Economic Development Administration:
April 8June 1, 2022 , 2022
An Overview of Programs and Appropriations
Julie M. Lawhorn
(FY2011-FY2022)
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 infrastructure, and implement innovation and capital, strengthen supply chains, expand access to capital, build new types of infrastructure, 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 include assistance, 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
$288 million. Annual appropriations decreased each year between FY2011 and FY2013, and have increased slightly each $288 million. Annual appropriations decreased each year between FY2011 and FY2013, and have increased slightly each
year since FY2014. In FY2022, Congress approved $373.5 million in annual appropriations for the agency’s programs and year since FY2014. In FY2022, Congress approved $373.5 million in annual appropriations for the agency’s programs and
administration. In FY2020 and FY2021, Congress also provided a total of $4.5 billion in supplemental appropriations for administration. In FY2020 and FY2021, 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) pandemic. EDA programs in response to the economic impact of the Coronavirus Disease 2019 (COVID-19) pandemic.
For FY2023, the Biden Administration requested funding increases for several EDA programs and for salaries and expenses.
For FY2023, the Biden Administration requested funding increases for several EDA programs and for salaries and expenses.
Under the Administration’s proposal, EDA would receive $502.5 million, an increase of $129 million, or 35%, over the Under the Administration’s proposal, EDA would receive $502.5 million, an increase of $129 million, or 35%, over the
amount of FY2022 enacted appropriations, excluding the COVID-19 supplemental appropriations. The FY2023 includes $50 amount of FY2022 enacted appropriations, excluding the COVID-19 supplemental appropriations. The FY2023 includes $50
million for a new Recompete pilot program. The FY2023 budget request also included significant increases in funding for the million for a new Recompete pilot program. The FY2023 budget request also included significant increases in funding for the
following programs and expenses: following programs and expenses:
Assistance to Coal Communities grants (through the EAA program), from $41.5 million to $80.5 million;
Assistance to Coal Communities grants (through the EAA program), from $41.5 million to $80.5 million;
EAA program, from $37.5 million to $48 million; EAA program, from $37.5 million to $48 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 $43.5 million to $70.0 million. salaries and expenses, from $43.5 million to $70.0 million.
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
Congressional Research Service
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
Congressional Research Service
Economic Development Administration: An Overview of Programs and Appropriations
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 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. appropriations for programs established by PWEDA. Although the PWEDA authorities do not expire, the authorization of appropriations to fund the economic development assistance programs expired on September 30, 2008.
Congressional Research Service
Congressional Research Service
link to page 6 link to page 8 link to page 8 link to page 9 link to page 10 link to page 12 link to page 13 link to page 15 link to page 16 link to page 16 link to page 17 link to page 18 link to page 19 link to page 22 link to page 23 link to page 25 link to page 25 link to page 27 link to page 27 link to page 28 link to page 28 link to page 29 link to page 31 link to page 32 link to page 33 link to page 33 link to page 34 link to page
link to page 6 link to page 8 link to page 8 link to page 9 link to page 10 link to page 12 link to page 13 link to page 15 link to page 16 link to page 16 link to page 17 link to page 18 link to page 19 link to page 22 link to page 23 link to page 25 link to page 25 link to page 27 link to page 27 link to page 28 link to page 28 link to page 29 link to page 31 link to page 32 link to page 33 link to page 33 link to page 34 link to page
3635 link to page 37 link to page 37 link to page 38 link to page 40 link to page 40 link to page 42 link to page 43 link to page 43 link to page 44 link to page 7 link to page 11 link to page 13 link to page 15 link to page 37 link to page 37 link to page 38 link to page 40 link to page 40 link to page 42 link to page 43 link to page 43 link to page 44 link to page 7 link to page 11 link to page 13 link to page 15
Economic Development Administration: An Overview of Programs and Appropriations
Contents
Introduction ..................................................................................................................................... 61
Agency Overview ............................................................................................................................ 83
EDA Mission and Origins ......................................................................................................... 83
Precursors to PWEDA and EDA Programs Since 1965 ............................................................ 94
EDA Structure ........................................................................................................................... 5 10
EDA Regional Offices ........................................................................................................ 7 12
EDA Staff Levels ................................................................................................................ 8 13
Economic Development Districts (EDDs) .............................................................................. 1510
Investment Priorities, FY2011-Present .................................................................................... 11 16
Economic Development Integration (EDI) Role ...................................................................... 11 16
Disaster Economic Recovery Role .......................................................................................... 1712
EDA Performance Metrics ...................................................................................................... 1813
EDA Grant Programs ..................................................................................................................... 1914
How to Apply .......................................................................................................................... 2217
Select Grant Requirements ...................................................................................................... 2318
Select Grant Requirements—Public Works and Economic Adjustment Assistance
Programs .............................................................................................................................. 2520
Persistent Poverty and Distressed, Small, Rural and Underserved Areas—Funding
and Technical Assistance ...................................................................................................... 2722
Assistance to Tribal Communities........................................................................................... 2823
EDA Appropriations, FY2011—FY2022 ...................................................................................... 2823
Assistance to Energy Transition Communities ....................................................................... 2924
Consolidated Appropriations Act of 2021, P.L. 116-260 ......................................................... 3126
Consolidated Appropriations Act of 2022, P.L. 117-103 ......................................................... 3227
Supplemental Appropriations .................................................................................................. 3328
Disaster Economic Recovery Assistance, FY2011-FY2021 ............................................. 3328
COVID-19 Economic Recovery Assistance, FY2020-FY2021 ........................................ 3429
FY2023 Funding Request .............................................................................................................. 3630
Policy Considerations .................................................................................................................... 3732
Changes to Program Requirements ................................................................................... 3732
Expanding or Establishing EDA Programs, Roles, Offices, and Capacity ....................... 3833
Trade Adjustment Assistance for Firms (TAAF) .............................................................. 4035
Preparing for Future Industries and EDA’s Role in Federal Innovation Policy ............... 4035
Underserved Communities ................................................................................................ 4237
Human Capital, STEM, and Workforce Development ..................................................... 4338
Reauthorization ................................................................................................................. 4338
Concluding Remarks ..................................................................................................................... 4439
Figures
Figure 1. Major EDA Programs....................................................................................................... 72
Figure 2. EDA Organizational Chart .............................................................................................. 11. 6
Figure 3. EDA Regional Offices...................................................................................................... 8 13
Figure 4. EDA On-Board Employees, 2011-2021 ......................................................................... 1510
Congressional Research Service
Congressional Research Service
link to page 29 link to page 31 link to page 35 link to page 35 link to page 16 link to page 19 link to page 20 link to page 26 link to page 36 link to page 53 link to page 53 link to page 54 link to page 56 link to page 57 link to page 46 link to page 53 link to page 57 link to page 57
link to page 29 link to page 31 link to page 35 link to page 35 link to page 16 link to page 19 link to page 20 link to page 26 link to page 36 link to page 53 link to page 53 link to page 54 link to page 56 link to page 57 link to page 46 link to page 53 link to page 57 link to page 57
Economic Development Administration: An Overview of Programs and Appropriations
Figure 5. Funding for EDA Programs, FY2011-FY2022 .............................................................. 2924
Figure 6. EAA, ACC, NCC, and BCC Funding History: FY2011-FY2022 .................................. 3126
Figure 7. Annual and Supplemental and Disaster Recovery Appropriations, FY2011-
FY2022 ....................................................................................................................................... 3530
Tables
Table 1. Comparison of EDA Investment Priorities ....................................................................... 11 16
Table 2. EDA Performance Goals and Metrics .............................................................................. 1914
Table 3. Summary of Major EDA Programs ................................................................................. 2015
Table 4. Core Elements of a Comprehensive Economic Development Strategy (CEDS) ............. 2621
Table 5. FY2022 Annual Appropriations and FY2023 Request .................................................... 3631
Table B-1. Budget Requests and Annual Enacted Appropriations, FY2011-FY2022 and
FY2023 Request ......................................................................................................................... 5348
Table B-2. Funding for EDA, by Program, FY2011-FY2022 ....................................................... 5449
Table B-3. Supplemental Funding, FY2011-FY2021 .................................................................... 5651
Table C-1. EDA Employment, FY2011-FY2021 .......................................................................... 5752
Appendixes
Appendix A. Grant Programs ........................................................................................................ 4641
Appendix B. EDA Funding—Historical Tables ............................................................................ 5348
Appendix C. Staff Level History ................................................................................................... 5752
Contacts
Author Information ........................................................................................................................ 5752
Congressional Research Service
Congressional Research Service
link to page 7
link to page 7
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 locally
technical assistance to support locally
- driven, driven,
The EDA defines economic development as creating
The EDA defines economic development as creating
regionally
regionally
- 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, and communities to maximize the individuals, firms, and communities to maximize the
development and the local scope of practice have
development and the local scope of practice have
use of their talents and skil s to support innovation,
use of their talents and skil s to support innovation,
changed in response to shifts in regional and
changed in response to shifts in regional and
lower transaction costs, and responsibly produce
lower transaction costs, and responsibly 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 annually and directs the agency to allocate funding to
Congress approves appropriations for EDA annually and directs the agency to allocate funding to
the major programs outlined ithe major programs outlined i
n Figure 1. Congress occasionally approves supplemental funding ongress occasionally approves supplemental funding
as well. Supplemental funding in recent years has supported economic recovery assistance as well. 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 generally administered through one of the agency’s most Supplemental appropriations are generally 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
Development Finance (Thousand Oaks, CA: Sage Publications, 2005), p. 5; International Economic Development (Thousand Oaks, CA: Sage Publications, 2005), p. 5; International Economic Development
Council (IEDC), “What Economic Development Does for a Community,” https://www.iedconline.org/clientuploads/Council (IEDC), “What Economic Development Does for a Community,” https://www.iedconline.org/clientuploads/
Downloads/IEDC_Why_and_Impact_Economic_Development.pdf; and Emil E. Malizia and Edward Feser, Downloads/IEDC_Why_and_Impact_Economic_Development.pdf; and Emil E. Malizia and Edward Feser,
Understanding Local Economic Development (New Brunswick, NJ: Center for Urban Policy Research, Rutgers, 1999), (New Brunswick, NJ: Center for Urban Policy Research, Rutgers, 1999),
pp. 12-13; among others. pp. 12-13; among others.
2 Testimony by Mr. Dennis Alvord, Acting Assistant Secretary of Commerce for EDA, U.S. House of Representatives,
2 Testimony by Mr. Dennis Alvord, Acting Assistant Secretary of Commerce for EDA, U.S. House of Representatives,
Committee on Transportation and Infrastructure, Subcommittee on Economic Development, Public Buildings and Committee on Transportation and Infrastructure, Subcommittee on Economic Development, Public Buildings and
Emergency Management,Emergency Management,
Investing in America: Reauthorization of the Economic Development Administration, 117th , 117th
Cong., 1st sess., April 28, 2021, https://www.congress.gov/117/meeting/house/112512/witnesses/HHRG-117-PW13-Cong., 1st sess., April 28, 2021, https://www.congress.gov/117/meeting/house/112512/witnesses/HHRG-117-PW13-
Wstate-AlvordD-20210428.pdf. Wstate-AlvordD-20210428.pdf.
Congressional Research Service
Congressional Research Service
61
link to page 29 link to page 35
link to page 29 link to page 35
Economic Development Administration: An Overview of Programs and Appropriations
Figure 1. Major EDA Programs
Source: CRS, using EDA “EDA Programs,” https://eda.gov/programs/eda-programs/. CRS, using EDA “EDA Programs,” https://eda.gov/programs/eda-programs/.
Notes: The figure highlights the key feature of major EDA programs. Programs may support multiple purposes The figure highlights the key feature of major EDA programs. Programs may support multiple purposes
and activities.and activities.
For instance, the EAA and University Centers programs may also promote innovation and For instance, the EAA and University Centers programs may also promote innovation and
entrepreneurship and the EAA program may support planning or infrastructure activities. In recent years, entrepreneurship 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 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 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 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 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
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. 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 allocations, grant requirements, disaster recovery, and reauthorization of capacity, grant allocations, grant requirements, disaster recovery, and reauthorization of
appropriations for programs established by the Public 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.
Congressional Research Service
Congressional Research Service
72
link to page 16
link to page 16
Economic Development Administration: An Overview of Programs and Appropriations
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 generally flexible and support economic adjustment, economic distress. The programs are generally flexible and support economic adjustment,
economic resiliency, infrastructure, workforce, disaster economic recovery, innovation, planning, economic resiliency, infrastructure, workforce, disaster economic recovery, innovation, planning,
technical assistance, and related activities. In allocating most of its economic development technical assistance, and related activities. In allocating 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 economically distressed areas.5 The findings section of PWEDA reflect the origins investment in economically distressed areas.5 The findings section of PWEDA reflect the origins
of the agency’s approach to locallyof the agency’s approach to locally
- driven economic development: driven economic development:
while economic development is an inherently local process, the Federal Government
while economic development is an inherently local process, the Federal Government
should work in partnership with public and private State, regional, tribal, and local should work in partnership with public and private State, 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 citizens to participate more fully in the American dream and national communities, and citizens to participate more fully in the American dream and national
prosperity.6 prosperity.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, regionallydevelopment officials to support their bottom-up, regionally
- owned economic development owned economic development
initiatives”7 and helping communities “build capacity for economic development based on local initiatives”7 and helping communities “build capacity for economic development based on local
business conditions and needs.”8 For instance, EDA programs generally do not require applicants business conditions and needs.”8 For instance, EDA programs generally do not require applicants
to specialize in specific industries or strategies, and instead assist with locallyto specialize in specific industries or strategies, and instead assist with locally
- developed projects developed projects
to advance industries or strategies based on a region’s particular assets and challenges. to advance industries or strategies based on a region’s particular assets and 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 CRS Report R41241, 5 For information on the agency’s statutory history, see CRS Report R41241,
Economic Development Administration:
A Review of Elements of Its Statutory History, by Julie M. Lawhorn. See also EDA, “History of EDA,” , by Julie M. Lawhorn. See also EDA, “History of EDA,”
https://www.eda.gov/archives/2016/50/history/; and Robert W. Lake, Robin Leichenko, and Amy Glasmeier, “EDA https://www.eda.gov/archives/2016/50/history/; and Robert W. Lake, Robin Leichenko, and Amy Glasmeier, “EDA
and U.S. Economic Distress 1965–2000,” EDA Research Report, 99-07-13812, July 2004, http://www.ipsr.ku.edu/and U.S. 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. §3121(a)(4). See also, Maryann Feldman et al., “The Logic of Economic Development: A Definition and
6 42 U.S.C. §3121(a)(4). See also, Maryann Feldman et al., “The Logic of Economic Development: A Definition and
Model for Investment,” Model for Investment,”
Environment and Planning C: Government 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/investment-definition-model.pdf. The report defines available at https://www.eda.gov/files/tools/research-reports/investment-definition-model.pdf. The report defines
economic development as “the development of capacities that expand economic actors’ capabilities.” economic development as “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, “2020 Disaster Assistance Brochure: Leading Economic Recovery in Disaster-Impacted Communities,”
8 EDA, “2020 Disaster Assistance Brochure: Leading Economic Recovery in Disaster-Impacted Communities,”
https://eda.gov/files/programs/disaster-recovery/EDA-Disaster-Brochure.pdf. https://eda.gov/files/programs/disaster-recovery/EDA-Disaster-Brochure.pdf.
Congressional Research Service
Congressional Research Service
83
Economic Development Administration: An Overview of Programs and Appropriations
Precursors to PWEDA and EDA Programs Since 1965
EDA programs focused on investments in infrastructure, public works, and basic services in the 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 agency’s first thirty years, along with support for planning and technical assistance.9 The
following milestones highlight precursors to EDA programs as well as program and investment following milestones highlight precursors to EDA programs as well 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 ARA programs were smaller in scope Redevelopment Administration (ARA).10 ARA programs were smaller 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 economically depressed areas. Prior to PWEDA amendments in the late 1960s, in economically 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.
Eligibility criteria for economic distress were later changed by statutory and Eligibility criteria for economic distress were later changed by statutory and
administrative changes through the 1970s.12 administrative 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
9 Robert W. Lake, Robin Leichenko, and Amy Glasmeier, “EDA and U.S. Economic Distress 1965–2000,” EDA 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/Research Report, 99-07-13812, July 2004, p. 5, http://www.ipsr.ku.edu/KUforKS/
2004julyEDAandUSeconomicdistressreport.pdf. 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 CRS Report R41241, pp. 100-101. See also CRS Report R41241,
Economic Development Administration: A Review of Elements of Its
Statutory History, by Julie M. Lawhorn. , by Julie M. Lawhorn.
11 ARA focused assistance on economically distressed areas impacted by chronic unemployment. In addition to ARA,
11 ARA focused assistance on economically distressed areas impacted by chronic unemployment. In addition to ARA,
the two other laws considered precursors to PWEDA were the Public Works Acceleration Act of 1963 (PWAA; P.L. the two other laws 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). The PWAA authorized an 87-658) and the Appalachian Regional Development Act of 1965 (ARDA; P.L. 89-4). The PWAA authorized an
appropriation of $900 million for federal public works programs to address the 1960-1961 recession and support areas appropriation of $900 million for federal public works programs to address the 1960-1961 recession and support areas
with high unemployment. ARDA authorized $1.1 billion for assistance to the Appalachian region. See CRS Report with high unemployment. ARDA authorized $1.1 billion for assistance to the Appalachian region. See CRS Report
R41241, R41241,
Economic Development Administration: A Review of Elements of Its Statutory History, by Julie M. Lawhorn; , by Julie M. Lawhorn;
and Robert W. Lake, Robin Leichenko, and Amy Glasmeier, “EDA and U.S. Economic Distress 1965–2000,” EDA and Robert W. Lake, Robin Leichenko, and Amy Glasmeier, “EDA and U.S. 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 Report R41241,
12 For additional context, see CRS Report R41241,
Economic Development Administration: A Review of Elements of Its
Statutory History, by Julie M. Lawhorn; and Peter K. Eisinger, , by Julie M. Lawhorn; and 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: , 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/.
