Forming a Funded Federal Regional Commission

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Updated March 15, 2024
Forming a Funded Federal Regional Commission
During the 117th Congress, the Senate confirmed the nomi-
dent with Senate confirmation, and the member state gover-
nations of the federal co-chairs for the Southeast Crescent
nors, of which one is elected by the governors as state co-
Regional Commission (SCRC) and the Southwest Border
chair.
Regional Commission (SBRC), thereby allowing them to
convene and begin other activities. Also during the 117th
Commission Funding, FY2022-FY2024
Congress, the Consolidated Appropriations Act, 2023 (P.L.
The Consolidated Appropriations Act, 2024 (P.L. 118-42)
117-328) authorized a new federal regional commission, the
provided annual appropriations for ARC, Denali Commis-
Great Lakes Authority (GLA). However, the GLA is not
sion, DRA, GLA, SCRC, SBRC, and NBRC.
currently operational, and received its first appropriation in
FY2024. Although appropriations are necessary for their
Table 1 summarizes funding amounts for the seven federal
full activation, they are also insufficient without additional
regional commissions that have received appropriations in
steps. This In Focus describes potential additional steps that
FY2024, along with the year authorized.
may be necessary for a federal regional commission to
achieve full formation, and potential policy options for
Table 1. Funded Federal Regional Commissions at a
Congress as it continues to consider creating new federal
Glance (funding in millions of dol ars)
regional commissions and authorities.
FY2022
FY2023
FY2024
Background on the Federal Regional
Year Appropria- Appropria- Appropria-
Commissions and Authorities

Enacted
tions
tions
tions
Eight federal regional commissions and authorities have
GLA
FY2023


