategic direction and action plan should build on findings from the SWOT
Framework/Performance
analysis and incorporate/integrate
analysis and incorporate/integrate
elements elements from other regional plans (e.g., land from other regional plans (e.g., land
Measures
use and transportation, workforce
use and transportation, workforce
development,development,
etc.) where appropriate, as etc.) where appropriate, as
determineddetermined
by the EDD or community/regionby the EDD or community/region
engaged in development of the engaged in development of the
CEDS. The action plan should also identify the stakeholder(s)CEDS. The action plan should also identify the stakeholder(s)
responsible responsible for for
implementation,implementation,
timetables,timetables,
and opportunities for the integrated use of other local, and opportunities for the integrated use of other local,
state, and federal funds. state, and federal funds.
Sources: 13 C.F.R.13 C.F.R.
§303.7 and EDA, “Comprehensive§303.7 and EDA, “Comprehensive
Economic DevelopmentEconomic Development
Strategies,”Strategies,”
https://eda.gov/ceds/. https://eda.gov/ceds/.
Notes: EDA provides “Content Guidelines”EDA provides “Content Guidelines”
with additional resourceswith additional resources
for CEDS developmentfor CEDS development
and suggestions and suggestions
for CEDS content. However,for CEDS content. However,
beyond the four required sections and economicbeyond the four required sections and economic
resilience resilience component, the CEDS component, the CEDS
content and CEDS development processcontent and CEDS development process
is is managed by local and regionalmanaged by local and regional
stakeholders.
80 42 U.S.C. §3149(b)(2); 42 U.S.C §3162; 13 C.F.R. §307.5. 81 EDA, “Planning Program,” https://eda.gov/pdf/about/Planning-Program-1-Pager.pdf. stakeholders.
Persistent Poverty and Distressed, Small, Rural and Underserved
Areas—Funding and Technical Assistance
In reports accompanying the FY2020 and FY2021 appropriations bil s, Congress has signaled an interest in prioritizing EDA funding for persistent poverty counties and in understanding the level
of funding and technical assistance provided to distressed, smal , rural, and underserved areas.85
82 13 C.F.R. §304.1. 82 13 C.F.R. §304.1.
83 13 C.F.R. §303.6. 83 13 C.F.R. §303.6.
84 EDA regulations specify that each regional CEDS84 EDA regulations specify that each regional CEDS
must promote resiliency. Economic resilience in the context of the must promote resiliency. Economic resilience in the context of the
CEDSCEDS
is related to “is related to “
the ability to avoid, withstand, and recover from economic shifts, natural disasters, the impacts of the ability to avoid, withstand, and recover from economic shifts, natural disasters, the impacts of
climate change, etc.”climate change, etc.”
See See 13 C.F.R.13 C.F.R.
§303.7 and EDA, “Comprehensive Economic Development Strategies,” §303.7 and EDA, “Comprehensive Economic Development Strategies,”
https://eda.gov/ceds/. https://eda.gov/ceds/.
85 See Congressional Record, December 17, 2019, pp. H10961-10962, https://www.govinfo.gov/content/pkg/CREC-2019-12-17/pdf/CREC-2019-12-17-house-bk2.pdf; and Congressional Record, December 21, 2020, pp. H7922-7923, https://www.govinfo.gov/content/pkg/CREC-2020-12-21/pdf/CREC-2020-12-21-house-bk3.pdf.
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Persistent Poverty and Distressed, Small, Rural and Underserved Areas—Funding and Technical Assistance In reports accompanying the FY2020 and FY2021 appropriations bills, Congress has signaled an interest in prioritizing EDA funding for persistent poverty counties and in understanding the level of funding and technical assistance provided to distressed, small, rural, and underserved areas.85
In terms of persistent poverty counties, Congress has directed a portion of EDA assistance to
In terms of persistent poverty counties, Congress has directed a portion of EDA assistance to
areas that have experienced high unemployment or high poverty levels for a certain period of areas that have experienced high unemployment or high poverty levels for a certain period of
time through the “10-20-30” provision in recent appropriations time through the “10-20-30” provision in recent appropriations
bil sbills.86 The provision directs 10% .86 The provision directs 10%
of federal funds for specific programs to counties with 20% poverty rates or more for the past 30 of federal funds for specific programs to counties with 20% poverty rates or more for the past 30
years.87 EDA applies the 10-20-30 provision to the Public Works and Buildyears.87 EDA applies the 10-20-30 provision to the Public Works and Build
to Scale programs.88 to Scale programs.88
In regards to distressed,
In regards to distressed,
smal small, rural, and underserved areas, Congress requires EDA to report on , rural, and underserved areas, Congress requires EDA to report on
activities related to program outcomes, and directs the agency to provide technical assistance to activities related to program outcomes, and directs the agency to provide technical assistance to
these areas. Congress and EDA have indicated their interests in these areas in the following ways: these areas. Congress and EDA have indicated their interests in these areas in the following ways:
PWEDA requires EDA to include information in its annual report about private
PWEDA requires EDA to include information in its annual report about private
sector leveraging goals set for investments awarded to rural and urban
sector leveraging goals set for investments awarded to rural and urban
economical yeconomically distressed areas and to highly distressed areas.89 distressed areas and to highly distressed areas.89
In FY2021, Congress directed EDA to support technical assistance for distressed
In FY2021, Congress directed EDA to support technical assistance for distressed
small, rural, and underserved communities for “pre-development activities
small, rural, and underserved communities for “pre-development activities
associated with accessing EDA programs and services.”90associated with accessing EDA programs and services.”90
In FY2021, EDA made a Research and National Technical Assistance (RNTA)
In FY2021, EDA made a Research and National Technical Assistance (RNTA)
award for the “Advancing Economic Development in Persistently Poor
award for the “Advancing Economic Development in Persistently Poor
Communities” project. According to EDA, the project “Communities” project. According to EDA, the project “
wil will identify and analyze identify and analyze
areas of persistent poverty in the United States, develop a typology of areas of persistent poverty in the United States, develop a typology of
persistently poor places based on their needs to better inform future policy persistently poor places based on their needs to better inform future policy
approaches, and assess how effective past EDA investments have been in approaches, and assess how effective past EDA investments have been in
al eviating alleviating deprivation in areas suffering from persistent poverty.”91 deprivation in areas suffering from persistent poverty.”91
The six new ARP Act grant programs launched in July 2021 wil consider the
agency’s new investment priority—equity—as well strategies to serve
communities disproportionately impacted by the pandemic.92 The EDA provided additional detail on definitions for underserved communities, geographies, and other terms when it released revised investment priorities in April 2021.93
85 See Congressional Record, December 17, 2019, pp. H10961-10962, https://www.govinfo.gov/content/pkg/CREC-2019-12-17/pdf/CREC-2019-12-17-house-bk2.pdf; and Congressional Record, December 21, 2020, pp. H7922-7923, https://www.govinfo.gov/content/pkg/CREC-2020-12-21/pdf/CREC-2020-12-21-house-bk3.pdf.
86 By example, see annual appropriations bills: P.L. 115-31 (FY2017), P.L. 115-141 (FY2018), P.L. 116-6 (FY2019), 86 By example, see annual appropriations bills: P.L. 115-31 (FY2017), P.L. 115-141 (FY2018), P.L. 116-6 (FY2019),
P.L. 116-93 (FY2020), and P.L. 116-260 (FY2021). P.L. 116-93 (FY2020), and P.L. 116-260 (FY2021).
T heThe 10-20-30 provision has also been applied to USDA 10-20-30 provision has also been applied to USDA
Rural Rural
Development programs and wasDevelopment programs and was
applied in the American Recovery and Reinvestment Act of 2009 (ARRA,applied in the American Recovery and Reinvestment Act of 2009 (ARRA,
P.L. 111-P.L. 111-
5). 5).
87 For more information, see CRS87 For more information, see CRS
Report R45100, Report R45100,
The 10-20-30 Provision: Defining Persistent Poverty Counties, by , by
Joseph Dalaker. Joseph Dalaker.
88 GAO,
88 GAO,
“Areas with High Poverty—Changing How the 10-20-30 Funding Formula Is Applied Could“Areas with High Poverty—Changing How the 10-20-30 Funding Formula Is Applied Could
Increase Impact Increase Impact
in Persistent Poverty Counties,” GAO-21-470, May 27, 2021, https://www.gao.gov/assets/gao-21-470.pdf. For EDA’s in Persistent Poverty Counties,” GAO-21-470, May 27, 2021, https://www.gao.gov/assets/gao-21-470.pdf. For EDA’s
list of Persistent Poverty Counties, see https://eda.gov/performance/tools/. list of Persistent Poverty Counties, see https://eda.gov/performance/tools/.
89 42 U.S.C. §3213.89 42 U.S.C. §3213.
For an example of such reports and data, see EDA, For an example of such reports and data, see EDA,
FY2019 Annual Report, pp. 8-10, , pp. 8-10,
https://eda.gov/files/annual-reports/fy2019/FY2019-Approved-EDA-Annual-Report.pdf. https://eda.gov/files/annual-reports/fy2019/FY2019-Approved-EDA-Annual-Report.pdf.
90 Rep. Nita Lowey, “Explanatory Statement Submitted by Mrs. Lowey, Chairwoman of the House Committee on
90 Rep. Nita Lowey, “Explanatory Statement Submitted by Mrs. Lowey, Chairwoman of the House Committee on
Appropriations Regarding H.R. 133, Consolidated Appropriations Act, 2021 (Division B—Commerce, Justice, Appropriations Regarding H.R. 133, Consolidated Appropriations Act, 2021 (Division B—Commerce, Justice,
Science,Science,
and Related Agencies),” and Related Agencies),”
Congressional Record, vol. 166, No. 218-Book III (December 21, 2020), pp. H7922-, vol. 166, No. 218-Book III (December 21, 2020), pp. H7922-
7923, https://www.congress.gov/congressional-record/2020/12/21/house-section/article/H7879-2. 7923, https://www.congress.gov/congressional-record/2020/12/21/house-section/article/H7879-2.
91 EDA, “91 EDA, “
T acklingTackling Persistent Poverty Is Goal of New Persistent Poverty Is Goal of New
EEDA-Economic Innovation Group Initiative,” July 19, 2021, EEDA-Economic Innovation Group Initiative,” July 19, 2021,
https://eda.gov/news/blogs/2021/07/19/eig.htm. https://eda.gov/news/blogs/2021/07/19/eig.htm.
92 EDA, “EDA’s American Rescue Plan Programs,” https://eda.gov/arpa/. 93 EDA, “EDA Investment Priorities—Definitions,” https://eda.gov/files/about/investment-priorities/EDA-FY21-Investment -Priorities-Definitions-June.pdf.
Additionally, per Executive Order 13985 federal agencies are required to conduct an assessment of “ whether, and to what extent, its programs and policies perpetuate systemic barriers to opportunities and benefits for people of color and
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The six new ARP Act grant programs launched in July 2021 will consider the
agency’s new investment priority—equity—as well strategies to serve communities disproportionately impacted by the pandemic.92 The EDA provided additional detail on definitions for underserved communities, geographies, and other terms when it released revised investment priorities in April 2021.93
Assistance to Tribal Communities
EDA provides assistance to tribal communities in several ways. In addition to being eligible EDA provides assistance to tribal communities in several ways. In addition to being eligible
recipients of EDA grant assistance (seerecipients of EDA grant assistance (see
“Eligible Recipients” above), grants may be up to 100% above), grants may be up to 100%
of the cost of the project for tribes and consortiums of tribes.94 As noted previously, in October of the cost of the project for tribes and consortiums of tribes.94 As noted previously, in October
2021, EDA implemented a rule to 2021, EDA implemented a rule to
al owallow for-profit tribal entities that are wholly owned by and for-profit tribal entities that are wholly owned by and
established for the benefit of the tribe to be eligibleestablished for the benefit of the tribe to be eligible
for EDA assistance.95 for EDA assistance.95
Additional yAdditionally, in , in
FY2021, EDA FY2021, EDA
al ocated $100 mil ion allocated $100 million in ARP Act funding to the EDA’s Indigenous Communities in ARP Act funding to the EDA’s Indigenous Communities
program, and tribes, consortiums of tribes, and other entities that serve indigenous communities program, and tribes, consortiums of tribes, and other entities that serve indigenous communities
are eligibleare eligible
recipients.96 The Indigenous Communities program was EDA’s first program recipients.96 The Indigenous Communities program was EDA’s first program
developed developed
specifical yspecifically for Indigenous communities.97 for Indigenous communities.97
EDA Appropriations, FY2011—FY2021FY2022
For the FY2011-For the FY2011-
FY2021FY2022 period, annual appropriations for EDA programs and administration period, annual appropriations for EDA programs and administration
expenses averaged $expenses averaged $
280 mil ion288 million (not adjusted for inflation) excluding disaster and COVID-19 (not adjusted for inflation) excluding disaster and COVID-19
supplemental appropriations.supplemental appropriations.
9898 Figure 5 provides a chart of the amounts provides a chart of the amounts
al ocatedallocated to major EDA to major EDA
programs since FY2011. Congress programs since FY2011. Congress
general ygenerally directs EDA to directs EDA to
al ocateallocate the largest share of its annual the largest share of its annual
appropriations to the Public Works program, with the second largest share of annual appropriations to the Public Works program, with the second largest share of annual
appropriations directed to the EAAappropriations directed to the EAA
program. However, in FY2021program. However, in FY2021
and FY2022, the allocation, the al ocation for the Build for the Build
to to
Scale program was slightly higher than the al ocation for the EAA program ($38 mil ion
compared to $37.5 mil ion, respectively).
other underserved groups. Such assessments will better equip agencies to develop po licies and programs that deliver resources and benefits equitably to all.” See https://www.govinfo.gov/content/pkg/FR-2021-01-25/pdf/2021-01753.pdf.
94 42 U.S.C. §3144.
95 See EDA, U.S. Department of Commerce, “ Permitting Additional Eligible T ribalScale program exceeded the allocation for the EAA program ($38 million and $45 million for the Build to Scale program—for FY2021 and FY2022 respectively—compared to $37.5 million annually for the EAA program). In FY2022, Congress directed EDA to allocate a larger amount of funding to the Assistance to Coal Communities (ACC) initiative than to the EAA program ($41.5 million compared to $37.5 million) for the first time since it set aside
92 EDA, “EDA’s American Rescue Plan Programs,” https://eda.gov/arpa/. 93 EDA, “EDA Investment Priorities—Definitions,” https://eda.gov/files/about/investment-priorities/EDA-FY21-Investment-Priorities-Definitions-June.pdf.
Additionally, per Executive Order 13985 federal agencies are required to conduct an assessment of “whether, and to what extent, its programs and policies perpetuate systemic barriers to opportunities and benefits for people of color and other underserved groups. Such assessments will better equip agencies to develop policies and programs that deliver resources and benefits equitably to all.” See https://www.govinfo.gov/content/pkg/FR-2021-01-25/pdf/2021-01753.pdf.
94 42 U.S.C. §3144. 95 See EDA, U.S. Department of Commerce, “Permitting Additional Eligible Tribal Entities,” 86 Entities,” 86
Federal Register 52957-52959, September 24, 2021, https://www.federalregister.gov/documents/2021/09/24/2021-20633/permitting-52957-52959, September 24, 2021, https://www.federalregister.gov/documents/2021/09/24/2021-20633/permitting-
additional-eligible-tribal-entities. additional-eligible-tribal-entities.
96 EDA, “Indigenous Communities,” https://eda.gov/arpa/indigenous/.
96 EDA, “Indigenous Communities,” https://eda.gov/arpa/indigenous/.
97 EDA, “97 EDA, “
EDA Updates RegulationsEDA Updates Regulations
to Make Grants More Accessibleto Make Grants More Accessible
t o to Native American Communities,” September Native American Communities,” September
24, 2021, https://eda.gov/news/blogs/2021/09/24/updated-regulations-native-american-communities.htm. 24, 2021, https://eda.gov/news/blogs/2021/09/24/updated-regulations-native-american-communities.htm.
98 For a summary of EDA programs and appropriations prior to FY2011, see Robert W. Lake, Robin Leichenko, and 98 For a summary of EDA programs and appropriations prior to FY2011, see Robert W. Lake, Robin Leichenko, and
Amy Glasmeier,Amy Glasmeier,
“ “EDA and U.S.EDA and U.S.
Economic Distress 1965–2000,” EDA Research Report, 99-07-13812, July 2004, Economic Distress 1965–2000,” EDA Research Report, 99-07-13812, July 2004,
http://www.ipsr.ku.edu/KUforKS/2004julyEDAandUSeconomicdistressreport.pdf.http://www.ipsr.ku.edu/KUforKS/2004julyEDAandUSeconomicdistressreport.pdf.
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funding for coal-impacted communities in FY2014 (i.e., through the ACC initiative and its precursors).
Figure 5. Funding for EDA Programs, FY2011- FY2021 and FY2022 Request
(in mil ionsFY2022
(in millions of nominal of nominal
dol arsdollars) )
Source: CRS using information from CRS using information from
the reportsthe reports
accompanying annual appropriations bil saccompanying annual appropriations bil s
and EDA’s FY2022
Congressional Budget Justification, https://www.commerce.gov/sites/default/files/2021-05/fy2022_eda_congressional_budget_justification.pdf. For . For a breakdown of funding amounts by program, by fiscal a breakdown of funding amounts by program, by fiscal
year, seeyear, see
Table B-2. Notes: Excludes supplemental appropriations and funding proposed for EDA programs in the FY2022 House-passed “Build Back Better Act” (H.R. 5376). Notes: The asteriskThe asterisk
(*) indicates that the FY2013 levels(*) indicates that the FY2013 levels
are the post-are the post-
sequestration amounts. EDA renamed the Regional Innovation Strategies programsequestration amounts. EDA renamed the Regional Innovation Strategies program
in FY2020. Amounts exclude funding provided for salaries and expenses.
Assistance to Energy Transitionin FY2020.
Assistance to Coal and Nuclear Closure Communities
Congress has signaled an interest in using the EDA to provide financial and technical assistance Congress has signaled an interest in using the EDA to provide financial and technical assistance
to communities impacted by changes in the coal economy since FY2014, and to communities to communities impacted by changes in the coal economy since FY2014, and to communities
impacted by nuclear plant closures since FY2015. The following milestones highlight Congress’s impacted by nuclear plant closures since FY2015. The following milestones highlight Congress’s
interest in providing assistance to interest in providing assistance to
coal and nuclear closureenergy transition communities since FY2014: communities since FY2014:
In FY2014, Congress encouraged EDA to assist communities impacted by the
In FY2014, Congress encouraged EDA to assist communities impacted by the
“economic dislocation in the coal and timber industries,” and directed EDA to
“economic dislocation in the coal and timber industries,” and directed EDA to
al ocateallocate no less than $3 no less than $3
mil ion million “to enhance regional business development in “to enhance regional business development in
areas negatively impacted by the downturn in the coal industry.”99 areas negatively impacted by the downturn in the coal industry.”99
99 See
99 See explanatory statement accompanying the Consolidated Appropriations Act, 2014 (P.L. 113-76), printed in the explanatory statement accompanying the Consolidated Appropriations Act, 2014 (P.L. 113-76), printed in the
January 15, 2014, January 15, 2014,
Congressional Record (pp. H507-H532), https://www.congress.gov/congressional-record/2014/01/ (pp. H507-H532), https://www.congress.gov/congressional-record/2014/01/
15/house-section/article/H475-2. 15/house-section/article/H475-2.