Congressional Research Service
Congressional Research Service
94
link to page 33
link to page 33
Economic Development Administration: An Overview of Programs and Appropriations
appropriations for defense adjustment14 and disaster recovery through the EAA
appropriations for defense adjustment14 and disaster recovery through the EAA
program.15 program.15
In the 1980s and 1990s, EDA initiated—and later expanded—the University
In the 1980s and 1990s, EDA initiated—and later expanded—the University
Center program. The agency also expanded its work on industry or regional
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.18 the 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 available to both urban and rural areas.20 are available 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
14 Defense adjustment refers to activities that assist communities affected by base closures, reductions in defense 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 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. 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. 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
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/Research Report, 99-07-13812, July 2004, p. 5, http://www.ipsr.ku.edu/KUforKS/
2004julyEDAandUSeconomicdistressreport.pdf. 2004julyEDAandUSeconomicdistressreport.pdf.
16 EDA defines regional clusters as
16 EDA defines regional clusters as
geographic concentrations of firms, workers and industries that do business with each other and have common
geographic concentrations of firms, workers and industries that do business 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
business transactions and communication; share specialized infrastructure, labor markets, and services; and business transactions and communication; share specialized infrastructure, labor markets, and services; and
leverage the region’s unique competitive strengths to stimulate innovation and create jobs. Regional clusters may leverage the region’s unique 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 EDA, “Key Definitions,” https://eda.gov/performance/key-definitions/.
See 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 CRS Report R46826, 19 For additional analysis on infrastructure and the economy, see CRS Report R46826,
Infrastructure and the Economy, ,
by Lida R. Weinstock. by Lida R. Weinstock.
20 EDA’s
20 EDA’s
Informational Brochure (published 2017) notes that funds are awarded to both rural and urban communities (published 2017) notes that funds are awarded to both rural and urban communities
with approximately two-thirds of assistance awarded to rural communities. See EDA, “EDA Informational Brochure,” with approximately two-thirds of assistance awarded to rural communities. See EDA, “EDA Informational Brochure,”
https://eda.gov/pdf/about/EDA-trifold-2017.pdf. https://eda.gov/pdf/about/EDA-trifold-2017.pdf.
Congressional Research Service
Congressional Research Service
105
link to page 11 link to page 11
link to page 11 link to page 11
Economic Development Administration: An Overview of Programs and Appropriations
levels as well as offices for finance management and external affairs and communications (see
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 from DOC, EDA, CRS with data from DOC, EDA,
FY2023 Congressional Budget Justification, p. 7,p. 7,
https://www.commerce.gov/sites/default/files/2022-03/FY2023-EDA-Congressional-Budget-Submission.pdf. https://www.commerce.gov/sites/default/files/2022-03/FY2023-EDA-Congressional-Budget-Submission.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 Challenge, and administers programs (e.g., the Build to Scale, STEM Talent Challenge, 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
21 EDA, “Performance, Research and National Technical Assistance Program,” https://eda.gov/programs/rnta/. 21 EDA, “Performance, Research and National Technical 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 Program competitions in September 2014 (see EDA, U.S.
OIE administered the first round of the Regional Innovation Program competitions in September 2014 (see EDA, U.S.
Department of Commerce, “Regional Innovation Program,” 82 Department of Commerce, “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 STEM Talent Challenge (STEM Apprenticeships) program in FY2020 (see EDA, “STEM Talent the first round of the STEM Talent Challenge (STEM Apprenticeships) program in FY2020 (see EDA, “STEM Talent
Challenge,” https://www.eda.gov/oie/stem/). Additionally in FY2020, EDA administered the Accelerate R2 Network Challenge,” https://www.eda.gov/oie/stem/). Additionally in FY2020, EDA administered the Accelerate R2 Network
competition in collaboration with the National Institute of Standards and Technology (NIST) and the First Responder competition in collaboration with the National Institute of Standards and Technology (NIST) and the First Responder
Network Authority (FirstNet) to develop a network of organizations working to address disaster response and resiliency Network Authority (FirstNet) to develop a network of organizations working to address disaster response and resiliency
(R2) challenges with innovative technologies (see EDA, “Accelerate R2 Network Challenge,” https://eda.gov/oie/(R2) challenges with innovative technologies (see EDA, “Accelerate R2 Network Challenge,” https://eda.gov/oie/
Congressional Research Service
Congressional Research Service
116
link to page 13
link to page 13
Economic Development Administration: An Overview of Programs and Appropriations
Advisory Council on Innovation and Entrepreneurship (NACIE), which was
Advisory Council on Innovation and Entrepreneurship (NACIE), which was
established in 2009 to “encourage the development and implementation of 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)).23 amended (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.24 partnership 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.26 recovery 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 illustrates the six regions and locations of the regional offices. illustrates the six regions and locations of the regional offices.
accelerate-r2/). 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,” 86
“National Advisory Council on Innovation and Entrepreneurship (NACIE); Solicitation of Applications,” 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, “Trade Adjustment Assistance for Firms,” https://eda.gov/pdf/about/TAAF-Program-1-Pager.pdf. For more
24 EDA, “Trade Adjustment Assistance for Firms,” https://eda.gov/pdf/about/TAAF-Program-1-Pager.pdf. For more
information on TAAF, see CRS Report RS20210, information on TAAF, see CRS Report RS20210,
Trade Adjustment Assistance for Firms, 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 webpage at https://www.eda.gov/integration/. development strategies on its EDI webpage 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/.
Congressional Research Service
Congressional Research Service
127
link to page 15 link to page 57 link to page 35
link to page 15 link to page 57 link to page 35
Economic Development Administration: An Overview of Programs and Appropriations
Figure 3. EDA Regional Offices
Source: CRS using information from EDA, “Overview,” https://www.eda.gov/about/. CRS using information from EDA, “Overview,” 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 September 2021, EDA had approximately 281 on-board employees.28 increased to 261 in 2020. In September 2021, EDA had approximately 281 on-board employees.28
Figure 4 presents the number of on-board employees for 2011 tpresents the number of on-board employees for 2011 t
o 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)—
see Figure 7. EDA hired additional staff EDA hired additional staff
in FY2020 using direct hiring authority granted under the CARES Act,29 and the agency plans to 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) 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. Department of Commerce, Office of Inspector General, 29 U.S. Department of Commerce, Office of Inspector General,
EDA Was Effective in Implementing 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.
Congressional Research Service
Congressional Research Service
138
Economic Development Administration: An Overview of Programs and Appropriations
positions in FY2022.30 According to testimony by Assistant Secretary Alejandra Castillo in
positions in FY2022.30 According to testimony by Assistant Secretary Alejandra Castillo in
November 2021 November 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
one year of Congress enacting the CARES Act and, as of October 11, 2021, EDA has one year of Congress enacting the CARES Act and, as of October 11, 2021, EDA 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 exhaust all of EDA’s CARES Act supplemental appropriation.31 will 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 Report R43590,
As noted in CRS Report R43590,
Federal Workforce Statistics Sources: OPM and OMB: :
The term full-time equivalent employment (FTE) is used to quantify employment as a function of hours worked
The term full-time equivalent employment (FTE) is used to quantify employment as a function of hours worked
rather than by the number of individual employees. One FTE is also known as one work year. The number of rather than by the number of individual employees. One FTE is also known as one work year. The number of
FTEs in an agency is calculated by determining the total number of regular straight time hours (i.e., not including FTEs in an agency is calculated by determining the total number of regular straight time hours (i.e., not including
overtime or holiday hours) worked by employees and dividing that figure by the number of compensable hours overtime or holiday hours) worked by employees and dividing that figure by the number of compensable hours
applicable to each fiscal year. One work year, or one FTE, is equivalent to 2,080 hours of work. (The figure of applicable to each fiscal year. One work year, or one FTE, is equivalent to 2,080 hours of work. (The figure of
2,080 hours in the work year is derived as follows: 8 hours per day multiplied by 10 days (in a 2-week pay period) 2,080 hours in the work year is derived as follows: 8 hours per day multiplied by 10 days (in a 2-week pay period)
equals 80 hours; 80 hours multiplied by 26 pay periods (in a year) equals 2,080 work hours.)equals 80 hours; 80 hours multiplied by 26 pay periods (in a year) equals 2,080 work hours.)
and
and
FTE employment numbers are used by OMB to manage employment in departments and agencies. The
FTE employment numbers are used by OMB to manage employment in departments and agencies. The
requirements for reporting FTE employment in the President’s Budget are prescribed in Section 85 of OMB requirements for reporting FTE employment in the President’s Budget are prescribed in Section 85 of OMB
Circular No. A-11 on “Estimating Employment Levels and the Employment Summary (Schedule Q).” (U.S. Circular No. A-11 on “Estimating Employment Levels and the Employment Summary (Schedule Q).” (U.S.
Executive Office of the President, Office of Management and Budget, Preparation, Submission, and Execution of Executive Office of the President, Office of Management and Budget, Preparation, Submission, and Execution of
the Budget (Washington: GPO, April 2021), available at https://www.whitehouse.gov/wp-content/uploads/2018/the Budget (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 FTEs are calculated.) 06/a11.pdf. See Section 85.5(c) for a detailed explanation of how FTEs are calculated.)
31 U.S. Senate, Environment and Public Works Committee,
31 U.S. Senate, Environment and Public Works Committee,
Examining Programs at the Economic Development
Administration, 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 testimony by Mr. Dennis Alvord, Acting Assistant Secretary 256D08CE-44DC-47B4-9663-F9AC5AA8950E. See also testimony by Mr. Dennis Alvord, Acting Assistant Secretary
of Commerce for EDA, U.S. House of Representatives, Committee on Transportation and Infrastructure, Subcommittee of Commerce for EDA, U.S. House of Representatives, Committee on Transportation and Infrastructure, Subcommittee
on Economic Development, Public Buildings and Emergency Management, April 28, 2021, https://ogc.commerce.gov/on Economic Development, Public Buildings and Emergency Management, 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.
Congressional Research Service
Congressional Research Service
149
Economic Development Administration: An Overview of Programs and Appropriations
Figure 4. EDA On-Board Employees, 2011-2021
Source: CRS using data from the U.S. Office of Personnel Management, FedScope database, Employment cubes, CRS using data from the U.S. Office of Personnel Management, FedScope database, Employment cubes,
https://www.fedscope.opm.gov/employment.asp. https://www.fedscope.opm.gov/employment.asp.
Note: Each total provides the number of on-board employees as of September each year. Each total provides the number of on-board employees as of September each year.
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 generally lead, coordinate, and convene partners for the Comprehensive Economic EDDs generally 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, federallydesignated EDD. Most EDD regions do not align with standard, federally
- 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 https://eda.gov/resources/directory/ for EDA’s directory of EDDs and other resources. For an analysis of EDDs 32 See 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 CRS In Focus IF11511, in the context of regional development organizations, see CRS In Focus IF11511,
The Role of Regional Development
Organizations (RDOs) in Economic Development, by Julie M. Lawhorn. , by Julie M. Lawhorn.
33 EDA, “Economic Development Districts,” https://www.eda.gov/edd/. See also 42 U.S.C. §3171.
33 EDA, “Economic Development Districts,” https://www.eda.gov/edd/. See also 42 U.S.C. §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
CEDS Resource Library at StatsAmerica.org where applicants can determine whether their region is served by an EDD CEDS Resource Library at StatsAmerica.org where applicants can determine whether their region is served by an EDD
and locate the most recent CEDS. See http://www.statsamerica.org/ceds/Default.aspx. and locate the most recent CEDS. See http://www.statsamerica.org/ceds/Default.aspx.
Congressional Research Service
Congressional Research Service
1510
Economic Development Administration: An Overview of Programs and Appropriations
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 regional innovation
Col aborative 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 development
Workforce development
Workforce development
Workforce development
and manufacturing
and manufacturing
Global competitiveness
Global competitiveness
Manufacturing
Manufacturing
Environmentally
Environmentally
- sustainable sustainable
Exports and foreign
Exports and foreign
Technology-based economic
Technology-based economic
development
development
direct investment (FDI)
direct investment (FDI)
development
development
Economically distressed and
Economically distressed and
Opportunity zones
Opportunity zones
Environmentally
Environmentally
- sustainable sustainable
underserved communities
underserved communities
development
development
Exports and foreign direct
Exports and foreign direct
investment (FDI) investment (FDI)
Sources: EDA, “Investment Priorities,” https://eda.gov/about/investment-priorities/; and EDA, “Investment Priorities,” https://eda.gov/about/investment-priorities/; 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 that facilitate long-term strategies to drive economic
EDA programs support state and local activities that facilitate long-term strategies to drive economic
diversification, promote sector and cluster development, or otherwise build a region’s capacity for economic diversification, promote sector and cluster development, or otherwise build a region’s capacity for economic
recovery and resilience. According to the EDA, “in the context of economic development, economic resilience recovery and resilience. According to the EDA, “in the context of economic development, economic resilience
becomes inclusive of three primary attributes: the ability to recover quickly from a shock, the ability to withstand becomes 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. For example, downturns; regional industry downturns; or external events, such as a natural or man-made disaster. For example,
EDA projects may support resiliency goals by assisting with business continuity and preparedness efforts or by EDA projects may support resiliency goals by assisting with business continuity and preparedness efforts or by
facilitating long-term recovery from natural disasters and other economic shocks.38 facilitating long-term recovery from natural disasters and 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 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 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,
FY2023 Congressional Budget Justification, p. 11, https://www.commerce.gov/sites/default/files/2022-, p. 11, https://www.commerce.gov/sites/default/files/2022-
03/FY2023-EDA-Congressional-Budget-Submission.pdf. 03/FY2023-EDA-Congressional-Budget-Submission.pdf.
37 EDA, “CEDS Guidelines—Economic Resilience,” https://www.eda.gov/ceds/content/economic-resilience.htm.
37 EDA, “CEDS Guidelines—Economic 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, “Efficiency and Effectiveness of Fragmented 39 EDA, “A Brief History of EDI,” https://eda.gov/integration/; and GAO, “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.
Congressional Research Service
Congressional Research Service
1611
Economic Development Administration: An Overview of Programs and Appropriations
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 instance types 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 well.41 Regional offices have staff identified as regional integrators as 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 EDA grant recipients are allowed to combine funding from other
Eligible EDA grant recipients are allowed 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.43 in 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.44 Housing 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 “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. House of Representatives, Select Climate Crisis Committee, integration in disaster resiliency planning, see U.S. House of Representatives, Select Climate Crisis Committee,
“Creating a Climate Resilient America: Smart Finance for Strong Communities,” Serial No. 116–16, December 11, “Creating a Climate Resilient America: Smart Finance for Strong Communities,” Serial 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, building coalitions, identifying resources, and other activities to facilitate stakeholders by convening meetings, building coalitions, identifying resources, and other activities to facilitate
coordinated responses to state and local economic development issues. For an example, see EDA, “EDA’s Economic coordinated responses to state and local economic development issues. For an example, see EDA, “EDA’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, depending on the program, type of applicant, 43 Limitations may apply to the total amount of federal project funding, depending on the program, type of applicant,
and determination of special need. See 42 U.S.C. §3144. The FY2020 Notice of Funding Opportunity (NOFO) for the and determination of special need. See 42 U.S.C. §3144. The FY2020 Notice of Funding Opportunity (NOFO) for the
Public Works and Economic Adjustment Assistance programs noted that, “Funds from other federal financial Public Works and Economic Adjustment Assistance programs noted that, “Funds from other federal financial
assistance awards may be considered matching share funds only if authorized by statute, which may be determined by assistance awards may be considered matching share funds only if authorized 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. §300.3 and 2 C.F.R. §200.306. and 13 C.F.R. §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 CRS Report R46683, development, see CRS Report R46683,
Federal Resources for State and Local Economic 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.
Congressional Research Service
Congressional Research Service
1712
link to page 19 link to page 35
link to page 19 link to page 35
Economic Development Administration: An Overview of Programs and Appropriations
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 challenges to facilitate long-term recovery.48 For instance to assess regional assets and challenges 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 million in 34 grants to Puerto Rico following hurricanes since 2017, EDA has invested over $111 million 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 generally classified as a non-infrastructure program. The agency’s program and Build to Scale is generally 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, “Spotlight: EDA Investments Advance Economic Recovery in American Communities Impacted by Natural 47 EDA, “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 Leads the Coordination of Federal Resources,” January 2021, https://eda.gov/
48 EDA, “Recovering from Harvey: EDA Leads the Coordination of Federal Resources,” January 2021, https://eda.gov/
success-stories/disaster/stories/cog-hurricane-harvey.htm. success-stories/disaster/stories/cog-hurricane-harvey.htm.
49 EDA, “The Hurricane Harvey Long-Term Economic Recovery Workshops—April 5, 2018-June 1, 2018,”
49 EDA, “The Hurricane Harvey Long-Term Economic Recovery Workshops—April 5, 2018-June 1, 2018,”
https://www.eda.gov/files/programs/disaster-recovery/Economic-Workshops-Report-Harvey.pdf. https://www.eda.gov/files/programs/disaster-recovery/Economic-Workshops-Report-Harvey.pdf.
50 EDA, “EDA Continues to Support the Caribbean Following the Devastating 2017 Hurricane Season,” September 20,
50 EDA, “EDA Continues to Support the Caribbean Following 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 EDA, “Where We Work,” https://eda.gov/disaster-recovery/where-we-work/#la.
