The Economic Development Administration’s American Rescue Plan (ARP) Act Grant Programs

The Economic Development Administration’s American Rescue Plan (ARP) Act Grant Programs

INSIGHTi

The Economic Development Administration’s
American Rescue Plan (ARP) Act Grant
Programs
July 28, 2021
On July 22, 2021, Secretary of Commerce Gina Raimondo announced the availability of approximately
$3 billion of grant funding to help communities with recovery efforts in response to economic injury
caused by the Coronavirus Disease 2019 (COVID-19) pandemic. Federal assistance is now available to
eligible state and local stakeholders through six new programs administered by the Economic
Development Administration (EDA). According to the EDA, the programs will fund projects that
facilitate job creation, advance innovation, build infrastructure, train workers, and enhance economic
resiliency, with an emphasis on projects that serve communities disproportionately impacted by the
pandemic. This Insight provides an overview of the EDA’s plan for allocating the supplemental
appropriations approved in the American Rescue Plan Act (P.L. 117-2).
Supplemental Appropriations for Economic Recovery
The EDA, a bureau of the U.S. Department of Commerce, is the only federal agency with economic
development as its sole mission. Congress approves annual appropriations for EDA programs, and
occasionally approves supplemental appropriations for recovery assistance following natural disasters.
The two most recent rounds of supplemental appropriations include:
 The American Rescue Plan (ARP) Act, enacted March 11, 2021, which provided $3
billion for economic adjustment assistance, to prevent, prepare for, and respond to the
COVID-19 pandemic. Congress directed EDA to allocate 25% of funding for states and
communities impacted by the decline in the “travel, tourism, or outdoor recreation
sectors.”
 The Coronavirus Aid, Relief, and Economic Security (CARES) Act (P.L. 116-136),
enacted March 27, 2020, which provided $1.5 billion of economic recovery assistance
funding. In March 2021, EDA announced a milestone of $1 billion of CARES Act
funding awarded.
Congressional Research Service
https://crsreports.congress.gov
IN11712
CRS INSIGHT
Prepared for Members and
Committees of Congress

link to page 3 link to page 3 Congressional Research Service
2
ARP Act Funding for Economic Recovery Activities
EDA will administer ARP Act recovery assistance through the following six grant programs, each with
different investment criteria and priorities (see Figure 1):
 Build Back Better Regional Challenge (BBBRC)
 Good Jobs Challenge (GJC)
 Economic Adjustment Assistance Program (EAAP)
 Indigenous Communities Challenge (ICC)
 Travel, Tourism, and Outdoor Recreation Program (TTORP)
 Statewide Planning, Research, and Networks Program (SPRNP)
EDA is to cover 80%-100% of most project costs, depending on the program and other factors. Most
programs require that proposed projects align with a regional Comprehensive Economic Development
Strategy (CEDS) or equivalent. Application instructions are included in the Notices of Funding
Opportunity (NOFOs). Figure 1 shows the distribution of ARP Act funding among the six grant programs
and the sub-allocation of funding within four of the programs. It also provides a brief summary of each
program and its expected award allocations.
Coal Communities Commitment (CCC)
The EDA is to allocate 10% ($300 million) of ARP Act funding for projects that serve coal-impacted
communities through set-asides of the BBBRC and EAAC. The Initial Report to the President on
Empowering Workers Through Revitalizing Energy Communities (April 2021), developed by President
Biden’s Interagency Working Group, recommended focused federal investments for coal-impacted
communities. According to EDA, the CCC builds on this report.

Congressional Research Service
3
Figure 1. EDA’s ARP Act Grant Programs

Sources: Figure created by CRS using .EDA, “EDA’s ARP Programs,” https://eda.gov/arpa/, and “Funding Opportunities,”
https://eda.gov/funding-opportunities/. Figure created by Mari Lee, Visual Information Specialist.
Notes: EDA may adjust the minimum and maximum award amounts and the total program amounts. Program amounts
may not total $3 bil ion due to expenses for administration, and rounding.

Congressional Research Service
4
Eligible Areas
With the widespread impact of the COVID-19 pandemic, all communities are eligible to apply for
assistance under EDA’s “Special Need” criteria without regard to other economic distress criteria (42
U.S.C. §3233).
Eligible Applicants
Individuals and for-profit entities are not eligible for ARP Act assistance. With some exceptions, for the
ICC, Statewide Planning, and State Tourism funding, eligible recipients include:
 district organization of an EDA-designated Economic Development District;
 Indian tribe or a consortium of Indian tribes;
 state, county, city, or other political subdivision of a state, including a special purpose
unit of a state or local government engaged in economic or infrastructure development
activities, or a consortium of political subdivisions;
 institutions of higher education or a consortium of institutions; and
 non-profit organizations or associations acting in cooperation with officials of a political
subdivision of a state.
Considerations
According to Secretary Raimondo, the EDA programs are designed to address the economic impacts of
the COVID-19 pandemic that were unevenly distributed among different types of communities,
businesses, and workers. The EDA’s lower cost-share requirements for ARP Act awards may expand
access to the recovery assistance. Cost-share requirements have been considered challenging for small,
rural, or underserved communities. Additionally, select ARP Act programs may be used to assist specific
types of underserved communities (e.g., the ICC). The EDA will also review projects for alignment with
its new investment priorities, and may emphasize the first of the agency’s revised priorities—equity.
Congress may consider an evaluation of the extent to which programs assist underserved and
disadvantaged communities.
ARP Act funding is over eight times the amount of EDA’s FY2021 annual appropriations (see P.L. 116-
260). EDA hired additional staff following the approval of CARES Act funding and may need to hire yet
more staff to implement the ARP Act programs and manage related oversight and technical assistance
activities. All ARP Act funds must be awarded by the September 2022 deadline. Timelines may further be
affected by readiness, capacity, and community-level factors.
The extent of the programs’ overall outcomes and their impact on state and local economies may be
influenced by a variety of endogenous, macroeconomic, and other factors, including public health
concerns. The variety of local circumstances and interventions will mean that program outcomes will be
measured differently by program, community, and other conditions, and may be realized after a period of
years, rather than months. Also, EDA may make comparatively larger awards to support economic
transitions, and these projects may involve longer-term implementation and evaluation timeframes.
Congress may study EDA’s oversight of the programs and their outcomes for considerations for future
policies in response to widespread economic shocks.

Congressional Research Service
5
Author Information

Julie M. Lawhorn

Analyst in Economic Development Policy

Disclaimer
This document was prepared by the Congressional Research Service (CRS). CRS serves as nonpartisan shared staff
to congressional committees and Members of Congress. It operates solely at the behest of and under the direction of
Congress. Information in a CRS Report should not be relied upon for purposes other than public understanding of
information that has been provided by CRS to Members of Congress in connection with CRS’s institutional role.
CRS Reports, as a work of the United States Government, are not subject to copyright protection in the United
States. Any CRS Report may be reproduced and distributed in its entirety without permission from CRS. However,
as a CRS Report may include copyrighted images or material from a third party, you may need to obtain the
permission of the copyright holder if you wish to copy or otherwise use copyrighted material.

IN11712 · VERSION 1 · NEW