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1331 Economic Development Administration: An Overview of Programs and Appropriations
In FY2015, a Senate appropriations report noted the negative, regional economic
In FY2015, a Senate appropriations report noted the negative, regional economic
impact of nuclear plant closures and encouraged EDA to “identify and develop
impact of nuclear plant closures and encouraged EDA to “identify and develop
best practices” to assist communities.100 best practices” to assist communities.100
Between FY2015 and FY2017, Congress continued to direct EDA to provide
Between FY2015 and FY2017, Congress continued to direct EDA to provide
additional funding through the EAA program to coal-impacted communities as a
additional funding through the EAA program to coal-impacted communities as a
part of the multi-agency Partnerships for Opportunity and Workforce and part of the multi-agency Partnerships for Opportunity and Workforce and
Economic RevitalizationEconomic Revitalization
(POWER) Initiative.101 (POWER) Initiative.101
Each year in FY2018 through
Each year in FY2018 through
FY2021FY2022, Congress directed EDA to provide , Congress directed EDA to provide
additional funding through the EAA program to coal-impacted communities as a
additional funding through the EAA program to coal-impacted communities as a
part of the Assistance to Coal Communities (ACC) initiative.102part of the Assistance to Coal Communities (ACC) initiative.102
In FY2020 and FY2021
Each year in FY2020 through FY2022, Congress directed EDA to provide , Congress directed EDA to provide
additional funding
additional funding through the EAA program to the Assistance to Nuclear Closure Communities through the EAA program to the Assistance to Nuclear Closure Communities
(NCC) initiative.103(NCC) initiative.103
Figure 3
For the first time in FY2022, Congress directed EDA to provide funding ($4.5
million) through the EAA program to biomass power plant closure communities (BCC).104
Figure 6 charts the amounts of annual appropriations that EDA has charts the amounts of annual appropriations that EDA has
al ocatedallocated to the EAA, ACC, to the EAA, ACC,
and NCC programs since FY2011and NCC programs since FY2011
. and includes annual appropriations that EDA may allocate to biomass power plant closure communities in FY2022.105 The funding for the EAA, ACC, and NCC programs together The funding for the EAA, ACC, and NCC programs together
account for approximately 25-30% of total EDA appropriations account for approximately 25-30% of total EDA appropriations
annual y.104annually.106 In FY2021, EDA In FY2021, EDA
al ocated $300 mil ion of the $3 bil ion allocated $300 million of the $3 billion appropriation from the ARP
appropriation from the ARP Act to coal-impacted communities through the Coal Communities Commitment (CCC); CCC funding is not included
in Figure 3.105
100 S.Rept. 113-181. 100 S.Rept. 113-181.
101 In FY2015 and FY2016, Congress directed EDA to allocate funding to “Assistance to Coal Communities” (see 101 In FY2015 and FY2016, Congress directed EDA to allocate funding to “Assistance to Coal Communities” (see
explanatory statements accompanying the FY2015 and FY2016 appropriations bills, P.L. 113-235 and P.L. 114-113). explanatory statements accompanying the FY2015 and FY2016 appropriations bills, P.L. 113-235 and P.L. 114-113).
In FY2015 and FY2016, the ACC initiative was administered as a component of the multi-agency POWER Initiative—In FY2015 and FY2016, the ACC initiative was administered as a component of the multi-agency POWER Initiative—
a coordinated federal effort to assist coal-impacted communities. a coordinated federal effort to assist coal-impacted communities.
T heThe Appalachian Regional Commission’s (ARC’s) Appalachian Regional Commission’s (ARC’s)
POWER Initiative and the EDA’s ACCPOWER Initiative and the EDA’s ACC
initiative were developed as part of the Obama Administration’s POWER+ initiative were developed as part of the Obama Administration’s POWER+
Plan (FY2015-FY2016). At the time, the POWER Initiative was the multi-agency economic development component. Plan (FY2015-FY2016). At the time, the POWER Initiative was the multi-agency economic development component.
DuringDuring
the T rump the Trump Administration, ARC’s POWER Initiative and the EDA’s ACC Administration, ARC’s POWER Initiative and the EDA’s ACC
initiative continued to operate, but initiative continued to operate, but
werewere
no longer a part of a cross-agency POWER Initiative. See CRSno longer a part of a cross-agency POWER Initiative. See CRS
Report R46015, Report R46015,
The POWER Initiative: Energy
Transition as Econom ic Developm entEconomic Development, by Julie M. Lawhorn. , by Julie M. Lawhorn.
102 EDA, “
102 EDA, “
FY 2018 Economic Development Assistance Programs Notice of Funding Opportunity,” p. 7, FY 2018 Economic Development Assistance Programs Notice of Funding Opportunity,” p. 7,
https://www.grants.gov/web/grants/view-opportunity.html?oppId=306735. https://www.grants.gov/web/grants/view-opportunity.html?oppId=306735.
103 In FY2020, Congress directed EDA to allocate $15 million to the Assistance to Nuclear Closure Communities
103 In FY2020, Congress directed EDA to allocate $15 million to the Assistance to Nuclear Closure Communities
(NCC) initiative (P.L. 116-93; see also (NCC) initiative (P.L. 116-93; see also
Congressional Record, December 17, 2019, pp. H10961-10962). , December 17, 2019, pp. H10961-10962).
In FY2021, Congress Each year in FY2021 and FY2022, Congress directed EDA to allocate $16.5 million to the NCC initiative (P.L. 116-260; see also directed EDA to allocate $16.5 million to the NCC initiative (P.L. 116-260; see also
Congressional Record, ,
December 21, 2020, pp. H7922-7923December 21, 2020, pp. H7922-7923
).
104 T he ACC and NCC , and P.L. 117-103; see also Congressional Record, March 9, 2022, p. H1733).
104 In FY2022, Congress directed EDA to allocate $4.5 million to the biomass power plant closure communities (P.L. 117-103; see also Congressional Record, March 9, 2022, p. H1733). EDA guidance for activities to support biomass plant closure communities was not available at the time of this report’s publication. 105 FY2022 funding for biomass power plant closure communities is displayed as “BCC” in Figure 6. 106 The ACC and NCC initiatives are not independently authorized; congressional intent for funding the ACC and NCC initiatives are not independently authorized; congressional intent for funding the ACC and NCC
initiatives is outlined in the explanatory statements accompanying annual appropriations committee reports. For initiatives is outlined in the explanatory statements accompanying annual appropriations committee reports. For
additional information, including legislative origins, see CRSadditional information, including legislative origins, see CRS
Insight IN11648, Insight IN11648,
The Econom ic Developm entEconomic Development
Administration’s Assistance to Coal and Nuclear Closure Communities Initiatives for Economic Transitions, by Julie , by Julie
M. Lawhorn. M. Lawhorn.
105 See EDA, “ Coal Communities Commitment ,” https://eda.gov/arpa/coal-communities/, which notes that t he Initial
Report to the President on Em powering Workers Through Revitalizing Energy Com m unities (April 2021), developed by President Biden’s Interagency Working Group, recommended focused federal investments fo r coal-impacted communities. T he report is available at https://netl.doe.gov/sites/default/files/2021-04/Initial%20Report%20on%20Energy%20Communities_Apr2021.pdf.
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Figure 6. EAA, ACC, NCC Funding History: FY2011-FY2021 and FY2022 Request
(in mil ions of nominal dol ars)
Sources: CRS using information from reports accompanying annual appropriations bil s, and EDA’s FY2022
Congressional Budget Justification, https://www.commerce.gov/sites/d efault/files/2021-05/fy2022_eda_congressional_budget_justification.pdf. Notes: Does not include supplemental appropriations for disaster or COVID-19 economic recovery assistance or funding proposed for EDA programs in the FY2022 House-passed “Build Back Better Act” (H.R. 5376). The asterisk (*) indicates that the FY2013 level is the post-sequestration amount.
Consolidated Appropriations Act of 2021, P.L. 116-260
On December 27, 2020, Congress approved, and the President signed into law, the Consolidated Appropriations Act of 2021 (P.L. 116-260), providing appropriations for a number of federal
agencies and departments, including the programs and activities of the EDA. The act provided $346 mil ion for EDA, including $305.5 mil ion for programs and activities and $40.5 mil ion for salaries and expenses. EDA’s FY2021 appropriations included a 12% increase (from $30 mil ion to $33.5 mil ion) in the amount of funds for the ACC initiative, and a 10% increase (from $15 mil ion to $16.5 mil ion) in the second year of funding for the NCC initiative. The act also
included $38 mil ion for the Build to Scale program, which was an increase of $5 mil ion over the program funding level in FY2020.106 In addition, P.L. 116-260 included a Congressional Research Service
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Economic Development Administration: An Overview of Programs and Appropriations
Act to coal-impacted communities through the Coal Communities Commitment (CCC); CCC funding is not included in Figure 6.107
Figure 6. EAA, ACC, NCC, and BCC Funding History: FY2011-FY2022
(in millions of nominal dollars)
Sources: CRS using information from reports accompanying annual appropriations bil s. Notes: Does not include supplemental appropriations for disaster or COVID-19 economic recovery assistance The asterisk (*) indicates that the FY2013 level is the post-sequestration amount. In recent years, Congress has
directed EDA to administer additional funding through the EAA program for coal communities and nuclear closure communities. Starting in FY2022, Congress further directed EDA to administer funding through the EAA program for biomass plant closure communities (BCC). EDA guidance for activities to support biomass plant closure communities was not available at the time of this report’s publication.
Consolidated Appropriations Act of 2021, P.L. 116-260 On December 27, 2020, Congress approved, and the President signed into law, the Consolidated Appropriations Act of 2021 (P.L. 116-260), providing appropriations for a number of federal agencies and departments, including the programs and activities of the EDA. The act provided $346 million for EDA, including $305.5 million for programs and activities and $40.5 million for salaries and expenses. EDA’s FY2021 appropriations included a 12% increase (from $30 million to $33.5 million) in the amount of funds for the ACC initiative, and a 10% increase (from $15 million to $16.5 million) in the second year of funding for the NCC initiative. The act also included $38 million for the Build to Scale program, which was an increase of $5 million over the program funding level in FY2020.108 In addition, P.L. 116-260 included a provision rescinding
107 See EDA, “Coal Communities Commitment,” https://eda.gov/arpa/coal-communities/, which notes that the Initial Report to the President on Empowering Workers Through Revitalizing Energy Communities (April 2021), developed by President Biden’s Interagency Working Group, recommended focused federal investments for coal-impacted communities. The report is available at https://netl.doe.gov/sites/default/files/2021-04/Initial%20Report%20on%20Energy%20Communities_Apr2021.pdf.
108 Rep. Nita Lowey, “Explanatory Statement Submitted by Mrs. Lowey, Chairwoman of the House Committee on Appropriations Regarding H.R. 133, Consolidated Appropriations Act, 2021 (Division B—Commerce, Justice, Science, and Related Agencies),” Congressional Record, vol. 166, no. 218-Book III (December 21, 2020), pp. H7922-
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$10 million in unobligated balances from prior year appropriations for economic development assistance programs.109
Report language accompanying the FY2021 appropriations bill provided additional direction to EDA on the following matters:
geographic equity and rural economic development challenges; EDA’s collaborations with the Delta Regional Authority, the Appalachian
Regional Commission, and the Northern Border Regional Commission to assist distressed communities;
EDA’s technical assistance outreach and capabilities on projects involving
manufacturing and energy efficiency, and for distressed communities broadly;
the allocation and distribution of B2S funding; and the facilitation of economic development involving specific activities or sectors
such as new forest products, outdoor recreation, and aeronautics-related industries; among others.110
Consolidated Appropriations Act of 2022, P.L. 117-103 On March 15, 2022, Congress approved, and the President signed into law, the Consolidated Appropriations Act of 2022 (P.L. 117-103), providing appropriations for a number of federal agencies and departments, including the programs and activities of the EDA. The act provided $373.5 million for EDA, including $330 million for programs and activities and $43.5 million for salaries and expenses. EDA’s FY2022 appropriations included a 24% increase (from $33.5 million to $41.5 million) in the amount of funds for the ACC initiative, and an 18% increase (from $38 million to $45 million) in funding for the Build to Scale initiative. Congress directed EDA to increase funding allocated to the Public Works, Partnership Planning, Technical Assistance, and Research and Evaluation programs.111 In addition, P.L. 117-103 included a provision rescinding $15 million provision rescinding $10 mil ion in unobligated balances from prior year appropriations for economic development in unobligated balances from prior year appropriations for economic development
assistance programs.assistance programs.
107112
Report language accompanying the
Report language accompanying the
FY2021FY2022 appropriations appropriations
bil bill provided additionalprovided additional
direction to direction to
EDA on the following matters: EDA on the following matters:
geographic equity and
geographic equity and
rural economic development chal enges;
106persistent poverty areas;
7923, https://www.congress.gov/congressional-record/2020/12/21/house-section/article/H7879-2.
109 According to OMB, “Unobligated balances refers to balances that have not yet been committed by contract or other legally binding action by the government.” See OMB, Budget of the United States, FY2022, p. 5, https://www.govinfo.gov/content/pkg/BUDGET-2021-BALANCES/pdf/BUDGET-2021-BALANCES.pdf.
110 Rep. Nita Lowey, “Explanatory Statement Submitted by Mrs. Lowey, Chairwoman of the House Committee on Rep. Nita Lowey, “Explanatory Statement Submitted by Mrs. Lowey, Chairwoman of the House Committee on
Appropriations Regarding H.R. 133, Consolidated Appropriations Act, 2021 (Division B—Commerce, Justice, Appropriations Regarding H.R. 133, Consolidated Appropriations Act, 2021 (Division B—Commerce, Justice,
Science,Science,
and Related Agencies),” and Related Agencies),”
Congressional Record, vol. 166, no. 218-Book III (December 21, 2020), pp. H7922-, vol. 166, no. 218-Book III (December 21, 2020), pp. H7922-
7923, https://www.congress.gov/congressional-record/2020/12/21/house-section/article/H7879-2. 7923, https://www.congress.gov/congressional-record/2020/12/21/house-section/article/H7879-2.
107 According to OMB, “Unobligated balances
111 Rep. Nita Lowey, “Explanatory Statement Submitted by Mrs. Lowey, Chairwoman of the House Committee on Appropriations Regarding H.R. 133, Consolidated Appropriations Act, 2021 (Division B—Commerce, Justice, Science, and Related Agencies),” Congressional Record, vol. 166, no. 218-Book III (December 21, 2020), pp. H7922-7923, https://www.congress.gov/congressional-record/2020/12/21/house-section/article/H7879-2.
112 According to OMB, “Unobligated balances refers to balances that have not yet been committed by contract or other refers to balances that have not yet been committed by contract or other
legally bindinglegally binding
action by the government.” See OMB, action by the government.” See OMB,
Budget of the United States, FY2022, p. 5, , p. 5,
https://www.govinfo.gov/content/pkg/BUDGEThttps://www.govinfo.gov/content/pkg/BUDGET
-2021-BALANCES/pdf/BUDGET-2021-BALANCES/pdf/BUDGET
-2021-BALANCES.pdf. -2021-BALANCES.pdf.
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EDA’s collaborations with the Delta Regional Authority, the Appalachian
Regional Commission, and the Northern Border Regional Commission to assist distressed communities;
EDA’s
rural economic development challenges, with instructions to EDA to prioritize
broadband infrastructure in underserved and rural areas and award at least 40% of B2S funding to rural communities;
EDA’s efforts to avoid duplication in grant programs; EDA’s technical assistance outreach and capabilities on projects involving technical assistance outreach and capabilities on projects involving
manufacturing
manufacturing
and energy efficiencycommunities, and for distressed communities broadly; , and for distressed communities broadly;
the
the
al ocation and distribution of B2S funding; and
allocation and distribution of assistance to energy transition communities,
with new instructions to EDA to include funding for biomass power plant closure communities (in addition to ongoing support for coal-impacted and nuclear closure communities);
the allocation and distribution of B2S funding, directing $38 million for the i6
Challenge and $7 million for Seed Fund Support;
the facilitation of economic development involving specific activities or sectors the facilitation of economic development involving specific activities or sectors
such as new forest products,
such as new forest products,
outdoor recreationtravel and tourism, and aeronautics-related , and aeronautics-related
industriesindustries
;, among others. among others.
108 113
Supplemental Appropriations
Supplemental appropriations for EDA programs have supported recovery efforts following Supplemental appropriations for EDA programs have supported recovery efforts following
economic injury caused by natural disasters and the COVID-19 pandemic. Disaster funding economic injury caused by natural disasters and the COVID-19 pandemic. Disaster funding
provides for expenses related to flood mitigation, disaster relief, long-term recovery, and the provides for expenses related to flood mitigation, disaster relief, long-term recovery, and the
restoration of infrastructure for specific areas.restoration of infrastructure for specific areas.
109114 COVID-19 economic recovery funding is COVID-19 economic recovery funding is
supporting economic recovery planning and technical assistance strategies to address economic supporting economic recovery planning and technical assistance strategies to address economic
dislocations caused by the coronavirus pandemic; entrepreneurial support programs to diversify dislocations caused by the coronavirus pandemic; entrepreneurial support programs to diversify
economies; and related efforts.economies; and related efforts.
110115 EDA’s distribution and EDA’s distribution and
al ocationallocation strategy for supplemental strategy for supplemental
appropriations varies by each event or situation.appropriations varies by each event or situation.
111 116
Disaster Economic Recovery Assistance, FY2011-FY2021
Since FY2011, Congress has approved $1.4
Since FY2011, Congress has approved $1.4
bil ionbillion in supplemental funding for economic in supplemental funding for economic
recovery in response to natural disasters (serecovery in response to natural disasters (se
e Figure 7), including the following appropriations: ), including the following appropriations:
In FY2012, Congress approved $200
In FY2012, Congress approved $200
mil ionmillion for assistance to areas that received for assistance to areas that received
a major disaster designation in 2011 pursuant to the Robert T. Stafford Disaster
a major disaster designation in 2011 pursuant to the Robert T. Stafford Disaster
Relief and Emergency Assistance Act.Relief and Emergency Assistance Act.
112
In FY2018 and FY2019, supplemental appropriations provided $1.2 bil ion for
assistance to communities affected by disasters that occurred in calendar years 2017-2019. The Bipartisan Budget Act of 2018 (P.L. 115-123) provided EDA with $600
mil ion in additional Economic Adjustment Assistance (EAA) funds for
disaster relief and in response to economic distress or harm resulting from
108 Rep. Nita Lowey, “Explanatory Statement Submitted by Mrs. Lowey, Chairwoman of the House Committee on Appropriations Regarding H.R. 133,117
113 Consolidated Appropriations Act, Consolidated Appropriations Act,
20212022 (Division B—Commerce, Justice, (Division B—Commerce, Justice,
Science,Science,
and Related Agencies),” and Related Agencies),”
Congressional Record, vol. , vol.
166168, no. , no.
21842-Book III (-Book III (
December 21, 2020), pp. H7922-7923, March 9, 2022), pp. H1732-H1733, https://www.congress.gov/https://www.congress.gov/
congressional-record/2020/12/21/house-section/article/H7879-2.
109117/crec/2022/03/09/168/42/CREC-2022-03-09-bk3.pdf.
114 By example, see P.L. 116-120, which authorizes appropriations for disaster economic recovery activities under By example, see P.L. 116-120, which authorizes appropriations for disaster economic recovery activities under
Section 703 of the Public Works and Economic Development Act (42 U.S.C. §3233). Section 703 of the Public Works and Economic Development Act (42 U.S.C. §3233).
110115 By example, see P.L. 116-260. By example, see P.L. 116-260.
111 T estimony116 Testimony by Mr. Dennis Alvord, Acting Assistant Secretary of Commerce for EDA, U.S. by Mr. Dennis Alvord, Acting Assistant Secretary of Commerce for EDA, U.S.
House House of of
Representatives, Committee on Representatives, Committee on
T ransportationTransportation and Infrastructure, Subcommittee on Economic Development, Public and Infrastructure, Subcommittee on Economic Development, Public
BuildingsBuildings
and Emergency Managementand Emergency Management
,,
Investing in Am ericaAmerica: Reauthorization of the Econom ic Developm ent
Adm inistrationEconomic Development Administration, 117th Cong., 1st sess., April 28, 2021, https://www.congress.gov/117/meeting/house/112512/witnesses/ 117th Cong., 1st sess., April 28, 2021, https://www.congress.gov/117/meeting/house/112512/witnesses/
HHRG-117-PW13-Wstate-AlvordD-20210428.pdf. HHRG-117-PW13-Wstate-AlvordD-20210428.pdf.
112117 P.L. 112-55. P.L. 112-55.
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Hurricanes Harvey, Irma, and Maria, wildfires and other federal y-declared natural disasters occurring in calendar year 2017.
The Additional
In FY2018 and FY2019, supplemental appropriations provided $1.2 billion for
assistance to communities affected by disasters that occurred in calendar years 2017-2019. The Bipartisan Budget Act of 2018 (P.L. 115-123) provided EDA with $600
million in additional Economic Adjustment Assistance (EAA) funds for disaster relief and in response to economic distress or harm resulting from Hurricanes Harvey, Irma, and Maria, wildfires and other federally-declared natural disasters occurring in calendar year 2017.
The Additional Supplemental Appropriations for Disaster Relief Act, 2019 Supplemental Appropriations for Disaster Relief Act, 2019
(P.L. 116-120) provided EDA with $600
(P.L. 116-120) provided EDA with $600
mil ion million in additionalin additional
EAA funds for EAA funds for
areas that received a major disaster designation under the Robert T. Stafford areas that received a major disaster designation under the Robert T. Stafford
Act as a result of Hurricanes Florence, Michael, and Lane, Typhoons Yutu Act as a result of Hurricanes Florence, Michael, and Lane, Typhoons Yutu
and Mangkhut, wildfires, volcanic eruptions, earthquakes, and other natural and Mangkhut, wildfires, volcanic eruptions, earthquakes, and other natural
disasters occurring in calendar year 2018, as disasters occurring in calendar year 2018, as
wel well as for areas affected by as for areas affected by
tornadoes and floods occurring in calendar year 2019.tornadoes and floods occurring in calendar year 2019.
