Updated December 17, 2021
Starting a Federal Regional Commission or Authority
The federal regional commissions and authorities are seven
basic structure has been adapted to the circumstances and
congressionally-chartered, federal-state partnerships that
needs of the region in question.
were developed to address economic distress in targeted
geographic regions. With congressional authorization, new
Structural Exceptions
regional commissions could be created in areas of the
While the prevailing structure is broadly apparent among
country not currently serviced. This In Focus addresses past
the federal regional commissions, exceptions and certain
and anticipated future congressional interest into the issues
novelties are also evident. For example, the ARC’s
and processes involved in starting a federal regional
authorizing statute requires state governors to serve as ARC
commission based on existing models.
members and has no allowance for governors to designate a
representative (although an alternate may be allowed in
Current Commissions and Authorities
extenuating circumstances). By contrast, the other active
As of December 2019, seven federal regional commissions
regional commissions allow for the member state governors
have been authorized by Congress. (Although some are
to appoint designated representatives to serve in their stead.
designated as “authorities,” this In Focus will refer to all of
them collectively as “commissions.”) Four are currently
As a single-state commission, the Denali Commission
active: the Appalachian Regional Commission (ARC); the
features several structural exceptions. Alongside the federal
Delta Regional Authority (DRA); the Denali Commission;
co-chair, the commission is comprised of the state governor
and the Northern Border Regional Commission (NBRC).
(who is state co-chair) as well as five other members : the
Two were authorized but are inactive: the Northern Great
University of Alaska president; the Alaska Municipal
Plains Regional Authority (NGPRA) and the Southwest
League president; the Alaska Federation of Natives
Border Regional Commission (SBRC). In December 2021,
president; the Alaska State AFL-CIO president; and the
the U.S. Senate confirmed the first federal co-chair for the
Associated General Contractors of Alaska president. The
Southeast Crescent Regional Commission (SCRC) but it
Denali Commission’s federal co-chair is appointed by the
has yet to convene its members or undertake core planning
Secretary of Commerce, while the federal co-chairs of other
or investment activities. The active commissions engage in
commissions are appointed by the President and require
economic development activities in their service areas with
confirmation by the Senate. The Denali Commission’s
funding from annual congressional appropriations.
inclusion of non-gubernatorial membership is also a feature
of the multi-state Northern Great Plains Regional Authority.
Structural Features
Though inactive, the NGPRA consisted of the federal co-
chair, the state governors, as well as a Native American
Common Structures
tribal co-chair. The NGPRA also used a 501(c)(3)
While the authorized federal regional commissions have
organization as a resource for implementation.
individual distinguishing features, they all include a
structure broadly modeled after the Appalachian Regional
A new federal regional commission may share the existing
Commission, which was established by Congress in 1965
commissions’ basic structures while including features to
(40 U.S.C. §§14101-14704). The commission structure is
represent certain regional economic, social, cultural, or
comprised of a federal co-chair and the state governors of
historical characteristics. Such an approach could also be
member states or their designated representative (of which
adapted to programmatic intent; for example, emphases on
one serves as state co-chair). The commission is
certain industries, types of economic development (such as
supplemented by professional staff to carry out
infrastructure or workforce development), or other policy
organizational activities. While largely considered
priorities, like energy transition or conservation.
independent federal agencies, most commission members
and staff are not federal employees. The main exception is
Authorization and Establishment
the federal co-chair, that co-chair’s alternate, and that co-
Process
chair’s direct staff. However, a commission may adopt
certain federal personnel practices. For example, the ARC
Regional Consensus and Demand
pegs its salary grades to the Office of Personnel
While chartered by Congress, federal regional commissions
Management’s General Schedule, and former federal
are rooted in the states and localities they represent. Prior to
employees may remain in the federal retirement system.
their statutory creation, all federal regional commissions
were preceded by state, local, and/or congressional
A new federal regional commission may use a similar
expressions of support. The ARC, for example, was
structure to the one established for the ARC, which was
founded in response to initiatives from Appalachian
broadly replicated in the other commissions. However, this
regional governors. Those efforts led to presidential and
congressional legislation, which resulted in a study
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Starting a Federal Regional Commission or Authority
commission and the eventual creation of the ARC in 1965.
