Congress Reauthorizes Economic Development Administration, Empowering Local Economies
Washington—The Economic Development Administration (EDA), a key agency under the U.S. Department of Commerce, is celebrating a significant milestone as Congress reauthorizes its mandate. This move allows EDA to continue its mission of enhancing American innovation and competitiveness through grants and support to communities nationwide. Established in 1965, the EDA has spearheaded initiatives that bolster public works, job creation, disaster recovery, and technological advancement. Remarkably, this is the first reauthorization since 2004.
U.S. Secretary of Commerce Gina Raimondo emphasized the importance of this reauthorization, stating, “Reauthorization will allow EDA to continue meeting its mission of ensuring communities across the country have the resources they need to expand economic opportunity, invest in innovation, and recover from disasters. This bipartisan support from Congress will allow EDA to evolve, modernize, and provide the services that communities across the nation need to build resilient, thriving local economies.”
Between January 2021 and November 2024, the EDA channeled nearly $6 billion into 3,393 projects across most states and federal territories. These initiatives are projected to create or safeguard over 554,700 jobs, alongside generating $67.7 billion in private investment. The projects include numerous construction efforts that support sustainable economic growth by modernizing infrastructure.
Acting Assistant Secretary for Economic Development Cristina Killingsworth highlighted the agency’s adaptability, noting, “The country has changed since EDA was last authorized, with new industries, new challenges, and the residual impacts of a global pandemic and the rising intensity of natural disasters. Over the last 20 years, EDA has evolved to ensure its programs make America’s communities more competitive, resilient, and secure. This reauthorization legislation will allow EDA to continue to meet the moment for generations to come.”
Key Aspects of EDA’s Reauthorization
The reauthorization brings several enhancements to EDA’s operations:
- Enhanced Tools for Job Creation:
- Establishes industry-led workforce training partnerships to foster job opportunities through innovative workforce development strategies.
- Aligns with other Department of Commerce priorities, including supply chain and manufacturing, with elements from The ONSHORE Act and modernization of broadband projects via the E-BRIDGE Act.
- Modernized Grant and Resource Delivery:
- Creates the Office of Disaster Recovery and Resilience to coordinate federal support for regional disaster recovery with Economic Development Districts and University Centers.
- Updates eligibility criteria to incorporate additional statistical factors to enhance grantmaking.
- Improved Operational Efficiency:
- Defines pre-development to aid distressed communities in preparing for larger infrastructure investments.
- Enacts disaster hiring authority to accelerate responses to future disasters.
- Formalizes the relationship between EDA and Regional Commissions to bolster regional program effectiveness.
The reauthorization is part of the Thomas R. Carper Water Resources Development Act of 2024, which garnered bipartisan congressional support.
EPW Chairman Senator Tom Carper praised the reauthorization, saying, “EDA is driving our nation’s job growth, building resilient supply chains, and investing in our local economies. Reauthorizing the EDA will give this critical agency the tools and resources it needs to better support local businesses and organizations and equip our communities with climate-resilient infrastructure, in turn strengthening both local and regional job creation and our competitiveness abroad.”
Similarly, EPW Ranking Member Senator Shelley Moore Capito and Representative Dina Titus emphasized the importance of the EDA’s role in fostering economic growth and job creation, especially in rural areas like West Virginia.
Transportation and Infrastructure Committee Chairman Sam Graves and Representative Rick Larsen also underscored the legislative measure’s significance in modernizing federal economic development programs and enhancing the nation’s transportation and infrastructure landscape.
About the U.S. Economic Development Administration (www.eda.gov)
The EDA leads the federal economic development agenda by fostering competitiveness and preparing U.S. regions for global economic success. As part of the U.S. Department of Commerce, it invests in communities, supports regional collaboration, and promotes innovation to create sustainable economic growth and job opportunities.
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