113 118
COVID-19 Economic Recovery Assistance, FY2020-FY2021
EDA received $1.5
EDA received $1.5
bil ion billion of supplemental appropriations through the Coronavirus Aid, Relief, of supplemental appropriations through the Coronavirus Aid, Relief,
and Economic Security (CARES) Act (P.L. 116-136) in FY2020, and $3 and Economic Security (CARES) Act (P.L. 116-136) in FY2020, and $3
bil ion billion of supplemental of supplemental
appropriations through the American Rescue Plan (ARP) Act (P.L. 117-2) in FY2021. As noted appropriations through the American Rescue Plan (ARP) Act (P.L. 117-2) in FY2021. As noted
previously, the supplemental CARES Act funding was nearly five times the amount of EDA’s previously, the supplemental CARES Act funding was nearly five times the amount of EDA’s
FY2020 annual appropriation, and the ARP ActFY2020 annual appropriation, and the ARP Act
funding was over eight times the amount of funding was over eight times the amount of
EDA’s FY2021 annual appropriation—seEDA’s FY2021 annual appropriation—se
e Figure 7.
CARES Act, P.L. 116-136
The types of projects supported through CARES Act recovery assistance includedThe types of projects supported through CARES Act recovery assistance included
:
economic recovery planning and preparing technical assistance strategies to
economic recovery planning and preparing technical assistance strategies to
address economic dislocations caused by the COVID-19 pandemic;
address economic dislocations caused by the COVID-19 pandemic;
preparing or updating resiliency plans to respond to future pandemics;
preparing or updating resiliency plans to respond to future pandemics;
implementing entrepreneurial support programs to diversify economies; implementing entrepreneurial support programs to diversify economies;
constructing public works and facilities that constructing public works and facilities that
wil will support economic recovery, and support economic recovery, and
including the deployment of broadband to support telehealth and remote learning
including the deployment of broadband to support telehealth and remote learning
for job for job
skil s.
Al skills.
All geographic areas were eligible to apply for assistance under the “Special Need” criteria of the geographic areas were eligible to apply for assistance under the “Special Need” criteria of the
EAA EAA program because of the widespread effects of the COVID-19 pandemic.program because of the widespread effects of the COVID-19 pandemic.
114119 EDA used both EDA used both
competitive and non-competitive processes to distribute CARES Act funding. Activities that competitive and non-competitive processes to distribute CARES Act funding. Activities that
received funding through non-competitive processes included EDDs and tribal planning grantees; received funding through non-competitive processes included EDDs and tribal planning grantees;
University Centers; and Revolving Loan Fund (RLF) programs.University Centers; and Revolving Loan Fund (RLF) programs.
115
American Rescue Plan (ARP) Act, P.L. 117-2
The ARP Act provided $3 bil ion to assist communities with COVID-19 recovery and resiliency strategies. These funds are available for economic adjustment assistance, to prevent, prepare for, and respond to COVID-19 conditions and for necessary expenses for responding to economic
113120
118 EDA, “Disaster Supplemental Funding,” EDA, “Disaster Supplemental Funding,”
https://eda.gov/disaster-recovery/supplemental/. https://eda.gov/disaster-recovery/supplemental/.
114119 42 U.S.C. 42 U.S.C.
§3149(b). §3149(b).
115120 For more information on the EDA’s COVID-19 response, see CRS For more information on the EDA’s COVID-19 response, see CRS
Insight IN11402, Insight IN11402,
The Economic Development
Administration’s Economic Recovery Assistance for COVID-19 Impacted Communities, by Julie M. Lawhorn; and , by Julie M. Lawhorn; and
DOC, “DOC, “
CARES CARES Act Implementation Plan,” June 2020, https://www.commerce.gov/sites/default/files/2020- Act Implementation Plan,” June 2020, https://www.commerce.gov/sites/default/files/2020-
07/Commerce%20CARES%20Act%20Implementation%20Plan07/Commerce%20CARES%20Act%20Implementation%20Plan
—Section%2015011%20PRAC%20Report——Section%2015011%20PRAC%20Report—
June%202020—Final.pdf. June%202020—Final.pdf.
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American Rescue Plan (ARP) Act, P.L. 117-2 The ARP Act provided $3 billion to assist communities with COVID-19 recovery and resiliency strategies. These funds are available for economic adjustment assistance, to prevent, prepare for, and respond to COVID-19 conditions and for necessary expenses for responding to economic
injury as a result of the COVID-19 pandemic. Of this amount, 25% injury as a result of the COVID-19 pandemic. Of this amount, 25%
wil will be for states and be for states and
communities that have been affected by the decline in the “travel, tourism, or outdoor recreation communities that have been affected by the decline in the “travel, tourism, or outdoor recreation
sectors.” EDA sectors.” EDA
wil will administer ARP Act recovery assistance through the following six new grant administer ARP Act recovery assistance through the following six new grant
programs, each with different investment criteria and priorities:programs, each with different investment criteria and priorities:
116121
the Build
the Build
Back Better Regional Back Better Regional
Chal enge;117Challenge;122 the Good Jobs the Good Jobs
Chal engeChallenge; ;
the Economic Adjustment Assistance Program; the Economic Adjustment Assistance Program;
the Indigenous Communities the Indigenous Communities
Chal engeChallenge; ;
the Travel, Tourism, and Outdoor Recreation Program; and the Travel, Tourism, and Outdoor Recreation Program; and
the Statewide Planning, Research, and Networks Program. the Statewide Planning, Research, and Networks Program.
Figure 7. Annual and Supplemental and Disaster Recovery Appropriations,
FY2011-FY2021FY2022
(in
(in
mil ionsmillions of nominal of nominal
dol ars) dollars)
Source: CRS using information fromCRS using information from
the reportsthe reports
accompanying appropriations bil s. accompanying appropriations bil s.
Notes: Annual appropriations include funding for programsAnnual appropriations include funding for programs
and salariesand salaries
and expenses.and expenses.
In FY2012, annual In FY2012, annual
appropriations for programsappropriations for programs
and disaster recoveryand disaster recovery
assistance were approved in one bil , the Consolidated and assistance were approved in one bil , the Consolidated and
Further Continuing Appropriations Act, 2012 (P.L. 112-55). In FY2018 through FY2021, supplemental Further Continuing Appropriations Act, 2012 (P.L. 112-55). In FY2018 through FY2021, supplemental
appropriations for disasterappropriations for disaster
recovery assistance and COVID-19 pandemic economicrecovery assistance and COVID-19 pandemic economic
recovery assistance were recovery assistance were
approved in bil sapproved in bil s
separate fromseparate from
annual appropriations bil s.annual appropriations bil s.
The asteriskThe asterisk
(*) indicates that the FY2013 level(*) indicates that the FY2013 level
is the post-sequestration amount.
121is the post-sequestration amount.
FY2022 Funding Request
The Biden Administration proposed increased annual appropriations for EDA. The EDA’s FY2022 congressional budget request included $433 mil ion for the EDA, an amount that is
almost 25% above the FY2021 enacted level of $346 mil ion. The request cal ed for increases in 116 For more information about the six ARP Act grant programs, see CRS For more information about the six ARP Act grant programs, see CRS
Insight IN11712, Insight IN11712,
The Economic
Development Administration’s American Rescue Plan (ARP) Act Grant Programs, by Julie, by Julie
M. Lawhorn. M. Lawhorn.
117 T he122 The EDA allocated one third of the total amount of ARP Act appropriations ($1 billion of a total $3 billion in ARP EDA allocated one third of the total amount of ARP Act appropriations ($1 billion of a total $3 billion in ARP
Act funding)Act funding)
to the Buildto the Build
Back Better Regional ChallengeBack Better Regional Challenge
(BBRC)(BBRC)
to support new or existing regional innovation to support new or existing regional innovation
clusters. On December 13, 2021, EDA announced awardsclusters. On December 13, 2021, EDA announced awards
to 60 coalitions through Phase 1 of the BBRCto 60 coalitions through Phase 1 of the BBRC
program program; see ; see
https://eda.gov/news/press-releases/2021/12/13/build-back-better-regional-challenge-finalists.htm. https://eda.gov/news/press-releases/2021/12/13/build-back-better-regional-challenge-finalists.htm.
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3536 Economic Development Administration: An Overview of Programs and Appropriations
FY2023 Funding Request The Biden Administration proposed increased annual appropriations for EDA. The EDA’s FY2023 congressional budget request included $503 million for the EDA, an amount that is almost 35% above the FY2022 enacted level of $374 million. The request called for increases in
funding levels for almost funding levels for almost
al all of EDA’s programs, with the exception of the Trade Adjustment of EDA’s programs, with the exception of the Trade Adjustment
Assistance for Firms Assistance for Firms
programand Research and Evaluation programs and the Assistance to Nuclear Closure Communities initiative. The and the Assistance to Nuclear Closure Communities initiative. The
largest nominal increases in program funding from largest nominal increases in program funding from
FY2021 FY2022 enacted levels were proposed forenacted levels were proposed for
:
the STEM Talent
the STEM Talent
Chal enge Challenge (“STEM Apprenticeships”) (from $2 (“STEM Apprenticeships”) (from $2
mil ionmillion to $10 to $10
mil ion in FY2022),
the Build to Scale program (from $38 mil ion to $45 mil ion in FY2022), the million in FY2023),
the Economic Adjustment Assistance program (from $37.5 Economic Adjustment Assistance program (from $37.5
mil ionmillion to $48 to $48
mil ion
in FY2022million
in FY2023), ),
the ACC initiative
the ACC initiative
(from $(from $
33.5 mil ion41.5 million to $80.5 to $80.5
mil ion in FY2022million in FY2023), and ), and
salaries and expenses (from $ salaries and expenses (from $
40.5 mil ion to $50.1 mil ion in FY2022).118
Table 5 provides a summary of funding for EDA programs in annual and supplemental
appropriations bil s enacted in FY2021—as wel as the requested FY2022 amounts, the House and Senate recommended amounts, and supplemental amounts in the House-passed “Build Back
Better Act” (BBBA) in FY2022.
Table 5. FY2021 Regular Appropriations, ARP Act, and FY2022 Request, House,
Senate, and House-Passed BBBA
(budget authority, in mil ions of nominal dol ars)
FY2021 Enacted
FY2022
P.L. 116-
ARP Act,
House
Senate
BBBA
260
P.L. 117-2
Request
(H.R. 4505)
Draft Bill
(H.R. 5376) 43.5 million to $70 million in FY2023).123
The FY2023 request includes $50 million for a new Recompete pilot program. The proposed Recompete Pilot program will provide eligible recipients with multi-year grants to address persistent economic distress, as defined by high prime-age employment gaps. Grants would support the implementation of activities from an approved Recompete Plan.124 Table 5 provides a summary of funding for EDA programs in annual appropriations bills enacted in FY2022—as well as the requested FY2023 amounts.
Table 5. FY2022 Annual Appropriations and FY2023 Request
(budget authority, in millions of nominal dollars)
FY2022
FY2023
Enacted
P.L. 117-
103
Request
EDA Programs
EDA Programs
Public Works Public Works
119.5
$120.5
$124.0
124.0
124.0
124.0
Economic Adjustment Economic Adjustment
$37.5
$4837.5
3,000.0
48.0
42.5
40.0
5,040.0 .0
Assistance
Assistance
Partnership Planning
Partnership Planning
33$34.5
$36.0
Technical Assistance
$12.5
$14.0
Research and Evaluation
$2.0
$2.0
Traded Adjustment
$13.5
$13.0
Assistance for Firms (TAAF)
Assist. Coal Communities
$41.5
$80.5
(ACC)
123 DOC, EDA, FY2023.5
36.0
36.0
36.5
Technical Assistance
10.0
14.0
14.0
19.0
Research and Evaluation
1.5
2.0
2.0
2.5
Traded Adjustment Assistance
13.5
13.0
13.5
13.0
for Firms (TAAF)
Assist. Coal Communities
37.5
80.5
80.5
(ACC)
Assist. Nuclear Closure (NCC)
16.5
10.0
10.0
Assist. Power Plant Closure
55.0
Communities
STEM Apprenticeships (Sec. 28)
2.0
10.0
10.0
5.0
Build to Scale (Sec. 27)
38.0
45.0
50.0
50.0
Subtotal Programs
305.5
3,000.0
382.5
382.5
345.0
5,040.0
118 DOC, EDA, FY2022 Congressional Budget Justification, https://www.commerce.gov/sites/default/files/2021-05/fy2022_eda_congressional_budget_justification.pdf Congressional Budget Justification, https://www.commerce.gov/sites/default/files/2022-03/FY2023-EDA-Congressional-Budget-Submission.pdf.
124 Ibid., p. 89. .
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FY2021 Enacted
FY2022
P.L. 116-
ARP Act,
House
Senate
BBBA
260
P.L. 117-2
Request
(H.R. 4505)
Draft Bill
(H.R. 5376)
Salaries and Expenses
40.5
$50.6
50.6
50.0
210.0
Total
346.0
3,000.0
433.1
433.1
395.0
5,250.0
Sources: Sources for FY2021 amounts are from the explanatory statements accompanying P.L. 116-260 and P.L. 117-2. FY2022 requested and House committee-reported amounts were taken from H.Rept. 117-97 and DOC, EDA, FY2022 Congressional Budget Justification, https://www.commerce.gov/sites/default/files/2021-05/fy2022_eda_congressional_budget_justification.pdf. Senate Committee on Appropriations majority draft bil amounts were taken from the text of the FY2022 Commerce, Justice, and Science (CJS) draft bil (S. 3042 and joint explanatory statement posted on the Senate Committee on Appropriations’ website at https://www.appropriations.senate.gov/news/majority/chairman-leahy-relea ses-rema ining-nine-senate-appropriations-bil s). Amounts for the “Build Back Better Act” (H.R. 5376) funding prepared by CRS based on the text of H.R. 5376, as approved by the House on 11/3/2021, https://rules.house.gov/bil /117/hr-5376. Notes: Funding in the “Build Back Better Act” (H.R. 5376) has periods of availability ranging from FY2027 through FY2031. The EDA is currently operating, as al federal agencies are, under continuing appropriations for FY2022.
Policy Considerations
FY2022
FY2023
Enacted
P.L. 117-
103
Request
Assist. Nuclear Closure
$16.5
$10.0
(NCC)
Assist. Biomass Power
$4.5
—
Plant Closure Communities
STEM Apprenticeships
$2.0
$10.0
(Sec. 28)
Build to Scale (Sec. 27)
$45.0
$45.0
Recompete Pilot
—
$50.0
Subtotal Programs
$330.0
$432.5
Salaries and Expenses
$43.5
$70.0
Total
$373.5
$502.5
Sources: Sources for FY2022 amounts are from the explanatory statements accompanying P.L. 117-103. FY2023 requested amounts were taken from DOC, EDA, FY2023 Congressional Budget Justification, https://www.commerce.gov/sites/default/files/2022-03/FY2023-EDA-Congressional-Budget-Submission.pdf.
Policy Considerations The following policy considerations center on EDA programs and the factors that affect the The following policy considerations center on EDA programs and the factors that affect the
distribution of assistance; the agency’s role in federal economic development integration and in distribution of assistance; the agency’s role in federal economic development integration and in
disaster economic recovery and resiliency; the extent of innovation and technology-led economic disaster economic recovery and resiliency; the extent of innovation and technology-led economic
development activities in EDA’s investment portfolio; and options for EDA investments in development activities in EDA’s investment portfolio; and options for EDA investments in
workforce and human capital development. These considerations, among others, may inform workforce and human capital development. These considerations, among others, may inform
Congress’s debate on the reauthorization of PWEDA and its consideration of other legislative Congress’s debate on the reauthorization of PWEDA and its consideration of other legislative
options involving economic development policy. options involving economic development policy.
Changes to Program Requirements
Instead of establishing new programs for specific development issues, Congress may consider
Instead of establishing new programs for specific development issues, Congress may consider
changes to the factors that affect the distribution of EDA assistance, such as changes to the types changes to the factors that affect the distribution of EDA assistance, such as changes to the types
of eligibleof eligible
recipients, cost share arrangements,recipients, cost share arrangements,
119125 or other program requirements established by or other program requirements established by
legislation. Such changes could be designed to limit or expand access to grants for certain legislation. Such changes could be designed to limit or expand access to grants for certain
projects, types of applicants, or communities with specific characteristics (e.g., regions projects, types of applicants, or communities with specific characteristics (e.g., regions
experiencing economic distress as measured by new or revised metrics or regions affected by experiencing economic distress as measured by new or revised metrics or regions affected by
changes in specific industries).120 For instance, congressional members, EDA leaders, and outside 119
125 Some analysts have proposed lower Some analysts have proposed lower
cost share requirements basedcost share requirements based
on the applicant community’s level of economic on the applicant community’s level of economic
distress, size, or other characteristics. For additional perspectives, see Anthony F. Pipa and Natalie Geismar,distress, size, or other characteristics. For additional perspectives, see Anthony F. Pipa and Natalie Geismar,
“ “Will Will
BidenBiden
Deliver for RuralDeliver for Rural
America? America?
T heThe Promise of the American Rescue Plan,” June 21, 2021, Promise of the American Rescue Plan,” June 21, 2021,
https://www.brookings.edu/blog/up-front/2021/06/22/will-biden-deliver-for-rural-america-the-promise-of-the-https://www.brookings.edu/blog/up-front/2021/06/22/will-biden-deliver-for-rural-america-the-promise-of-the-
american-rescue-plan/. By example, S. 307 proposed a 100% fundingamerican-rescue-plan/. By example, S. 307 proposed a 100% funding
rate for specific project types, and lower cost rate for specific project types, and lower cost
share requirements wereshare requirements were
discussed discussed in a recent EDA oversight hearing (see U.S.in a recent EDA oversight hearing (see U.S.
Senate, Environment and Public Works Senate, Environment and Public Works
Committee, Committee,
Exam ining Program s at the Econom ic Developm ent Adm inistrationExamining Programs at the Economic Development Administration, 117th Cong., 1st sess., Nov. 3, 2021, 117th Cong., 1st sess., Nov. 3, 2021,
https://www.epw.senate.gov/public/index.cfm/hearings?ID=256D08CE-44DC-47B4-9663-F9AC5AA8950E). https://www.epw.senate.gov/public/index.cfm/hearings?ID=256D08CE-44DC-47B4-9663-F9AC5AA8950E).
120 EDA provides financial and technical assistance to communities regardless of size or density (e.g., regardless of urban or rural designations). Selected EDA grant programs prioritize areas experiencing economic distress as directed by authorizing statute (see “ Economic Distress Criteria” and 42 U.S.C. §3121 et seq.). Geographic distribution is considered in award decisions according to selected NOFOs (see EDA, ST EM T alent Challenge NOFO, FY2021, p. 17, https://www.grants.gov/web/grants/view-opportunity.html?oppId=328794).
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changes in specific industries).126 For instance, congressional members, EDA leaders, and outside groups have called attention to the role of broadband access in economic recovery and attention to the role of broadband access in economic recovery and
infrastructure policies. Broadband-related activities are currently eligibleinfrastructure policies. Broadband-related activities are currently eligible
for assistance under for assistance under
many EDA program grants.many EDA program grants.
121127 However, unlike many forms of public infrastructure (e.g., water, However, unlike many forms of public infrastructure (e.g., water,
wastewater), broadband access is frequently provided by, or in partnership with, private, for-profit wastewater), broadband access is frequently provided by, or in partnership with, private, for-profit
companies.companies.
122128 Congress has considered Congress has considered
bil sbills in the 117th Congress that would amend PWEDA to in the 117th Congress that would amend PWEDA to
make public-private partnerships eligible for assistance for specified broadband projects (see H.R. make public-private partnerships eligible for assistance for specified broadband projects (see H.R.
3193 and S. 1695).3193 and S. 1695).
123129
Expanding or Establishing EDA Programs, Roles, Offices, and Capacity
Congress may also consider new or expanded
Congress may also consider new or expanded
EDA programs, roles, and offices, as EDA programs, roles, and offices, as
wel well as as
adjustments to the agency’s adjustments to the agency’s
overal overall capacity and authorities. These options may be considered in capacity and authorities. These options may be considered in
addition to the technology and innovation policies noted in the following section. addition to the technology and innovation policies noted in the following section.