51 See 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-FY2021 time period. for a summary of supplemental disaster appropriations during the FY2011-FY2021 time period.
53 EDA, “EDA Continues to Support the Caribbean Following the Devastating 2017 Hurricane Season,” September 20, 53 EDA, “EDA Continues to Support the Caribbean Following 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 “After Reoccurring Flooding, Moberly, Missouri, Business Owners to See Relief,” May 12, 2021,
54 EDA “After Reoccurring Flooding, Moberly, Missouri, Business Owners to 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/.
Congressional Research Service
Congressional Research Service
1813
Economic Development Administration: An Overview of Programs and Appropriations
Table 2. EDA Performance Goals and Metrics
Performance Goal
Metric
Infrastructure investments that
Infrastructure investments that
Private sector dol ars invested in economically distressed regions as a
Private sector dol ars invested in economically distressed regions as a
promote private enterprise and
promote private enterprise and
result of EDA’s investments.
result of EDA’s investments.
job creation in economically
job creation in economically
Jobs created or retained in economically distressed regions as a result
Jobs created or retained in economically distressed regions as a result
distressed communities and
distressed communities and
of EDA’s investments.
of EDA’s investments.
regions.
regions.
Non-infrastructure investments
Non-infrastructure investments
Percentage of Districts, Organizations, and Indian Tribes implementing
Percentage of Districts, Organizations, and Indian Tribes implementing
that build community capacity to
that build community capacity to
economic development initiatives from the Comprehensive Economic
economic development initiatives from the Comprehensive Economic
achieve and sustain regional
achieve and sustain regional
Development Strategy (CEDS) process that lead to private investment
Development Strategy (CEDS) process that lead to private investment
competitiveness and economic
competitiveness and economic
and job creation and retention.
and job creation and retention.
growth.
growth.
Percentage of sub-state jurisdiction members actively participating in
Percentage of sub-state jurisdiction members actively participating in
the Economic Development District (EDD) activities. the Economic Development 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 Measurement and Program Evaluation,” https://www.eda.gov/performance/. EDA, “EDA Performance Measurement and Program Evaluation,” https://www.eda.gov/performance/.
Notes: Additional performance data is col ected on local and regional economic development capacity for non-Additional performance data is col ected on local and regional economic development capacity for non-
infrastructure investments for the fol owing programs: Build to Scale, Local Technical Assistance, Partnership infrastructure investments for the fol owing programs: Build to Scale, Local Technical Assistance, Partnership
Planning, and Research and National Technical Assistance. For more information, see “New Performance Data Planning, and Research and National Technical Assistance. For more information, see “New Performance Data
Col ection Instruments and Processes,” https://eda.gov/performance/gpra/. Col ection Instruments and Processes,” https://eda.gov/performance/gpra/.
EDA Grant Programs
EDA grant programs, which are generally flexible, locallyEDA grant programs, which are generally flexible, locally
- based and regionallybased and regionally
- 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 billion in 5,445 projects.58 The between FY2012 and FY2019, the agency invested over $2.6 billion 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 well as conditions economic assets in facilitating regional economic prosperity and resiliency as well 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 development. EDA defines economic development 57 Capacity is a central component of EDA’s definition of economic development. EDA defines economic development
asas
creating “the conditions for economic growth and improved quality of life by expanding the capacity of individuals, creating “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 to support innovation, lower transaction costs, firms, and communities to maximize the use of their talents and skills to support innovation, lower transaction costs,
and responsibly produce and trade valuable goods and services.” EDA further defines economic development capacity and responsibly produce and trade valuable goods and services.” EDA further defines economic development capacity
building abuilding a
s “developing or improving community assets that businesses need to succeed.” See EDA, “Key developing or improving community assets that businesses need to succeed.” See EDA, “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 Business incubator programs are defined as programs 60 Business incubator programs are defined as programs
designed to accelerate the development of entrepreneurial firms through an array of business support resources
designed to accelerate the development of entrepreneurial firms through an array of business 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
Congressional Research Service
Congressional Research Service
1914
link to page 20 link to page 46
link to page 20 link to page 46
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.62 specified in law.62
Table 3 provides a summary of EDA programs. For detailed program information, see provides a summary of EDA programs. For detailed program information, 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 program is designed to
The Public Works 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 systems improvements,
as water and sewer systems improvements,
industrial parks, business incubator
industrial parks, business incubator
Water and wastewater
Water and wastewater
improvements in connection improvements in connection
facilities, expansion of port and harbor
facilities, expansion of port and harbor
with the development of an
with the development of an
facilities, skil -training facilities, and
facilities, skil -training facilities, and
industrial park.
industrial park.
brownfields redevelopment.
brownfields redevelopment.
Economic Adjustment
The EAA program assists communities and
The EAA program assists communities 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 depletion, mass layoffs,
natural resource depletion, mass layoffs,
regional businesses.
regional businesses.
and other severe economic shocks caused
and other severe economic shocks caused
A study to evaluate how to
A study to evaluate how to
by structural impacts to regional
by structural impacts to regional
develop, sustain, and promote
develop, sustain, and promote
economies. Revolving Loan Funds (RLFs)
economies. Revolving Loan Funds (RLFs)
businesses including retail,
businesses including retail,
are capitalized by EAA grants. See CRS In
are capitalized by EAA grants. See CRS In
restaurants, services, and
restaurants, services, 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
simulation lab and telemedicine simulation lab and telemedicine
space at a community col ege. space at a community col ege.
through its networks of outside service providers. Business incubation programs usually provide client firms
through its networks of outside service providers. Business incubation programs usually provide client firms
access to shared basic services and equipment, improved access to capital, and business management training. access to shared basic services and equipment, improved access to capital, and business management training.
See EDA, “Incubating Success,” David A. Lewis, Elsie Harper Anderson, and Lawrence A. Molnar,
See EDA, “Incubating Success,” David A. Lewis, 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. §3121 et seq.
62 42 U.S.C. §3121 et seq.
63 This report does not analyze EDA’s grant awards by program. For an analysis of EDA funding awarded by program 63 This report does not analyze EDA’s grant awards by program. For an analysis of EDA funding awarded by program
and other analysis, see Brett Theodos et al., “The Economic Development Administration’s Programs and Projects and other analysis, see Brett Theodos et al., “The Economic Development Administration’s Programs and Projects
Types - EDA Program Evaluation,” The Urban Institute, October 2021, p. 6, https://www.urban.org/sites/default/files/Types - EDA Program Evaluation,” The 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.
Congressional Research Service
Congressional Research Service
2015
Economic Development Administration: An Overview of Programs and Appropriations
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 and regions that have been
communities 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 of future
access, an assessment 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. In addition to ongoing annual
respectively. In addition to ongoing annual
for a coal-impacted
for a coal-impacted
initiatives, ,
and Disaster
appropriations for the discretionary EAA
appropriations for the discretionary EAA
community.
community.
Economic Recovery
grant program, Congress has authorized
grant program, Congress has authorized
programs (11.307) (11.307)
supplemental appropriations for EAA ACC
supplemental appropriations for EAA ACC
Development of a post-
Development of a post-
disaster roadmap to improve disaster roadmap to improve
and NCC initiatives as well as for post-
and NCC initiatives as well as for post-
regional economic resiliency.
regional economic resiliency.
disaster economic recovery and COVID-19
disaster economic recovery and COVID-19
economic recovery efforts. EDA makes economic recovery efforts. EDA makes
Storm water upgrades to
Storm water upgrades to
ACC and NCC funding available through
ACC and NCC funding available through
minimize flooding hazards in a
minimize flooding hazards in a
the Notice of Funding Opportunity
the Notice of Funding Opportunity
commercially zoned area in
commercially zoned area in
(NOFO) for the Public Works and EAA
(NOFO) for the Public Works and EAA
order to support job creation
order to support job creation
programs, usually on an annual basis.
programs, usually on an annual basis.
and economic resiliency goals.
and economic resiliency 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 Districts (EDDs)
Economic Development Districts (EDDs)
implementation of the CEDS
implementation of the CEDS
as well as local organizations (Indian Tribes
as well as local organizations (Indian Tribes
planning process.
planning process.
and other eligible recipients) with long-
and other eligible recipients) with long-
term strategic economic development term strategic economic development
planning efforts, and helps communities planning efforts, and helps communities
undertake focused, project-specific undertake focused, project-specific
planning activities. planning activities.
Local Technical
The Local Technical Assistance program
The Local Technical Assistance 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, including feasibility
technical services, 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 development.
local economic 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 firms with technology to help firms 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 competitiveness and
projects that promote competitiveness and
infrastructure EDA grants.
infrastructure EDA grants.
11.303)
11.303)
innovation in distressed rural and urban
innovation in distressed rural and urban
A grant to national
A grant to national
regions.
regions.
organizations to provide
organizations to provide
technical assistance and technical assistance and
disseminate promising disseminate promising
strategies among coal-strategies among coal-
impacted and nuclear closure impacted and nuclear closure
communities. communities.
Congressional Research Service
Congressional Research Service
2116
Economic Development Administration: An Overview of Programs and Appropriations
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 that support
strategies that support
and increase access to risk capital. B2S is
and increase access to risk capital. B2S is
entrepreneurship, technology
entrepreneurship, technology
composed of the Venture Challenge and
composed of the Venture Challenge and
development,
development,
the Capital Challenge. The Venture
the Capital Challenge. The Venture
commercialization, and
commercialization, and
Challenge supports entrepreneurship
Challenge supports entrepreneurship
increased access to capital for
increased access to capital for
support programs and other models to
support programs and other models to
biomedical products,
biomedical products,
accelerate high-growth entrepreneurship
accelerate high-growth entrepreneurship
agricultural technologies,
agricultural technologies,
activities. The Capital Challenge provides
activities. The Capital Challenge 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 expand access to risk capital.
and regions expand access to risk capital.
innovation-based industries.
innovation-based industries.
EDA’s OIE administers the B2S program,
EDA’s OIE administers 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 Technology Act of
the Stevenson-Wydler 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 Challenge program funds
The STEM Talent Challenge program funds
Development of a virtual smart
Development 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’ needs for a STEM capable
meet employers’ needs for a STEM capable
advanced manufacturing skil s
advanced manufacturing skil s
workforce. EDA’s OIE administers
workforce. EDA’s OIE administers
and facilitate workforce
and facilitate workforce
the STEM Talent Challenge program, which
the STEM Talent Challenge program, which
development.
development.
is authorized under Section 28 of the
is authorized under Section 28 of the
Stevenson-Wydler Technology Act of 1980 Stevenson-Wydler Technology Act of 1980
(15 U.S.C. §3723). (15 U.S.C. §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 such as
plans and strategies such as
manufacturing, production and service
manufacturing, production and service
new product lines, updated
new product lines, updated
firms. TAAF is authorized under the Trade
firms. TAAF is authorized under the Trade
information systems, and
information systems, and
Act of 1974, as amended (19 U.S.C. §2341
Act of 1974, as amended (19 U.S.C. §2341
revised marketing campaigns.
revised marketing campaigns.
et seq.).
et seq.).
Sources: EDA, “Programs,” https://eda.gov/programs/eda-programs/; “Annual Reports,” https://eda.gov/annual-EDA, “Programs,” https://eda.gov/programs/eda-programs/; “Annual Reports,” https://eda.gov/annual-
reports; “Funding Opportunities,” https://eda.gov/funding-opportunities/; and “Press Releases” https://eda.gov/reports; “Funding Opportunities,” https://eda.gov/funding-opportunities/; and “Press Releases” https://eda.gov/
news/press-releases/. news/press-releases/.
Notes: CFDA No. refers to the Catalog of Federal Domestic Assistance, a searchable database of federal CFDA No. refers to the Catalog of Federal Domestic Assistance, a searchable database of federal
domestic assistance programs (https://beta.sam.gov). Each program is identified by name and a five-digit number. domestic assistance programs (https://beta.sam.gov). Each program is identified by name and a five-digit number.
Programs are authorized by PWEDA, except where otherwise noted. Project examples provided below are for Programs are authorized by PWEDA, except where otherwise noted. Project examples provided below are for
il ustrative purposes only and do not represent all potential uses of funds. il ustrative purposes only and do not represent all 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/.
Congressional Research Service
Congressional Research Service
2217
Economic Development Administration: An Overview of Programs and Appropriations
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 applicants, cost sharing, and other requirements.66 Requirements vary by program, eligible applicants, cost sharing, and other requirements.66 Requirements vary by program,
authorizing statute, and agency regulations.67 authorizing statute, and agency regulations.67
Eligible Recipients
For an entity to be eligible for EDA assistance for programs authorized by PWEDA (42 U.S.C. For an entity to be eligible 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 for most grants authorized by PWEDA, but may be eligible for
Businesses are not eligible for most grants authorized by PWEDA, but may be eligible for
Training, Research, and Technical Assistance grants.71 Training, Research, and Technical Assistance grants.71
66 Recipients of EDA awards follow the Uniform Administrative Requirements, Cost Principles, and Audit 66 Recipients of EDA awards follow the Uniform Administrative Requirements, Cost Principles, and Audit
Requirements for Federal Awards (Uniform Guidance) as set forth in 2 C.F.R. Part 200, https://www.gpo.gov/fdsys/Requirements for Federal Awards (Uniform Guidance) 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 Terms and Conditions; and other requirements. pkg/CFR-2016-title2-vol1/pdf/CFR-2016-title2-vol1-part200.pdf; DOC Terms and Conditions; and other requirements.
67 Detailed program requirements are outlined in Notice of Funding Opportunities (NOFOs) (see https://eda.gov/
67 Detailed program requirements are outlined in Notice of Funding Opportunities (NOFOs) (see 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 The term
68 The term
Indian tribe means an entity on the list of recognized tribes published pursuant to the Federally Recognized means an entity on the list of recognized tribes published pursuant to the Federally Recognized
Indian Tribe List Act of 1994, as amended (P.L. 103-454) (25 U.S.C. §479a et seq.), and any Alaska Native Village or Indian Tribe List Act of 1994, as amended (P.L. 103-454) (25 U.S.C. §479a et seq.), and any Alaska Native Village or
Regional Corporation (as defined in or established under the Alaska Native Claims Settlement Act (43 U.S.C. §1601 et Regional Corporation (as defined in or established under the Alaska Native Claims Settlement Act (43 U.S.C. §1601 et
seq.). This term includes the governing body of an Indian tribe, Indian corporation (restricted to Indians), Indian seq.). This term includes the governing body of an Indian tribe, 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 owned by, and established for the benefit of, the Indian tribe or Alaska Native Village. corporation, or entity is wholly owned by, and established for the benefit of, the Indian tribe or Alaska Native Village.
13 C.F.R. §300.3. A rule published in the 13 C.F.R. §300.3. A rule published in the
Federal Register on September 24, 2021, extended EDA tribal eligibility to on September 24, 2021, extended EDA tribal eligibility to
include for-profit entities that are wholly owned by and established for the benefit of a tribe. See EDA, U.S. include for-profit entities that are wholly owned by and established for the benefit of a tribe. See EDA, U.S.
Department of Commerce, “Permitting Additional Eligible Tribal Entities,” 86 Department of Commerce, “Permitting Additional Eligible Tribal 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 Republic of the Marshall Islands, the American Samoa, the Commonwealth of the Northern Mariana Islands, the Republic of the Marshall Islands, the
Federated States of Micronesia, and the Republic of Palau. 42 U.S.C. §3122. Federated States of Micronesia, and the Republic of Palau. 42 U.S.C. §3122.
70 The Economic Development Administration Reauthorization Act of 2004 (P.L. 108-373) authorized select nonprofits
70 The Economic Development Administration Reauthorization Act of 2004 (P.L. 108-373) authorized select nonprofits
as eligible recipients. as eligible recipients.
71 42 U.S.C. §3122(4) and 13 C.F.R. §300.3. Training, Research, and Technical Assistance Investment grants are
71 42 U.S.C. §3122(4) and 13 C.F.R. §300.3. Training, Research, and Technical Assistance Investment grants are
authorized under 42 U.S.C. §3147. authorized under 42 U.S.C. §3147.
Businesses may receive EDA-supported loans and technical assistance to support expansion and entrepreneurial
Businesses 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 activities. For instance, qualifying businesses may receive a loan from an intermediary operating an EDA-supported
Congressional Research Service
Congressional Research Service
2318
Economic Development Administration: An Overview of Programs and Appropriations
The types of applicants eligible for the Build to Scale (B2S) and STEM Talent Challenge
The types of applicants eligible for the Build to Scale (B2S) and STEM Talent Challenge
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, include U.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.
Additionally, a venture development organization may be an eligible applicant for the B2S
Additionally, a venture development organization may be an eligible 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 Challenge programs.72 Talent Challenge 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.
Generally, EDA investment funds 50% of total project costs. Requirements may vary based on the Generally, 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
conditions in which “projects subject to a Special Need” may receive a higher investment rate. 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. There are approximately 400 Revolving Loan Fund (RLF) and the loan must be repaid with interest. There are approximately 400
organizations administering EDA-funded RLFs. See EDA, “Revolving Loan Fund Program,” https://www.eda.gov/rlf/. organizations administering EDA-funded RLFs. See EDA, “Revolving Loan Fund Program,” https://www.eda.gov/rlf/.
