EDA’s Disaster Economic Recovery and Resiliency Roles

EDA’s Disaster Economic Recovery and Resiliency Roles

January 22, 2024
EDA’s Disaster Economic Recovery and Resiliency Roles
Since 2011 Congress has provided $1.9 billion in
typically state that the relevant funding is to support areas
supplemental funding for long-term disaster recovery for
with Stafford Act declarations during a specific period of
selected incidents under the Department of Commerce,
time. For instance, the Consolidated Appropriations Act,
Economic Development Administration’s (EDA’s)
2023 (P.L. 117-328) provided EDA with $500 million in
economic adjustment assistance (EAA) program (42 U.S.C.
additional EAA funds for areas that received a major
§§3149(c)(2), 3233). Congress may seek to review EDA’s
disaster declaration under the Stafford Act (42 U.S.C.
implementation efforts in facilitating economic resilience in
§5121 et seq.) as a result of Hurricanes Ian and Fiona, as
advance of disasters, as well as its role in supporting
well as wildfires, flooding, and other natural disasters
communities during the long-term recovery and
occurring in calendar years 2021 and 2022.
redevelopment phases, which can take years or decades.
EDA’s Notices of Funding Opportunity (NOFOs) outline
Interagency Coordinating Role
the review and selection processes for recovery funding
Immediately after certain disasters, the federal government
requests, which are competitively assessed. EDA’s
approaches emergency management and disaster recovery
distribution and allocation strategy for supplemental
using a coordinated approach mobilizing more than 30
appropriations may vary by each event or situation. In
different agencies. Agency roles are delineated through
recent years, EDA has evaluated several factors—including
interagency guidance, including the National Disaster
measures of impact and economic distress—to determine
Recovery Framework. Under this framework, the EDA
supplemental funding allocations for its six regional offices.
serves as the lead agency for economic recovery support.
EDA’s role is to facilitate federal economic development
EDA provides financial assistance for disaster economic
assistance to support long-term economic recovery planning
recovery efforts directly to public sector stakeholders,
and project implementation. This role generally involves
including units of local government, institutions of higher
EDA convening state and federal agencies, tribes,
education, Indian tribes, and nonprofit organizations. EDA
territories, nongovernmental partners and stakeholders and
also provides assistance indirectly to businesses through
coordinating certain recovery efforts. For instance, EDA
grantees that administer revolving loan funds (RLFs). EDA
may convene federal agencies (e.g., Federal Emergency
assistance is generally designed to support infrastructure,
Management Agency (FEMA), the Small Business
long-term community economic recovery planning, and
Administration (SBA), the U.S. Department of Agriculture
other related projects. For instance, EDA disaster economic
(USDA), Federal Reserve Banks, the Department of
recovery funding may be used for resiliency planning,
Transportation), EDA-designated economic development
workforce development, entrepreneurship, RLFs, and
districts (EDDs), and state and local stakeholders for post-
infrastructure projects. Funding may also be used for
disaster regional resource exchange events or help
“strategy grants” to develop or update a regional
stakeholders assess regional assets and challenges related to
Comprehensive Economic Development Strategy (CEDS).
long-term recovery. In 2022 and 2023, EDA served as an
The CEDS is a locally developed, long-term regional
interagency coordinator in Arkansas, California, Florida,
economic development plan.
Guam, Hawaii, Kentucky, Mississippi, Missouri, New
Mexico, the U.S. Virgin Islands, Puerto Rico, and Vermont.
Example: Disaster Recovery Grants in Paradise, CA
Following the 2018 wildfires in Paradise, CA, EDA
Example: Interagency Coordinating Role
provided grants for planning and project implementation,
Hurricanes Laura and Delta impacted southwest Louisiana
including to support the development of a new
in the winter of 2021. EDA worked with federal partners,
transportation master plan. EDA funding also supported a
including SBA, USDA, and Department of Commerce
disaster recovery management position.
agencies, to provide assistance to small and tourism-based
businesses, and to support broadband and disaster resilience
RLFs for Businesses
activities. EDA also coordinated recovery efforts with
Businesses and individuals do not qualify for EDA grants.
USDA to assist fisheries and agricultural businesses. EDA
However, in many regions, EDA grantees may receive
and other agencies led workshops, helped stakeholders with
EAA grants to administer RLF programs. RLFs provide
applications for recovery funding, and linked individuals
alternative financing options to businesses following
and businesses to federal agency representatives.
disasters and for non-disaster purposes.
Disaster Economic Recovery Grants
Example: RLFs for Business Expansion, Jobs
Generally, supplemental appropriations laws relevant to the
Following Hurricanes Katrina and Rita in 2005, EDA did
EDA specify an amount of funding available for disaster
not receive supplemental appropriations. However,
economic recovery assistance. These appropriations laws
according to the U.S. Government Accountability Office
https://crsreports.congress.gov