$5.0
been authorized by Congress to address instances of major
economic distress in geographically defined socio-eco-
SBRC
FY2008
$3.75
$5.0
$5.0
nomic regions. Congress authorized the first federal re-
SCRC
FY2008
$10.00
$20.0
$20.0
gional commission, the Appalachian Regional Commission
(ARC), in 1965. Additional commissions and authorities
NBRC
FY2008
$185.00
$40.0
$41.0
were founded in 1998 (the Denali Commission), 2000 (the
DRA
FY2000
$180.10
$31.0
$31.1
Delta Regional Authority, or DRA), and 2002 (the Northern
Great Plains Regional Authority, or NGPRA). Three com-
Denali
FY1998
$90.10
$17.0
$17.0
missions—the Northern Border Regional Commission
(NBRC), SCRC, and the SBRC—were authorized in 2008.
ARC
FY1965
$395.00
$400.0
$400.0
The Consolidated Appropriations Act, 2023 (P.L. 117-328)
Source: Appropriations figures tabulated from, P.L. 117-58, P.L. 117-
amended 40 U.S.C. §15301(a) to establish the GLA in De-
103, P.L. 117-328, and P.L. 118-42.
cember 2022. Six of the eight entities—the ARC, DRA, De-
Notes:. FY2022 amounts include appropriations provided in the In-
nali, and NBRC, SBRC, and SCRC—receive annual appro-
frastructure Investment and Jobs Act (IIJA, P.L. 117-58). The IIJA pro-
priations and have presidentially-nominated, Senate-con-
vided $200 mil ion in advance appropriations for the ARC in each fis-
firmed federal co-chairs in place. The NGPRA and GLA
cal year from FY2022 through FY2026.
are currently inactive. The NGPRA’s authorization lapsed
at the end of FY2018; it received one appropriation for $1.5
Steps for Commission Formation
million in FY2004.
Appropriations represent a first step towards the full for-
mation and operation of regional commissions; however,
The authorizing legislation for the ARC, DRA, GLA,
several additional steps must be completed before a com-
NBRC, SBRC, and SCRC requires a presidentially-ap-
mission can be fully convened and active.
pointed federal co-chair. The U.S. Senate confirmed the
SCRC’s and SBRC’s first federal co-chairs in December
These steps include, broadly
2021 and December 2022, respectively, allowing the com-
missions to convene and begin other activities. As of March
1. The presidential appointment and Senate confir-
2024, President Biden had not nominated a federal co-
mation of a federal co-chair, and potentially an
chairperson for the GLA.
alternate federal co-chair;
2. The convening of the commission, including the
The regional commissions and authorities established after
federal co-chair and the member state governors;
the ARC—with the exception of the Denali Commission—
are all broadly modeled after the ARC’s structure. The
3. Organizational development of the commission,
structure includes a federal co-chair, appointed by the Presi-
which includes the development of bylaws, hir-
ing of a professional staff, and the identification
of program priorities; and
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Forming a Funded Federal Regional Commission
4. The establishment of an economic development
including the terms of their appointment and hiring, their
grant-making program, pending additional ap-
compensation schedules, and their roles and functions. The
propriations.
programmatic elements of the commission’s work would be
informed by the regional economic development priorities
Appointment of a Federal Co-Chair
identified by commission members. The commission may
The presidential appointment and Senate confirmation of a
draft a strategic plan or priorities document, or delegate re-
federal co-chair is an essential step, as the federal co-chair
sponsibility for the development of such documentation to
is a statutorily enumerated leader of the commission, along-
commission staff, seconded staff from the respective state
side state members (the governors, of which one is elected
governments, or a third party, subject to approval by the
state co-chair). According to 40 U.S.C. §15301, the author-
commission.
izing statute for the GLA, NBRC, SBRC, and SCRC, the
federal co-chair serves as the “liaison between the federal
Prior rounds of appropriations to the SBRC and SCRC pro-
government and the commission.” The statute also states
vided funding for hiring staff and the operational costs of
that the federal co-chair’s assent is required, along with a
convening the commissions. This funding may potentially
majority of state members, in rendering any decision. In ef-
be used for initial economic development grant-making ac-
fect, the statute does not provide for the commission’s for-
tivities.
mation in the absence of a duly appointed and confirmed
federal co-chair.
However, as is generally the case with the active federal re-
gional commissions, the NBRC, SBRC, and SCRC’s au-
According to 40 U.S.C. §15301, the authorizing statute for
thorizing statute—as well as the GLA’s authorizing stat-
the GLA, NBRC, SBRC, and SCRC, the federal co-chair’s
ute—obligates evenly shared administrative expenses be-
rank and compensation is also established as level III of the
tween the federal government and state members. As such,
Executive Schedule. According to the Office of Personnel
additional appropriations allocated for administration would
Management (OPM), the FY2024 rate of basic pay for level
require an equal match from the member states. The states
III of the Executive Schedule is $204,000. The statute also
are not responsible for providing funding for grant-making,
provides for the presidential appointment (without Senate
however. Those funds would need to be included in future
confirmation) of an alternate federal co-chair, who may
federal appropriations.
serve in the federal co-chair’s stead as needed, or as a dep-
uty otherwise—at the rank of level V of the FY2024 Execu-
Policy Considerations
tive Schedule, or $180,000.
Enacting, appropriating, and operationalizing a federal re-
gional commission can be a long-term and sometimes dis-
Convening the Commission
connected process, as a commission may not form even
Upon appointment and confirmation of a federal co-chair, a
with authorizing legislation and appropriations. Should
commission may begin formal operations once the commis-
Congress wish to streamline the formation process, it may
sion membership is convened. Except for the Denali Com-
consider potential options:
mission, each commission consists of the federal co-chair
and the governors of the member states. For the ARC,
• Develop model legislation to provide a temporary or al-
DRA, GLA, NBRC, SBRC, and SCRC, the authorizing
ternate federal co-chair until a permanent one is ap-
statute also provides for the selection of state alternates to
pointed and confirmed;
serve in the governors’ stead. The convening of the com-
mission would functionally operationalize the commission
• Allow for a class of federal regional commissions to be
and, with the assent of the federal co-chair and a majority of
authorized, and federal co-chairs appointed, by the Sec-
state members, allow the commission to render decisions
retary of Commerce, similarly to those created under
regarding structure and administration.
(now defunct) Title V of the Public Works and Eco-
nomic Development Act of 1965 (P.L. 89-136); or
One such decision would be the selection of a state co-chair
who, alongside the federal co-chair, would form the com-
• Develop a coordinating entity within the Department of
mission leadership. According to statute, the state co-chair
Commerce to administer the establishment, develop-
“shall be a Governor of a participating State in the region
ment, and cooperation of existing and future federal re-
and shall be elected by the State members for a term of not
gional commissions.
less than 1 year.” The statute also limits the state co-chair to
no more than two consecutive terms.
Additional Reading
For additional related information see CRS Report R45997,
Organizational Development and Grant Making
Federal Regional Commissions and Authorities: Structural
A commission, once convened, may draft and pass bylaws
Features and Function; CRS In Focus IF11396, Starting a
for the organization, which govern the roles and responsi-
Federal Regional Commission or Authority; and CRS In
bilities of commission members and staff, and set processes
Focus IF12165, Federal Regional Commissions and Au-
for the day-to-day administration of the organization. These
thorities: Administrative Expenses.
bylaws may be revised or amended by the commission as
needed, as they reinforce statutory guidance and regulate
Julie M. Lawhorn, Analyst in Economic Development
the activities of the organization that are not detailed in stat-
Policy
ute. For example, the bylaws may describe the role of an
executive director and the categories of professional staff,
IF11744
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Forming a Funded Federal Regional Commission


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