For more information, see CRS In Focus IF11449, For more information, see CRS In Focus IF11449,
Economic Development Revolving Loan Funds (ED-RLFs), by Julie , by Julie
M. Lawhorn; and CRS Insight IN11419, M. Lawhorn; and CRS Insight IN11419,
COVID-19: Selected Federal Resources for Businesses Seeking to Assist with
Research and Manufacturing Efforts, by Maria Kreiser. Businesses may also receive direct , by Maria Kreiser. Businesses may also receive direct
technical assistance through projects funded by EDA grants, University Center, or Trade Adjustment Assistance Center partners. through projects funded by EDA grants, University Center, or Trade Adjustment Assistance Center partners.
72 EDA, “NOFO
72 EDA, “NOFO
—2020 Build to Scale Program—Concept Proposal,” EDA-HDQ-OIE-2020, https://www.grants.gov/2020 Build to Scale Program—Concept Proposal,” EDA-HDQ-OIE-2020, https://www.grants.gov/
web/grants/view-opportunity.html?oppId=324375, and “NOFOweb/grants/view-opportunity.html?oppId=324375, and “NOFO
—2020 STEM, EDA-HDQ-OIE-2020-2006617, 2020 STEM, EDA-HDQ-OIE-2020-2006617,
https://eda.gov/files/oie/stem/Section-28-STEM-Talent-Challenge-NOFO.pdf. https://eda.gov/files/oie/stem/Section-28-STEM-Talent-Challenge-NOFO.pdf.
73 13 C.F.R. §315.4.
73 13 C.F.R. §315.4.
74 42 U.S.C. §3144. 74 42 U.S.C. §3144.
Congressional Research Service
Congressional Research Service
2419
link to page 29
link to page 29
Economic Development Administration: An Overview of Programs and Appropriations
This includes, but is not limited to, post-disaster economic recovery projects and, as noted,
This includes, but is not limited to, post-disaster economic recovery projects and, as noted,
projects by Indian tribes, among other circumstances and conditions.75 projects 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 eligible for assistance under the PWEAA programs,
For a project to be eligible 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 point greater than the national average unemployment available, at least one percentage point greater than the national average unemployment
rate; rate;
- Per capita income that is, for the most recent period for which data are available, 80
- Per capita income that is, for the most recent period for which data are available, 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 fulfills the economic distress criteria” among other requirements.78 For geographic area that fulfills the economic distress criteria” among other requirements.78 For
additional information about area eligibility and measures of economic distress in PWEDA, see additional information about area eligibility and measures of economic distress in PWEDA, see
CRS In Focus IF12074, CRS In Focus IF12074,
Areas of Economic Distress for EDA Activities and Programs, by Julie , by Julie
M. Lawhorn. M. Lawhorn.
Comprehensive Economic Development Strategies (CEDS)
The Comprehensive Economic Development Strategy (CEDS) is a locallyThe Comprehensive Economic Development Strategy (CEDS) is a locally
- 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 eligible for Public Works and Economic Adjustment Assistance funding.79 strategy in order to be eligible for Public Works and Economic Adjustment Assistance funding.79
75 13 C.F.R. §301.4, Subpart D—Investment Rates and Matching Share Requirements. 75 13 C.F.R. §301.4, Subpart D—Investment Rates and Matching Share Requirements.
76 See agency regulations (13 C.F.R. Chapter III) for detailed program requirements. See also EDA, “EDA 76 See agency regulations (13 C.F.R. Chapter III) for detailed program requirements. See 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. §3121 et seq. EDA’s regulations describe the economic distress criteria at 13 C.F.R. §300, Subpart C—77 42 U.S.C. §3121 et seq. EDA’s regulations describe the economic distress criteria at 13 C.F.R. §300, Subpart C—
Economic Distress Criteria. Economic Distress Criteria.
78 42 U.S.C. §3171. The EDA also encourages University Centers (42 U.S.C. §3147(a)(2)(D)) to provide services that
78 42 U.S.C. §3171. The EDA also encourages University Centers (42 U.S.C. §3147(a)(2)(D)) to provide services that
benefit distressed areas in their region (13 C.F.R. §306.5(a)). See EDA, benefit distressed areas in their region (13 C.F.R. §306.5(a)). See EDA,
NOFO—FY 2021 EDA University Center
Economic Development Program Competition, EDA-CHI-TA-CRO-2021-2006893 and EDA-CHI-TA-CRO-2021-, EDA-CHI-TA-CRO-2021-2006893 and EDA-CHI-TA-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/. According to EDA, “EDA
79 EDA, “Comprehensive Economic Development Strategies,” https://eda.gov/ceds/. According to EDA, “EDA
supports the CEDS Resource Library at http://www.statsamerica.org/ceds/Default.aspx where applicants can determine supports the CEDS Resource Library at http://www.statsamerica.org/ceds/Default.aspx where applicants can determine
whether their region is served by an EDD and locate the most recent CEDS”—see http://www.statsamerica.org/ceds. whether their region is served by an EDD and locate the most recent CEDS”—see http://www.statsamerica.org/ceds.
Congressional Research Service
Congressional Research Service
2520
link to page 26 link to page 26
link to page 26 link to page 26
Economic Development Administration: An Overview of Programs and Appropriations
However, the CEDS requirement may be waived in some instances.80 The EDA provides funding
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 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—generally developed with an asset-selecting and prioritizing economic development strategies—generally 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 conditions of the region.
A summary of the economic conditions of the region.
SWOT Analysis
An in-depth analysis of regional strengths, weaknesses, opportunities and threats.
An in-depth analysis of regional strengths, weaknesses, 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 elements from other regional plans (e.g., land use and analysis and incorporate elements from other regional plans (e.g., land use and
transportation, workforce development, etc.) where appropriate, as determined transportation, workforce development, etc.) where appropriate, as determined
by the EDD or community/region engaged in development of the CEDS. The by the EDD or community/region engaged in development of the CEDS. The
action plan should also identify the stakeholder(s) responsible for implementation, action plan should also identify the stakeholder(s) responsible for implementation,
timetables, and opportunities for the integrated use of other local, state, and timetables, and opportunities for the integrated use of other local, 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 elements from other regional plans (e.g., land
analysis and incorporate/integrate elements from other regional plans (e.g., land
Measures
use and transportation, workforce development, etc.) where appropriate, as
use and transportation, workforce development, etc.) where appropriate, as
determined by the EDD or community/region engaged in development of the determined by the EDD or community/region engaged in development of the
CEDS. The action plan should also identify the stakeholder(s) responsible for
CEDS. The action plan should also identify the stakeholder(s) responsible for
implementation, timetables, and opportunities for the integrated use of other local, implementation, timetables, and opportunities for the integrated use of other local,
state, and federal funds. state, and federal funds.
Sources: 13 C.F.R. §303.7 and EDA, “Comprehensive Economic Development Strategies,” https://eda.gov/ceds/. 13 C.F.R. §303.7 and EDA, “Comprehensive Economic Development Strategies,” https://eda.gov/ceds/.
Notes: EDA provides “Content Guidelines” with additional resources for CEDS development and suggestions EDA provides “Content Guidelines” with additional resources for CEDS development and suggestions
for CEDS content. However, beyond the four required sections and economic resilience component, the CEDS for CEDS content. However, beyond the four required sections and economic resilience component, the CEDS
content and CEDS development process is managed by local and regional stakeholders.content and CEDS development process is managed by local and regional stakeholders.
80 42 U.S.C. §3149(b)(2); 42 U.S.C §3162; 13 C.F.R. §307.5. 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. 81 EDA, “Planning Program,” https://eda.gov/pdf/about/Planning-Program-1-Pager.pdf.
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 CEDS must promote resiliency. Economic resilience in the context of the 84 EDA regulations specify that each regional CEDS must promote resiliency. Economic resilience in the context of the
CEDS is related to “the ability to avoid, withstand, and recover from economic shifts, natural disasters, the impacts of CEDS is related to “the ability to avoid, withstand, and recover from economic shifts, natural disasters, the impacts of
climate change, etc.” See 13 C.F.R. §303.7 and EDA, “Comprehensive Economic Development Strategies,” climate change, etc.” See 13 C.F.R. §303.7 and EDA, “Comprehensive Economic Development Strategies,”
https://eda.gov/ceds/. https://eda.gov/ceds/.
Congressional Research Service
Congressional Research Service
2621
Economic Development Administration: An Overview of Programs and Appropriations
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 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 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 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 bills.86 The provision directs 10% time through the “10-20-30” provision in recent appropriations bills.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 Build to Scale programs.88 years.87 EDA applies the 10-20-30 provision to the Public Works and Build to Scale programs.88
In regards to distressed, small, rural, and underserved areas, Congress requires EDA to report on
In regards to distressed, small, 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
economically distressed areas and to highly distressed areas.89 economically 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.”90 associated 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 “will identify and analyze Communities” project. According to EDA, the project “will 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
alleviating deprivation in areas suffering from persistent poverty.”91 alleviating deprivation in areas suffering from persistent poverty.”91
85 See 85 See
Congressional Record, December 17, 2019, pp. H10961-10962, https://www.govinfo.gov/content/pkg/CREC-, December 17, 2019, pp. H10961-10962, https://www.govinfo.gov/content/pkg/CREC-
2019-12-17/pdf/CREC-2019-12-17-house-bk2.pdf; and2019-12-17/pdf/CREC-2019-12-17-house-bk2.pdf; and
Congressional Record, December 21, 2020, pp. H7922-7923, , December 21, 2020, pp. H7922-7923,
https://www.govinfo.gov/content/pkg/CREC-2020-12-21/pdf/CREC-2020-12-21-house-bk3.pdf. 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). The 10-20-30 provision has also been applied to USDA Rural P.L. 116-93 (FY2020), and P.L. 116-260 (FY2021). The 10-20-30 provision has also been applied to USDA Rural
Development programs and was applied in the American Recovery and Reinvestment Act of 2009 (ARRA, P.L. 111-Development programs and was applied in the American Recovery and Reinvestment Act of 2009 (ARRA, P.L. 111-
5). 5).
87 For more information, see CRS Report R45100,
87 For more information, see CRS Report R45100,
The 10-20-30 Provision: Defining Persistent Poverty Counties, by , by
Joseph Dalaker. Joseph Dalaker.
88 GAO, “Areas with High Poverty—Changing How the 10-20-30 Funding Formula Is Applied Could Increase Impact
88 GAO, “Areas with High Poverty—Changing How the 10-20-30 Funding Formula Is Applied Could 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. For an example of such reports and data, see EDA,
89 42 U.S.C. §3213. 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, and Related Agencies),” Science, 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, “Tackling Persistent Poverty Is Goal of New EEDA-Economic Innovation Group Initiative,” July 19, 2021,
91 EDA, “Tackling Persistent Poverty Is Goal of New 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.
Congressional Research Service
Congressional Research Service
2722
link to page 23 link to page 29
link to page 23 link to page 29
Economic Development Administration: An Overview of Programs and Appropriations
The six new ARP Act grant programs launched in July 2021 will consider the
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
agency’s new investment priority—equity—as well strategies to serve
communities disproportionately impacted by the pandemic.92 The EDA provided communities disproportionately impacted by the pandemic.92 The EDA provided
additional detail on definitions for underserved communities, geographies, and additional detail on definitions for underserved communities, geographies, and
other terms when it released revised investment priorities in April 2021.93 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 (see recipients 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 allow for-profit tribal entities that are wholly owned by and 2021, EDA implemented a rule to allow for-profit tribal entities that are wholly owned by and
established for the benefit of the tribe to be eligible for EDA assistance.95 Additionally, in established for the benefit of the tribe to be eligible for EDA assistance.95 Additionally, in
FY2021, EDA allocated $100 million in ARP Act funding to the EDA’s Indigenous Communities FY2021, EDA allocated $100 million 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 eligible recipients.96 The Indigenous Communities program was EDA’s first program are eligible recipients.96 The Indigenous Communities program was EDA’s first program
developed specifically for Indigenous communities.97 developed specifically for Indigenous communities.97
EDA Appropriations, FY2011—FY2022
For the FY2011-FY2022 period, annual appropriations for EDA programs and administration For the FY2011-FY2022 period, annual appropriations for EDA programs and administration
expenses averaged $288 million (not adjusted for inflation) excluding disaster and COVID-19 expenses averaged $288 million (not adjusted for inflation) excluding disaster and COVID-19
supplemental appropriations.98supplemental appropriations.98
Figure 5 provides a chart of the amounts allocated to major EDA provides a chart of the amounts allocated to major EDA
programs since FY2011. Congress generally directs EDA to allocate the largest share of its annual programs since FY2011. Congress generally directs EDA to allocate 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 EAA program. However, in FY2021 and FY2022, the allocation for appropriations directed to the EAA program. However, in FY2021 and FY2022, the allocation for
the Build to Scale program exceeded the allocation for the EAA program ($38 million and $45 the Build to Scale 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 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 $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 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 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/. 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-FY21-93 EDA, “EDA Investment Priorities—Definitions,” https://eda.gov/files/about/investment-priorities/EDA-FY21-
Investment-Priorities-Definitions-June.pdf. Investment-Priorities-Definitions-June.pdf.
Additionally, per Executive Order 13985 federal agencies are required to conduct an assessment of “whether, and to
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 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 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. 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.
94 42 U.S.C. §3144.
95 See EDA, U.S. Department of Commerce, “Permitting Additional Eligible Tribal Entities,” 86 95 See EDA, U.S. Department of Commerce, “Permitting Additional Eligible Tribal 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, “EDA Updates Regulations to Make Grants More Accessible to Native American Communities,” September 97 EDA, “EDA Updates Regulations to Make Grants More Accessible to 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, “EDA and U.S. Economic Distress 1965–2000,” EDA Research Report, 99-07-13812, July 2004, Amy Glasmeier, “EDA and U.S. 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.
Congressional Research Service
Congressional Research Service
2823
link to page 54
link to page 54
Economic Development Administration: An Overview of Programs and Appropriations
funding for coal-impacted communities in FY2014 (i.e., through the ACC initiative and its
funding for coal-impacted communities in FY2014 (i.e., through the ACC initiative and its
precursors). precursors).
Figure 5. Funding for EDA Programs, FY2011-FY2022
(in millions of nominal dollars)
(in millions of nominal dollars)
Source: CRS using information from the reports accompanying annual appropriations bil s. For a breakdown of CRS using information from the reports accompanying annual appropriations bil s. For a breakdown of
funding amounts by program, by fiscal year, seefunding amounts by program, by fiscal year, see
Table B-2.
Notes: The asterisk (*) indicates that the FY2013 levels are the post-sequestration amounts. EDA renamed the The asterisk (*) indicates that the FY2013 levels are the post-sequestration amounts. EDA renamed the
Regional Innovation Strategies program in FY2020. Amounts exclude funding provided for salaries and expenses. Regional Innovation Strategies program in FY2020. Amounts exclude funding provided for salaries and expenses.
Assistance to Energy Transition 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 energy transition communities since FY2014: interest in providing assistance to energy transition 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
allocate no less than $3 million “to enhance regional business development in allocate no less than $3 million “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
In FY2015, a Senate appropriations report noted the negative, regional economic
impact of nuclear plant closures and encouraged EDA to “identify and develop best practices” to assist communities.100
99 See explanatory statement accompanying the Consolidated Appropriations Act, 2014 (P.L. 113-76), printed in the 99 See 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.
100 S.Rept. 113-181.
Congressional Research Service Congressional Research Service
2924
link to page 31 link to page 31
link to page 31 link to page 31
link to page 31 Economic Development Administration: An Overview of Programs and Appropriations
In FY2015, a Senate appropriations report noted the negative, regional economic
impact of nuclear plant closures and encouraged EDA to “identify and develop 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 Revitalization (POWER) Initiative.101 Economic Revitalization (POWER) Initiative.101
Each year in FY2018 through FY2022, Congress directed EDA to provide
Each year in FY2018 through FY2022, 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.102 part of the Assistance to Coal Communities (ACC) initiative.102
Each year in FY2020 through FY2022, Congress directed EDA to provide
Each year in FY2020 through FY2022, Congress directed EDA to provide
additional funding through the EAA program to the Assistance to Nuclear
additional funding through the EAA program to the Assistance to Nuclear
Closure Communities (NCC) initiative.103 Closure Communities (NCC) initiative.103
For the first time in FY2022, Congress directed EDA to provide funding ($4.5
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
million) through the EAA program to biomass power plant closure communities
(BCC).104 (BCC).104
Figure 6 charts the amounts of annual appropriations that EDA has allocated to the EAA, ACC, charts the amounts of annual appropriations that EDA has allocated to the EAA, ACC,
and NCC programs since FY2011 and includes annual appropriations that EDA may allocate to and 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 biomass power plant closure communities in FY2022.105 The funding for the EAA, ACC, and
NCC programs together account for approximately 25-30% of total EDA appropriations NCC programs together account for approximately 25-30% of total EDA appropriations
annually.106 In FY2021, EDA allocated $300 million of the $3 billion appropriation from the ARP annually.106 In FY2021, EDA allocated $300 million of the $3 billion appropriation from the ARP
100 S.Rept. 113-181. Act to coal-impacted communities through the Coal Communities Commitment (CCC); CCC funding is not included in Figure 6.107
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. The Appalachian Regional Commission’s (ARC’s) a coordinated federal effort to assist coal-impacted communities. The Appalachian Regional Commission’s (ARC’s)
POWER Initiative and the EDA’s ACC initiative were developed as part of the Obama Administration’s POWER+ POWER Initiative and the EDA’s ACC 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.
During the Trump Administration, ARC’s POWER Initiative and the EDA’s ACC initiative continued to operate, but During the Trump Administration, ARC’s POWER Initiative and the EDA’s ACC initiative continued to operate, but
were no longer a part of a cross-agency POWER Initiative. See CRS Report R46015, were no longer a part of a cross-agency POWER Initiative. See CRS Report R46015,
The POWER Initiative: Energy
Transition as Economic Development, by Julie M. Lawhorn. , by Julie M. Lawhorn.