EDA’s Disaster Economic Recovery and Resiliency Roles
(GAO), EDA RLF grantees made approximately $36
EAA and other EDA programs, which is available to
million in below-market-rate loans to small businesses in
disaster and non-disaster impacted areas. Both funding
the Gulf Coast region to support the launch of new
pathways may be subject to the availability of
businesses and assist with job retention and creation. These
appropriations, and supplemental appropriations may be
RLF activities resulted in over $196 million in private
available months after the disaster or emergency occurs.
investment. EDA also provided an additional $2 million in
Alternatively, Congress may determine when and how
funding to four RLF grantees in Louisiana for loans to
appropriations are provided to EDA through ad-hoc
hurricane-impacted businesses (GAO-10-723).
supplemental laws.
Economic Resilience
The authority for many of EDA’s grants—including
EDA’s disaster recovery grants are explicitly designed to
disaster recovery grants—was established by the Public
support community-level efforts to rebuild and develop
Works and Economic Development Act (PWEDA) of 1965
capacity for future disasters. Economic resilience is a core
(42 U.S.C. §§3121 et seq.) and does not expire. However,
aspect of EDA’s disaster recovery and non-recovery grant
the authorization of appropriations to fund certain PWEDA
activities. EDA’s NOFO encourages disaster recovery grant
programs expired in 2008. If Congress considers legislation
recipients to incorporate resiliency into project proposals to
to reauthorize program appropriations and/or amend
the greatest extent possible. EDA defines economic
PWEDA, policymakers may seek to maintain or change
resilience as the ability to recover quickly from a shock.
aspects of EDA’s current disaster recovery activities. For
Under this umbrella, the agency funds projects ranging
instance, EDA currently has an Economic Development
from flood mitigation (constructing resilient infrastructure)
Integration and Disaster Recovery Division in its Office of
to capacity building (support for disaster recovery
Regional Affairs and reauthorization may provide a vehicle
coordinators).
to establish the office in statute. In the 117th Congress, H.R.
8526 would have established an EDA Office of Disaster
Since 2017, EDA’s investment priorities – including for
Recovery. A comparable bill in the 118th Congress (S.
grant-making – have included “recovery and resilience.” As
2779) would create an Office of Disaster Recovery and
an example, EAA projects may support post-disaster
Resilience. Additionally, the authorization of appropriations
business continuity and preparedness efforts or facilitate
for EDA disaster recovery activities in both bills would
long-term recovery from natural disasters and other
require a 100% federal cost share. Outside groups have
economic shocks. Economic resiliency is also a feature of
proposed that EDA be required to provide these grants with
EDA’s Partnership Planning program. The Partnership
just federal funding (see H.Hrg. 117-15).
Planning program provides grant funding to the EDA’s
network of EDDs and local organizations for long-term
Unlike certain other federal disaster response agencies,
economic development planning (e.g., the CEDS) and helps
EDA does not have special hiring authorities (H.Hrg. 116-
communities undertake other project-specific planning
38). In 2020, P.L. 116-136 provided EDA with a temporary,
activities. EDA guidance notes that all CEDS must
flexible hiring authority to administer supplemental
incorporate the concept of economic resilience.
recovery funding in response to the COVID-19 pandemic.
In 2022, a GAO report noted that EDA made 74 hires under
Example: Economic Resilience Data Tool
this authority. Some outside groups have called for making
With funding from EDA’s National Research and National
this a permanent authority.
Technical Assistance grant program, the National
Economic Research and Resilience Center at Argonne
Resources
National Laboratory developed an online tool, the National
• A list of EDA’s economic recovery missions is available
Economic Resilience Data Explorer, to support economic
at https://www.eda.gov/strategic-initiatives/disaster-
development practitioners with economic recovery and
recovery/where-we-work.
resiliency data and analysis. The tool provides data on
economic distress, employment and gross domestic product,
• For economic recovery and resilience data and
clusters of industries, and ongoing COVID-19 impacts,
guidance, see https://www.anl.gov/dis/national-
which may help them plan for and implement disaster and
economic-resilience-data-explorer-nerde and
non-disaster recovery projects.
https://www.eda.gov/resources/comprehensive-
economic-development-strategy/content.
Considerations for Congress
• Declared disasters are listed on FEMA’s website at
According to EDA’s analysis of data from the National
Oceanic and Atmospheric Administration, in recent years
www.fema.gov/disaster.
“billion-dollar disasters occur almost every three weeks in
• The Economic Development Recovery & Resiliency
the U.S.” In light of the increasing frequency of major
Playbook is available at https://www.eda.gov/strategic-
disasters, some outside groups suggest that Congress should
initiatives/disaster-recovery/economic-recovery-
seek to authorize a dedicated fund with annual
resilience-resources.
appropriations to allow EDA to respond immediately to
•
disasters and emergencies. Currently, EDA funding may be
For a directory of RLFs, see https://www.eda.gov/rlf.
available on a competitive basis for disaster economic
Julie M. Lawhorn, Analyst in Economic Development
recovery and resiliency activities through (1) occasional
supplemental funding for the EAA program for specific
Policy
areas; and/or (2) annual appropriations provided for the
IF12576
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EDA’s Disaster Economic Recovery and Resiliency Roles

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