July 15, 2022
Federal Regional Commissions and Authorities: Administrative
Expenses
Federal regional commissions and authorities (hereinafter
No. States
Establishing Statute
regional commissions) are congressionally-chartered,
federal-state partnerships that seek to address economic
NBRC
4
40 U.S.C. §15301 et seq.
distress in their designated regions. The regional
commissions may use congressional appropriations (base
SCRC
7
40 U.S.C. §15301 et seq.
funding), state contributions, or—occasionally—other
Source: Data compiled by CRS from the U.S. Code and official
funding sources for grants, other activities, and
sources of various federal regional commissions and authorities.
administrative expenses. This report provides a summary of
Original authorizing public laws, in order of tabulation, are: P.L. 89-
the uses and sources of funds associated with the
4; P.L. 106-554; P.L. 105-277; P.L. 110-234; and P.L. 110-234.
administrative expenses of the active regional commissions.
For additional information about the regional commissions,
Administrative Expenses
including the sources and uses of grant funds (e.g., non-
Administrative expenses vary by regional commission and
administrative expenses), see CRS Report R45997, Federal
amounts, and generally include:
Regional Commissions and Authorities: Structural Features
and Function.
Salaries and benefits, and
Background
Operating expenses (e.g., travel, rent, communications,
Congress has established seven federal regional
printing, services, supplies, equipment).
commissions and authorities to address community and
economic development and related activities in their
ARC, DRA, NBRC, SCRC - Multi-State Regions
respective service areas. Five of the seven federal regional
The active multi-state regional commissions (i.e., ARC,
commissions are active:
DRA, NBRC, and SCRC) use a partnership structure that
involves the federal partner and the regional commission
Appalachian Regional Commission (ARC);
(representing governors of each member state and the
federal partner). The federal partner and the regional
Delta Regional Authority (DRA);
commission both incur administrative expenses.
Denali Commission;
Federal partner - The federal co-chair represents the
federal partner. The federal co-chair and federal
Northern Border Regional Commission (NBRC); and
alternate co-chair (if any) are federal employees. In
addition, the offices of the federal co-chair may include
Southeast Crescent Regional Commission (SCRC).
other federal staff (e.g., advisors, federal employees who
are detailed to the office).
Each active commission is composed of a federal co-chair
(generally appointed by the President with Senate
Commission – Regional commission activities are
confirmation) and the member state governor(s). As noted
developed and informed by both the federal partner and
below, the structure of the Denali Commission is different.
representatives from member states. Regional
The Southwest Border Regional Commission (SBRC) does
commission staff (e.g., the executive director, program
not have a federal co-chair and is not currently active. The
staff, other positions) are nonfederal employees.
authorization of appropriations for the Northern Great
Plains Regional Authority (NGPRA) lapsed at the end of
The Denali Commission - Single-State Region
FY2018 and it is no longer active.
The Denali Commission also incurs administrative
expenses. However, the Denali Commission structure is
Table 1. Active Regional Commissions, Number of
unique as a single-state commission led by a federal co-
Member States, and Establishing Statutes
chair and six commissioners. The Denali Commission is
No. States
Establishing Statute
also different from the other regional commissions because
the U.S. Secretary of Commerce appoints the federal co-
ARC
13
40 U.S.C. §14301 et seq.
chair, rather than by the President with Senate confirmation.
The six commissioners represent state government and non-
DRA
8
7 U.S.C. §2009aa–1 et seq.
governmental organizations, as specified in the Denali
Denali
1
42 U.S.C. §3121 note
Commission’s establishing statute (42 U.S.C. §3121 note,
Commission
Sec. 303(b)(1)). Unlike most regional commission staff of
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Federal Regional Commissions and Authorities: Administrative Expenses
the ARC, DRA, NBRC, and SCRC, most Denali
Notes: A portion of Trans-Alaska Pipeline Liability (TAPL) funding is
Commission staff are federal employees.
also used to cover certain administrative expenses (see 86 Federal
Register 58257).
Funding Sources for Administrative
Expenses
State Share of Administrative Expenses
Administrative costs for four of the active commissions—
For the ARC, DRA, NBRC, and SCRC, the regional
ARC, DRA, NBRC, and SCRC—are shared by the federal
commissions’ state members determine the share of
government and member states, as illustrated in Figure 1.
administrative expenses. The Denali Commission region
As noted, the Denali Commission primarily uses federal
includes one state, and the state is not required to contribute
funding for administrative expenses, as noted in Figure 2.
to administrative expenses.
Figure 1. Administrative Expenses for ARC, DRA,
The authorizing legislation for the NBRC and SCRC
NBRC, and SCRC (Multi-State Regions)
specifies that a state’s share of administrative expenses
Funding Sources and Funding Uses
shall not be taken into consideration when determining the
amount of assistance provided to the state from the regional
commission for grant-making and other activities.
Limitations on Appropriated Funding
Amounts for Administrative Expenses
The DRA and the Denali Commission may not use more
than 5% of appropriated funds for administrative expenses
(see 7 U.S.C §2009aa–12(b) and 42 U.S.C. §3121 note,
Sec. 306(g), respectively). The SCRC and NBRC may not
use more than 10% of appropriated funds for administrative
expenses, unless less than $10 million is provided in a fiscal
year (see 40 U.S.C. §15751(b)). Periodically, Congress has
waived the cap on administrative expenses in certain
appropriations laws.
When a State is Delinquent in
Administrative Expenses
For the ARC, DRA, NBRC, and SCRC, a member state (or
political subdivisions and eligible recipients) may not
receive grant awards from the regional commission and the
state may not vote in regional commission decisions if the
state is delinquent in payment of its share of administrative
expenses.
Considerations for Congress
The amount of appropriations for regional commissions
may fluctuate and occasionally increase with the enactment
Source: Figure created by CRS Specialist in Public Finance, Margot
of supplemental appropriations laws, like the Infrastructure
Crandal -Hol ick.
Investment, and Jobs Act (P.L. 117-58) in FY2022. Higher
Notes: The type and amount of administrative expenses vary by
funding amounts may entail increased near-term human
regional commission.
capital or other administrative expenses in order to expand
the capacity to administer more grant funds or implement
Figure 2. Administrative Expenses for the Denali
new activities. For a certain period after program
Commission (Single-State Region)
expansions and/or funding increases, regional commissions
Funding Sources and Funding Uses
continue to oversee grants, manage program activities, and
incur ongoing administrative expenses. Alternatively, if
appropriations levels decrease, regional commissions may
have lower funding amounts available to cover fixed,
ongoing, or increasing administrative expenses, including
oversight capacity and overhead costs. Administrative
expenses may also fluctuate over time—without regard to
changes in appropriations levels—because of staff and
technology requirements, inflation, or other factors.
Congress may seek to examine options to coordinate certain
administrative functions among one or more regional
commissions.
Source: Figure created by CRS Specialist in Public Finance, Margot
Julie M. Lawhorn, Analyst in Economic Development
Crandal -Hol ick.
Policy
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Federal Regional Commissions and Authorities: Administrative Expenses
IF12165
Disclaimer
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