102 EDA, “FY 2018 Economic Development Assistance Programs Notice of Funding Opportunity,” p. 7,
102 EDA, “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). Each year in , December 17, 2019, pp. H10961-10962). Each year in
FY2021 and FY2022, Congress directed EDA to allocate $16.5 million to the NCC initiative (P.L. 116-260; see FY2021 and FY2022, Congress directed EDA to allocate $16.5 million to the NCC initiative (P.L. 116-260; see
also also
Congressional Record, December 21, 2020, pp. H7922-7923, and P.L. 117-103; see also , December 21, 2020, pp. H7922-7923, and P.L. 117-103; see also
Congressional Record, ,
March 9, 2022, p. H1733). 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.
104 In FY2022, Congress directed EDA to allocate $4.5 million to the biomass power plant closure communities (P.L.
117-103; see also 117-103; see also
Congressional Record, March 9, 2022, p. H1733). EDA guidance for activities to support biomass , 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. 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” in105 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 106 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 CRS Insight IN11648, additional information, including legislative origins, see CRS Insight IN11648,
The Economic Development
Administration’s Assistance to Coal and Nuclear Closure Communities Initiatives for Economic Transitions, by Julie , by Julie
M. Lawhorn. M. Lawhorn.
Congressional Research Service
30
link to page 31 
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 6.107 107 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.
Congressional Research Service
25
Economic Development Administration: An Overview of Programs and Appropriations
Figure 6. EAA, ACC, NCC, and BCC Funding History: FY2011-FY2022
(in millions of nominal dollars)
(in millions of nominal dollars)
Sources: CRS using information from reports accompanying annual appropriations bil s. CRS using information from reports accompanying annual appropriations bil s.
Notes: Does not include supplemental appropriations for disaster or COVID-19 economic recovery assistance 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 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
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 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 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. 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 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 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 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 $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 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 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 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 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. 116-260program funding level in FY2020.108 In addition, P.L. 116-260
included a provision rescinding 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-
Congressional Research Service
31
Economic Development Administration: An Overview of Programs and Appropriations
$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: $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:
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. H7922-7923, 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.
Congressional Research Service
26
Economic Development Administration: An Overview of Programs and Appropriations
geographic equity and rural economic development challenges;
geographic equity and rural economic development challenges;
EDA’s collaborations with the Delta Regional Authority, the Appalachian EDA’s collaborations with the Delta Regional Authority, the Appalachian
Regional Commission, and the Northern Border Regional Commission to assist
Regional Commission, and the Northern Border Regional Commission to assist
distressed communities; distressed communities;
EDA’s technical assistance outreach and capabilities on projects involving
EDA’s technical assistance outreach and capabilities on projects involving
manufacturing and energy efficiency, and for distressed communities broadly;
manufacturing and energy efficiency, and for distressed communities broadly;
the allocation and distribution of B2S funding; and
the allocation and distribution of B2S funding; and
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, outdoor recreation, and aeronautics-related
such as new forest products, outdoor recreation, and aeronautics-related
industries; among others.110industries; 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 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 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 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 $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 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 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 (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 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 Assistance, and Research and Evaluation programs.111 In addition, P.L. 117-103 included a
provision rescinding $15 million in unobligated balances from prior year appropriations for provision rescinding $15 million in unobligated balances from prior year appropriations for
economic development assistance programs.112 economic development assistance programs.112
Report language accompanying the FY2022 appropriations bill provided additional direction to
Report language accompanying the FY2022 appropriations bill provided additional direction to
EDA on the following matters: EDA on the following matters:
geographic equity and persistent poverty areas;
geographic equity and persistent 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.
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
manufacturing communities, and for distressed communities broadly;
the allocation and distribution of assistance to energy transition communities,
with new instructions to EDA to include funding for biomass power plant closure
110 Rep. Nita Lowey, “Explanatory Statement Submitted by Mrs. Lowey, Chairwoman of the House Committee on 110 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, and Related Agencies),” Science, 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.
111 Rep. Nita Lowey, “Explanatory Statement Submitted by Mrs. Lowey, Chairwoman of the House Committee on
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, Appropriations Regarding H.R. 133, Consolidated Appropriations Act, 2021 (Division B—Commerce, Justice,
Science, and Related Agencies),” Science, 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.
112 According to OMB, “Unobligated balances refers to balances that have not yet been committed by contract or other
112 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, legally binding action by the government.” See OMB,
Budget of the United States, FY2022, p. 5, , p. 5,
https://www.govinfo.gov/content/pkg/BUDGET-2021-BALANCES/pdf/BUDGET-2021-BALANCES.pdf. https://www.govinfo.gov/content/pkg/BUDGET-2021-BALANCES/pdf/BUDGET-2021-BALANCES.pdf.
Congressional Research Service
Congressional Research Service
3227
link to page 35
link to page 35
Economic Development Administration: An Overview of Programs and Appropriations
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
manufacturing communities, and for distressed communities broadly;
the 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 communities (in addition to ongoing support for coal-impacted and nuclear
closure communities);closure communities);
the allocation and distribution of B2S funding, directing $38 million for the i6
the allocation and distribution of B2S funding, directing $38 million for the i6
Challenge and $7 million for Seed Fund Support;
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, travel and tourism, and aeronautics-related
such as new forest products, travel and tourism, and aeronautics-related
industries, among others.113industries, among others.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.114 COVID-19 economic recovery funding is restoration of infrastructure for specific areas.114 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.115 EDA’s distribution and allocation strategy for supplemental economies; and related efforts.115 EDA’s distribution and allocation strategy for supplemental
appropriations varies by each event or situation.116 appropriations varies by each event or situation.116
Disaster Economic Recovery Assistance, FY2011-FY2021
Since FY2011, Congress has approved $1.4 billion in supplemental funding for economic
Since FY2011, Congress has approved $1.4 billion 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 million for assistance to areas that received
In FY2012, Congress approved $200 million 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.117 Relief and Emergency Assistance Act.117
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.
113 Consolidated Appropriations Act, 2022 (Division B—Commerce, Justice, Science, and Related 113 Consolidated Appropriations Act, 2022 (Division B—Commerce, Justice, Science, and Related
Agencies),” Agencies),”
Congressional Record, vol. 168, no. 42-Book III (March 9, 2022), pp. H1732-H1733, , vol. 168, no. 42-Book III (March 9, 2022), pp. H1732-H1733,
https://www.congress.gov/117/crec/2022/03/09/168/42/CREC-2022-03-09-bk3.pdf. https://www.congress.gov/117/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
114 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).
115 By example, see P.L. 116-260.
115 By example, see P.L. 116-260.
116 Testimony by Mr. Dennis Alvord, Acting Assistant Secretary of Commerce for EDA, U.S. House of 116 Testimony by Mr. Dennis Alvord, Acting Assistant Secretary of Commerce for EDA, U.S. House of
Representatives, Committee on Transportation and Infrastructure, Subcommittee on Economic Development, Public Representatives, Committee on Transportation and Infrastructure, Subcommittee on Economic Development, Public
Buildings and Emergency Management,Buildings and Emergency Management,
Investing in America: Reauthorization of the Economic 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.
117 P.L. 112-55.
117 P.L. 112-55.
Congressional Research Service
Congressional Research Service
3328
link to page 35
link to page 35
Economic Development Administration: An Overview of Programs and Appropriations
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 The Additional Supplemental Appropriations for Disaster Relief Act, 2019
(P.L. 116-120) provided EDA with $600 million in additional EAA funds for
(P.L. 116-120) provided EDA with $600 million in additional 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 well as for areas affected by disasters occurring in calendar year 2018, as well as for areas affected by
tornadoes and floods occurring in calendar year 2019.118 tornadoes and floods occurring in calendar year 2019.118
COVID-19 Economic Recovery Assistance, FY2020-FY2021
EDA received $1.5 billion of supplemental appropriations through the Coronavirus Aid, Relief,
EDA received $1.5 billion of supplemental appropriations through the Coronavirus Aid, Relief,
and Economic Security (CARES) Act (P.L. 116-136) in FY2020, and $3 billion of supplemental and Economic Security (CARES) Act (P.L. 116-136) in FY2020, and $3 billion 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 included The 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 will support economic recovery, and constructing public works and facilities that will 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 skills. for job skills.
All geographic areas were eligible to apply for assistance under the “Special Need” criteria of the
All geographic areas were eligible to apply for assistance under the “Special Need” criteria of the
EAA program because of the widespread effects of the COVID-19 pandemic.119 EDA used both EAA program because of the widespread effects of the COVID-19 pandemic.119 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.120 University Centers; and Revolving Loan Fund (RLF) programs.120
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% will be for states and communities that have been affected by the decline in the “travel, tourism, or outdoor recreation
118 EDA, “Disaster Supplemental Funding,” https://eda.gov/disaster-recovery/supplemental/. 118 EDA, “Disaster Supplemental Funding,” https://eda.gov/disaster-recovery/supplemental/.
119 42 U.S.C. §3149(b). 119 42 U.S.C. §3149(b).
120 For more information on the EDA’s COVID-19 response, see CRS Insight IN11402, 120 For more information on the EDA’s COVID-19 response, see CRS 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, “CARES Act Implementation Plan,” June 2020, https://www.commerce.gov/sites/default/files/2020- DOC, “CARES Act Implementation Plan,” June 2020, https://www.commerce.gov/sites/default/files/2020-
07/Commerce%20CARES%20Act%20Implementation%20Plan—Section%2015011%20PRAC%20Report—07/Commerce%20CARES%20Act%20Implementation%20Plan—Section%2015011%20PRAC%20Report—
June%202020—Final.pdf. June%202020—Final.pdf.
Congressional Research Service
Congressional Research Service
3429
Economic Development Administration: An Overview of Programs and Appropriations
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% will be for states and communities that have been affected by the decline in the “travel, tourism, or outdoor recreation sectors.” EDA will administer ARP Act recovery assistance through the following six new grant sectors.” EDA will administer ARP Act recovery assistance through the following six new grant
programs, each with different investment criteria and priorities:121 programs, each with different investment criteria and priorities:121
the Build Back Better Regional Challenge;122
the Build Back Better Regional Challenge;122
the Good Jobs Challenge; the Good Jobs Challenge;
the Economic Adjustment Assistance Program; the Economic Adjustment Assistance Program;
the Indigenous Communities Challenge; the Indigenous Communities Challenge;
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-FY2022
(in millions of nominal dollars)
(in millions of nominal dollars)
Source: CRS using information from the reports accompanying appropriations bil s. CRS using information from the reports accompanying appropriations bil s.
Notes: Annual appropriations include funding for programs and salaries and expenses. In FY2012, annual Annual appropriations include funding for programs and salaries and expenses. In FY2012, annual
appropriations for programs and disaster recovery assistance were approved in one bil , the Consolidated and appropriations for programs and disaster recovery 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 disaster recovery assistance and COVID-19 pandemic economic recovery assistance were appropriations for disaster recovery assistance and COVID-19 pandemic economic recovery assistance were
approved in bil s separate from annual appropriations bil s. The asterisk (*) indicates that the FY2013 level is the approved in bil s separate from annual appropriations bil s. The asterisk (*) indicates that the FY2013 level is the
post-sequestration amount. post-sequestration amount.
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
121 For more information about the six ARP Act grant programs, see CRS Insight IN11712, 121 For more information about the six ARP Act grant programs, see CRS Insight IN11712,
The Economic
Development Administration’s American Rescue Plan (ARP) Act Grant Programs, by Julie M. Lawhorn. , by Julie M. Lawhorn.
122 The EDA allocated one third of the total amount of ARP Act appropriations ($1 billion of a total $3 billion in ARP 122 The EDA allocated one third of the total amount of ARP Act appropriations ($1 billion of a total $3 billion in ARP
Act funding) to the Build Back Better Regional Challenge (BBRC) to support new or existing regional innovation Act funding) to the Build Back Better Regional Challenge (BBRC) to support new or existing regional innovation
clusters. On December 13, 2021, EDA announced awards to 60 coalitions through Phase 1 of the BBRC program; see clusters. On December 13, 2021, EDA announced awards to 60 coalitions through Phase 1 of the BBRC program; 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.
Congressional Research Service
Congressional Research Service
3530
link to page 36
link to page 36
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 all of EDA’s programs, with the exception of the Trade Adjustment funding levels for almost all of EDA’s programs, with the exception of the Trade Adjustment
Assistance for Firms and Research and Evaluation programs and the Assistance to Nuclear Assistance for Firms and Research and Evaluation programs and the Assistance to Nuclear
Closure Communities initiative. The largest nominal increases in program funding from FY2022 Closure Communities initiative. The largest nominal increases in program funding from FY2022
enacted levels were proposed for enacted levels were proposed for
the STEM Talent Challenge (“STEM Apprenticeships”) (from $2 million to $10
the STEM Talent Challenge (“STEM Apprenticeships”) (from $2 million to $10
million in FY2023),
million in FY2023),
the Economic Adjustment Assistance program (from $37.5 million to $48 million
the Economic Adjustment Assistance program (from $37.5 million to $48 million
in FY2023),
in FY2023),
the ACC initiative (from $41.5 million to $80.5 million in FY2023), and
the ACC initiative (from $41.5 million to $80.5 million in FY2023), and
salaries and expenses (from $43.5 million to $70 million in FY2023).123 salaries and expenses (from $43.5 million to $70 million in FY2023).123
The FY2023 request includes $50 million for a new Recompete pilot program. The proposed
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 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 persistent economic distress, as defined by high prime-age employment gaps. Grants would
support the implementation of activities from an approved Recompete Plan.124support the implementation of activities from an approved Recompete Plan.124
Table 5 provides a provides a
summary of funding for EDA programs in annual appropriations bills enacted in FY2022—as summary of funding for EDA programs in annual appropriations bills enacted in FY2022—as
well as the requested FY2023 amounts. well as the requested FY2023 amounts.
Table 5. FY2022 Annual Appropriations and FY2023 Request
(budget authority, in millions of nominal dollars)
(budget authority, in millions of nominal dollars)
FY2022
FY2023
Enacted
P.L. 117-
103
Request
EDA Programs
Public Works
Public Works
$120.5
$120.5
$124.0
$124.0
Economic Adjustment
Economic Adjustment
$37.5
$37.5
$48.0
$48.0
Assistance
Assistance
Partnership Planning
Partnership Planning
$34.5
$34.5
$36.0
$36.0
Technical Assistance
Technical Assistance
$12.5
$12.5
$14.0
$14.0
Research and Evaluation
Research and Evaluation
$2.0
$2.0
$2.0
$2.0
Traded Adjustment
Traded Adjustment
$13.5
$13.5
$13.0
$13.0
Assistance for Firms
Assistance for Firms
(TAAF) (TAAF)
Assist. Coal Communities
Assist. Coal Communities
$41.5
$41.5
$80.5
$80.5
(ACC)
(ACC)
Assist. Nuclear Closure
$16.5
$10.0
(NCC)
Assist. Biomass Power
$4.5
—
Plant Closure Communities
123 DOC, EDA, 123 DOC, EDA,
FY2023 Congressional Budget Justification, https://www.commerce.gov/sites/default/files/2022-03/, https://www.commerce.gov/sites/default/files/2022-03/
FY2023-EDA-Congressional-Budget-Submission.pdf. FY2023-EDA-Congressional-Budget-Submission.pdf.
124 Ibid., p. 89.
124 Ibid., p. 89.
Congressional Research Service
Congressional Research Service
3631
link to page 25 Economic Development Administration: An Overview of Programs and Appropriations
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
STEM Apprenticeships
$2.0
$2.0
$10.0
$10.0
(Sec. 28)
(Sec. 28)
Build to Scale (Sec. 27)
Build to Scale (Sec. 27)
$45.0
$45.0
$45.0
$45.0
Recompete Pilot
Recompete Pilot
—
$50.0
$50.0
Subtotal Programs
$330.0
$432.5
Salaries and Expenses
Salaries and Expenses
$43.5
$43.5
$70.0
$70.0
Total
$373.5
$502.5
Sources: Sources for FY2022 amounts are from the explanatory statements accompanying P.L. 117-103. Sources for FY2022 amounts are from the explanatory statements accompanying P.L. 117-103.
FY2023 requested amounts were taken from DOC, EDA, 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. 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 Congress’s debate on the reauthorization of
PWEDAprogram appropriations and its consideration of other legislative 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 eligible recipients, cost share arrangements,125 or other program requirements established by of eligible recipients, cost share arrangements,125 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).126 For instance, congressional members, EDA leaders, and outside
125 Some analysts have proposed lower cost share requirements based on the applicant community’s level of economic 125 Some analysts have proposed lower cost share requirements based on the applicant community’s level of economic
distress, size, or other characteristics. For additional perspectives, see Anthony F. Pipa and Natalie Geismar, “Will distress, size, or other characteristics. For additional perspectives, see Anthony F. Pipa and Natalie Geismar, “Will
Biden Deliver for Rural America? The Promise of the American Rescue Plan,” June 21, 2021, Biden Deliver for Rural America? The 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% funding rate for specific project types, and lower cost american-rescue-plan/. By example, S. 307 proposed a 100% funding rate for specific project types, and lower cost
share requirements were discussed in a recent EDA oversight hearing (see U.S. Senate, Environment and Public Works share requirements were discussed in a recent EDA oversight hearing (see U.S. Senate, Environment and Public Works
Committee, Committee,
Examining 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).
Congressional Research Service
37
link to page 25 Economic Development Administration: An Overview of Programs and Appropriations
changes in specific industries).126 For instance, congressional members, EDA leaders, and outside 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).