In terms of EDA programs, Congress may wish to establish new, or redirect existing, investments
In terms of EDA programs, Congress may wish to establish new, or redirect existing, investments
to address specific development issues, including regional strategies, new types of infrastructure, to address specific development issues, including regional strategies, new types of infrastructure,
human capital, and capacity human capital, and capacity
chal enges.124challenges.130 In terms of new program options, In terms of new program options,
bil sbills proposed in the proposed in the
117th Congress (S. 2464 and H.R. 4651) would create a flexible, 10-year block grant program to 117th Congress (S. 2464 and H.R. 4651) would create a flexible, 10-year block grant program to
be administered by the EDA to promote economic growth and opportunity in persistently be administered by the EDA to promote economic growth and opportunity in persistently
distressed areas. Outside groups have distressed areas. Outside groups have
cal edcalled for a shift to more broad-based, multi-sector, and for a shift to more broad-based, multi-sector, and
large-scale grants to support collaborative regional economic development strategies, similar to large-scale grants to support collaborative regional economic development strategies, similar to
the structure and scale of the new Build Back Better Regional the structure and scale of the new Build Back Better Regional
Chal enge.125 As a matter of
program integration and overal policy consideration, some of Congress’s existing and proposed priorities related to disaster recovery as wel as climate and economic resiliency may overlap with the infrastructure planning, design, and implementation activities currently supported by the Public Works and EAA programs.126 As an alternative—or in addition to—changing program or Challenge.131 As a matter of
126 EDA provides financial and technical assistance to communities regardless of size or density (e.g., regardless of urban or rural designations). Selected EDA grant programs prioritize areas experiencing economic distress as directed by authorizing statute (see “Economic Distress Criteria” and 42 U.S.C. §3121 et seq.). Geographic distribution is considered in award decisions according to selected NOFOs (see EDA, STEM Talent Challenge NOFO, FY2021, p. 17, https://www.grants.gov/web/grants/view-opportunity.html?oppId=328794). Additionally, the “10-20-30” provision, included in reports accompanying recent appropriations bills, directs the Additionally, the “10-20-30” provision, included in reports accompanying recent appropriations bills, directs the
agency to awardagency to award
10% of its funding to counties with poverty rates of at least 20% over the last 30 years (persistent10% of its funding to counties with poverty rates of at least 20% over the last 30 years (persistent
--
poverty counties). By example, see P.L. 115-31, P.L. 115-141, among other annual appropriations bills for EDA poverty counties). By example, see P.L. 115-31, P.L. 115-141, among other annual appropriations bills for EDA
programs. programs.
GAO’sGAO’s
2021 report, 2021 report,
Areas with High Poverty: Changing How the 10- 20-30 Funding Formula Is Applied Could
Increase Im pactImpact in Persistent Poverty Counties, notes that EDA applies the 10-20-30 provision to appropriations for , notes that EDA applies the 10-20-30 provision to appropriations for
two of its programs—Publictwo of its programs—Public
Works and BuildWorks and Build
to Scale.to Scale.
See See https://www.gao.gov/assets/gao-21-470.pdf. https://www.gao.gov/assets/gao-21-470.pdf.
121127 In a FY2021 EDA oversight hearing, testimony from a practitioner witness noted that in statutory language (i.e., In a FY2021 EDA oversight hearing, testimony from a practitioner witness noted that in statutory language (i.e.,
PWEDA, 42 U.S.C.PWEDA, 42 U.S.C.
§3121 et seq.) and in EDA’s guidance§3121 et seq.) and in EDA’s guidance
there is limited direction on broadbandthere is limited direction on broadband
activities in the activities in the
economic development context. See U.S.economic development context. See U.S.
House House of Representatives, Committee on Transportation and Infrastructure, of Representatives, Committee on Transportation and Infrastructure,
Subcommittee on Economic Development, Public BuildingsSubcommittee on Economic Development, Public Buildings
and Emergency Managementand Emergency Management
,,
Investing in Am ericaAmerica:
Reauthorization of the Econom ic Developm ent Adm inistration, Economic Development Administration, April 28, 2021, https://www.congress.gov/117/meeting/April 28, 2021, https://www.congress.gov/117/meeting/
house/112512/witnesses/HHRG-117-PW13-Wstate-CooperL-20210428.pdf. house/112512/witnesses/HHRG-117-PW13-Wstate-CooperL-20210428.pdf.
122 T estimony128 Testimony by Assistant Secretary of Economic Development, Alejandra Castillo, U.S. by Assistant Secretary of Economic Development, Alejandra Castillo, U.S.
Senate, Environment and Senate, Environment and
PublicPublic
Works Committee, Works Committee,
Exam iningExamining Programs at the Econom ic Developm ent Adm inistrationEconomic Development Administration, 117th Cong., 1st sess., 117th Cong., 1st sess.,
Nov. 3, 2021, https://www.epw.senate.gov/public/index.cfm/hearings?ID=256D08CE-44DC-47B4-9663-Nov. 3, 2021, https://www.epw.senate.gov/public/index.cfm/hearings?ID=256D08CE-44DC-47B4-9663-
F9AC5AA8950E. F9AC5AA8950E.
123129 Related bills Related bills
(H.R. 6491 and S.(H.R. 6491 and S.
3648) were also introduced in the 116th Congress. 3648) were also introduced in the 116th Congress.
124130 For additional context, Congress has also considered For additional context, Congress has also considered
bills bills to amend PWEDA to explicitly to amend PWEDA to explicitly
autho rizeauthorize the use of grant the use of grant
fundsfunds
for activities such as travel promotion and for projects that directly or indirectly increase the accessibility of child for activities such as travel promotion and for projects that directly or indirectly increase the accessibility of child
care, among other purposes. care, among other purposes.
125131 U.S. U.S.
Senate, Environment and Public Works Committee, Senate, Environment and Public Works Committee,
Examining Programs at the Economic Development
Adm inistrationAdministration, 117th Cong., 1st sess., Nov. 3, 2021, https://www.epw.senate.gov/public/index.cfm/hearings?ID=117th Cong., 1st sess., Nov. 3, 2021, https://www.epw.senate.gov/public/index.cfm/hearings?ID=
256D08CE-44DC-47B4-9663-F9AC5AA8950E. 256D08CE-44DC-47B4-9663-F9AC5AA8950E.
126 As noted previously, EDA was one of several agencies named in the Administration’s American Jobs Plan for potential new infrastructure investment through increased funding (or other changes) to the Public Works program. See
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program integration and overall policy consideration, some of Congress’s existing and proposed priorities related to disaster recovery as well as climate and economic resiliency may overlap with the infrastructure planning, design, and implementation activities currently supported by the Public Works and EAA programs.132 As an alternative—or in addition to—changing program or eligibility requirements, Congress may also consider additional support for direct EDA technical requirements, Congress may also consider additional support for direct EDA technical
assistance, expanded partnerships, targeted initiatives, or other strategies to build the capacity of assistance, expanded partnerships, targeted initiatives, or other strategies to build the capacity of
stakeholder groups, such as stakeholder groups, such as
economical yeconomically distressed and distressed and
smal small, rural communities, through , rural communities, through
EDA’s existing planning, RNTA, and/or University Center programs.EDA’s existing planning, RNTA, and/or University Center programs.
127133
In terms of EDA’s existing interagency role, Congress may continue to direct EDA to lead
In terms of EDA’s existing interagency role, Congress may continue to direct EDA to lead
economic development integration at multiple levels (e.g., federal, state, and local), or consider economic development integration at multiple levels (e.g., federal, state, and local), or consider
permanent authorization of an EDA office dedicated to economic integration. EDA assistance to permanent authorization of an EDA office dedicated to economic integration. EDA assistance to
state and local stakeholders may involve further alignment of program requirements with other state and local stakeholders may involve further alignment of program requirements with other
federal agencies’ requirements and procedures.federal agencies’ requirements and procedures.
128134 Alternatively, assistance to state and local Alternatively, assistance to state and local
stakeholders may involve expanded EDA support for capacitystakeholders may involve expanded EDA support for capacity
- building, leadership, and planning building, leadership, and planning
activities at the state and local levels. For instance, Congress could direct EDA to increase the activities at the state and local levels. For instance, Congress could direct EDA to increase the
level and type of assistance to state and local stakeholders in rural and underserved communities level and type of assistance to state and local stakeholders in rural and underserved communities
(e.g., for planning, project development, technical assistance, and data analysis or other forms of (e.g., for planning, project development, technical assistance, and data analysis or other forms of
assistance). Agency officials and other groups have proposed that expanding the level of EDA assistance). Agency officials and other groups have proposed that expanding the level of EDA
support for planning, capacity, and support for planning, capacity, and
skil sskills development for state and local stakeholders could development for state and local stakeholders could
facilitate economic recovery facilitate economic recovery
fol owingfollowing disasters or widespread economic shocks. disasters or widespread economic shocks.
129135 Lastly, Lastly,
Congress may consider additional, targeted integration activities. Such activities may involve Congress may consider additional, targeted integration activities. Such activities may involve
EDA expanding its convening, coordinating, and regional interagency planning roles. EDA expanding its convening, coordinating, and regional interagency planning roles.
Or, CongressCongress also may direct EDA to participate in joint federal interagency funding opportunities for may direct EDA to participate in joint federal interagency funding opportunities for
specific development initiatives.specific development initiatives.
130136
In terms of offices, authorities, and internal capacity, Congress continues to rely on EDA for post-
In terms of offices, authorities, and internal capacity, Congress continues to rely on EDA for post-
disaster economic recovery activities, as evidenced by the increased frequency and amount of disaster economic recovery activities, as evidenced by the increased frequency and amount of
supplemental appropriations following national disasters (sesupplemental appropriations following national disasters (se
e Figure 7). Congress may seek to ). Congress may seek to
formalize this role by authorizing an office for disaster recovery and/or increasing resources or formalize this role by authorizing an office for disaster recovery and/or increasing resources or
authorities related to the agency’s recovery role.authorities related to the agency’s recovery role.
131137 Alternatively, the agency’s disaster recovery Alternatively, the agency’s disaster recovery
White House, “Fact Sheet: T he 132 As noted previously, EDA was one of several agencies named in the Administration’s American Jobs Plan for potential new infrastructure investment through increased funding (or other changes) to the Public Works program. See White House, “Fact Sheet: The American Jobs Plan,” March 31, 2021, https://www.whitehouse.gov/briefing-room/ American Jobs Plan,” March 31, 2021, https://www.whitehouse.gov/briefing-room/
statements-releases/2021/03/31/fact-sheet-the-american-jobs-plan/. statements-releases/2021/03/31/fact-sheet-the-american-jobs-plan/.
127133 As noted previously, in FY2021, the report accompanying the annual appropriations bill also directed EDA to As noted previously, in FY2021, the report accompanying the annual appropriations bill also directed EDA to
support technical assistance for distressedsupport technical assistance for distressed
small, rural, and underservedsmall, rural, and underserved
communities for “communities for “
pre-development activities pre-development activities
associated with accessingassociated with accessing
EDA programs and services.” EDA programs and services.”
128134 For information about EDA’s efforts to collaborate, reduce administrative burdens, For information about EDA’s efforts to collaborate, reduce administrative burdens,
and align plans andand align plans and
resources, resources,
see https://eda.gov/integration/resource-alignment/. See also GAO,see https://eda.gov/integration/resource-alignment/. See also GAO,
Econom ic Developm ent Economic Development: Opportunities Exist for
Further Collaboration Am ongAmong EDA, HUD, and USDA, GAO-21-579, July 2021, https://www.gao.gov/assets/720/ GAO-21-579, July 2021, https://www.gao.gov/assets/720/
715997.pdf. 715997.pdf.
129135 U.S. U.S.
Senate, Committee on Environment and Public Works, “Oversight of the EDA,” S.Hrg.Senate, Committee on Environment and Public Works, “Oversight of the EDA,” S.Hrg.
116 116-239, 116th Cong., -239, 116th Cong.,
2nd sess.,2nd sess.,
January 22, 2020, https://www.congress.gov/116/chrg/CHRG-116shrg40975/CHRG-116shrg40975.pdf. January 22, 2020, https://www.congress.gov/116/chrg/CHRG-116shrg40975/CHRG-116shrg40975.pdf.
130136 Interagency Working Group on Coal and Power Plant Communities and Economic Interagency Working Group on Coal and Power Plant Communities and Economic
Revitalizat ionRevitalization, ,
Initial Report to
the President on Em poweringEmpowering Workers Through Revitalizing Energy Com m unitiesCommunities, April 2021, p. 21, April 2021, p. 21,
https://netl.doe.gov/sites/default/files/2021-04/Initial%20Report%20on%20Energy%20Communities_Apr2021.pdfhttps://netl.doe.gov/sites/default/files/2021-04/Initial%20Report%20on%20Energy%20Communities_Apr2021.pdf
; ;
and U.S.and U.S.
House of Representatives, Committee on House of Representatives, Committee on
T ransportationTransportation and Infrastructure, Subcommittee on Economic and Infrastructure, Subcommittee on Economic
Development, Public BuildingsDevelopment, Public Buildings
and Emergency and Emergency
Managem entManagement, ,
Investing in Am ericaAmerica: Reauthorization of the Econom ic Developm ent Adm inistrationEconomic Development Administration, 117th Cong., 1st sess., April 28, 2021. 117th Cong., 1st sess., April 28, 2021.
131137 EDA currently has an Office of Disaster Recovery and Economic Integration (see https://www.eda.gov/disaster- EDA currently has an Office of Disaster Recovery and Economic Integration (see https://www.eda.gov/disaster-
recovery/ and https://eda.gov/integration). In addition to and in coordination with EDA’s headquarters offices, the recovery/ and https://eda.gov/integration). In addition to and in coordination with EDA’s headquarters offices, the
EDA’s regional offices handle disaster recovery activit ies through supplemental and regular funding.
In a FY2021 oversight hearing, a witness suggested that Congress could formally establish in statute an Office of Disaster Recovery within the EDA. See U.S. House of Representatives, Committee on T ransportation and Infrastructure, Subcommittee on Economic Development, Public Buildings and Emergency Management, Investing in
Am erica: Reauthorization of the Econom ic Developm ent Adm inistration, witness testimony, 117th Cong., 1st sess., April 28, 2021, https://www.congress.gov/117/meeting/house/112512/witnesses/HHRG-117-PW13-Wstate-CooperL-
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role may continue to be linked, as it is now, with the agency’s Office of Economic Development
role may continue to be linked, as it is now, with the agency’s Office of Economic Development
Integration. Congress may also consider providing additional administrative resources or Integration. Congress may also consider providing additional administrative resources or
emergency hiring authority to extend the agency’s capacity for recovery assistance.emergency hiring authority to extend the agency’s capacity for recovery assistance.
132 138
Trade Adjustment Assistance for Firms (TAAF)
Congress may review the TAAF program in light of current trade and economic dynamics and
Congress may review the TAAF program in light of current trade and economic dynamics and
ongoing trade negotiations. TAAF policy discussions involve the program’s reauthorization, and ongoing trade negotiations. TAAF policy discussions involve the program’s reauthorization, and
broadening criteria so that more firms may qualify for assistance. The program’s focus, funding broadening criteria so that more firms may qualify for assistance. The program’s focus, funding
level, partnership structure, and options to streamline its operations, among other matters, are level, partnership structure, and options to streamline its operations, among other matters, are
outlined as “Issues for Congress” in CRS Report RS20210, outlined as “Issues for Congress” in CRS Report RS20210,
Trade Adjustment Assistance for
Firms, by Rachel F. Fefer. , by Rachel F. Fefer.
Preparing for Future Industries and EDA’s Role in Federal Innovation Policy133Policy139
One of EDA’s seven updated investment priorities (April 2021) is “technology-based economic
One of EDA’s seven updated investment priorities (April 2021) is “technology-based economic
development,” which is defined asdevelopment,” which is defined as
:
economic development planning or implementation projects that foster regional knowledge
economic development planning or implementation projects that foster regional knowledge
ecosystemsecosystems
that support entrepreneurs and startups, including the commercialization that support entrepreneurs and startups, including the commercialization of of
new technologies, that are creating technology-driven businesses and high-skilled,new technologies, that are creating technology-driven businesses and high-skilled,
well-well-
paying jobs of the future.paying jobs of the future.
134140
Congress may wish to establish new, or focus existing, EDA programs to further prepare regions
Congress may wish to establish new, or focus existing, EDA programs to further prepare regions
and workers for innovation, technology-led economic development, and “future industries.”and workers for innovation, technology-led economic development, and “future industries.”
135 Innovation and technology-led economic development strategies are based on the premise that technological breakthroughs and innovation drive economic growth. Some researchers observe
20210428.pdf. 132 For a discussion 141
EDA’s regional offices handle disaster recovery activities through supplemental and regular funding.
In a FY2021 oversight hearing, a witness suggested that Congress could formally establish in statute an Office of Disaster Recovery within the EDA. See U.S. House of Representatives, Committee on Transportation and Infrastructure, Subcommittee on Economic Development, Public Buildings and Emergency Management, Investing in America: Reauthorization of the Economic Development Administration, witness testimony, 117th Cong., 1st sess., April 28, 2021, https://www.congress.gov/117/meeting/house/112512/witnesses/HHRG-117-PW13-Wstate-CooperL-20210428.pdf.
138 For a discussion of EDA’s recent application of its emergency hiring authority and state and local capacity of EDA’s recent application of its emergency hiring authority and state and local capacity
challenges in the disaster recovery context, see U.S. Senate, Committee on Environment and Public Works, “Oversight challenges in the disaster recovery context, see U.S. Senate, Committee on Environment and Public Works, “Oversight
of the EDA,” S.Hrg.of the EDA,” S.Hrg.
116-239, 116th Cong., 2nd sess., January 22, 2020, https://www.congress.gov/116/chrg/CHRG-116-239, 116th Cong., 2nd sess., January 22, 2020, https://www.congress.gov/116/chrg/CHRG-
116shrg40975/CHRG-116shrg40975.pdf. See also Department of Commerce, Office of Inspector General, 116shrg40975/CHRG-116shrg40975.pdf. See also Department of Commerce, Office of Inspector General,
EDA Was
Effective in Im plem enting the Requirem entsImplementing the Requirements for Awarding Funds Under the CARES Act, Final Report No. OIG-21-017-, Final Report No. OIG-21-017-
I, https://www.oig.doc.gov/OIGPublications/OIG-21-017-I.pdf. I, https://www.oig.doc.gov/OIGPublications/OIG-21-017-I.pdf.
133139 As previously noted, EDA’s involvement in innovation and technology broadly includes As previously noted, EDA’s involvement in innovation and technology broadly includes
the administration of the administration of
competitive grant programs (e.g., the Build to Scalecompetitive grant programs (e.g., the Build to Scale
(B2S), SPRINT(B2S), SPRINT
Challenge, and the Accelerate Response and Challenge, and the Accelerate Response and
Recovery (R2) Network Challenge programs describedRecovery (R2) Network Challenge programs described
above and inabove and in
Appe ndix Appendix A),, workforce development and workforce development and
technical assistance initiatives (e.g., the technical assistance initiatives (e.g., the
ST EM T alentSTEM Talent Challenge and University Centers), and coordination with other Challenge and University Centers), and coordination with other
federal agenciesfederal agencies
on regional innovation strategies (e.g., NACIE), among other activities. on regional innovation strategies (e.g., NACIE), among other activities.
For a list of CRS
For a list of CRS
analysts associated with science, analysts associated with science,
t echnologytechnology, and innovation policy, see CRS, and innovation policy, see CRS
Report R42688, Report R42688,
Science, Technology, and Innovation Policy: CRS Experts, by John F. Sargent, by John F. Sargent
Jr. Jr.
134140 EDA, “ EDA, “
Investment Priorities,” https://eda.gov/about/investment-priorities/. Investment Priorities,” https://eda.gov/about/investment-priorities/.
135 T estimony141 Testimony by Mr. Dennis Alvord, Acting Assistant Secretary of Commerce for EDA, U.S. by Mr. Dennis Alvord, Acting Assistant Secretary of Commerce for EDA, U.S.
House House of of
Representatives, Committee on Representatives, Committee on
T ransportationTransportation and Infrastructure, Subcommittee on Economic Development, Public and Infrastructure, Subcommittee on Economic Development, Public
BuildingsBuildings
and Emergency Managementand Emergency Management
,,
Investing in Am ericaAmerica: Reauthorization of the Econom ic Developm ent
Adm inistrationEconomic Development Administration, 117th Cong., 1st sess., April 28, 2021, https://www.congress.gov/117/meeting/house/112512/witnesses/ 117th Cong., 1st sess., April 28, 2021, https://www.congress.gov/117/meeting/house/112512/witnesses/
HHRG-117-PW13-Wstate-AlvordD-20210428.pdf. HHRG-117-PW13-Wstate-AlvordD-20210428.pdf.
