August 24, 2026 (IF13296)

The Economic Development Administration (EDA), a bureau of the U.S. Department of Commerce (DOC), was established to assist state and local stakeholders with developing the conditions and amenities to grow businesses, create jobs, and expand investment in economically distressed areas.

Annual and supplemental appropriations fund the agency's grant programs and administrative expenses. This In Focus provides a summary of recent EDA budget requests and appropriations from FY2020 to FY2027.

Agency Funding Structure

The annual Commerce, Justice, Science, and Related Agencies (CJS) appropriations act provides funding for EDA. Two separate appropriations provide budget authority for 1) programs and 2) operating expenses. Annual appropriations for EDA programs and administration ranged between $333 million and $498 million (nominal) during the period between FY2020 and FY2026.

With few exceptions, the amounts to be allocated for EDA programs are specified in the explanatory statements accompanying the annual CJS appropriations acts, which provide additional guidance from Congress to the EDA. Language in explanatory statements may encourage the EDA to use certain amounts of overall appropriations or other resources, like technical assistance, to further a particular type of activity (e.g., broadband) or to advance investments in certain areas or industries (e.g., aeronautics, persistent poverty areas, distressed areas, coal-impacted communities).

Appropriations for EDA's administration account are to cover salaries and other expenses. Administration expenses averaged 13% of annual appropriations for EDA during the FY2020 through FY2026 period. EDA employment levels have declined each year since reaching a high of 324 employees in 2023. As of June 2026, EDA's workforce had decreased to 190 employees.

In January 2025, the Economic Development Reauthorization Act of 2024 (P.L. 118-272) reauthorized EDA. Congress had last amended and extended EDA authorities in 2004. Among other changes, P.L. 118-272 authorized $3.2 billion over five years (FY2025-FY2029) for certain EDA programs and expenses, including recently authorized technical assistance liaisons (42 U.S.C. §3200). The law did not appropriate funds to the EDA; it only authorized such appropriations in future legislation.

Recent Appropriations

FY2026 Annual Appropriations

The Administration's FY2026 budget proposed $30 million for salaries and expenses to conduct an orderly closeout of EDA.

The CJS; Energy and Water Development; and Interior and Environment Appropriations Act, 2026 (P.L. 119-74) provided $466 million in total FY2026 budget authority for EDA, $436 million more than the FY2026 request. The agency continued to operate, and no closeout has been initiated.

FY2027 Proposed Funding and Administration Request

The Administration's FY2027 budget proposed $20 million for salaries and expenses to conduct an orderly closeout of EDA.

The House committee-approved bill and accompanying report (H.Rept. 119-652) for FY2027 would provide EDA with $323 million for programs and administrative expenses, including $90 million for the Assistance to Coal Communities (ACC) program. In July 2026, the House passed a continuing resolution (CR) that would provide pro-rated funding for EDA at FY2026 levels through December 4, 2026. As of date of this In Focus, the Senate has not introduced a CJS appropriations bill. In August 2026, the Senate passed a CR that would provide pro-rated funding for EDA at FY2026 levels through December 11, 2026.

Recent Supplemental Appropriations

Since FY2020, EDA received $7.1 billion of supplemental appropriations for various purposes, including for select programs (P.L. 117-328), recovery efforts following economic injury caused by natural disasters (P.L. 117-328, P.L. 118-158), and the COVID-19 pandemic (P.L. 116-136, P.L. 117-2). Beginning in FY2018, certain supplemental appropriations laws have included provisions allowing EDA to use a portion of appropriated funding for salaries and/or oversight activities.

Figure 1. EDA Appropriations, FY2020-FY2026 (in nominal dollars)

Source: CRS using information from appropriations bills. Notes: Does not show recissions or transfers.

In addition to the funding shown in Figure 1, the Servicemember Quality of Life Improvement and National Defense Authorization Act of FY2025 (P.L. 118-159, Division E, Title LIV) approved up to $500 million from proceeds from a spectrum auction for the EDA's Tech Hubs program.

Recent Recissions

From FY2020 to FY2026, annual appropriations laws included provisions rescinding certain amounts of unobligated balances from prior-year appropriations for economic development assistance programs. Recission amounts have varied from $10 million in FY2021 (P.L. 116-260) to $60 million in FY2026 (P.L. 119-74).

Issues for Congress

New Program Authorities and Funding Allocations

Congress may seek to review funding allocations for EDA's recently expanded program authorities. In January 2025, P.L. 118-272 authorized several new EDA grant programs and types of project activities, including

• renewable energy on brownfields sites (42 U.S.C. §3154d),
• workforce training (42 U.S.C. §3154e),
• high-speed broadband deployment (42 U.S.C. §3154g), and
• critical supply chain site development (42 U.S.C. §3154h).

EDA has published guidance and allocated funding for a new workforce training program (i.e., the AI Upskill Accelerator Pilot). In its December 2025 blog about the new program, EDA announced it would be discontinuing the STEM Apprenticeship, Trade Adjustment Assistance for Firms (TAAF), and University Centers (UC) programs. EDA noted that these programs were "outdated, costly to administer, and not designed to address recent developments in the economy or have had their authorizations lapse." Portions of the statutory authorization of the TAAF program expired in 2022 and EDA's websites note that funding is not available to continue support for the STEM, TAAF, and UC programs.

Prior to the enactment of P.L. 118-272, P.L. 117-167 established the Tech Hubs and Recompete Pilot programs. P.L. 117-167 authorized $10 billion over five years (FY2023-FY2027) to be appropriated for the Tech Hubs program and $1 billion over five years (FY2022-FY2026) for the Recompete program. From FY2023 through FY2026 EDA received a total of $623 million in appropriated funds and potentially up to $500 million in other funding for the Tech Hubs program and $218 million for the Recompete program.

Economic Adjustment Assistance and Assistance to Coal Communities Funding Levels

Congress may seek to review funding allocations for established programs as well as the share of funds available for distressed areas nationwide compared to funds for specific regions. In FY2026, for instance, Congress directed EDA to provide $80 million to the ACC program, which was over twice the amount provided to the base economic adjustment assistance (EAA) program in FY2026 (i.e., $39.5 million).

Staff Levels and Workforce Plan

Congress may seek to review appropriations for salaries and expenses in the context of EDA's workforce plan, permanent and temporary staffing levels, and hiring authorities to ensure that the agency is equipped to implement and oversee new programs and authorities, including disaster economic recovery roles and supplemental funding. For instance, in its FY2025 budget request, EDA noted that "Since 2018, EDA has seen its active grant portfolio grow by more than 8 times, going from 1,670 grants valued at $694 million at the end of 2017 to over 3,000 grants valued at over $6 billion in 2024."

FY2027 Administration Proposal to End EDA Programs

Funding for economic development assistance programs would be eliminated under the President's FY2027 request. If appropriations for programs were reduced or eliminated, Congress could direct EDA to continue monitoring and servicing existing grants, though these activities would likely incur administrative expenses. EDA estimated that "it will take seven years to close the approximately 2,300 grants projected to be open at the end of March 2026." Congress may review the level of appropriations for programs as well as administration expenses, such as expenses related to the grant oversight.