Congressional Research Service
32
Economic Development Administration: An Overview of Programs and Appropriations
groups have called attention to the role of broadband access in economic recovery and groups have called attention to the role of broadband access in economic recovery and
infrastructure policies. Broadband-related activities are currently eligible for assistance under infrastructure policies. Broadband-related activities are currently eligible for assistance under
many EDA program grants.127 However, unlike many forms of public infrastructure (e.g., water, many EDA program grants.127 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.128 Congress has considered bills in the 117th Congress that would amend PWEDA to companies.128 Congress has considered bills 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).129 3193 and S. 1695).129
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 well as EDA programs, roles, and offices, as well as
adjustments to the agency’s overall capacity and authorities. These options may be considered in adjustments to the agency’s overall 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 challenges.130 In terms of new program options, bills proposed in the human capital, and capacity challenges.130 In terms of new program options, bills 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 called for a shift to more broad-based, multi-sector, and distressed areas. Outside groups have called 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 Challenge.131 As a matter of the structure and scale of the new Build Back Better Regional 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). 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 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 award 10% of its funding to counties with poverty rates of at least 20% over the last 30 years (persistent-agency to award 10% 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’s 2021 report, GAO’s 2021 report,
Areas with High Poverty: Changing How the 10- 20-30 Funding Formula Is Applied Could
Increase Impact 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—Public Works and Build to Scale. See https://www.gao.gov/assets/gao-21-470.pdf. two of its programs—Public Works and Build to Scale. See https://www.gao.gov/assets/gao-21-470.pdf.
127 In a FY2021 EDA oversight hearing, testimony from a practitioner witness noted that in statutory language (i.e.,
127 In a FY2021 EDA oversight hearing, testimony from a practitioner witness noted that in statutory language (i.e.,
PWEDA, 42 U.S.C. §3121 et seq.) and in EDA’s guidance there is limited direction on broadband activities in the PWEDA, 42 U.S.C. §3121 et seq.) and in EDA’s guidance there is limited direction on broadband activities in the
economic development context. See U.S. House of Representatives, Committee on Transportation and Infrastructure, economic development context. See U.S. House of Representatives, Committee on Transportation and Infrastructure,
Subcommittee on Economic Development, Public Buildings and Emergency Management,Subcommittee on Economic Development, Public Buildings and Emergency Management,
Investing in America:
Reauthorization of the 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.
128 Testimony by Assistant Secretary of Economic Development, Alejandra Castillo, U.S. Senate, Environment and
128 Testimony by Assistant Secretary of Economic Development, Alejandra Castillo, U.S. Senate, Environment and
Public Works Committee, Public Works Committee,
Examining Programs at the Economic 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.
129 Related bills (H.R. 6491 and S. 3648) were also introduced in the 116th Congress.
129 Related bills (H.R. 6491 and S. 3648) were also introduced in the 116th Congress.
130 For additional context, Congress has also considered bills to amend PWEDA to explicitly authorize the use of grant 130 For additional context, Congress has also considered bills to amend PWEDA to explicitly authorize the use of grant
funds for activities such as travel promotion and for projects that directly or indirectly increase the accessibility of child funds 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.
131 U.S. Senate, Environment and Public Works Committee,
131 U.S. Senate, Environment and Public Works Committee,
Examining Programs at the Economic Development
Administration, 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.
Congressional Research Service
38
link to page 35 Economic Development Administration: An Overview of Programs and Appropriations
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 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
Congressional Research Service
33
link to page 35 Economic Development Administration: An Overview of Programs and Appropriations
eligibility requirements, Congress may also consider additional support for direct EDA technical eligibility 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 economically distressed and small, rural communities, through stakeholder groups, such as economically distressed and small, rural communities, through
EDA’s existing planning, RNTA, and/or University Center programs.133 EDA’s existing planning, RNTA, and/or University Center programs.133
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.134 Alternatively, assistance to state and local federal agencies’ requirements and procedures.134 Alternatively, assistance to state and local
stakeholders may involve expanded EDA support for capacity building, leadership, and planning stakeholders may involve expanded EDA support for capacity 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 skills development for state and local stakeholders could support for planning, capacity, and skills development for state and local stakeholders could
facilitate economic recovery following disasters or widespread economic shocks.135 Lastly, facilitate economic recovery following disasters or widespread economic shocks.135 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. Congress EDA expanding its convening, coordinating, and regional interagency planning roles. Congress
also may direct EDA to participate in joint federal interagency funding opportunities for specific also may direct EDA to participate in joint federal interagency funding opportunities for specific
development initiatives.136 development initiatives.136
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.137 Alternatively, the agency’s disaster recovery authorities related to the agency’s recovery role.137 Alternatively, the agency’s disaster recovery
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/White House, “Fact Sheet: The 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/.
133 As noted previously, in FY2021, the report accompanying the annual appropriations bill also directed EDA to
133 As noted previously, in FY2021, the report accompanying the annual appropriations bill also directed EDA to
support technical assistance for distressed small, rural, and underserved communities for “pre-development activities support technical assistance for distressed small, rural, and underserved communities for “pre-development activities
associated with accessing EDA programs and services.” associated with accessing EDA programs and services.”
134 For information about EDA’s efforts to collaborate, reduce administrative burdens, and align plans and resources, 134 For information about EDA’s efforts to collaborate, reduce administrative burdens, and align plans and resources,
see https://eda.gov/integration/resource-alignment/. See also GAO, see https://eda.gov/integration/resource-alignment/. See also GAO,
Economic Development: Opportunities Exist for
Further Collaboration Among 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.
135 U.S. Senate, Committee on Environment and Public Works, “Oversight of the EDA,” S.Hrg. 116-239, 116th Cong.,
135 U.S. Senate, Committee on Environment and Public Works, “Oversight of the EDA,” S.Hrg. 116-239, 116th Cong.,
2nd sess., January 22, 2020, https://www.congress.gov/116/chrg/CHRG-116shrg40975/CHRG-116shrg40975.pdf. 2nd sess., January 22, 2020, https://www.congress.gov/116/chrg/CHRG-116shrg40975/CHRG-116shrg40975.pdf.
136 Interagency Working Group on Coal and Power Plant Communities and Economic Revitalization,
136 Interagency Working Group on Coal and Power Plant Communities and Economic Revitalization,
Initial Report to
the President on Empowering Workers Through Revitalizing Energy Communities, April 2021, p. 21, April 2021, p. 21,
https://netl.doe.gov/sites/default/files/2021-04/Initial%20Report%20on%20Energy%20Communities_Apr2021.pdf; https://netl.doe.gov/sites/default/files/2021-04/Initial%20Report%20on%20Energy%20Communities_Apr2021.pdf;
and U.S. House of Representatives, Committee on Transportation and Infrastructure, Subcommittee on Economic and U.S. House of Representatives, Committee on Transportation and Infrastructure, Subcommittee on Economic
Development, Public Buildings and Emergency Management, Development, Public Buildings and Emergency Management,
Investing in America: Reauthorization of the Economic Development Administration, 117th Cong., 1st sess., April 28, 2021. 117th Cong., 1st sess., April 28, 2021.
137 EDA currently has an Office of Disaster Recovery and Economic Integration (see https://www.eda.gov/disaster-
137 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 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-
Congressional Research Service
34
Congressional Research Service
39
link to page 46
link to page 46
Economic Development Administration: An Overview of Programs and Appropriations
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.138 emergency hiring authority to extend the agency’s capacity for recovery assistance.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 Policy139
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 as development,” which is defined as
economic development planning or implementation projects that foster regional knowledge
economic development planning or implementation projects that foster regional knowledge
ecosystems that support entrepreneurs and startups, including the commercialization of ecosystems that support entrepreneurs and startups, including the commercialization of
new technologies, that are creating technology-driven businesses and high-skilled, well-new technologies, that are creating technology-driven businesses and high-skilled, well-
paying jobs of the future.paying jobs of the future.
140
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.”141 and workers for innovation, technology-led economic development, and “future industries.”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-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. 20210428.pdf.
138 For a discussion of EDA’s recent application of its emergency hiring authority and state and local capacity
138 For a discussion 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. 116-239, 116th Cong., 2nd sess., January 22, 2020, https://www.congress.gov/116/chrg/CHRG-of the EDA,” S.Hrg. 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 Implementing 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.
139 As previously noted, EDA’s involvement in innovation and technology broadly includes the administration of
139 As previously noted, EDA’s involvement in innovation and technology broadly includes the administration of
competitive grant programs (e.g., the Build to Scale (B2S), SPRINT Challenge, and the Accelerate Response and competitive grant programs (e.g., the Build to Scale (B2S), SPRINT Challenge, and the Accelerate Response and
Recovery (R2) Network Challenge programs described above and inRecovery (R2) Network Challenge programs described above and in
Appendix A), workforce development and workforce development and
technical assistance initiatives (e.g., the STEM Talent Challenge and University Centers), and coordination with other technical assistance initiatives (e.g., the STEM Talent Challenge and University Centers), and coordination with other
federal agencies on regional innovation strategies (e.g., NACIE), among other activities. federal agencies on regional innovation strategies (e.g., NACIE), among other activities.
For a list of CRS analysts associated with science, technology, and innovation policy, see CRS Report R42688,
For a list of CRS analysts associated with science, technology, and innovation policy, see CRS Report R42688,
Science, Technology, and Innovation Policy: CRS Experts, by John F. Sargent Jr. , by John F. Sargent Jr.
140 EDA, “Investment Priorities,” https://eda.gov/about/investment-priorities/.
140 EDA, “Investment Priorities,” https://eda.gov/about/investment-priorities/.
141 Testimony by Mr. Dennis Alvord, Acting Assistant Secretary of Commerce for EDA, U.S. House of 141 Testimony by Mr. Dennis Alvord, Acting Assistant Secretary of Commerce for EDA, U.S. House of
Representatives, Committee on Transportation and Infrastructure, Subcommittee on Economic Development, Public Representatives, Committee on Transportation and Infrastructure, Subcommittee on Economic Development, Public
Buildings and Emergency Management,Buildings and Emergency Management,
Investing in America: Reauthorization of the Economic 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 for the STEM Talent Challenge highlighted “industries of the future” which could include, but are not
EDA’s guidance for the STEM Talent Challenge highlighted “industries of the future” which could include, but are not
limited to: artificial intelligence; machine learning; advanced manufacturing and robotics; space exploration and limited to: artificial intelligence; machine learning; advanced manufacturing and robotics; space exploration and
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.
Congressional Research Service
Congressional Research Service
4035
Economic Development Administration: An Overview of Programs and Appropriations
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.142 competition.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 well as a expanded technology-based development through workforce development programs as well 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.143 Congress may seek to continue support for EDA’s existing innovation-cluster” programs.143 Congress may seek to continue support for EDA’s existing innovation-
oriented programs (e.g., Build to Scale), similar programs, or new programs.144 For instance, in oriented programs (e.g., Build to Scale), similar programs, or new programs.144 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. 4588.145 Additionally, funding to develop regional economic growth clusters was 2 of H.R. 4588.145 Additionally, funding to develop regional economic growth clusters was
included in the house-passed “Build Back Better Act.”146 Alternatively, Congress may pursue a included in the house-passed “Build Back Better Act.”146 Alternatively, 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
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. stronger state and local roles in technology-led economic development, or advance policies that favor investment in public goods or other development strategies.147
142 See Congressional Budget Office, “Federal Policies and Innovation,” November 17, 2014, p. 5, 142 See Congressional Budget Office, “Federal Policies and Innovation,” November 17, 2014, p. 5,
https://www.cbo.gov/publication/49487; and Yong-Shik Lee, “Law and Economic Development in the United States: https://www.cbo.gov/publication/49487; and Yong-Shik Lee, “Law and Economic Development in the United States:
Toward a New Paradigm,” Toward a New 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: https://ssrn.com/abstract=3168964. SSRN: https://ssrn.com/abstract=3168964.
143 EDA defines regional clusters as
143 EDA defines regional clusters as
geographic concentrations of firms, workers and industries that do business with each other and have
geographic concentrations of firms, workers and industries that do business 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; have similar, synergistic, or complementary entities that are engaged in or with a particular industry sector; have
active channels for business transactions and communication; share specialized infrastructure, labor markets, active channels for business transactions and communication; share specialized infrastructure, labor markets,
and services; and leverage the region’s unique competitive strengths to stimulate innovation and create jobs. and services; and leverage the region’s unique competitive strengths to stimulate innovation and create jobs.
Regional clusters may cross municipal, county, and other jurisdictional boundaries. Regional clusters 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/.
144 Federal support for regional clusters and innovation cluster initiatives have included programs administered by EDA 144 Federal support for regional clusters and innovation cluster initiatives have included programs administered by EDA
(Regional Innovation Strategies/Build to Scale) and agencies such as the Department of Energy, DOC, NIST, SBA, and (Regional Innovation Strategies/Build to Scale) and agencies such as the Department of Energy, DOC, NIST, SBA, and
others. These programs generally provide planning and other support to intermediary organizations to develop new or others. These programs generally provide planning and other support to intermediary organizations to develop new or
expand existing industry clusters. See Ryan Donahue, Joseph Parilla, and Brad McDearman, “Rethinking Cluster expand existing industry clusters. See Ryan Donahue, Joseph Parilla, and Brad McDearman, “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
Bruce Katz, “The New ‘Cluster Moment’: How Regional Innovation Clusters Can Foster the Next Economy,” Bruce Katz, “The New ‘Cluster Moment’: How Regional 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-moment-how-regional-innovation-clusters-can-foster-the-next-economy/; the National Research Council, “The cluster-moment-how-regional-innovation-clusters-can-foster-the-next-economy/; the National Research Council, “The
Federal Dimension,” Federal Dimension,”
Best Practices in State and Regional Innovation Initiatives: Competing in the 21st Century (Washington, DC: The National Academies Press), 2013, https://doi.org/10.17226/18364; and Camilla Alexandra (Washington, DC: The National Academies Press), 2013, https://doi.org/10.17226/18364; and Camilla Alexandra
Hrdy, “Cluster Competition,” Hrdy, “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 includes the definition of innovation clusters as “regional economies made https://ssrn.com/abstract=2672660, which includes the definition of innovation clusters as “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 Back Better Regional Challenge, a grant program launched in July 2021, will support
As noted, the EDA’s new Build Back Better Regional Challenge, a grant program launched in July 2021, will support
new or existing regional innovation clusters with one third of the total amount of ARP Act appropriations ($1 billion new 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).
145 The House and Senate bills shared similar provisions, but were not identical. Both proposed to amend the
145 The House and Senate bills shared similar provisions, but were not identical. Both proposed to amend the
Stevenson-Wydler Technology Innovation Act of 1980 (15 U.S.C. §3701) by re-designating Section 28 of the act as Stevenson-Wydler Technology 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 Stevenson-Wydler Act. Section 29 and establishing the aforementioned programs as Section 28 of the Stevenson-Wydler Act.
146 See Title XI of H.R. 5376, as approved by the House on November 3, 2021, https://rules.house.gov/bill/117/hr-
146 See Title 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, “regional innovation hubs” were included in the Administration’s FY2021 American Jobs 5376. As additional context, “regional innovation hubs” were included in the Administration’s FY2021 American Jobs
Plan. See White House, “Fact Sheet: The American Jobs Plan,” March 31, 2021, https://www.whitehouse.gov/briefing-Plan. See White House, “Fact Sheet: The American Jobs 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/.
Congressional Research Service
41
Economic Development Administration: An Overview of Programs and Appropriations
stronger state and local roles in technology-led economic development, or advance policies that favor investment in public goods or other development strategies.147147 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
Congressional Research Service
36
link to page 27 Economic Development Administration: An Overview of Programs and Appropriations
Congress may also seek to review the overall distribution and coordination of existing innovation
Congress may also seek to review the overall distribution and coordination of existing innovation
policies as well as the EDA’s role in the landscape of federal innovation programs. The House policies as well 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 2021. 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 discussion 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, including on EDA and its role in future industries and regional economic development, 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?148
shared prosperity as a priority?148
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.149 Additionally, Congress may continue to innovation-centered competitions and other programs.149 Additionally, Congress may continue to
consider directing additional types of EDA partnerships with historically black colleges and consider directing additional types of EDA partnerships with historically 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 initiatives and opportunities.150 In response to may have been left behind by prior innovation initiatives and opportunities.150 In response to
geographic and demographic disparities, Congress may consider increasing funding for geographic and demographic disparities, Congress may consider increasing funding for
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 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 Policies,” 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.
148 Policy questions from the Hearing Charter for U.S. House of Representatives, Committee on Science, Space, and 148 Policy questions from the Hearing Charter for U.S. House of Representatives, Committee on Science, Space, and
Technology, “Building Regional Innovation Economies,” June 9, 2021, https://www.congress.gov/117/meeting/house/Technology, “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.
The hearing memo reviewed the role of the Department of Commerce and the EDA in expanding regional innovation
The hearing memo reviewed 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, and raised economies, options for further development, and partnership opportunities with federal science agencies, and raised
several considerations regarding the EDA’s role and select aspects of the Build to Scale (B2S) program in particular. several considerations regarding the EDA’s role and select aspects of the Build to Scale (B2S) program in particular.
The memo noted that EDA’s expertise includes leading regional economic development and related expertise, while The memo noted that EDA’s expertise includes leading regional economic development and related expertise, while
NIST and other agencies are generally considered lead agencies in terms of technical expertise on innovation and NIST and other agencies are generally considered lead agencies in terms of technical expertise on innovation and
research and development. The hearing charter further noted that the matching requirements associated with the research and development. The hearing charter further noted that the matching requirements associated with the
competitive B2S program may limit participation by economically distressed and rural communities due to limited competitive B2S program may limit participation by economically distressed and rural communities due to limited
resources in some communities. resources in some communities.