EDA’s guidance
EDA’s guidance
for the for the
ST EM T alentSTEM Talent Challenge highlighted “ Challenge highlighted “
industries of the future” which couldindustries of the future” which could
include,include,
but are not but are not
limited to: artificial intelligence; machine learning; advancedlimited to: artificial intelligence; machine learning; advanced
manufacturing and robotics; space exploration and manufacturing and robotics; space exploration and
commerce; bioscience; quantum information science; and aqua- and agricultural technologies. EDA, “ ST EM T alent Challenge NOFO,” FY2021, p. 1, https://www.grants.gov/web/grants/view-opportunity.html?oppId=328794.
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Innovation and technology-led economic development strategies are based on the premise that technological breakthroughs and innovation drive economic growth. Some researchers observe that by identifying and promoting innovation, federal support may facilitate economic growth and that by identifying and promoting innovation, federal support may facilitate economic growth and
competition.competition.
136 142
Congress has supported various policies to promote innovation and to prepare regions for
Congress has supported various policies to promote innovation and to prepare regions for
expanded technology-based development through workforce development programs as expanded technology-based development through workforce development programs as
wel well as a as a
subset of federal innovation policies often referred to as “regional innovation” or “innovation subset of federal innovation policies often referred to as “regional innovation” or “innovation
cluster” programs.cluster” programs.
137143 Congress may seek to continue support for EDA’s existing innovation- Congress may seek to continue support for EDA’s existing innovation-
oriented programs (e.g., Build to Scale), similar programs, or new programs.oriented programs (e.g., Build to Scale), similar programs, or new programs.
138144 For instance, in For instance, in
the 117th Congress, a new regional technology hub program was proposed under Section 2401 of the 117th Congress, a new regional technology hub program was proposed under Section 2401 of
S. 1260 and a new regional technology and innovation hub program was proposed under Section S. 1260 and a new regional technology and innovation hub program was proposed under Section
2 of H.R. 4588.2 of H.R. 4588.
139 Additional y, 145 Additionally, funding to develop regional economic growth clusters was funding to develop regional economic growth clusters was
included in the house-passed “Build Back Better Act.”included in the house-passed “Build Back Better Act.”
140146 Alternatively, Alternatively,
Congress may pursue a Congress may pursue a
more limited federal role in the facilitation of innovation clusters, advance policies that favor more limited federal role in the facilitation of innovation clusters, advance policies that favor
stronger state and local roles in technology-led economic development, or advance policies that
favor investment in public goods or other development strategies.141
136 See Congressional Budget Office, “
commerce; bioscience; quantum information science; and aqua- and agricultural technologies. EDA, “STEM Talent Challenge NOFO,” FY2021, p. 1, https://www.grants.gov/web/grants/view-opportunity.html?oppId=328794. 142 See Congressional Budget Office, “Federal Policies and Innovation,” November 17, 2014, p. 5, Federal Policies and Innovation,” November 17, 2014, p. 5,
https://www.cbo.gov/publication/49487; and Yong-Shikhttps://www.cbo.gov/publication/49487; and Yong-Shik
Lee, “Lee, “
Law and Economic Development in the United States: Law and Economic Development in the United States:
T owardToward a New a New
Paradigm,” Paradigm,”
Catholic University Law Review, vol. 68, no. 2 (2019), pp. 1-62, May 31, 2018, , vol. 68, no. 2 (2019), pp. 1-62, May 31, 2018,
SSRN:SSRN:
https://ssrn.com/abstract=3168964. https://ssrn.com/abstract=3168964.
137
143 EDA defines regional clusters as EDA defines regional clusters as
geographic concentrations of firms, workers and industries that do business
geographic concentrations of firms, workers and industries that do business
with each other and have with each other and have
common needs for talent, technology, and infrastructure. Regional clusters are essentially networks of common needs for talent, technology, and infrastructure. Regional clusters are essentially networks of
similar, synergistic, or complementary entities that are engaged in or with a particular industry sector; similar, synergistic, or complementary entities that are engaged in or with a particular industry sector;
h avehave active channels for businessactive channels for business
transactions and communication; share specialized infrastructure, labor markets, transactions and communication; share specialized infrastructure, labor markets,
and services; and leverage the region’s uniqueand services; and leverage the region’s unique
competitive strengths to stimulate innovation and create jobs. competitive strengths to stimulate innovation and create jobs.
Regional clustersRegional clusters
may cross municipal, county, and other jurisdictional boundaries.may cross municipal, county, and other jurisdictional boundaries.
EDA, “Key Definitions,” https://eda.gov/performance/key-definitions/.
EDA, “Key Definitions,” https://eda.gov/performance/key-definitions/.
138144 Federal support for regional clusters and innovation cluster initiatives have included programs administered by Federal support for regional clusters and innovation cluster initiatives have included programs administered by
EDA EDA
(Regional Innovation Strategies/Build to Scale)(Regional Innovation Strategies/Build to Scale)
and agencies suchand agencies such
as the Department of Energy, DOC, NISTas the Department of Energy, DOC, NIST
, SBA,, SBA,
and and
others. others.
T heseThese programs generally provide planning and other support to intermediary programs generally provide planning and other support to intermediary
organiz ationsorganizations to develop new or to develop new or
expand existing industry clusters. Seeexpand existing industry clusters. See
Ryan Donahue, Joseph Parilla, and Brad McDearman, “Ryan Donahue, Joseph Parilla, and Brad McDearman, “
Rethinking Cluster Rethinking Cluster
Initiatives,” Brookings Institution Metropolitan Policy Program, July 2018, https://www.brookings.edu/wp-content/Initiatives,” Brookings Institution Metropolitan Policy Program, July 2018, https://www.brookings.edu/wp-content/
uploads/2018/07/201807_Brookings-Metro_Rethinking-Clusters-Initiatives_Full-report-final.pdf; Mark Muro and uploads/2018/07/201807_Brookings-Metro_Rethinking-Clusters-Initiatives_Full-report-final.pdf; Mark Muro and
BruceBruce
Katz, “Katz, “
T heThe New ‘Cluster Moment’: How Regional New ‘Cluster Moment’: How Regional
Innovation Clusters Can Foster the Next Economy,” Innovation Clusters Can Foster the Next Economy,”
Brookings Institution Metropolitan Policy Program, September 21, 2010, https://www.brookings.edu/research/the-new-Brookings Institution Metropolitan Policy Program, September 21, 2010, https://www.brookings.edu/research/the-new-
cluster-momentcluster-moment
-how-regional-innovation-clusters-can-foster-the-next-economy/; the National Research Council, “-how-regional-innovation-clusters-can-foster-the-next-economy/; the National Research Council, “
T heThe FederalFederal
Dimension,” Dimension,”
Best Practices in State and Regional Innovation Initiatives: Com petingCompeting in the 21 st21st Century (Washington, DC: (Washington, DC:
T heThe National Academies Press), 2013, https://doi.org/10.17226/18364; and Camilla Alexandra National Academies Press), 2013, https://doi.org/10.17226/18364; and Camilla Alexandra
Hrdy, “Hrdy, “
Cluster Competition,” Cluster Competition,”
Lewis & Clark Law Review, vol. 20, October 7, 2016, pp. 982-986, 1013, , vol. 20, October 7, 2016, pp. 982-986, 1013,
https://ssrn.com/abstract=2672660, which includeshttps://ssrn.com/abstract=2672660, which includes
the definition of innovation clusters as “the definition of innovation clusters as “
regional economies made regional economies made
up of firms, suppliers, and human talent whose core activity is innovation.” up of firms, suppliers, and human talent whose core activity is innovation.”
As noted, the EDA’s new Build
As noted, the EDA’s new Build
Back Better Regional Challenge, a grant program launched in JulyBack Better Regional Challenge, a grant program launched in July
2021, will support 2021, will support
newnew
or existing regional innovation clusters with one third of the total amount of ARP Act appropriations ($1 billion or existing regional innovation clusters with one third of the total amount of ARP Act appropriations ($1 billion
out of a total of $3 billion in ARP Act funding). out of a total of $3 billion in ARP Act funding).
139 T he
145 The House and Senate bills House and Senate bills
shared similar provisions, but were not identical. Both proposed to amend the shared similar provisions, but were not identical. Both proposed to amend the
Stevenson-Wydler Stevenson-Wydler
T echnologyTechnology Innovation Act of 1980 (15 U.S.C. §3701) by re-designating Section 28 of the act as Innovation Act of 1980 (15 U.S.C. §3701) by re-designating Section 28 of the act as
Section 29 and establishing the aforementioned programs as Section 28 of the StevensonSection 29 and establishing the aforementioned programs as Section 28 of the Stevenson
-Wydler Act-Wydler Act
. .
140 See T itle146 See Title XI of H.R. 5376, as approved by the House on November 3, 2021, https://rules.house.gov/bill/117/hr- XI of H.R. 5376, as approved by the House on November 3, 2021, https://rules.house.gov/bill/117/hr-
5376. As additional context, “5376. As additional context, “
regional innovation hubs” were includedregional innovation hubs” were included
in the Administration’s FY2021 American Jobs in the Administration’s FY2021 American Jobs
Plan. SeePlan. See
White House, “Fact Sheet: White House, “Fact Sheet:
T heThe American Jobs American Jobs
Plan,” March 31, 2021, https://www.whitehouse.gov/briefing-Plan,” March 31, 2021, https://www.whitehouse.gov/briefing-
room/statements-releases/2021/03/31/fact-sheet-the-american-jobs-plan/. room/statements-releases/2021/03/31/fact-sheet-the-american-jobs-plan/.
141 Camilla Alexandra Hrdy, “Cluster Competition,” Lewis & Clark Law Review, vol. 20, October 7, 2016, pp. 997-1009, https://ssrn.com/abstract=2672660; and Giles Duranton, “ California Dreamin’: T he Feeble Case for Cluster
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stronger state and local roles in technology-led economic development, or advance policies that favor investment in public goods or other development strategies.147
Congress may also seek to review the overall distribution and coordination of existing innovation distribution and coordination of existing innovation
policies as policies as
wel well as the EDA’s role in the landscape of federal innovation programs. The as the EDA’s role in the landscape of federal innovation programs. The
House Subcommittee on Research and Technology reviewed these matters in a hearing in June House Subcommittee on Research and Technology reviewed these matters in a hearing in June
2021. The hearing addressed the following questions, many of which pertain to the broader 2021. The hearing addressed the following questions, many of which pertain to the broader
discussion on EDA and its role in future industries and regional economic development, discussion on EDA and its role in future industries and regional economic development,
including:including
What are the critical elements and who are the necessary partners in developing a
What are the critical elements and who are the necessary partners in developing a
successful strategy for local and regional innovation economies?
successful strategy for local and regional innovation economies?
What is the role of the federal government, and in particular the EDA, in
What is the role of the federal government, and in particular the EDA, in
supporting the development of local and regional innovation economies?
supporting the development of local and regional innovation economies?
How can research universities strengthen their role in helping to anchor local and
How can research universities strengthen their role in helping to anchor local and
regional innovation economies?
regional innovation economies?
How can efforts to build regional innovation economies include equity and
How can efforts to build regional innovation economies include equity and
shared prosperity as a priority?
shared prosperity as a priority?
142148
Underserved Communities
Congress may consider options to update how EDA’s recovery and non-recovery programs assist
Congress may consider options to update how EDA’s recovery and non-recovery programs assist
underserved and disadvantaged communities. For instance, matching fund requirements and underserved and disadvantaged communities. For instance, matching fund requirements and
limited broadband access may limit some rural and underserved communities’ access to limited broadband access may limit some rural and underserved communities’ access to
innovation-centered competitions and other programs.innovation-centered competitions and other programs.
143 Additional y149 Additionally, Congress may continue to , Congress may continue to
consider directing additional types of EDA partnerships with consider directing additional types of EDA partnerships with
historical yhistorically black colleges and black colleges and
universities (HBCUs), minority-serving institutions (MSIs), and other entities in its efforts to universities (HBCUs), minority-serving institutions (MSIs), and other entities in its efforts to
address regional disparities, racial equity, and inclusive strategies that serve communities that address regional disparities, racial equity, and inclusive strategies that serve communities that
may have been left behind by prior innovation initiativesmay have been left behind by prior innovation initiatives
and opportunities.and opportunities.
144150 In response to In response to
geographic and demographic disparities, Congress may consider increasing funding for geographic and demographic disparities, Congress may consider increasing funding for
innovation hubs, research and business incubators, STEM education, and other activities in rural,
underserved, and disadvantaged communities beyond metropolitan areas and existing growth
Policies,” Review
147 Camilla Alexandra Hrdy, “Cluster Competition,” Lewis & Clark Law Review, vol. 20, October 7, 2016, pp. 997-1009, https://ssrn.com/abstract=2672660; and Giles Duranton, “California Dreamin’: The Feeble Case for Cluster Policies,” Review of Economic Analysis, vol. 3, pp. 3-45, http://repository.upenn.edu/real-estate_papers/2. , vol. 3, pp. 3-45, http://repository.upenn.edu/real-estate_papers/2.
142148 Policy questions from the Hearing Charter for U.S. House Policy questions from the Hearing Charter for U.S. House
of Representatives, Committee on Science, Space, and of Representatives, Committee on Science, Space, and
T echnologyTechnology, “Building Regional Innovation Economies,” June 9, 2021, https://www.congress.gov/117/meeting/house/, “Building Regional Innovation Economies,” June 9, 2021, https://www.congress.gov/117/meeting/house/
112753/documents/HHRG-117-SY15-20210609-SD002.pdf. 112753/documents/HHRG-117-SY15-20210609-SD002.pdf.
T heThe hearing memo reviewed hearing memo reviewed
the role of the Department of Commerce and the EDA in expanding regional innovation the role of the Department of Commerce and the EDA in expanding regional innovation
economies, options for further development, and partnership opportunities with federal science agencies,economies, options for further development, and partnership opportunities with federal science agencies,
and raised and raised
several considerations regarding the EDA’s role and select aspects of the Buildseveral considerations regarding the EDA’s role and select aspects of the Build
to Scale (B2S)to Scale (B2S)
program in particular. program in particular.
T heThe memo noted that EDA’s expertise includes leading regional economic development and related expertise, while memo noted that EDA’s expertise includes leading regional economic development and related expertise, while
NISTNIST
and other agencies are generally considered leadand other agencies are generally considered lead
agencies in terms of technical expertise on innovation and agencies in terms of technical expertise on innovation and
research and development. research and development.
T heThe hearing charter further noted that hearing charter further noted that
t hethe matching requirements associated with the matching requirements associated with the
competitive B2S program may limit participation by economically distressed and rural communities duecompetitive B2S program may limit participation by economically distressed and rural communities due
to limited to limited
resources in some communities. resources in some communities.
143
149 For an example of these perspectives, see Robert D. Atkinson, Mark For an example of these perspectives, see Robert D. Atkinson, Mark
Muro, and Jacob Whiton, “Muro, and Jacob Whiton, “
T heThe Case for Case for
Growth Centers—How to SpreadGrowth Centers—How to Spread
T ech Tech Innovation Across America,” Innovation Across America,”
T heThe Brookings Institution, December 2019, Brookings Institution, December 2019,
https://www2.itif.org/2019-growth-centers.pdf; and Olugbengahttps://www2.itif.org/2019-growth-centers.pdf; and Olugbenga
Ajilore andAjilore and
Zoe Willingham, “Zoe Willingham, “
T heThe Path to Rural Path to Rural
ResilienceResilience
in America,” Center for American Progress, September 21, 2020, https://www.americanprogress.org/issues/in America,” Center for American Progress, September 21, 2020, https://www.americanprogress.org/issues/
economy/reports/2020/09/21/490411/path-rural-resilience-america/.economy/reports/2020/09/21/490411/path-rural-resilience-america/.
144150 L. Waymond Jackson, Jr., “Leveraging Regional L. Waymond Jackson, Jr., “Leveraging Regional
T echTech Hubs Hubs
to Advance Economic Inclusion,” Brookings to Advance Economic Inclusion,” Brookings
Institution, July 13, 2021, https://www.brookings.edu/wp-content/uploads/2021/07/Institution, July 13, 2021, https://www.brookings.edu/wp-content/uploads/2021/07/
metro_20210713_techhubs_transcript.pdf. metro_20210713_techhubs_transcript.pdf.
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centers.145 See “Persistent Poverty and Distressed, Smal
innovation hubs, research and business incubators, STEM education, and other activities in rural, underserved, and disadvantaged communities beyond metropolitan areas and existing growth centers.151 See “Persistent Poverty and Distressed, Small, Rural and Underserved Areas—Funding
and Technical Assistance” for a summary of recent legislative and agency activities focused on for a summary of recent legislative and agency activities focused on
underserved communities. underserved communities.
Human Capital, STEM, and Workforce Development
As Congress considers workforce development in the context of EDA programs and the broader
As Congress considers workforce development in the context of EDA programs and the broader
portfolio of federal economic development policies, the following issues may warrant further portfolio of federal economic development policies, the following issues may warrant further
analysis:analysis:
connecting stakeholders across the public, private, and education sectors in
connecting stakeholders across the public, private, and education sectors in
response to emerging industries and career pathways;
response to emerging industries and career pathways;
al owingallowing flexibility flexibility
for new or nontraditional training programs; and for new or nontraditional training programs; and
coordinating new and existing workforce and economic development coordinating new and existing workforce and economic development
programs.
programs.
146 152
Congress may seek to support innovation economies through human capital policies that prepare
Congress may seek to support innovation economies through human capital policies that prepare
workers with expertise and workers with expertise and
skil sskills to meet new and emerging opportunities. For instance, Congress to meet new and emerging opportunities. For instance, Congress
approved funding for the STEM Talent approved funding for the STEM Talent
Chal engeChallenge (see program description i (see program description i
n Appendix A), ,
which is designed to advance the STEM-capable workforce. which is designed to advance the STEM-capable workforce.
Additional yAdditionally, EDA set aside , EDA set aside
approximately 17% ($500 approximately 17% ($500
mil ionmillion) of the ARP Act recovery assistance to enhance regional ) of the ARP Act recovery assistance to enhance regional
workforce systems through the Good Jobs workforce systems through the Good Jobs
Chal engeChallenge grant program. grant program.
147153 Insights from these Insights from these
programs could inform how new or flexible training program models may support technology-led programs could inform how new or flexible training program models may support technology-led
economic development goals and address employer needs in emerging industries.economic development goals and address employer needs in emerging industries.
148154
Reauthorization
PWEDA’s statutory authority lapsed on September 30, 2008. Hearings during the first session of
PWEDA’s statutory authority lapsed on September 30, 2008. Hearings during the first session of
the 117th Congress indicate that policymakers may consider legislation to reauthorize and/or the 117th Congress indicate that policymakers may consider legislation to reauthorize and/or
amend PWEDA.amend PWEDA.
149155 Many of the aforementioned considerations propose to address policy through Many of the aforementioned considerations propose to address policy through
145
151 Mark Muro et al, “Congress Needs Mark Muro et al, “Congress Needs
to Prioritize Inclusion in Our Slumpingto Prioritize Inclusion in Our Slumping
Innovation System,” Innovation System,”
T heThe Brookings Brookings
Institution, August 11, 2021, https://www.brookings.edu/blog/the-avenue/2021/08/11/congress-needs-to-prioritize-Institution, August 11, 2021, https://www.brookings.edu/blog/the-avenue/2021/08/11/congress-needs-to-prioritize-
inclusion-in-our-slumping-innovation-system; and Brad McDearman, Joseph Parilla, and Ryan Donahue “inclusion-in-our-slumping-innovation-system; and Brad McDearman, Joseph Parilla, and Ryan Donahue “
A New A New
FederalFederal
Grant ShouldGrant Should
Make RegionalMake Regional
Leaders Rethink Leaders Rethink
T heirTheir Industry Clusters,” Industry Clusters,”
T heThe Brookings Institution, September Brookings Institution, September
1, 2021, https://www.brookings.edu/blog/the-avenue/2021/09/01/a-new-federal-grant1, 2021, https://www.brookings.edu/blog/the-avenue/2021/09/01/a-new-federal-grant
-should-make-regional-leaders--should-make-regional-leaders-
rethink-their-industry-clusters/.rethink-their-industry-clusters/.
146 See
152 See Federal Reserve Bank of Atlanta, “Why Connecting Economic and Workforce Development Matters,” Federal Reserve Bank of Atlanta, “Why Connecting Economic and Workforce Development Matters,”
https://www.atlantafed.org/podcasts/transcripts/economic-development/121214-why-connecting-economic-and-https://www.atlantafed.org/podcasts/transcripts/economic-development/121214-why-connecting-economic-and-
workforce-developmentworkforce-development
-matters. -matters.