Federal Co-Chair Appointment
All of the federal regional commissions were founded after
After appropriations have been secured to begin operations,
long-term consensus-driven efforts in the states and regions
the entity’s launch may be stymied by other operational
to demonstrate both need and demand for their creation.
factors. The appointment of a federal co-chair, unless
otherwise provided, is essential for a federal regional
Legislation and Authorization
commission’s operations. For example, the SBRC has
Once the concept for a federal regional commission has
consistently received appropriations, but has been unable to
gained traction regionally, it may then be the subject of
begin its operations because no federal co-chair has been
congressional hearings or legislation. Such deliberations
appointed by the president. Alternative provisions could be
may last for years, as the case for the federal regional
enacted to avoid or surmount such an issue, such as
commission is gradually established and support is
allowing the federal co-chair to be appointed by a cabinet
cultivated in the relevant committees (e.g., the House
official, based on the model of the Denali Commission, or
Transportation and Infrastructure Committee, the Senate
to provide for the commission to be able to convene in the
Environment and Public Works Committee, and the
absence of an appointed federal co-chair.
respective appropriations committees).
Scope and Nature of Activities
For example, SCRC legislation was first introduced in
While appropriations fund the activities for the federal
1994, and grassroots initiatives pushed the concept forward
regional commissions, the scope and nature of each
until its 2008 authorization. Similarly, the SBRC’s 2008
commission’s activities may differ. The Denali
authorization was preceded by a 1999 executive order, and
Commission, for example, largely focuses on energy
subsequent legislation. The NBRC is notable in that it was
storage and infrastructure and special infrastructure
proposed only about a year before authorization, but it may
protection programs, reflecting the specific needs of its
have benefited from being passed with the SBRC and
service area. The ARC, DRA, and NBRC engage in a
SCRC. Once a critical mass of support is achieved,
broader spectrum of economic development activities, but
precedent suggests that the authorizing legislation is likely
also feature specialized funding priorities. On example is
to be included within omnibus legislation, such as the
the ARC’s POWER Initiative, which seeks to address
conventionally quadrennial farm bills —the 2008 farm bill
economic dislocation in coal industry-dependent
authorized the NBRC, the SCRC, and the SBRC—or
communities. The ARC, DRA, and NBRC also provide
consolidated appropriations acts.
financial support to networks of local development districts
(LDDs), which are multi-county economic development
Appropriations and Funding
organizations that assess projects and advise the
Although the founding legislation may authorize
commissions on local priorities and issues.
appropriations, actual funding awaits approval as part of an
appropriations bill. A lack of appropriations may prevent
The scope of a commiss ion’s economic development
the entity from beginning operations and any planned
activities are also determined by their statutorily-delineated
activities. In recent years, new federal regional
service areas. These service areas are the primary
commissions have received appropriations in the low
beneficiaries of the commissions’ activities, so only
millions of dollars. The NBRC was authorized for up to $30
organizations based in these areas can receive funding (with
million in annual funding when it was created in FY2008
some minor exceptions). The service areas can only be
(P.L. 110-234), but received appropriations for $1.5 million
modified or amended through legislation.
in FY2010 (P.L. 111-85). That number held steady until
FY2014, when it was appropriated $5 million, and
In addition, the four active commissions consider project
increased since then to $150 million in FY2022 (P.L. 117-
applications based on county-level designations of distress.
58). The Northern Great Plains Regional Authority, which
The ARC designates counties along five ascending classes
is inactive, received an appropriation once for $1.5 million
of distress; the NBRC uses three; the DRA designates
in FY2004. The SCRC received annual appropriations for
counties as either distressed or not; as does the Denali
$250,000 each year from FY2008 through FY2020. This
Commission. Along with other criteria, distress levels can
amount increased to $1 million in FY2021 (P.L. 116-260)
influence funding decisions, and—in the case of the ARC
and $5 million in FY2022 (P.L. 117-58).
and the NBRC—may also determine grant match levels.
While federal appropriations fund all the activities of the
Additional Considerations
federal regional commissions and authorities, it is
There is no requirement that a new federal regional
customary for the federal government and the member
commission follow previous or existing models. However,
states to share administrative expenses. Of the authorized
their commonalities provide an institutional blueprint in
federal regional commissions, only the Denali Commission
statute and in practice. At the same time, the differences in
is entirely funded by the federal government, although the
commission charters suggest that new commissions could
State of Alaska does contribute in other ways. For a
incorporate structural or programmatic innovations to
proposed commission, the states’ willingness to share
accomplish particular policy goals. While there are other
administrative expenses may evince their financial
options for federal economic development, the federal
commitment to the endeavor.
regional commissions represent a relatively flexible model
that integrates federal, state, and local input in service of
regional economic and community development priorities.
https://crsreports.congress.gov
Starting a Federal Regional Commission or Authority
Julie M. Lawhorn, Analyst in Economic Development
Policy
IF11396
Disclaimer
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https://crsreports.congress.gov | IF11396 · VERSION 4 · UPDATED