149 For an example of these perspectives, see Robert D. Atkinson, Mark Muro, and Jacob Whiton, “The Case for
149 For an example of these perspectives, see Robert D. Atkinson, Mark Muro, and Jacob Whiton, “The Case for
Growth Centers—How to Spread Tech Innovation Across America,” The Brookings Institution, December 2019, Growth Centers—How to Spread Tech Innovation Across America,” The Brookings Institution, December 2019,
https://www2.itif.org/2019-growth-centers.pdf; and Olugbenga Ajilore and Zoe Willingham, “The Path to Rural https://www2.itif.org/2019-growth-centers.pdf; and Olugbenga Ajilore and Zoe Willingham, “The Path to Rural
Resilience in America,” Center for American Progress, September 21, 2020, https://www.americanprogress.org/issues/Resilience 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/.
150 L. Waymond Jackson, Jr., “Leveraging Regional Tech Hubs to Advance Economic Inclusion,” Brookings
150 L. Waymond Jackson, Jr., “Leveraging Regional Tech Hubs 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.
151 Mark Muro et al, “Congress Needs to Prioritize Inclusion in Our Slumping Innovation System,” The Brookings Institution, August 11, 2021, https://www.brookings.edu/blog/the-avenue/2021/08/11/congress-needs-to-prioritize-
Congressional Research Service
37Congressional Research Service
42
link to page 27 link to page
link to page 27 link to page
27 link to page 46 link to page 46 link to page 46 46 link to page 46 link to page 46
Economic Development Administration: An Overview of Programs and Appropriations
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;
allowing flexibility for new or nontraditional training programs; and
allowing flexibility for new or nontraditional training programs; and
coordinating new and existing workforce and economic development coordinating new and existing workforce and economic development
programs.152
programs.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 skills to meet new and emerging opportunities. For instance, Congress workers with expertise and skills to meet new and emerging opportunities. For instance, Congress
approved funding for the STEM Talent Challenge (see program description iapproved funding for the STEM Talent Challenge (see program description i
n Appendix A), ,
which is designed to advance the STEM-capable workforce. Additionally, EDA set aside which is designed to advance the STEM-capable workforce. Additionally, EDA set aside
approximately 17% ($500 million) of the ARP Act recovery assistance to enhance regional approximately 17% ($500 million) of the ARP Act recovery assistance to enhance regional
workforce systems through the Good Jobs Challenge grant program.153 Insights from these workforce systems through the Good Jobs Challenge grant program.153 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.154 economic development goals and address employer needs in emerging industries.154
Reauthorization
PWEDA’s statutory authority lapsedAlthough the PWEDA authorities do not expire, the authorization of appropriations to fund the economic development assistance programs expired on September 30, 2008. Hearings during the first session of on September 30, 2008. Hearings during the first session of
the 117th Congress indicate that policymakers may consider legislation to the 117th Congress indicate that policymakers may consider legislation to
reauthorizeprovide authorization of program appropriations and/or and/or
amend PWEDA.155 Many of the aforementioned considerations propose to address policy through
151 Mark Muro et al, “Congress Needs to Prioritize Inclusion in Our Slumping Innovation System,” The Brookings Institution, August 11, 2021, https://www.brookings.edu/blog/the-avenue/2021/08/11/congress-needs-to-prioritize-amend PWEDA.155 Many of the aforementioned
inclusion-in-our-slumping-innovation-system; and Brad McDearman, Joseph Parilla, and Ryan Donahue “A New inclusion-in-our-slumping-innovation-system; and Brad McDearman, Joseph Parilla, and Ryan Donahue “A New
Federal Grant Should Make Regional Leaders Rethink Their Industry Clusters,” The Brookings Institution, September Federal Grant Should Make Regional Leaders Rethink Their Industry Clusters,” The Brookings Institution, September
1, 2021, https://www.brookings.edu/blog/the-avenue/2021/09/01/a-new-federal-grant-should-make-regional-leaders-1, 2021, https://www.brookings.edu/blog/the-avenue/2021/09/01/a-new-federal-grant-should-make-regional-leaders-
rethink-their-industry-clusters/.rethink-their-industry-clusters/.
152 See Federal Reserve Bank of Atlanta, “Why Connecting Economic and Workforce Development Matters,”
152 See 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-development-matters. workforce-development-matters.
153 EDA, “Good Jobs Challenge,” https://eda.gov/arpa/good-jobs-challenge/.
153 EDA, “Good Jobs Challenge,” https://eda.gov/arpa/good-jobs-challenge/.
154 In FY2020, Congress directed EDA to implement STEM apprenticeships (see STEM Talent Challenge in154 In FY2020, Congress directed EDA to implement STEM apprenticeships (see STEM Talent Challenge in
Appendix
A) to support STEM-capable workforce initiatives. EDA highlights “industries of the future” which could include, but to support STEM-capable workforce initiatives. EDA highlights “industries of the future” which could 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- and agricultural technologies.” The FY2020 STEM commerce; bioscience; quantum information science; and aqua- and agricultural technologies.” The FY2020 STEM
Talent Challenge NOFO notes that applicants may address the need for computational literacy and issues related to the Talent Challenge NOFO notes that applicants may address the need for computational literacy and issues related to the
digital economy (e.g., remote work, shifting business practices) in order to address the current COVID-19 pandemic or digital economy (e.g., remote work, shifting business practices) in order to address the current COVID-19 pandemic or
prepare for virtual and remote work. See STEM Talent Challenge NOFO, EDA-HDQ-OIE-2020-2006617, pp. 1, 4, prepare for virtual and remote work. See STEM Talent Challenge NOFO, 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.
155 For a review of reauthorization issues during the 112th Congress, see CRS Report R41162,
155 For a review of reauthorization issues during the 112th Congress, see CRS Report R41162,
Economic Development 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, Examining Programs at the Economic Development Administration, 117th Cong., 1st sess., Nov. 3, 2021, https://www.epw.senate.gov/public/
Congressional Research Service
38
Congressional Research Service
43
Economic Development Administration: An Overview of Programs and Appropriations
PWEDA amendments and/or reauthorization. Reauthorization discussionsconsiderations propose to address policy through PWEDA amendments and/or reauthorization of program appropriations. Policymakers may consider 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 eligibility criteria for specific types of projects, among other actions. or expand eligibility 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 economies to advance projects in support of federal funds to assist state, local, and regional economies to advance projects in support of
growth, or to address geographic disparities for distressed areas. Expanding EDA’s role to serve growth, 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 more 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.156 and agencies may involve changes in the agency’s authority, budget, or program structure.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 allow For some, broad-based economic development programs with economic distress criteria allow
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 allow Works and EAA programs). For others, targeted economic development programs allow
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 still, policies may involve a mixture of approaches and and resource-based industries). For others still, 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 challenges and opportunities (e.g., in the manner of setting aside EAA funding for address new challenges 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).157 Congress coal-impacted and nuclear closure communities in the ACC and NCC initiatives).157 Congress
may also review the allocation of assistance based on preferred economic development goals—to may also review the allocation of assistance based on preferred economic development goals—to
further economic growth, to foster job creation, to prepare regions for development, to develop further economic growth, to foster job creation, to prepare regions for development, to develop
human capital, to recover from and prepare for economic shocks, and/or other outcomes. human 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 will likely be impacted by multiple macroeconomic factors associated outcomes and processes will likely 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
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, Examining Programs at the Economic
Development Administration, 117th Cong., 1st sess., Nov. 3, 2021, https://www.epw.senate.gov/public/EDA are likely to involve a strategic and contextual evaluation of adjacent policies, related
index.cfm/hearings?ID=256D08CE-44DC-47B4-9663-F9AC5AA8950E. index.cfm/hearings?ID=256D08CE-44DC-47B4-9663-F9AC5AA8950E.
- U.S. House of Representatives, Committee on Transportation and Infrastructure, Subcommittee on Economic U.S. House of Representatives, Committee on Transportation and Infrastructure, Subcommittee on Economic
Development, Public Buildings and Emergency Management, Development, Public Buildings and Emergency Management,
Investing in America: Reauthorization of the
Economic 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. House of Representatives, Committee on Appropriations, Subcommittee on Commerce, Justice, Science, U.S. House of Representatives, Committee on Appropriations, Subcommittee on Commerce, Justice, Science,
and Related Agencies, “Oversight of the Economic Development Administration’s Role in Pandemic and Related Agencies, “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.
156 Yong-Shik Lee, “Law and Economic Development in the United States: Toward a New Paradigm,”
156 Yong-Shik Lee, “Law and Economic Development in the United States: 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.
157 Congress approved appropriations for several years for the ACC and NCC initiatives. These initiatives are not
157 Congress approved appropriations for several years for the ACC and NCC initiatives. These 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.
Congressional Research Service
Congressional Research Service
4439
Economic Development Administration: An Overview of Programs and Appropriations
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.
Congressional Research Service
Congressional Research Service
4540
Economic Development Administration: An Overview of Programs and Appropriations
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 Build to Scale (B2S) program (formerly called Regional Innovation Strategies) supports The Build to Scale (B2S) program (formerly called 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 Challenge (formerly the “i6 Challenge”) and the economies. B2S is composed of the Venture Challenge (formerly the “i6 Challenge”) and the
Capital Challenge (formerly the “Seed Fund Support”).158 The Venture Challenge funds Capital Challenge (formerly the “Seed Fund Support”).158 The Venture Challenge 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 Challenge supports efforts to expand access to risk capital. The B2S activities. The Capital Challenge 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.159 No minimum economic distress level requirements.159
Level of matching funds requirement: In FY2020, the minimum matching share was 50%.160 In FY2020, the minimum matching share was 50%.160
Economic Adjustment Assistance (EAA) Program
EDA refers to the EAA as its most flexible economic development tool.161 The EAA program is EDA refers to the EAA as its most flexible economic development tool.161 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 allows local loan administrators to provide gap financing to Loan Fund (RLF) program, which allows local loan administrators to provide gap financing to
small businesses and entrepreneurs. EAA funds are competitively awarded to qualified applicants small 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.162 assistance, including feasibility studies; public services; and training.162
158 In FY2020, EDA administered a third competition in the B2S program, the Industry Challenge, which was not 158 In FY2020, EDA administered a third competition in the B2S program, the Industry Challenge, which was not
offered in FY2021. In FY2020, the Industry Challenge focused on advancing regional blue economies. According to offered in FY2021. In FY2020, the Industry Challenge focused on advancing regional blue economies. According to
the EDA, the term “blue economy” refers to the “sustainable use of ocean resources for economic growth, improved the EDA, the term “blue economy” refers to the “sustainable use of ocean resources for economic growth, improved
livelihoods and jobs, while preserving the health of marine ecosystems.” See EDA, livelihoods and jobs, while preserving the health of marine ecosystems.” See EDA,
February 2020 Newsletter, ,
“Spotlight: EDA Launches the Build to Scale Program, a Redesign of its Regional Innovation Strategies Program,” “Spotlight: EDA Launches the Build to Scale Program, a Redesign of its Regional Innovation Strategies Program,”
https://www.eda.gov/news/blogs/2020/02/01/spotlight.htm. https://www.eda.gov/news/blogs/2020/02/01/spotlight.htm.
159 The B2S Program is authorized under Section 27 of the Stevenson-Wydler Technology Innovation Act of 1980 (15
159 The B2S Program is authorized under Section 27 of the Stevenson-Wydler Technology Innovation Act of 1980 (15
U.S.C. §3722). The FY2020 B2S Notice of Funding Opportunity (NOFO) notes that, “this authorization does not U.S.C. §3722). The FY2020 B2S Notice of Funding Opportunity (NOFO) notes that, “this authorization does not
require applicants to meet specific distress criteria to be considered eligible.” See EDA, “NOFOrequire applicants to meet specific distress criteria to be considered eligible.” See EDA, “NOFO
—2020 Build to Scale 2020 Build 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.
160 EDA, “NOFO
160 EDA, “NOFO
—2020 Build to Scale Program—Concept Proposal,” EDA-HDQ-OIE-2020, https://www.grants.gov/2020 Build 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.
161 DOC, EDA,
161 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.
162 13 C.F.R. Part 307.
162 13 C.F.R. Part 307.
Congressional Research Service
Congressional Research Service
4641
Economic Development Administration: An Overview of Programs and Appropriations
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 well.163 The some forms of supplemental appropriations are administered through the EAA as well.163 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.164 For eligibility entrepreneurship development, technical assistance, and other recovery projects.164 For eligibility
under the ACC initiative (as administered through the EAA program), EDA applies the term “coal under the ACC initiative (as administered through the EAA 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 initiative (as administered through the EAA program), regions must demonstrate “that the NCC initiative (as administered through the EAA program), regions must demonstrate “that
they have been impacted, or can reasonably demonstrate that they will be impacted, by nuclear they have been impacted, or can reasonably demonstrate that they will be impacted, by nuclear
power plant closure(s).”165 power plant closure(s).”165
The SPRINT Challenge was administered through the EAA program with $25 million of CARES
The SPRINT Challenge was administered through the EAA program with $25 million of CARES
Act funding. The purpose of the SPRINT Challenge was to “address the economic, health, and Act funding. The purpose of the SPRINT Challenge was to “address the economic, health, and
safety risks caused by the coronavirus pandemic through entrepreneurship and innovation.”166 safety risks caused by the coronavirus pandemic through entrepreneurship and innovation.”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)167 or serves a Special Impact area (as defined in 13 C.F.R. Part 310).168 13 C.F.R. §307.3)167 or serves a Special Impact area (as defined in 13 C.F.R. Part 310).168
163 For more information, see CRS Insight IN11648, 163 For more information, see CRS Insight IN11648,
The Economic Development Administration’s Assistance to Coal
and Nuclear Closure Communities Initiatives for Economic Transitions, by Julie M. Lawhorn. , by Julie M. Lawhorn.
164 EDA, “Leading Economic Recovery Efforts in Disaster-Impacted Communities,” https://eda.gov/files/programs/
164 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.
165 Additionally, EDA guidance notes that
165 Additionally, EDA guidance notes that
In general, EDA will consider applications for projects in communities and regions where the
In general, EDA will 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, etc.) took place within 1-15 years prior to closure of various coal economy supply chain businesses, etc.) took place within 1-15 years prior to
the application submission date. Note, this timeframe is a range during which projects will the application submission date. Note, this timeframe is a range during which projects will
generally be eligible; applicants may propose projects outside this timeframe, but should take generally be eligible; applicants may propose projects outside this timeframe, but should 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.
There is no pre-defined list of impacted coal communities. To demonstrate eligibility, complete
There is no pre-defined list of impacted coal communities. To 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 EDA, “FY 2020 Public Works and Economic Adjustment Assistance Programs Including CARES Act Funding,”
See EDA, “FY 2020 Public Works and Economic Adjustment Assistance Programs Including CARES Act Funding,”
pp. 7, 17, https://www.grants.gov/web/grants/view-opportunity.html?oppId=321695; and EDA, “American Rescue pp. 7, 17, https://www.grants.gov/web/grants/view-opportunity.html?oppId=321695; and EDA, “American Rescue
Plan Coal Communities Commitment Frequently Asked Questions,” https://eda.gov/arpa/coal-communities/faq/. Plan Coal Communities Commitment Frequently Asked Questions,” https://eda.gov/arpa/coal-communities/faq/.
166 For more information on the SPRINT Challenge, see https://eda.gov/oie/sprint/. For more information on EDA
166 For more information on the SPRINT Challenge, see https://eda.gov/oie/sprint/. For more information on EDA
CARES Act funding, see CRS Insight IN11303, CARES Act funding, see CRS Insight IN11303,
The Economic Development Administration and the CARES Act (P.L.
116-136), by Julie M. Lawhorn. , by Julie M. Lawhorn.
167 13 C.F.R. §307.5(1).
167 13 C.F.R. §307.5(1).
168 13 C.F.R. §301.10(c). 168 13 C.F.R. §301.10(c).
Congressional Research Service
Congressional Research Service
4742
Economic Development Administration: An Overview of Programs and Appropriations
Level of matching funds requirement: Generally 50% of project costs, but may vary. Projects Generally 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 will be located, as determined by EDA. In the case of certain Indian tribes, which the project will 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 eligible entity could apply for a local technical development decisionmaking. For instance, an eligible 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 will be evaluated based on the extent that they are “consistent with an EDA-approved projects will 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: Generally 50% of project costs, but may vary. See 13 : Generally 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 well as local organizations (Indian tribes and other eligible Development Districts (EDDs) as well 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. Eligible activities under this program include developing, maintaining, and activities. Eligible activities under this program include developing, maintaining, and
implementing a CEDS and related short-term planning activities.169 implementing a CEDS and related short-term planning activities.169
169 According to an example noted in EDA’s FY2021-FY2023 NOFO for Planning and Local Technical Assistance, 169 According to an example noted in EDA’s FY2021-FY2023 NOFO for Planning and Local Technical Assistance,
“EDA might provide Short Term Planning funding to a coalition of Tribal and regional organizations to plan a “EDA might provide Short Term Planning funding to a coalition of Tribal and regional organizations to plan a
coordinated response to the sudden loss of a significant employer in the affected area. EDA also makes Short-Term coordinated response to the sudden loss of a significant employer in the affected area. EDA also makes Short-Term
Planning awards to support the preparation or update of a CEDS for regions not served by a District Organization.” See Planning awards to support the preparation or update of a CEDS for regions not served by a District Organization.” See
EDA, “NOFO—EDA Planning and Local Technical Assistance Programs,” https://eda.gov/files/programs/eda-EDA, “NOFO—EDA Planning and Local Technical 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.