147153 EDA, “Good Jobs EDA, “Good Jobs
Challenge,” https://eda.gov/arpa/good-jobs-challenge/. Challenge,” https://eda.gov/arpa/good-jobs-challenge/.
148154 In FY2020, Congress directed EDA to implement In FY2020, Congress directed EDA to implement
ST EMSTEM apprenticeships (see apprenticeships (see
ST EM T alent Challenge inSTEM Talent Challenge in Appendix
A) to support to support
ST EMSTEM-capable workforce initiatives. EDA highlights “-capable workforce initiatives. EDA highlights “
industries of the future” whichindustries of the future” which
could could include, but include, but
are not limited to: artificial intelligence; machine learning; advanced manufacturing and robotics; space exploration and are not limited to: artificial intelligence; machine learning; advanced manufacturing and robotics; space exploration and
commerce; bioscience; quantum information science; and aqua-commerce; bioscience; quantum information science; and aqua-
and agriculturaland agricultural
technologies.” technologies.”
T he FY2020 ST EM T alentThe FY2020 STEM Talent Challenge NOFO notes that Challenge NOFO notes that
applicants may address the need for computational literacy and issuesapplicants may address the need for computational literacy and issues
related to the related to the
digitaldigital
economy (e.g., remote work, shifting businesseconomy (e.g., remote work, shifting business
practices) in order to addresspractices) in order to address
the current COVIDthe current COVID
-19 pandemic or -19 pandemic or
prepare for virtual and remote work. Seeprepare for virtual and remote work. See
ST EM T alent STEM Talent Challenge NOFO, Challenge NOFO,
EDA-HDQ-OIE-2020-2006617, pp. 1, 4, EDA-HDQ-OIE-2020-2006617, pp. 1, 4,
https://www.grants.gov/web/grants/view-opportunity.html?oppId=328794. https://www.grants.gov/web/grants/view-opportunity.html?oppId=328794.
149155 For a review of reauthorization issues during For a review of reauthorization issues during
the 112th Congress, see CRSthe 112th Congress, see CRS
Report R41162, Report R41162,
Economic Development
Adm inistration: Reauthorization and Funding Issues in the 112th Congress, by Julie M. Lawhorn.
For reports from EDA oversight hearings from t he 117th Congress, see
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PWEDA amendments and/or reauthorization. Reauthorization discussions may consider
PWEDA amendments and/or reauthorization. Reauthorization discussions may consider
amending PWEDA to add new grant programs, expand or clarify the scope of existing programs, amending PWEDA to add new grant programs, expand or clarify the scope of existing programs,
or expand eligibilityor expand eligibility
criteria for specific types of projects, among other actions. criteria for specific types of projects, among other actions.
Concluding Remarks
Throughout the agency’s history, a central feature of EDA’s role has been to provide matching Throughout the agency’s history, a central feature of EDA’s role has been to provide matching
federal funds to assist state, local, and regional economiesfederal funds to assist state, local, and regional economies
to advance projects in support of advance projects in support of
growth
growth, or to address geographic disparities for distressed areas. Expanding EDA’s role to serve more or to address geographic disparities for distressed areas. Expanding EDA’s role to serve more
communities, achieve different outcomes, or coordinate across federal and state departments and communities, achieve different outcomes, or coordinate across federal and state departments and
agencies may involve changes in the agency’s authority, budget, or program structure.agencies may involve changes in the agency’s authority, budget, or program structure.
150 156
Policies that propose to change the agency’s roles or programs may reflect different
Policies that propose to change the agency’s roles or programs may reflect different
interpretations of what constitutes economic development and differing views on whether federal interpretations of what constitutes economic development and differing views on whether federal
policies should provide broad-based assistance, targeted assistance, or some combination thereof. policies should provide broad-based assistance, targeted assistance, or some combination thereof.
For some, broad-based economic development programs with economic distress criteria For some, broad-based economic development programs with economic distress criteria
al owsallow assistance to be accessible for a range of communities’ needs and opportunities (e.g., the Public assistance to be accessible for a range of communities’ needs and opportunities (e.g., the Public
Works and EAA programs). For others, targeted economic development programs Works and EAA programs). For others, targeted economic development programs
al owallow assistance to reach a particular type of community or circumstance (e.g., programs for energy- assistance to reach a particular type of community or circumstance (e.g., programs for energy-
and resource-based industries). For others and resource-based industries). For others
stil still, policies may involve a mixture of approaches and , policies may involve a mixture of approaches and
overlap in definitions, agencies, roles, and strategies of practice. In considering policy changes, overlap in definitions, agencies, roles, and strategies of practice. In considering policy changes,
Congress may also wish to maintain current program roles and authorities—many of which are Congress may also wish to maintain current program roles and authorities—many of which are
broad and flexible (e.g., the EAA program)—and targeted appropriations, directed as needed to broad and flexible (e.g., the EAA program)—and targeted appropriations, directed as needed to
address new address new
chal engeschallenges and opportunities (e.g., in the manner of setting aside EAA funding for and opportunities (e.g., in the manner of setting aside EAA funding for
coal-impacted and nuclear closure communities in the ACC and NCC initiatives).coal-impacted and nuclear closure communities in the ACC and NCC initiatives).
151157 Congress Congress
may also review the may also review the
al ocationallocation of assistance based on preferred economic development goals—to of assistance based on preferred economic development goals—to
further economic growthfurther economic growth
(i.e., jobs), to foster job creation, to prepare regions for development, to develop human , to prepare regions for development, to develop human
capital, to recover from and prepare for economic shocks, and/or other outcomes.capital, to recover from and prepare for economic shocks, and/or other outcomes.
The EDA—through its program investments, partnerships, and integration roles—represents one
The EDA—through its program investments, partnerships, and integration roles—represents one
of many channels of federal and nonfederal policies designed to address economic matters at the of many channels of federal and nonfederal policies designed to address economic matters at the
subnational level. In practice, economic development involves multiple stakeholders, and the subnational level. In practice, economic development involves multiple stakeholders, and the
associated outcomes and processes associated outcomes and processes
wil likely will likely be impacted by multiple macroeconomic factors be impacted by multiple macroeconomic factors
and community-level circumstances, conditions, and histories. Policy considerations related to and community-level circumstances, conditions, and histories. Policy considerations related to
EDA are likely to involve a strategic and contextual evaluation of adjacent policies, related
U.S.
Administration: Reauthorization and Funding Issues in the 112th Congress, by Julie M. Lawhorn.
For reports from EDA oversight hearings from the 117th Congress, see
U.S. Senate, Committee on Environment and Public Works, Senate, Committee on Environment and Public Works,
Exam ining Program s at the Econom ic
Developm ent Adm inistrationExamining Programs at the Economic Development Administration, 117th Cong., 1st sess., Nov. 3, 2021, https://www.epw.senate.gov/public/117th Cong., 1st sess., Nov. 3, 2021, https://www.epw.senate.gov/public/
index.cfm/hearings?ID=256D08CE-44DC-47B4-9663-F9AC5AA8950E. index.cfm/hearings?ID=256D08CE-44DC-47B4-9663-F9AC5AA8950E.
U.S.
U.S.
House of Representatives, Committee on House of Representatives, Committee on
T ransportationTransportation and Infrastructure, Subcommittee on Economic and Infrastructure, Subcommittee on Economic
Development, Public BuildingsDevelopment, Public Buildings
and Emergency Management, and Emergency Management,
Investing in Am ericaAmerica: Reauthorization of the
Econom ic Developm ent Adm inistrationEconomic Development Administration, 117th Cong., 1st sess., April 28, 2021, https://www.congress.gov/ 117th Cong., 1st sess., April 28, 2021, https://www.congress.gov/
event/117th-congress/house-event/112512. event/117th-congress/house-event/112512.
U.S.
U.S.
House of Representatives, Committee on Appropriations, Subcommittee on Commerce, Justice, Science, House of Representatives, Committee on Appropriations, Subcommittee on Commerce, Justice, Science,
and Related Agencies,and Related Agencies,
“ “Oversight of the Economic Development Administration’s Role in Pandemic Oversight of the Economic Development Administration’s Role in Pandemic
Response,” 117th Cong., 1st sess., April 21, 2021, https://www.congress.gov/event/117th-congress/house-Response,” 117th Cong., 1st sess., April 21, 2021, https://www.congress.gov/event/117th-congress/house-
event/112466. event/112466.
150156 Yong-Shik Lee, “ Yong-Shik Lee, “
Law and Economic Development in the United States: Law and Economic Development in the United States:
T oward a New Paradigm Toward a New Paradigm,” ,”
Catholic
University Law Review, vol. 68, no. 2 (2019), May 31, 2018, pp. 1-62, SSRN: https://ssrn.com/abstract=3168964. , vol. 68, no. 2 (2019), May 31, 2018, pp. 1-62, SSRN: https://ssrn.com/abstract=3168964.
151
157 Congress approved appropriations for several years for the ACC and NCC Congress approved appropriations for several years for the ACC and NCC
initiatives. initiatives.
T heseThese initiatives are not initiatives are not
separately authorized and are administered by EDA through the EAA program. separately authorized and are administered by EDA through the EAA program.
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EDA are likely to involve a strategic and contextual evaluation of adjacent policies, related agencies, supporting actors, and awareness of the many, dynamic factors impacting global, agencies, supporting actors, and awareness of the many, dynamic factors impacting global,
national, and regional economies. national, and regional economies.
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Appendix A. Grant Programs
Summaries of EDA’s current grant programs and selected requirements are provided below. Summaries of EDA’s current grant programs and selected requirements are provided below.
Build to Scale (B2S)
The BuildThe Build
to Scale (B2S) program (formerly to Scale (B2S) program (formerly
cal edcalled Regional Innovation Strategies) supports Regional Innovation Strategies) supports
entrepreneurship, innovation, technology commercialization, access to capital, and related efforts entrepreneurship, innovation, technology commercialization, access to capital, and related efforts
to expand startups, company growth, and increased access to risk capital across regional to expand startups, company growth, and increased access to risk capital across regional
economies. B2S is composed of the Venture economies. B2S is composed of the Venture
Chal engeChallenge (formerly the “i6 (formerly the “i6
Chal engeChallenge”) and the ”) and the
Capital Capital
Chal engeChallenge (formerly the “Seed Fund Support”). (formerly the “Seed Fund Support”).
152158 The Venture The Venture
Chal engeChallenge funds funds
entrepreneurship support programs and other models to accelerate high-growth entrepreneurship entrepreneurship support programs and other models to accelerate high-growth entrepreneurship
activities. The Capital activities. The Capital
Chal engeChallenge supports efforts to expand access to risk capital. The B2S supports efforts to expand access to risk capital. The B2S
program primarily funds intermediary organizations and does not provide funding to start-ups. program primarily funds intermediary organizations and does not provide funding to start-ups.
Statutory Authority: 15 U.S.C. §3722 15 U.S.C. §3722
Agency Regulations: 13 C.F.R. Part 312 13 C.F.R. Part 312
Economic distress criteria: No minimum economic distress level requirements. No minimum economic distress level requirements.
153 159
Level of matching funds requirement: In FY2020, the minimum matching share was 50%. In FY2020, the minimum matching share was 50%.
154160
Economic Adjustment Assistance (EAA) Program
EDA refers to the EAA as its most flexible economic development tool.EDA refers to the EAA as its most flexible economic development tool.
155161 The EAA program is The EAA program is
designed to assist areas experiencing long-term economic distress or sudden and substantial designed to assist areas experiencing long-term economic distress or sudden and substantial
economic dislocation. Under Economic Adjustment Assistance, EDA administers its Revolving economic dislocation. Under Economic Adjustment Assistance, EDA administers its Revolving
Loan Fund (RLF) program, which Loan Fund (RLF) program, which
al owsallows local loan administrators to provide gap financing to local loan administrators to provide gap financing to
smal small businesses and entrepreneurs. EAA funds are competitively awarded to qualified applicants businesses and entrepreneurs. EAA funds are competitively awarded to qualified applicants
to assist them in developing and implementing a five-year CEDS or for implementation grants to assist them in developing and implementing a five-year CEDS or for implementation grants
that support the activities and strategies identified in a CEDS. EAA activities may include that support the activities and strategies identified in a CEDS. EAA activities may include
physical infrastructure projects, including water and sewer facilities, industrial parks, and physical infrastructure projects, including water and sewer facilities, industrial parks, and
business incubators; strategic planning; market or industry research and analysis; technical business incubators; strategic planning; market or industry research and analysis; technical
assistance, including feasibility studies; public services; and training.assistance, including feasibility studies; public services; and training.
156
152162
158 In FY2020, EDA administered a third competition in the B2S program, the Industry Challenge, which was In FY2020, EDA administered a third competition in the B2S program, the Industry Challenge, which was
not not
offered in FY2021. In FY2020, the Industry Challenge focusedoffered in FY2021. In FY2020, the Industry Challenge focused
on advancing regional blueon advancing regional blue
economies. According to economies. According to
the EDA, the term “blue economy” refers to the “the EDA, the term “blue economy” refers to the “
sustainable usesustainable use
of ocean resources for economic growth, improved of ocean resources for economic growth, improved
livelihoods and jobs, whilelivelihoods and jobs, while
preserving the health of marine ecosystems.preserving the health of marine ecosystems.
” See EDA, ” See EDA,
February 2020 Newsletter, ,
“Spotlight: EDA Launches the Build“Spotlight: EDA Launches the Build
to Scaleto Scale
Program, a RedesignProgram, a Redesign
of its Regional Innovation Strategies of its Regional Innovation Strategies
P rogramProgram,” ,”
https://www.eda.gov/news/blogs/2020/02/01/spotlight.htm. https://www.eda.gov/news/blogs/2020/02/01/spotlight.htm.
153 T he159 The B2S Program is authorized under B2S Program is authorized under
Section 27 of the StevensonSection 27 of the Stevenson
-Wydler -Wydler
T echnologyTechnology Innovation Act of 1980 (15 Innovation Act of 1980 (15
U.S.C.U.S.C.
§3722). §3722).
T heThe FY2020 B2S Notice of Funding FY2020 B2S Notice of Funding
Opportunity (NOFO) notes that, “Opportunity (NOFO) notes that, “
this authorization does not this authorization does not
requirerequire
applicants to meet specific distress criteria to be consideredapplicants to meet specific distress criteria to be considered
eligible.”eligible.”
See See EDA, “NOFOEDA, “NOFO
—2020 Build2020 Build
to Scale to Scale
Program—Concept Proposal,” EDA-HDQ-OIE-2020, https://www.grants.gov/web/grants/view-opportunity.html?Program—Concept Proposal,” EDA-HDQ-OIE-2020, https://www.grants.gov/web/grants/view-opportunity.html?
oppId=324375. oppId=324375.
154
160 EDA, “NOFO EDA, “NOFO
—2020 Build2020 Build
to Scale Program—Concept Proposal,” EDA-HDQ-OIE-2020, https://www.grants.gov/to Scale Program—Concept Proposal,” EDA-HDQ-OIE-2020, https://www.grants.gov/
web/grants/view-opportunity.html?oppId=324375. web/grants/view-opportunity.html?oppId=324375.
155161 DOC, EDA, DOC, EDA,
FY2022Congressional Budget Justification, p. 58, https://www.commerce.gov/sites/default/files/2021-, p. 58, https://www.commerce.gov/sites/default/files/2021-
05/fy2022_eda_congressional_budget_justification.pdf. 05/fy2022_eda_congressional_budget_justification.pdf.
156162 13 C.F.R. Part 307. 13 C.F.R. Part 307.
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Funding for Assistance to Coal Communities (ACC), Nuclear Closure Communities (NCC), and
Funding for Assistance to Coal Communities (ACC), Nuclear Closure Communities (NCC), and
some forms of supplemental appropriations are administered through the EAA as some forms of supplemental appropriations are administered through the EAA as
wel .157well.163 The The
EDA supports disaster recovery efforts primarily through the EAA program to support disaster EDA supports disaster recovery efforts primarily through the EAA program to support disaster
recovery strategies, disaster recovery coordinators, construction activities, capitalizing RLFs, recovery strategies, disaster recovery coordinators, construction activities, capitalizing RLFs,
entrepreneurship development, technical assistance, and other recovery projects.entrepreneurship development, technical assistance, and other recovery projects.
158164 For eligibility For eligibility
under the ACC initiativeunder the ACC initiative
(as administered through the EAA(as administered through the EAA
program), EDA applies the term “coal program), EDA applies the term “coal
economy” as “the complete supply chain of coal-reliant industries. This includes, but is not economy” as “the complete supply chain of coal-reliant industries. This includes, but is not
limited to: coal mining, coal-fired power plants, along with related transportation, logistics, and limited to: coal mining, coal-fired power plants, along with related transportation, logistics, and
supply chain manufacturing.” To be eligible for assistance as a nuclear closure community under supply chain manufacturing.” To be eligible for assistance as a nuclear closure community under
the NCC initiativethe NCC initiative
(as administered through the EAA(as administered through the EAA
program), regions must demonstrate “that program), regions must demonstrate “that
they have been impacted, or can reasonably demonstrate that they they have been impacted, or can reasonably demonstrate that they
wil will be impacted, by nuclear be impacted, by nuclear
power plant closure(s).”power plant closure(s).”
159165
The SPRINT
The SPRINT
Chal engeChallenge was administered through the EAA program with $25 was administered through the EAA program with $25
mil ionmillion of CARES of CARES
Act funding. The purpose of the SPRINT Act funding. The purpose of the SPRINT
Chal engeChallenge was to “address the economic, health, and was to “address the economic, health, and
safety risks caused by the coronavirus pandemic through entrepreneurship and innovation.”safety risks caused by the coronavirus pandemic through entrepreneurship and innovation.”
160 166
Statutory Authority: 42 U.S.C. §314942 U.S.C. §3149
Agency Regulations: 13 C.F.R. Part 307 13 C.F.R. Part 307
Economic distress criteria: The project area must meet one (or more) of the economic distress The project area must meet one (or more) of the economic distress
criteria, which includes projects that meet a “special need.” criteria, which includes projects that meet a “special need.”
Requirement to align with CEDS or equivalent: Funded projects must be part of an EDA- Funded projects must be part of an EDA-
certified Comprehensive Economic Development Strategy (CEDS) or equivalent EDA-accepted certified Comprehensive Economic Development Strategy (CEDS) or equivalent EDA-accepted
regional economic development strategy, unless the project is for a Strategy Grant (as defined in regional economic development strategy, unless the project is for a Strategy Grant (as defined in
13 C.F.R. §307.3)13 C.F.R. §307.3)
161167 or serves a Special Impact area (as defined in 13 C.F.R. Part 310). or serves a Special Impact area (as defined in 13 C.F.R. Part 310).
162
157168
163 For more information, see CRS For more information, see CRS
Insight IN11648, Insight IN11648,
The Economic Development Administration’s Assistance to Coal
and Nuclear Closure Com m unitiesCommunities Initiatives for Econom icEconomic Transitions, by Julie, by Julie
M. Lawhorn. M. Lawhorn.
158
164 EDA, “Leading Economic Recovery Efforts in Disaster-Impacted Communities,” https://eda.gov/files/programs/ EDA, “Leading Economic Recovery Efforts in Disaster-Impacted Communities,” https://eda.gov/files/programs/
disaster-recovery/EDA-Disaster-Brochure.pdf. disaster-recovery/EDA-Disaster-Brochure.pdf.
159165 Additionally, EDA guidance Additionally, EDA guidance
notes thatnotes that
,
In general, EDA will
In general, EDA will
consider applications for projects in communities and regions where the consider applications for projects in communities and regions where the
primary coal economy contraction “event” (e.g., closure of a coal mine or a coal-fired power plant, primary coal economy contraction “event” (e.g., closure of a coal mine or a coal-fired power plant,
closure of various coal economy supply chain businesses,closure of various coal economy supply chain businesses,
etc.) took place within 1-15 years prior to etc.) took place within 1-15 years prior to
the application submission date. Note, this timeframe is a range duringthe application submission date. Note, this timeframe is a range during
which projects will which projects will
generally be eligible;generally be eligible;
applicants may propose projects outside this timeframe, but applicants may propose projects outside this timeframe, but
sho uldshould take take
special care to demonstrate that the primary coal economy contraction “event” continues to special care to demonstrate that the primary coal economy contraction “event” continues to
tangibly impact the community. tangibly impact the community.
T hereThere is no pre-defined list of impacted coal communities. is no pre-defined list of impacted coal communities.
T oTo demonstrate eligibility, complete demonstrate eligibility, complete
applications must provide appropriate third party economic and demographic statistics that applications must provide appropriate third party economic and demographic statistics that
document the extent to which contractions in the coal economy have negatively impacted the document the extent to which contractions in the coal economy have negatively impacted the
community or region. community or region.
