Federal Regional Commissions and Authorities: Administrative Expenses

Federal Regional Commissions and Authorities: Administrative Expenses

Updated February 1, 2023
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
DRA
8
7 U.S.C. §2009aa–1 et seq.
distress in their designated regions. The regional
commissions may use congressional appropriations (base
Denali
1
42 U.S.C. §3121 note
funding), state contributions, or—occasionally—other
Commission
funding sources for grants, other activities, and
NBRC
4
40 U.S.C. §15301 et seq.
administrative expenses. This report provides a summary of
the uses and sources of funds associated with the
SBRC
4
40 U.S.C. §15301 et seq.
administrative expenses of the active regional commissions.
SCRC
7
40 U.S.C. §15301 et seq.
For additional information about the regional commissions,
including the sources and uses of grant funds (e.g., non-
Source: Data compiled by CRS from the U.S. Code and official
administrative expenses), see CRS Report R45997, Federal
sources of various federal regional commissions and authorities.
Regional Commissions and Authorities: Structural Features
Original authorizing public laws, in order of tabulation, are P.L. 89-
and Function.
4; P.L. 106-554; P.L. 105-277; P.L. 110-234; P.L. 110-234; and P.L.
110-234.
Background
Congress has established eight federal regional
Administrative Expenses
commissions and authorities to address community and
Administrative expenses vary by regional commission and
economic development and related activities in their
amounts, and generally include salaries, benefits, and
respective service areas. Six of the eight federal regional
operating expenses (e.g., travel, rent, communications,
commissions are active:
printing, services, supplies, equipment).
 Appalachian Regional Commission (ARC);
ARC, DRA, NBRC, SBRC, SCRC - Multi-State
Regions
 Delta Regional Authority (DRA);
The active multi-state regional commissions (i.e., ARC,
DRA, NBRC, SBRC, and SCRC) use a partnership
 Denali Commission;
structure that involves the federal partner and the regional
commission (representing governors of each member state
 Northern Border Regional Commission (NBRC);
and the federal partner). The federal partner and the
regional commission both incur administrative expenses.
 Southwest Border Regional Commission (SBRC); and
 Federal partner - The federal co-chair represents the
 Southeast Crescent Regional Commission (SCRC).
federal partner. The federal co-chair and federal
alternate co-chair (if any) are federal employees. In
Each active commission is composed of a federal co-chair
addition, the offices of the federal co-chair may include
(generally appointed by the President with Senate
other federal staff (e.g., advisors, federal employees who
confirmation) and the member state governor(s). As noted
are detailed to the office).
below, the structure of the Denali Commission is different.
Two regional commissions are not active. The authorization
 Commission – Regional commission activities are
of appropriations for the Northern Great Plains Regional
developed and informed by both the federal partner and
Authority (NGPRA) lapsed at the end of FY2018 and it is
representatives from member states. Regional
no longer active. The Great Lakes Authority does not have
commission staff (e.g., the executive director, program
a federal co-chair and is also inactive. The SBRC’s first
staff, other positions) are nonfederal employees.
federal co-chairperson was recently confirmed in December
2022; the SBRC has not yet convened or started programs.
The Denali Commission - Single-State Region
The Denali Commission also incurs administrative
Table 1. Active Regional Commissions, Number of
expenses. However, the Denali Commission structure is
Member States, and Establishing Statutes
unique as a single-state commission led by a federal co-
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.
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Federal Regional Commissions and Authorities: Administrative Expenses
The six commissioners represent state government and non-
Notes: A portion of Trans-Alaska Pipeline Liability (TAPL) funding is
governmental organizations, as specified in the Denali
also used to cover certain administrative expenses (see 86 Federal
Commission’s establishing statute (42 U.S.C. §3121 note,
Register 58257).
Section 303(b)(1)). Unlike most regional commission staff
of the ARC, DRA, NBRC, and SCRC, most Denali
State Share of Administrative Expenses
Commission staff are federal employees.
For the ARC, DRA, NBRC, and SCRC, the regional
commissions’ state members determine the share of
Funding Sources for Administrative
administrative expenses. The Denali Commission region
Expenses
includes one state, and the state is not required to contribute
Administrative costs for five of the active commissions—
to administrative expenses. The authorizing legislation for
ARC, DRA, NBRC, SBRC, and SCRC—are shared by the
the NBRC and SCRC specifies that a state’s share of
federal government and member states, as illustrated in
administrative expenses shall not be taken into
Figure 1. As noted, the Denali Commission primarily uses
consideration when determining the amount of assistance
federal funding for administrative expenses, as noted in
provided to the state from the regional commission for
Figure 2.
grant-making and other activities.
Figure 1. Administrative Expenses for ARC, DRA,
Limitations on Appropriated Funding
NBRC, SBRC, and SCRC (Multi-State Regions)
Amounts for Administrative Expenses
Funding Sources and Funding Uses
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,
Section 306(g), respectively). The NBRC, SBRC, and
SCRC 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, SBRC, 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
of supplemental appropriations laws, like the Infrastructure

Investment, and Jobs Act (P.L. 117-58) in FY2022. Higher
Source: Figure created by CRS Specialist in Public Finance, Margot
funding amounts may entail increased near-term human
Crandal -Hol ick.
capital or other administrative expenses in order to expand
Notes: Administrative expenses are split between congressional
the capacity to administer more grant funds or implement
appropriations and state contributions. The type and amount of
new activities. For a certain period after program
administrative expenses vary by regional commission.
expansions and/or funding increases, regional commissions
continue to oversee grants, manage program activities, and
Figure 2. Administrative Expenses for the Denali
incur ongoing administrative expenses. Alternatively, if
Commission (Single-State Region)
appropriations levels decrease, regional commissions may
Funding Sources and Funding Uses
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.
Julie M. Lawhorn, Analyst in Economic Development

Source: Figure created by CRS Specialist in Public Finance, Margot
Policy
Crandal -Hol ick.
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Federal Regional Commissions and Authorities: Administrative Expenses

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