Congressional Research Service
Congressional Research Service
4843
Economic Development Administration: An Overview of Programs and Appropriations
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.170 No minimum economic distress level requirements.170
Requirement to align with CEDS or equivalent: Generally, the long-term partnership planning Generally, the long-term partnership planning
investments support the development of CEDS. investments support the development of CEDS.
Level of matching funds requirement: Generally 50% of project costs, but may vary. : Generally 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, skill-training facilities, brownfields redevelopment, and the expansion of port and infrastructure, skill-training facilities, brownfields redevelopment, and the expansion of port and
harbor facilities. Similar assistance is also available under the agency’s Economic Adjustment harbor facilities. Similar assistance is also available 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: Generally 50% of project costs, but may vary. Projects Generally 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 will be located, as determined by EDA. In the case of certain Indian tribes, which the project will 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.171 Through the National Technical Assistance program, EDA may provide technical Program.171 Through the National Technical Assistance program, EDA may provide technical
170 13 C.F.R. §306. 170 13 C.F.R. §306.
171 EDA, “Research and Evaluation (R&E) and National Technical Assistance (NTA) Programs,” https://eda.gov/171 EDA, “Research and Evaluation (R&E) and National Technical Assistance (NTA) Programs,” https://eda.gov/
Congressional Research Service
Congressional Research Service
4944
Economic Development Administration: An Overview of Programs and Appropriations
assistance that is national in scope on a specific type of economic development challenge,
assistance that is national in scope on a specific type of economic development challenge,
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.172 strategies and creates a ‘community of practice’ for applicants and grantees.172
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 will be evaluated based on the extent that they are “consistent with an EDA-approved projects will 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: Generally 50% of project costs, but may vary. PWEDA Generally 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 Challenge173
The STEM Talent Challenge program (or “STEM Apprenticeship Pilot” program) funds The STEM Talent Challenge 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 initiative aligns with the goals of the agency’s Build to Scale According to EDA, the STEM initiative 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 Challenge seeks to address the need for the entrepreneurial support systems. The STEM Talent Challenge seeks to address the need for the
“talent” component by building a skilled workforce for regional innovation economies. Funded “talent” component by building a skilled 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, “NOFO for FY 2021-2023 Research and Evaluation (R&E) and National Technical programs/rnta/. See also EDA, “NOFO for FY 2021-2023 Research and Evaluation (R&E) and National Technical
Assistance (NTA) Programs,” EDA-HDQ-RNTA-2021, https://www.grants.gov/web/grants/view-opportunity.html?Assistance (NTA) Programs,” EDA-HDQ-RNTA-2021, https://www.grants.gov/web/grants/view-opportunity.html?
oppId=334079. oppId=334079.
172 The EDA’s webpage on RNTA provides additional examples at https://eda.gov/programs/rnta/rnta-programs/
172 The EDA’s webpage on RNTA provides additional examples at https://eda.gov/programs/rnta/rnta-programs/
national-technical-assistance/index.htm. national-technical-assistance/index.htm.
173 STEM is the acronym used for science, technology, engineering, and mathematics curriculum, training, education,
173 STEM 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/.
Congressional Research Service
Congressional Research Service
5045
Economic Development Administration: An Overview of Programs and Appropriations
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).174 Opportunity (NOFO).174
Economic distress criteria: No minimum economic distress level requirements.175 No minimum economic distress level requirements.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)176
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: universities or affiliated organizations; states or local governments; or nonprofit TAAC: universities or affiliated organizations; states or local governments; or nonprofit
organizations.177 EDA generally funds a TAAC for a three-year period composed of three separate organizations.177 EDA generally funds a TAAC for a three-year period composed of three separate
funding periods of 12 months each.178 funding periods of 12 months each.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.179 No minimum economic distress level requirements.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.180 Certified firms that receive assistance from TAACs must pay a expenses of the TAACs.180 Certified firms that receive assistance from TAACs must pay a
percentage of expenses associated with services.181 percentage of expenses associated with services.181
University Center Program182
The University Center program connects economic development practitioners with expertise and The University Center program connects economic development practitioners with expertise and
resources from colleges and universities. University Centers provide technical assistance in resources from colleges and universities. University Centers provide technical assistance in
174 EDA, “NOFO174 EDA, “NOFO
—2020 STEM, EDA-HDQ-OIE-2020-2006617,” https://eda.gov/files/oie/stem/Section-28-STEM-2020 STEM, EDA-HDQ-OIE-2020-2006617,” https://eda.gov/files/oie/stem/Section-28-STEM-
Talent-Challenge-NOFO.pdf. Talent-Challenge-NOFO.pdf.
175 The STEM Talent Challenge is authorized under Section 28 of the Stevenson-Wydler Technology Innovation Act of
175 The STEM Talent Challenge is authorized under Section 28 of the Stevenson-Wydler Technology Innovation Act of
1980 (15 U.S.C. §3723). The FY2020 STEM Notice of Funding Opportunity (NOFO) notes that, “this authorization 1980 (15 U.S.C. §3723). The FY2020 STEM Notice of Funding Opportunity (NOFO) notes that, “this authorization
does not require applicants to meet specific distress criteria to be considered eligible.” See EDA, “NOFOdoes not require applicants to meet specific distress criteria to be considered eligible.” See EDA, “NOFO
—2020 2020
STEM, EDA-HDQ-OIE-2020-2006617,” https://eda.gov/files/oie/stem/Section-28-STEM-Talent-Challenge-STEM, EDA-HDQ-OIE-2020-2006617,” https://eda.gov/files/oie/stem/Section-28-STEM-Talent-Challenge-
NOFO.pdf. NOFO.pdf.
176 For more information, see CRS Report RS20210,
176 For more information, see CRS Report RS20210,
Trade Adjustment Assistance for Firms, by Rachel F. Fefer. , by Rachel F. Fefer.
177 13 C.F.R. §315.4. 177 13 C.F.R. §315.4.
178 13 C.F.R. §315.5. 178 13 C.F.R. §315.5.
179 13 C.F.R. §315.5. 179 13 C.F.R. §315.5.
180 13 C.F.R. §315.5. 180 13 C.F.R. §315.5.
181 13 C.F.R. §315.6. 181 13 C.F.R. §315.6.
182 For a list of University Centers, see https://eda.gov/programs/university-centers/current-list/. 182 For a list of University Centers, see https://eda.gov/programs/university-centers/current-list/.
Congressional Research Service
Congressional Research Service
5146
Economic Development Administration: An Overview of Programs and Appropriations
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-skilled regional workforce, and Developing a high-skilled regional workforce, and
Increasing the resiliency of a region. Increasing the resiliency of a region.
Eligible recipients for the University Center program include institutions of higher education
Eligible 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 generally have a five-year period of performance, with an initial funding period of Center grants generally 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 Philadelphia Regional Offices.183 In FY2022, EDA will hold the University Center and Philadelphia Regional Offices.183 In FY2022, EDA will hold the University Center
competition in its Atlanta and Seattle Regional Offices. In FY2023, EDA will hold the University competition in its Atlanta and Seattle Regional Offices. In FY2023, EDA will hold the University
Center competition in its Austin and Denver Regional Offices.184 Center competition in its Austin and Denver Regional Offices.184
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.185 No minimum economic distress level requirements.185
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.186 applicants to the University Center program are not required to submit a CEDS.186
Level of matching funds requirement: Generally 50% of project costs, but may vary. See 13 Generally 50% of project costs, but may vary. See 13
CFR §301.4. CFR §301.4.
183 EDA, 183 EDA,
NOFO——
FY2021 EDA University Center Economic Development Program Competition, EDA-CHI-TA-, EDA-CHI-TA-
CRO-2021-2006893 and EDA-CHI-TA-CRO-2021-2006894, https://www.grants.gov/web/grants/view-CRO-2021-2006893 and EDA-CHI-TA-CRO-2021-2006894, https://www.grants.gov/web/grants/view-
opportunity.html?oppId=332622. opportunity.html?oppId=332622.
184 EDA, “University Centers—Applicant Resources,” https://eda.gov/programs/university-centers/applicant-resources/
184 EDA, “University Centers—Applicant Resources,” https://eda.gov/programs/university-centers/applicant-resources/
. .
185 13 C.F.R. §306 Subpart B. The EDA encourages University Centers to provide services that benefit distressed areas
185 13 C.F.R. §306 Subpart 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)).
186 EDA,
186 EDA,
NOFO—FY2021 EDA University Center Economic Development Program Competition, EDA-CHI-TA-CRO-, EDA-CHI-TA-CRO-
2021-2006893 and EDA-CHI-TA-CRO-2021-2006894, https://www.grants.gov/web/grants/view-opportunity.html?2021-2006893 and EDA-CHI-TA-CRO-2021-2006894, https://www.grants.gov/web/grants/view-opportunity.html?
oppId=332622. oppId=332622.
Congressional Research Service
Congressional Research Service
5247
Economic Development Administration: An Overview of Programs and Appropriations
Appendix B. EDA Funding—Historical Tables
Table B-1. Budget Requests and Annual Enacted Appropriations,
FY2011-FY2022 and FY2023 Request
(budget authority, in millions of nominal dollars)
(budget authority, in millions of nominal dollars)
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
$373.5
2023
2023
$502.5
$502.5
Sources: OMB Budget Appendices of the United States, EDA Annual Reports, and EDA Congressional Budget OMB Budget Appendices of the United States, EDA Annual Reports, and EDA Congressional Budget
Justification Reports. Justification Reports.
Notes: Includes funding for programs and salaries and expenses. The asterisk (*) indicates that the amount Includes funding for programs and salaries and expenses. The asterisk (*) indicates that the amount
includes supplemental appropriations. includes supplemental appropriations.
Congressional Research Service
Congressional Research Service
5348
Table B-2. Funding for EDA, by Program, FY2011-FY2022
(budget authority, in millions of nominal dollars)
(budget authority, in millions of nominal dollars)
FY2011 FY2012 FY2013a FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022
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
120.5
120.5
Economic Adjustment Assistance
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
37.5
37.5
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
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
12.5
Research and Evaluation
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
2.0
2.0
Trade Adjustment Assistance
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
13.5
13.5
Innovative Manufacturing (Sec. 26)
Innovative Manufacturing (Sec. 26)
—b
—b
5.0
5.0
4.0
4.0
Build to Scale (Sec. 27)
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
45.0
45.0
Assistance to Coal Communities
Assistance 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
41.5
41.5
Assistance to Nuclear Closure
Assistance to Nuclear Closure
15.0
15.0
16.5
16.5
16.5
16.5
Communities
Communities
Assistance to Biomass Power Plant
Assistance to Biomass Power Plant
4.5
4.5
Closure Communities
Closure Communities
STEM Apprenticeships (Sec. 28)
STEM Apprenticeships (Sec. 28)
2.0
2.0
2.0
2.0
2.0
2.0
Global Climate Change Mitigation
Global Climate Change Mitigation
16.5
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
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
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
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: 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. 116-260, and P.L. 117-103; 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. 116-260, and P.L. 117-103;
S.Rept. 113-78; and EDA, FY2013 Annual Report, https://eda.gov/files/annual-reports/fy2013/EDA-FY2013-Annual-Report-ful .pdf. Funding amounts include the fol owing S.Rept. 113-78; 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 appropriations bil s: P.L. 115-123, P.L. 116-20, P.L. 116-136, and P.L. 117-2. supplemental appropriations bil s: P.L. 115-123, P.L. 116-20, P.L. 116-136, and P.L. 117-2.
CRS-
CRS-
5449
Notes: Amounts may not add to totals due to rounding. Build to Scale was called Regional Innovation Strategies (RIS) or Regional Innovations Program (RIP) in annual Amounts may not add to totals due to rounding. Build to Scale was called Regional Innovation Strategies (RIS) or Regional Innovations Program (RIP) in annual
appropriations bil s from FY2014 to FY2021; EDA began administering RIS/RIP funding using the Build to Scale program name in FY2020. The RIS/RIP included Science appropriations bil s from FY2014 to FY2021; EDA began administering RIS/RIP funding using the Build to Scale program name in FY2020. The RIS/RIP included 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 ion for planning grants for science park infrastructure. to $5 mil ion for planning grants for science park infrastructure.
a. FY2013 levels reflect post-sequestration amounts. According to CRS Report R43080, a. FY2013 levels 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, and John F. Sargent Jr., “FY2013 post-sequestration amounts were provided by the Department of Commerce.
coordinated by Nathan James, Jennifer D. Wil iams, and John F. Sargent Jr., “FY2013 post-sequestration amounts were provided by the Department of Commerce.
FY2014-requested amounts were taken from S.Rept. 113-78. The FY2013 amounts include rescissions of FY2013 budget authority and the amount sequestered per FY2014-requested amounts were taken from S.Rept. 113-78. The FY2013 amounts include rescissions 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 allocate up to $5,000,000 for loan guarantees under section 26 under the
b. The conference report accompanying the FY2012 appropriations directed EDA to allocate up to $5,000,000 for loan guarantees under section 26 under the
Economic Adjustment Assistance program. See CRS Report R41721,
Economic Adjustment Assistance program. See CRS Report R41721,
Commerce, Justice, Science, and Related Agencies: FY2012 Appropriations, coordinated by Nathan , coordinated by Nathan
James, Jennifer D. Wil iams, and John F. Sargent Jr. James, Jennifer D. Wil iams, 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. See CRS Report R41721,
Grants and loan guarantees authorized by section 27 were funded under the Economic Adjustment Assistance program. See CRS Report R41721,
Commerce, Justice,
Science, and Related Agencies: FY2012 Appropriations, coordinated by Nathan James, Jennifer D. Wil iams, and John F. Sargent Jr. In FY2014, the explanatory statement , coordinated by Nathan James, Jennifer D. Wil iams, and John F. Sargent Jr. In FY2014, the explanatory statement
accompanying the appropriations bil directed EDA to administer section 27 grants and loan guarantees in accordance with the requirements of 15 U.S.C. §§3721-accompanying the appropriations bil directed EDA to administer section 27 grants and loan guarantees in accordance with the requirements of 15 U.S.C. §§3721-
3722 rather than the requirements of PWEDA. See Rep. Harold Rogers, “Explanatory Statement Submitted by Mr. Rogers, Chairman of the House Committee on 3722 rather than the requirements of PWEDA. See Rep. Harold Rogers, “Explanatory Statement Submitted by Mr. Rogers, Chairman of the House Committee on
Appropriations Regarding H.R. 3547, Consolidated Appropriations Act, 2014,” Appropriations Regarding H.R. 3547, Consolidated Appropriations Act, 2014,”
Congressional Record, vol. 160, no. 9 (January 15, 2014), p. H507. , vol. 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 (P.L. 113-235).” See EDA,
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,
FY2022
Congressional Budget Justification, p. 63,, p. 63,
https://www.commerce.gov/sites/default/files/2021-05/fy2022_eda_congressional_budget_justification.pdf. https://www.commerce.gov/sites/default/files/2021-05/fy2022_eda_congressional_budget_justification.pdf.
CRS-
CRS-
5550
Economic Development Administration: An Overview of Programs and Appropriations
Table B-3. Supplemental Funding, FY2011-FY2021
(budget authority, in millions of dollars)
(budget authority, in millions 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 accompanying the fol owing appropriations bil s: Consolidated CRS using information from the reports accompanying the fol owing appropriations bil s: Consolidated
and Further Continuing Appropriations Act, 2012 (P.L. 112-55), Bipartisan Budget Act of 2018 (P.L. 115-123), and Further Continuing Appropriations Act, 2012 (P.L. 112-55), Bipartisan Budget Act of 2018 (P.L. 115-123),
Supplemental Appropriations for Disaster Relief Act, 2019 (P.L. 116-20), CARES Act (P.L. 116-136), and Supplemental Appropriations for Disaster Relief Act, 2019 (P.L. 116-20), CARES Act (P.L. 116-136), and
American Rescue Plan Act (ARPA, P.L. 117-2). American Rescue Plan Act (ARPA, P.L. 117-2).
Congressional Research Service
Congressional Research Service
5651
Economic Development Administration: An Overview of Programs and Appropriations
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
281
281
SourceSources: CRS using information from the Office of Personnel Management (OPM), FedScope, CRS using information from the Office of Personnel Management (OPM), FedScope,
http://www.fedscope.opm.gov. http://www.fedscope.opm.gov.
NotesNote: Each total is an “on-board” U.S.-based personnel count as of September of the year noted. Each total is an “on-board” U.S.-based personnel count as of September of the year noted.
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 CRSthroughout CRS
, provided substantive edits and assistance in shaping the report’s development. provided substantive edits and assistance in shaping the report’s development.
Congressional Research Service
Congressional Research Service
5752
Economic Development Administration: An Overview of Programs and Appropriations
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 not be relied upon for purposes other under the direction of Congress. Information in a CRS Report should not be relied upon for purposes other
than public understanding of information that has been provided by CRS to Members of Congress in than public understanding of information that has been provided by CRS to Members of Congress in
connection with CRS’s institutional role. CRS Reports, as a work of the United States Government, are not connection with CRS’s institutional role. CRS Reports, as a work of the United States Government, are not
subject to copyright protection in the United States. Any CRS Report may be reproduced and distributed in subject to copyright protection in the United States. Any CRS Report may be reproduced and distributed in
its entirety without permission from CRS. However, as a CRS Report may include copyrighted images or its entirety without permission from CRS. However, as a CRS Report may include copyrighted images or
material from a third party, you may need to obtain the permission of the copyright holder if you wish to material from a third party, you may need to obtain the permission of the copyright holder if you wish to
copy or otherwise use copyrighted material. copy or otherwise use copyrighted material.
Congressional Research Service
Congressional Research Service
R46991
R46991
· VERSION 47 · UPDATED
5853