See
See
EDA, “FY 2020 Public Works and Economic Adjustment Assistance Programs IncludingEDA, “FY 2020 Public Works and Economic Adjustment Assistance Programs Including
CARES CARES Act Funding,” Act Funding,”
pp. 7, 17, https://www.grants.gov/web/grants/view-opportunity.html?oppId=321695; and EDA, “pp. 7, 17, https://www.grants.gov/web/grants/view-opportunity.html?oppId=321695; and EDA, “
American Rescue American Rescue
Plan Coal Communities CommitmentPlan Coal Communities Commitment
Frequently Asked Questions,” https://eda.gov/arpa/coal-communities/faq/. Frequently Asked Questions,” https://eda.gov/arpa/coal-communities/faq/.
160166 For more information on the SPRINT For more information on the SPRINT
Challenge, see https://eda.gov/oie/sprint/. For more information on EDA Challenge, see https://eda.gov/oie/sprint/. For more information on EDA
CARESCARES
Act funding,Act funding,
see CRSsee CRS
Insight IN11303, Insight IN11303,
The Econom ic Developm ent Adm inistrationEconomic Development Administration and the CARES Act (P.L.
116-136), by Julie M. Lawhorn. , by Julie M. Lawhorn.
161167 13 C.F.R. §307.5(1). 13 C.F.R. §307.5(1).
162168 13 C.F.R. §301.10(c). 13 C.F.R. §301.10(c).
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Level of matching funds requirement: General yGenerally 50% of project costs, but may vary. Projects 50% of project costs, but may vary. Projects
may receive an additional amount, not to exceed 30%, based on the relative needs of the region in may receive an additional amount, not to exceed 30%, based on the relative needs of the region in
which the project which the project
wil will be located, as determined by EDA. In the case of certain Indian tribes, be located, as determined by EDA. In the case of certain Indian tribes,
nonprofit organizations that have exhausted their effective borrowing capacity, or a state or nonprofit organizations that have exhausted their effective borrowing capacity, or a state or
political subdivision of a state that has exhausted its effective taxing and borrowing capacity, political subdivision of a state that has exhausted its effective taxing and borrowing capacity,
grants totaling 100% of a project’s cost may be awarded. Credit may be given toward the grants totaling 100% of a project’s cost may be awarded. Credit may be given toward the
nonfederal share for in-kind contributions, including contributions of space, equipment, and nonfederal share for in-kind contributions, including contributions of space, equipment, and
services. services.
Local Technical Assistance Program
The Local Technical Assistance (Local TA) program provides grants for management and The Local Technical Assistance (Local TA) program provides grants for management and
technical services, including feasibility studies, impact analyses, disaster resiliency plans, and technical services, including feasibility studies, impact analyses, disaster resiliency plans, and
project planning. Analysis from the impact and feasibility studies may help leaders in economic project planning. Analysis from the impact and feasibility studies may help leaders in economic
development decisionmaking. For instance, an eligibledevelopment decisionmaking. For instance, an eligible
entity could apply for a local technical entity could apply for a local technical
assistance grant to prepare for a business development project such as an incubator, shared-use assistance grant to prepare for a business development project such as an incubator, shared-use
processing facility, or an entrepreneurship center. Local technical assistance could help a city or processing facility, or an entrepreneurship center. Local technical assistance could help a city or
county prepare a feasibility study regarding the reuse of an abandoned manufacturing facility to county prepare a feasibility study regarding the reuse of an abandoned manufacturing facility to
advance local economic development. advance local economic development.
Statutory Authority: 42 U.S.C. §314742 U.S.C. §3147
Agency Regulations: 13 C.F.R. Part 306, Subpart A 13 C.F.R. Part 306, Subpart A
Economic distress criteria: EDA’s regulations (13 C.F.R. §301.3) note that there are no EDA’s regulations (13 C.F.R. §301.3) note that there are no
minimum economic distress level requirements for Local TA projects. minimum economic distress level requirements for Local TA projects.
Requirement to align with CEDS or equivalent: EDA regulations (13 C.F.R. §306.2) note that EDA regulations (13 C.F.R. §306.2) note that
projects projects
wil will be evaluated based on the extent that they are “consistent with an EDA-approved be evaluated based on the extent that they are “consistent with an EDA-approved
CEDS, as applicable, for the region in which the project is located.” CEDS, as applicable, for the region in which the project is located.”
Level of matching funds requirement::
General y Generally 50% of project costs, but may vary. See 13 50% of project costs, but may vary. See 13
C.F.R. §301.4. C.F.R. §301.4.
Planning Partnership Program
Planning grants are used for direct and indirect administrative expenses of Economic Planning grants are used for direct and indirect administrative expenses of Economic
Development Districts (EDDs) as Development Districts (EDDs) as
wel well as local organizations (Indian tribes and other eligible as local organizations (Indian tribes and other eligible
recipients) charged with long-term strategic economic development planning efforts such as the recipients) charged with long-term strategic economic development planning efforts such as the
Comprehensive Economic Development Strategies (CEDS) in EDA-designated distressed areas. Comprehensive Economic Development Strategies (CEDS) in EDA-designated distressed areas.
Planning grants may also support short-term planning investments to states, sub-state planning
Planning grants may also support short-term planning investments to states, sub-state planning
regions and urban areas and may help communities undertake focused, project-specific planning regions and urban areas and may help communities undertake focused, project-specific planning
activities. Eligibleactivities. Eligible
activities under this program include developing, maintaining, and activities under this program include developing, maintaining, and
implementing a CEDS and related short-term planning activities.implementing a CEDS and related short-term planning activities.
163
163169
169 According to an example noted in EDA’s FY2021-FY2023 NOFO for Planning and Local According to an example noted in EDA’s FY2021-FY2023 NOFO for Planning and Local
T echnicalTechnical Assistance, Assistance,
“EDA might provide Short “EDA might provide Short
T ermTerm Planning funding to a coalition of Planning funding to a coalition of
T ribalTribal and regional organizations to plan a and regional organizations to plan a
coordinated response to the suddencoordinated response to the sudden
loss of a significant employer in the affected area. EDA also makes Shortloss of a significant employer in the affected area. EDA also makes Short
-T erm-Term Planning awardsPlanning awards
to support the preparation or update of a CEDSto support the preparation or update of a CEDS
for regions not served by a District Organization.” See for regions not served by a District Organization.” See
EDA, “NOFO—EDA Planning and Local EDA, “NOFO—EDA Planning and Local
T echnicalTechnical Assistance Programs,” https://eda.gov/files/programs/eda- Assistance Programs,” https://eda.gov/files/programs/eda-
programs/FY21-23-Planning-and-LTA-NOFO_FINAL.pdf. programs/FY21-23-Planning-and-LTA-NOFO_FINAL.pdf.
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Statutory Authority: 42 U.S.C. §314342 U.S.C. §3143
Agency Regulations: 13 C.F.R. Part 303 13 C.F.R. Part 303
Economic distress criteria: No minimum economic distress level requirements. No minimum economic distress level requirements.
164170
Requirement to align with CEDS or equivalent: General yGenerally, the long-term partnership planning , the long-term partnership planning
investments support the development of CEDS. investments support the development of CEDS.
Level of matching funds requirement: :
General yGenerally 50% of project costs, but may vary. 50% of project costs, but may vary.
Public Works Program
The Public Works program is designed to promote long-term economic development and assist The Public Works program is designed to promote long-term economic development and assist
with the construction of physical infrastructure projects in distressed areas. Grants may support with the construction of physical infrastructure projects in distressed areas. Grants may support
the acquisition or development of land and improvements for use for a public works, public the acquisition or development of land and improvements for use for a public works, public
service, or development facility; and the acquisition, design and engineering, construction, service, or development facility; and the acquisition, design and engineering, construction,
rehabilitation, alteration, expansion, or improvement of such a facility, including related rehabilitation, alteration, expansion, or improvement of such a facility, including related
machinery and equipment. Examples of Public Works activities may include water and sewer machinery and equipment. Examples of Public Works activities may include water and sewer
systems improvements, industrial parks, business incubator facilities, telecommunications systems improvements, industrial parks, business incubator facilities, telecommunications
infrastructure, infrastructure,
skil skill-training facilities, brownfields redevelopment, and the expansion of port and -training facilities, brownfields redevelopment, and the expansion of port and
harbor facilities. Similar assistance is also availableharbor facilities. Similar assistance is also available
under the agency’s Economic Adjustment under the agency’s Economic Adjustment
Assistance program. Assistance program.
Statutory Authority: 42 U.S.C. §3141 42 U.S.C. §3141
Agency Regulations: 13 C.F.R. Part 305 13 C.F.R. Part 305
Economic distress criteria: The project area must meet one (or more) of the economic distress The project area must meet one (or more) of the economic distress
criteria, which includes projects that meet a “special need.” criteria, which includes projects that meet a “special need.”
Requirement to align with CEDS or equivalent: Funded projects must be part of an EDA- Funded projects must be part of an EDA-
certified Comprehensive Economic Development Strategy (CEDS) or equivalent EDA-accepted certified Comprehensive Economic Development Strategy (CEDS) or equivalent EDA-accepted
regional economic development strategy. regional economic development strategy.
Level of matching funds requirement: General yGenerally 50% of project costs, but may vary. Projects 50% of project costs, but may vary. Projects
may receive an additional amount, not to exceed 30%, based on the relative needs of the region in may receive an additional amount, not to exceed 30%, based on the relative needs of the region in
which the project which the project
wil will be located, as determined by EDA. In the case of certain Indian tribes, be located, as determined by EDA. In the case of certain Indian tribes,
nonprofit organizations that have exhausted their effective borrowing capacity, or a state or nonprofit organizations that have exhausted their effective borrowing capacity, or a state or
political subdivision of a state that has exhausted its effective taxing and borrowing capacity, political subdivision of a state that has exhausted its effective taxing and borrowing capacity,
grants totaling 100% of a project’s cost may be awarded. Credit may be given toward the grants totaling 100% of a project’s cost may be awarded. Credit may be given toward the
nonfederal share for in-kind contributions, including contributions of space, equipment, and nonfederal share for in-kind contributions, including contributions of space, equipment, and
services. services.
Research and National Technical Assistance Program (RNTA)
According to the EDA, the RNTA program funds research, evaluation, and national technical According to the EDA, the RNTA program funds research, evaluation, and national technical
assistance projects that promote competitiveness and innovation. The EDA administers RNTA assistance projects that promote competitiveness and innovation. The EDA administers RNTA
funding through a single Notice of Funding Opportunity (NOFO) for two separate programs: the funding through a single Notice of Funding Opportunity (NOFO) for two separate programs: the
Research and Evaluation (R&E) Program and the National Technical Assistance (NTA) Research and Evaluation (R&E) Program and the National Technical Assistance (NTA)
Program.Program.
165171 Through the National Technical Assistance program, EDA may provide technical Through the National Technical Assistance program, EDA may provide technical
164
170 13 C.F.R. §306. 13 C.F.R. §306.
165171 EDA, “ EDA, “
Research and Evaluation (R&E) and National Research and Evaluation (R&E) and National
T echnicalTechnical Assistance ( Assistance (
NT ANTA) Programs,” https://eda.gov/) Programs,” https://eda.gov/
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assistance that is national in scope on a specific type of economic development
assistance that is national in scope on a specific type of economic development
chal engechallenge, ,
opportunity, event, or condition, or for “outreach, training, and information dissemination.” For opportunity, event, or condition, or for “outreach, training, and information dissemination.” For
instance: instance
EDA partnered with two national organizations (the National Association of
EDA partnered with two national organizations (the National Association of
Development Organizations (NADO) Research Foundation and the National
Development Organizations (NADO) Research Foundation and the National
Association of Counties (NACo)) to disseminate promising strategies among Association of Counties (NACo)) to disseminate promising strategies among
coal-impacted communities. coal-impacted communities.
EDA directs a portion of Assistance to Nuclear Closure Communities (NCC)
EDA directs a portion of Assistance to Nuclear Closure Communities (NCC)
funds to a national technical assistance provider that disseminates promising
funds to a national technical assistance provider that disseminates promising
strategies and creates a ‘community of practice’ for applicants and grantees.strategies and creates a ‘community of practice’ for applicants and grantees.
166172
Statutory Authority: 42 U.S.C. §3147 42 U.S.C. §3147
Agency Regulations: 13 C.F.R. Part 30613 C.F.R. Part 306
Economic distress criteria: EDA’s regulations (13 C.F.R. §301.3) note that there are no EDA’s regulations (13 C.F.R. §301.3) note that there are no
minimum economic distress level requirements for RNTA projects. minimum economic distress level requirements for RNTA projects.
Requirement to align with CEDS or equivalent: EDA regulations (13 C.F.R. §306.2) note that EDA regulations (13 C.F.R. §306.2) note that
projects projects
wil will be evaluated based on the extent that they are “consistent with an EDA-approved be evaluated based on the extent that they are “consistent with an EDA-approved
CEDS, CEDS,
as applicable, for the region in which the project is located.” , for the region in which the project is located.”
Level of matching funds requirement: General yGenerally 50% of project costs, but may vary. PWEDA 50% of project costs, but may vary. PWEDA
notes that the Secretary may also increase the federal share up to 100% for Research and National notes that the Secretary may also increase the federal share up to 100% for Research and National
Technical Assistance (RNTA) grants (42 U.S.C. §3147). See 13 C.F.R. §301.4. Technical Assistance (RNTA) grants (42 U.S.C. §3147). See 13 C.F.R. §301.4.
STEM Talent Challenge167Challenge173
The STEM Talent The STEM Talent
Chal engeChallenge program (or “STEM Apprenticeship Pilot” program) funds program (or “STEM Apprenticeship Pilot” program) funds
proposals to expand career pathways and meet employers’ needs for a STEM-capable workforce. proposals to expand career pathways and meet employers’ needs for a STEM-capable workforce.
The program was authorized in the American Innovation and Competitiveness Act of 2017 (P.L. The program was authorized in the American Innovation and Competitiveness Act of 2017 (P.L.
114-329) and is administered by the EDA’s Office of Innovation and Entrepreneurship. 114-329) and is administered by the EDA’s Office of Innovation and Entrepreneurship.
According to EDA, the STEM initiativeAccording to EDA, the STEM initiative
aligns with the goals of the agency’s Build to Scale aligns with the goals of the agency’s Build to Scale
program, which is also administered by OIE and designed to develop talent, capital, and program, which is also administered by OIE and designed to develop talent, capital, and
entrepreneurial support systems. The STEM Talent entrepreneurial support systems. The STEM Talent
Chal engeChallenge seeks to address the need for the seeks to address the need for the
“talent” component by building a “talent” component by building a
skil edskilled workforce for regional innovation economies. Funded workforce for regional innovation economies. Funded
projects may address training gaps in order to facilitate the growth of high-growth, high-wage projects may address training gaps in order to facilitate the growth of high-growth, high-wage
entrepreneurial ventures, innovation-driven businesses, and industries that leverage emerging entrepreneurial ventures, innovation-driven businesses, and industries that leverage emerging
technologies. technologies.
Statutory Authority: 15 U.S.C. §372315 U.S.C. §3723
programs/rnta/. See also EDA, “programs/rnta/. See also EDA, “
NOFO for FY 2021-2023 Research and Evaluation (R&E) and National NOFO for FY 2021-2023 Research and Evaluation (R&E) and National
T echnicalTechnical Assistance (Assistance (
NT A) P rogramsNTA) Programs,” EDA-HDQ-,” EDA-HDQ-
RNT ARNTA-2021, https://www.grants.gov/web/grants/view-opportunity.html?-2021, https://www.grants.gov/web/grants/view-opportunity.html?
oppId=334079. oppId=334079.
166 T he172 The EDA’s webpage EDA’s webpage
on RNT A on RNTA provides additional examples at https://eda.gov/programs/rnta/rnta-programs/ provides additional examples at https://eda.gov/programs/rnta/rnta-programs/
national-technical-assistance/index.htm. national-technical-assistance/index.htm.
167 ST EM173 STEM is the acronym used for science, technology, engineering, and mathematics curriculum, training, education, is the acronym used for science, technology, engineering, and mathematics curriculum, training, education,
and related initiatives. For more information, see https://eda.gov/oie/stem/. and related initiatives. For more information, see https://eda.gov/oie/stem/.
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Agency Regulations: The program is governed by the terms of the Notice of Funding The program is governed by the terms of the Notice of Funding
Opportunity (NOFO).Opportunity (NOFO).
168174
Economic distress criteria: No minimum economic distress level requirements. No minimum economic distress level requirements.
169 175
Requirement to align with CEDS or equivalent: See the terms of the program’s NOFO. See the terms of the program’s NOFO.
Level of matching funds requirement: Applicants must provide a matching nonfederal cost- Applicants must provide a matching nonfederal cost-
share of at least 50% of the total project cost. share of at least 50% of the total project cost.
Trade Adjustment Assistance for Firms (TAAF)170176
The Trade Adjustment Assistance for Firms program funds a national network of Trade The Trade Adjustment Assistance for Firms program funds a national network of Trade
Adjustment Centers (TAACs) that provide assistance to American companies that have “lost Adjustment Centers (TAACs) that provide assistance to American companies that have “lost
domestic sales and employment because of increased imports of similar goods and services.” domestic sales and employment because of increased imports of similar goods and services.”
According to the EDA, “a national network of 11 TAACs help strengthen the competitiveness of According to the EDA, “a national network of 11 TAACs help strengthen the competitiveness of
American companies that have lost domestic sales and employment because of increased imports American companies that have lost domestic sales and employment because of increased imports
of similar goods and services.” The following entities may apply for assistance to operate a of similar goods and services.” The following entities may apply for assistance to operate a
TAAC:TAAC:
universities or affiliated organizations; states or local governments; or nonprofit universities or affiliated organizations; states or local governments; or nonprofit
organizations.organizations.
171 EDA general y177 EDA generally funds a TAAC for a three-year period composed of three separate funds a TAAC for a three-year period composed of three separate
funding periods of 12 months each.funding periods of 12 months each.
172 178
Statutory Authority: Trade Act of 1974, as amended (19 U.S.C. §2341 et seq.)Trade Act of 1974, as amended (19 U.S.C. §2341 et seq.)
Agency Regulations: 13 C.F.R. Part 315 13 C.F.R. Part 315
Economic distress criteria: No minimum economic distress level requirements. No minimum economic distress level requirements.
173 179
Requirement to align with CEDS or equivalent: The CEDS requirement is not referenced in 19 The CEDS requirement is not referenced in 19
U.S.C. §2341 et seq. or agency regulations. U.S.C. §2341 et seq. or agency regulations.
Level of matching funds requirement: There are no matching share requirements for There are no matching share requirements for
adjustment assistance provided by the TAACs to firms for certification or for administrative adjustment assistance provided by the TAACs to firms for certification or for administrative
expenses of the TAACs.expenses of the TAACs.
174180 Certified firms that receive assistance from TAACs must pay a Certified firms that receive assistance from TAACs must pay a
percentage of expenses associated with services.percentage of expenses associated with services.
175 181
University Center Program176Program182
The University Center program connects economic development practitioners with expertise and The University Center program connects economic development practitioners with expertise and
resources from resources from
col egescolleges and universities. University Centers provide technical assistance in and universities. University Centers provide technical assistance in
168 174 EDA, “NOFO EDA, “NOFO
—2020 2020
ST EMSTEM, EDA-HDQ-OIE-2020-2006617,” https://eda.gov/files/oie/stem/Section-28-, EDA-HDQ-OIE-2020-2006617,” https://eda.gov/files/oie/stem/Section-28-
ST EM-T alent STEM-Talent-Challenge-NOFO.pdf. -Challenge-NOFO.pdf.
169 T he ST EM T alent175 The STEM Talent Challenge is authorized under Section 28 of the Stevenson-Wydler Challenge is authorized under Section 28 of the Stevenson-Wydler
T echnologyTechnology Innovation Act of Innovation Act of
1980 (15 U.S.C. §3723). 1980 (15 U.S.C. §3723).
T he FY2020 ST EMThe FY2020 STEM Notice of Funding Notice of Funding
Opportunity (NOFO) notes that, “this authorization Opportunity (NOFO) notes that, “this authorization
does not require applicants to meet specific distress criteria to be considereddoes not require applicants to meet specific distress criteria to be considered
eligible.”eligible.”
See See EDA, “NOFOEDA, “NOFO
—2020 2020
ST EMSTEM, EDA-HDQ-OIE-2020-2006617,” https://eda.gov/files/oie/stem/Section-28-, EDA-HDQ-OIE-2020-2006617,” https://eda.gov/files/oie/stem/Section-28-
ST EMSTEM-Talent-Challenge--Talent-Challenge-
NOFO.pdf. NOFO.pdf.
170
176 For more information, see CRS For more information, see CRS
Report RS20210, Report RS20210,
Trade Adjustment Assistance for Firms, by Rachel F. Fefer. , by Rachel F. Fefer.
171177 13 C.F.R. §315.4. 13 C.F.R. §315.4.
172178 13 C.F.R. §315.5. 13 C.F.R. §315.5.
173179 13 C.F.R. §315.5. 13 C.F.R. §315.5.
174180 13 C.F.R. §315.5. 13 C.F.R. §315.5.
175181 13 C.F.R. §315.6. 13 C.F.R. §315.6.
176182 For a list of University Centers, see https://eda.gov/programs/university-centers/current-list/. For a list of University Centers, see https://eda.gov/programs/university-centers/current-list/.
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support of regional economic development strategies in one or more of the following program
support of regional economic development strategies in one or more of the following program
areas:areas:
Advancing regional commercialization efforts,
Advancing regional commercialization efforts,
Advancing high-growth entrepreneurship, Advancing high-growth entrepreneurship,
Cultivating innovation, Cultivating innovation,
Encouraging business expansion in a region’s innovation cluster(s), Encouraging business expansion in a region’s innovation cluster(s),
Developing a high- Developing a high-
skil edskilled regional workforce, and regional workforce, and
Increasing the resiliency of a region. Increasing the resiliency of a region.
Eligible
Eligible
recipients for the University Center program include institutions of higher education recipients for the University Center program include institutions of higher education
(including community colleges or junior colleges and consortia of institutions of higher (including community colleges or junior colleges and consortia of institutions of higher
education); university-affiliated research institutions; and nonprofit organizations. University education); university-affiliated research institutions; and nonprofit organizations. University
Center grants Center grants
general ygenerally have a five-year period of performance, with an initial funding period of have a five-year period of performance, with an initial funding period of
one year. Since FY2004, EDA has administered the University Center program as a competitive one year. Since FY2004, EDA has administered the University Center program as a competitive
multiyear program. In FY2021, EDA is holding the University Center competition in its Chicago multiyear program. In FY2021, EDA is holding the University Center competition in its Chicago
and Philadelphiaand Philadelphia
Regional Regional Offices.Offices.
177183 In FY2022, EDA In FY2022, EDA
wil will hold the University Center hold the University Center
competition in its Atlanta and Seattle Regional Offices. In FY2023, EDA competition in its Atlanta and Seattle Regional Offices. In FY2023, EDA
wil will hold the University hold the University
Center competition in its Austin and Denver Regional Offices.Center competition in its Austin and Denver Regional Offices.
178184
Statutory Authority: 42 U.S.C. §314742 U.S.C. §3147
Agency Regulations: 13 C.F.R. Parts 300-302 and 13 C.F.R. §306 Subpart B 13 C.F.R. Parts 300-302 and 13 C.F.R. §306 Subpart B
Economic distress criteria: No minimum economic distress level requirements. No minimum economic distress level requirements.
179185
Requirement to align with CEDS or equivalent: Recent University Center NOFOs indicate that Recent University Center NOFOs indicate that
applicants to the University Center program are not required to submit a CEDS.applicants to the University Center program are not required to submit a CEDS.
180 186
Level of matching funds requirement: General yGenerally 50% of project costs, but may vary. See 13 50% of project costs, but may vary. See 13
CFR §301.4.
177CFR §301.4.
183 EDA, EDA,
NOFO——
FY2021 EDA University Center Economic Development Program Competition, EDA-CHI-, EDA-CHI-
T ATA--
CRO-2021-2006893 and EDA-CHI-CRO-2021-2006893 and EDA-CHI-
T ATA-CRO-2021-2006894, https://www.grants.gov/web/grants/view--CRO-2021-2006894, https://www.grants.gov/web/grants/view-
opportunity.html?oppId=332622. opportunity.html?oppId=332622.
178
184 EDA, “University Centers—Applicant Resources,” https://eda.gov/programs/university-centers/applicant-resources/ EDA, “University Centers—Applicant Resources,” https://eda.gov/programs/university-centers/applicant-resources/
. .
179185 13 C.F.R. §306 Subpart 13 C.F.R. §306 Subpart
B. The EDA encourages University Centers to provide services that benefit distressed areas B. The EDA encourages University Centers to provide services that benefit distressed areas
in their region (13 C.F.R. §306.5(a)). in their region (13 C.F.R. §306.5(a)).
180
186 EDA, EDA,
NOFO—FY2021 EDA University Center Economic Development Program Competition, EDA-CHI-, EDA-CHI-
T ATA-CRO--CRO-
2021-2006893 and EDA-CHI-2021-2006893 and EDA-CHI-
T ATA-CRO-2021-2006894, https://www.grants.gov/web/grants/view-opportunity.html?-CRO-2021-2006894, https://www.grants.gov/web/grants/view-opportunity.html?
oppId=332622. oppId=332622.
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Appendix B. EDA Funding—Historical Tables
Table B-1. Budget Requests and Annual Enacted Appropriations,
FY2011-FY2021 and FY2022FY2022 and FY2023 Request
(budget authority, in
(budget authority, in
mil ionsmillions of nominal of nominal
dol arsdollars) )
Fiscal Year
Request
Enacted
2011
2011
$286.2
$286.2
$283.4
$283.4
2012
2012
$324.9
$324.9
$457.5*
$457.5*
2013
2013
$219.7
$219.7
$218.3
$218.3
2014
2014
$320.9
$320.9
$246.5
$246.5
2015
2015
$248.2
$248.2
$250.0
$250.0
2016
2016
$273.0
$273.0
$261.0
$261.0
2017
2017
$258.0
$258.0
$276.0
$276.0
2018
2018
$30.0
$30.0
$901.5*
$901.5*
2019
2019
$14.9
$14.9
$904.0*
$904.0*
2020
2020
$30.0
$30.0
$1,833.0*
$1,833.0*
2021
2021
$31.6
$31.6
$3,346.0*
$3,346.0*
2022
2022
$433.1
$433.1
$373.5
2023
$502.5
Sources
Source: OMB Budget Appendices of the United States OMB Budget Appendices of the United States
and, EDA Annual Reports, and EDA Congressional Budget Justification Reports. EDA Annual Reports. The FY2022 Administration Request amount is from the President’s request for FY2022 discretionary funding. Notes: Includes funding for programs Includes funding for programs
and salariesand salaries
and expenses. The asteriskand expenses. The asterisk
(*) indicates that the amount (*) indicates that the amount
includes supplemental appropriations.includes supplemental appropriations.
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Table B-2. Funding for EDA, by Program, FY2011-FY2021FY2022
(budget authority, in
(budget authority, in
mil ionsmillions of nominal of nominal
dol arsdollars)
FY2011 FY2012 FY2013a FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022)
FY2011
FY2012
FY2013a
FY2014
FY2015
FY2016
FY2017
FY2018
FY2019
FY2020
FY2021
Program
Public Works Public Works
88.7
88.7
111.6
111.6
77.2
77.2
96.0
96.0
99.0
99.0
100
100
100
100
117.5
117.5
117.5
117.5
118.5
118.5
119.5
119.5
Economic120.5
Economic Adjustment Assistance
78.7
78.7
50.1
50.1
49.0
49.0
42.0
42.0
35.0
35.0
35.0
35.0
35.0
35.0
37.0
37.0
37.0
37.0
37.0
37.0
37.5
37.5
Adjustment Assistance37.5
Planning Assistance
Planning Assistance
30.9
30.9
29.0
29.0
28.4
28.4
29.0
29.0
30.0
30.0
32.0
32.0
31.5
31.5
33.0
33.0
33.0
33.0
33.0
33.0
33.5
33.5
34.5
Technical Assistance Technical Assistance
13.4
13.4
12.0
12.0
11.8
11.8
11.0
11.0
11.0
11.0
10.5
10.5
9.0
9.0
9.5
9.5
9.5
9.5
9.5
9.5
10.0
10.0
12.5
Research and Research and
Evaluation
1.5
1.5
1.5
1.5
1.5
1.5
1.5
1.5
1.5
1.5
1.5
1.5
1.5
1.5
1.5
1.5
1.5
1.5
1.5
1.5
1.5
1.5
Evaluation2.0
Trade Adjustment
Trade Adjustment
Assistance
15.8
15.8
15.8
15.8
15.5
15.5
15.0
15.0
12.5
12.5
13.0
13.0
13.0
13.0
13.0
13.0
13.0
13.0
13.0
13.0
13.5
13.5
Assistance13.5
Innovative
Innovative
Manufacturing (Sec. 26)
—b
—b
5.0
5.0
4.0
4.0
Manufacturing (Sec. 26)
Build to Scale (Sec.
Build to Scale (Sec.
27)
—c
—c
10.0
10.0
10.0
10.0
15.0
15.0
17.0
17.0
21.0
21.0
23.5
23.5
33.0
33.0
38.0
38.0
27)45.0
Assistance
Assistance
to Coal to Coal
Communities
10.0d
10.0d
15.0
15.0
30.0
30.0
30.0
30.0
30.0
30.0
30.0
30.0
33.5
33.5
Communities
41.5
Assistance
Assistance
to to Nuclear Closure
15.0
15.0
16.5
16.5
Nuclear Closure 16.5
Communities Communities
STEM Assistance to Biomass Power Plant
2.0
2.0
4.5
Closure Communities
STEM Apprenticeships Apprenticeships
(Sec. 28) (Sec. 28)
Global Climate
16.5
Change Mitigation
CRS-48
FY2011
FY2012
FY2013a
FY2014
FY2015
FY2016
FY2017
FY2018
FY2019
FY2020
FY2021
2.0
2.0
2.0
Global Climate Change Mitigation
16.5
Subtotal—Programs
245.5
245.5
220.0
220.0
182.0
182.0
209.5
209.5
213.0
213.0
222.0
222.0
237.0
237.0
262.5
262.5
265.0
265.0
292.5
292.5
305.5
305.5
330.0
Supplemental Appropriations
200.0
200.0
600.0
600.0
600.0
600.0
1,500.0
1,500.0
3,000.0
3,000.0
Appropriations
Salaries and Expenses
37.9
37.9
37.5
37.5
36.2
36.2
37.0
37.0
37.0
37.0
39.0
39.0
39.0
39.0
39.0
39.0
39.0
39.0
40.5
40.5
40.5
40.5
43.5
Total
$283.4
$457.5
$218.3
$246.5
$250.0
$261.0
$276.0
$901.5
$904.0
$1,833.0
$3,346.0
$373.5
Sources: Appropriated funding amounts compiled by CRS using dataAppropriated funding amounts compiled by CRS using data
from the conference reports and explanatory statements for the fol owing annual appropriations from the conference reports and explanatory statements for the fol owing annual appropriations
bil s:bil s:
P.L. 112-10, P.L. 112-55, P.L. 113-76, P.L. 113-235, P.L. 114-113, P.L. 115-31, P.L. 115-141, P.L. 116-6, P.L. 116-93, P.L. 116-136, P.L. 112-10, P.L. 112-55, P.L. 113-76, P.L. 113-235, P.L. 114-113, P.L. 115-31, P.L. 115-141, P.L. 116-6, P.L. 116-93, P.L. 116-136,
and P.L. 116-260P.L. 116-260
, and P.L. 117-103; ; S.Rept. 113-78; S.Rept. 113-78;
and EDA, FY2013 Annual Report,and EDA, FY2013 Annual Report,
https://eda.gov/files/annual-reports/fy2013/EDA-FY2013-Annual-Report-ful .pdf. Funding amounts include the fol owing supplemental https://eda.gov/files/annual-reports/fy2013/EDA-FY2013-Annual-Report-ful .pdf. Funding amounts include the fol owing supplemental
appropriations bil s:appropriations bil s:
P.L. 115-123, P.L. 116-20, P.L. 116-136, and P.L. 117-2. P.L. 115-123, P.L. 116-20, P.L. 116-136, and P.L. 117-2.
CRS-54
Notes: Amounts may not add to totals due to rounding. Build to Scale was Amounts may not add to totals due to rounding. Build to Scale was
cal edcalled Regional Innovation Strategies (RIS) or Regional Innovations Program Regional Innovation Strategies (RIS) or Regional Innovations Program
(RIP) in annual (RIP) in annual
appropriations bil s from FY2014 to FY2021; EDA began administeringappropriations bil s from FY2014 to FY2021; EDA began administering
RIS/RIP funding using the Build to Scale program name in FY2020. The RIS/RIP includedRIS/RIP funding using the Build to Scale program name in FY2020. The RIS/RIP included
Science Science
Parks Loan Guarantees in FY2014 (P.L. 113-76). In FY2015 (P.L. 113-235), the explanatory statement indicated that the amount for regional innovation would include up Parks Loan Guarantees in FY2014 (P.L. 113-76). In FY2015 (P.L. 113-235), the explanatory statement indicated that the amount for regional innovation would include up
to $5 mil ionto $5 mil ion
for planning grants for science park infrastructure. for planning grants for science park infrastructure.
a. FY2013 levelsa. FY2013 levels
reflect post-sequestration amounts. According to CRS Report R43080, reflect post-sequestration amounts. According to CRS Report R43080,
Commerce, Justice, Science, and Related Agencies: FY2014 Appropriations, ,
coordinated by Nathan James, Jennifer D. Wil iams,
coordinated by Nathan James, Jennifer D. Wil iams,
and John F. Sargent Jr., “FY2013 post-sequestration amounts were provided by the Department of Commerce. and John F. Sargent Jr., “FY2013 post-sequestration amounts were provided by the Department of Commerce.
FY2014-requested amounts wereFY2014-requested amounts were
taken from S.Rept. 113-78. The FY2013 amounts include rescissionstaken from S.Rept. 113-78. The FY2013 amounts include rescissions
of FY2013 budget authority and the amount sequestered per of FY2013 budget authority and the amount sequestered per
the Budget Control Act of 2011 (P.L. 112-25).” the Budget Control Act of 2011 (P.L. 112-25).”
b. The conference report accompanying the FY2012 appropriations directed EDA to
b. The conference report accompanying the FY2012 appropriations directed EDA to
al ocate allocate up to $5,000,000 for loan guarantees under section 26 under the up to $5,000,000 for loan guarantees under section 26 under the
Economic Adjustment Assistance program.
Economic Adjustment Assistance program.
See CRS Report R41721, See CRS Report R41721,
Commerce, Justice, Science, and Related Agencies: FY2012 Appropriations,,
coordinated by Nathan coordinated by Nathan
James,James,
Jennifer D. Wil iams,Jennifer D. Wil iams,
and John F. Sargent Jr. and John F. Sargent Jr.
c. In FY2012, the annual appropriations bil did not include a separate appropriation for Regional Innovation Program activities as requested by the Administration.
c. In FY2012, the annual appropriations bil did not include a separate appropriation for Regional Innovation Program activities as requested by the Administration.
Grants and loan guarantees authorized by section 27 were funded under the Economic Adjustment Assistance program.
Grants and loan guarantees authorized by section 27 were funded under the Economic Adjustment Assistance program.
See CRS Report R41721, See CRS Report R41721,
Commerce, Justice,
Science, and Related Agencies: FY2012 Appropriations,,
coordinated by Nathan James, Jennifer D.coordinated by Nathan James, Jennifer D.
Wil iams,Wil iams,
and John F. Sargent Jr. In FY2014, the explanatory statement and John F. Sargent Jr. In FY2014, the explanatory statement
accompanying the appropriations bil directed EDA to administeraccompanying the appropriations bil directed EDA to administer
section 27 grants and loan guarantees in accordance with the section 27 grants and loan guarantees in accordance with the
req uirements requirements of 15 U.S.C.of 15 U.S.C.
§§3721-§§3721-
3722 rather than the requirements3722 rather than the requirements
of PWEDA.of PWEDA.
See Rep. Harold Rogers, “Explanatory Statement Submitted by Mr. Rogers,See Rep. Harold Rogers, “Explanatory Statement Submitted by Mr. Rogers,
Chairman of the House CommitteeChairman of the House Committee
on on
Appropriations Regarding H.R. 3547, Consolidated Appropriations Act, 2014,” Appropriations Regarding H.R. 3547, Consolidated Appropriations Act, 2014,”
Congressional Record, vol., vol.
160, no. 9 (January 15, 2014), p. H507. 160, no. 9 (January 15, 2014), p. H507.
d. According to the EDA, “This program line was created by the Consolidated and Further Continuing Appropriation Act, 2015 (
d. According to the EDA, “This program line was created by the Consolidated and Further Continuing Appropriation Act, 2015 (
P.L. 113-235).” See EDA, P.L. 113-235).” See EDA,
FY2022
Congressional Budget Justification,,
p. 63,p. 63,
https://www.commerce.gov/sites/https://www.commerce.gov/sites/
d efaultdefault/files/2021-05/fy2022_eda_congressional_budget_justification.pdf. /files/2021-05/fy2022_eda_congressional_budget_justification.pdf.
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Table B-3. Supplemental Funding, FY2011-FY2021
(budget authority, in
(budget authority, in
mil ions of dol arsmillions of dollars) )
FY2012
FY2018
FY2019
FY2020
FY2021
(P.L. 112-55)
(P.L. 115-123)
(P.L. 116-20)
(P.L. 116-136)
(P.L. 117-2)
Economic Adjustment
Economic Adjustment
$200
$200
$600
$600
$600
$600
$1,500
$1,500
$3,000
$3,000
Assistance
Assistance
Sources: CRS using information from the reports CRS using information from the reports
accompanying the fol owing appropriations bil s:accompanying the fol owing appropriations bil s:
Consolidated Consolidated
and Further Continuing Appropriationsand Further Continuing Appropriations
Act, 2012 (P.L. 112-55), Bipartisan Budget Act of 2018 (P.L. 115-123), Act, 2012 (P.L. 112-55), Bipartisan Budget Act of 2018 (P.L. 115-123),
Supplemental Appropriations for DisasterSupplemental Appropriations for Disaster
Relief Act, 2019 (P.L. 116-20), CARES Act (P.L. 116-136), and Relief Act, 2019 (P.L. 116-20), CARES Act (P.L. 116-136), and
AmericanAmerican
Rescue Plan Act (ARPA, P.L.Rescue Plan Act (ARPA, P.L.
117-2). 117-2).
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Appendix C. Staff Level History
Table C-1. EDA Employment, FY2011-FY2021
Year
Employment
2011
2011
222
222
2012
2012
197
197
2013
2013
169
169
2014
2014
167
167
2015
2015
174
174
2016
2016
192
192
2017
2017
180
180
2018
2018
180
180
2019
2019
202
202
2020
2020
261
261
2021
2021
272281
Source: CRS using information fromCRS using information from
the Office of Personnelthe Office of Personnel
Management (OPM), FedScope, Management (OPM), FedScope,
http://www.fedscope.opm.gov.http://www.fedscope.opm.gov.
Notes: Each total is an “on-board” U.S.-based personnelEach total is an “on-board” U.S.-based personnel
count as of Septembercount as of September
of the year noted. of the year noted, except 2021. The amount for 2021 shows the total as of June, the most recent month for which data is available.
Author Information
Julie M. Lawhorn Julie M. Lawhorn
Analyst in Economic Development Policy
Analyst in Economic Development Policy
Acknowledgments
Jamie Hutchinson, Visual Information Specialist, developed the figures included in this report. Maria
Jamie Hutchinson, Visual Information Specialist, developed the figures included in this report. Maria
Kreiser, Julie Jennings, and Jared Nagel provided research assistance. Shelley Harlan, Editor, provided Kreiser, Julie Jennings, and Jared Nagel provided research assistance. Shelley Harlan, Editor, provided
technical edits and functionality support as the report was developed. Lauren R. Stienstra, Federalism and technical edits and functionality support as the report was developed. Lauren R. Stienstra, Federalism and
Emergency Management Section Research Manager, and section- and division-level management Emergency Management Section Research Manager, and section- and division-level management
throughout CRS provided substantive edits and assistance in shaping the report’s development. throughout CRS provided substantive edits and assistance in shaping the report’s development.
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Disclaimer
This document was prepared by the Congressional Research Service (CRS). CRS serves as nonpartisan
This document was prepared by the Congressional Research Service (CRS). CRS serves as nonpartisan
shared staff to congressional committees and Members of Congress. It operates solely at the behest of and shared staff to congressional committees and Members of Congress. It operates solely at the behest of and
under the direction of Congress. Information in a CRS Report should under the direction of Congress. Information in a CRS Report should
n otnot be relied upon for purposes other be relied upon for purposes other
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