Dear IEDC Members and Partners,

We are excited to let you know that the U.S. Senate Committee on Environment Public Works (EPW) just unveiled the bipartisan Economic Development Reauthorization Act of 2024 (S. 3891), legislation that would reauthorize the U.S. Department of Commerce’s Economic Development Administration (EDA) and its programs for the first time in over 20 years. Specifically, the bill amends the Public Works and Economic Development Act of 1965 (PWEDA) (P.L. 89-136).

The Committee plans to mark up the bill March 12 in the full EPW Committee. We need your help to urge your members on the EPW Committee to support S. 3891.

BILL OVERVIEW

This important legislation includes several key wins for IEDC and our members. If signed into law, S. 3891 would:

• Authorize funding for EDA’s programs for fiscal years 2025 through 2029 including Partnership Planning; Public Works; Economic Adjustment Assistance; Training, Research, and Technical Assistance; Assistance to Coal Communities; and a variety of other EDA functions.
• Provide overall authorization of $3 billion in funding over the course of the five-year authorization period.
• Revise cost sharing requirements, increasing the baseline percentage for EDA’s federal share to 60 percent and reducing the baseline requirement for local matching funds.
  • It also includes carve outs for communities of less than 10,000 in population and disaster impacted areas to waive match requirements entirely. In addition, it would provide authorization to increase the federal share up to 100 percent for Partnership Planning grants.
• Authorize EDA planning grants to be utilized for predevelopment activities, capacity building, and administrative expenses.
• Modernize EDA’s authorities to award grants to public-private partnerships or consortia for high-speed broadband projects.
• Establish an Office of Disaster Recovery and Resilience within EDA.
• Authorize EDA to make grants to support the development and expansion of workforce training programs.
• Reauthorize and update certain provisions relating to Federal Regional Commissions, as well as establish two new Federal Regional Commissions. It would also allow funding contributed by a Federal Regional Commission to be used as a source of non-federal match for projects.

NEXT STEPS & YOUR ADVOCACY

Although a committee mark-up is just the first step in the reauthorization process, this would be a significant step forward since EDA has not been reauthorized since 2004. If a bill is passed through the full committee, it would then need to be passed by the full Senate. It remains unclear on whether the U.S. House of Representatives will consider an EDA reauthorization bill this year, but once the Senate approves a bill, it becomes much more likely to be considered by the House.

We need your assistance to ensure that this bill passes through the EPW Committee. Please reach out to your U.S. Senators who serve on the Committee and urge them to support S. 3891:

ADDITIONAL RESOURCES

Read IEDC President & CEO Nathan Ohle's Quote & IEDC's Letter of Support

Read the Full Text of the Legislation (S. 3891)

View the Senate Committee's Press Release

View the Senate Committee's Bill Summary

BILL HIGHLIGHTS FOR ECONOMIC DEVELOPMENT ORGANIZATIONS AND PROFESSIONALS

On March 8, 2024, U.S. Senate Committee on Environment Public Works (EPW) unveiled the bipartisan Economic Development Reauthorization Act of 2024 (S. 3891), legislation that would reauthorize the U.S. Department of Commerce’s Economic Development Administration (EDA) and its programs for the first time in over 20 years. Specifically, the bill amends the Public Works and Economic Development Act of 1965 (PWEDA) (P.L. 89-136).

The bill includes many provisions of interest to Economic Development Organizations and Economic Development Professionals.

The following is a brief section-by-section summary of the new legislation (S. 3891).

• The bill would authorize funding for EDA’s programs for fiscal years 2025 through 2029 including Partnership Planning; Public Works; Economic Adjustment Assistance; Training, Research, and Technical Assistance; Assistance to Coal Communities; and a variety of other EDA functions.
• The bill would provide overall authorization of $3 billion in funding over the course of the five-year authorization period. The following is a chart of authorization levels:

• The bill (Sec. 102) would provide new definitions for terms including "capacity building," "project predevelopment," and "travel and tourism."
  • Capacity building: This includes all activities associated with early-stage community-based project formation and conceptualization, prior to project predevelopment activity, including grants to local community organizations for planning participation, community outreach and engagement activities, research, and mentorship support to move projects from formation and conceptualization to project predevelopment.
  • Project predevelopment: This means a measure required to be completed before the initiation of a project, including planning and community asset mapping; training; technical assistance and organizational development; feasibility and market studies; demonstration projects; and other predevelopment activities determined by the Secretary to be appropriate.
  • Travel and tourism: This means any economic activity that primarily serves to encourage recreational or business travel in or to the United States.
• The bill (Sec. 102 and 103) would update the definitions of the regional commissions and enhance the ability of EDA to coordinate with the regional commissions. The following are the Regional Commissions outlined in the legislation:
  • The Appalachian Regional Commission
  • The Delta Regional Authority
  • The Denali Commission
  • The Great Lakes Authority
  • The Mid-Atlantic Regional Commission (NEW)
  • The Northern Border Regional Commission
  • The Northern Great Plains Regional Authority
  • The Southeast Crescent Regional Commission
  • The Southern New England Regional Commission (NEW)
  • The Southwest Border Regional Commission
• The bill (Sec. 104) would expand eligibility for Public Works and Economic Development grants to add the word "retention" to "successful establishment, expansion, or retention" as eligible activities and would also allow EDA to consider the extent to which a project would:
  • Lead to economic diversification in the area, or a part of the area, in which the project is or will be located;
  • Address and mitigate impacts from extreme weather events, including development of resilient infrastructure, products, and processes;
  • Benefit highly rural communities without adequate tax revenues to invest in long-term or costly infrastructure;
  • Increase access to high-speed broadband;
  • Support outdoor recreation to spur economic development, with a focus on rural communities;
  • Promote job creation or retention relative to the population of the impacted region with outsized significance;
  • Promote travel and tourism; and
  • Promote blue economy activities.
• The bill (Sec. 105) amends current law to expand eligibility of grants for planning and grants for administrative expenses.
  • Administrative expenses can now include:
    • expenses related to carrying out the planning process;
    • expenses related to project predevelopment; and
    • expenses related to hiring professional staff to assist communities in project predevelopment (including implementing projects and priorities included in a comprehensive economic development strategy; or an economic development planning grant); to identify and use other Federal, State, and Tribal economic development programs; to leverage private and philanthropic investment; to prepare disaster coordination and preparation plans; and to carry out economic development and predevelopment activities in accordance with professional economic development best practices.
  • Some broadband activities are now eligible as are efforts to address and mitigate impacts of extreme weather.
• The bill (Sec. 106) would revise cost sharing requirements and allow funding contributed by a Regional Commission to be used as the non-federal cost share of a project.
  • Specifically, it would change EDA’s federal cost share from 50 percent to 60 percent.
• The bill (Sec. 106) would increase the federal share for disaster assistance. Specifically, it would allow EDA to increase the federal share up to 100 percent of the total cost of a project.
• The bill (Sec. 106) would allow EDA to increase the federal share of up to 100 percent of the total cost of a project for small communities with populations below 10,000 residents.
• The bill (Sec.109) amends Title II of PWEDA to establish the investment priorities that EDA must use when awarding grants. These priorities include:
  • Critical Infrastructure: Economic development planning or implementation projects that support development of public facilities, including basic public infrastructure, transportation infrastructure, or telecommunications infrastructure.
  • Workforce: Economic development planning or implementation projects that—(A) support job skills training to meet the hiring needs of the area in which the project is to be carried out and that result in well-paying jobs; or (B) otherwise promote labor force participation.
  • Innovation and Entrepreneurship: Economic development planning or implementation projects that (A) support the development of innovation and entrepreneurship-related infrastructure; (B) promote business development and lending; or (C) foster the commercialization of new technologies that are creating technology-driven businesses and high-skilled, well-paying jobs of the future.
  • Economic Recovery Resilience: Economic development planning or implementation projects that enhance the ability of an area to withstand and recover from adverse short-term or long-term changes in economic conditions, including effects from industry contractions or impacts from natural disasters.
  • Manufacturing: Economic development planning or implementation projects that encourage job creation, business expansion, technology and capital upgrades, and productivity growth in manufacturing, including efforts that contribute to the competitiveness and growth of domestic suppliers or the domestic production of innovative, high-value products and production technologies.
• The bill (Sec. 110) would update eligible activities for Economic Adjustment Grants to include activities like "travel and tourism, natural resource-based, blue economy, or agricultural." It also details eligibility for economic dislocation in the steel industry, defines assistance for coal communities, and would provide assistance for nuclear host communities.
• The bill (Sec. 111) would replace the Brightfields Demonstration Program with a new Renewable Energy Program. According to the legislation, "Renewable energy site" means "a brownfield site that is redeveloped through the incorporation of one or more renewable energy technologies, including solar, wind, geothermal, ocean, and emerging, but proven, renewable energy technologies."
• The bill (Sec. 112) would authorize the Secretary to make new grants to support the development and expansion of certain workforce training programs. Specifically, the legislation states that the grants are to "support the development and expansion of innovative workforce training programs through sectoral partnerships leading to quality jobs and the acquisition of equipment or construction of facilities to support workforce development activities." The bill also details eligibility requirements and states that the "Federal share of the cost of any award carried out with a grant made under this subsection shall not exceed 70 percent." Eligible activities for these funds would include:
  • Acquisition or development of land and improvements to house workforce training activities;
  • Acquisition, design and engineering, construction, rehabilitation, alteration, expansion, or improvement of such a facility, including related equipment and machinery;
  • Acquisition of machinery or equipment to support workforce training activities;
  • Planning, technical assistance, and training; and
  • Sector partnerships development, program design, and program implementation.
• The bill (Sec. 114) would create a new High Speed Broadband Deployment Initiative, outlines specific flexibilities related to deployment of high-speed broadband, and modernizes EDA's authorities to award grants to public-private partnerships or consortia for high-speed broadband projects. It also details what types of broadband projects are eligible.
• The bill (Sec. 115) would authorize the Secretary to establish a new Critical Supply Chain Site Development Grant Program to support site development or expansion projects for the purpose of making the site ready for manufacturing projects. In awarding grants to eligible recipients under the grant program, the Secretary would be able to prioritize eligible recipients that propose to carry out a project that:
  • Has State, local, private, or nonprofit funds being contributed to assist with site development efforts; and
  • If the site development or expansion project is carried out, would result in a demonstrated interest in the site by commercial entities or other entities.
• In addition, the bill specifies that grants provided under this new program may be used for the following activities relating to the development or expansion of a site:
  • Investments in site utility readiness, including—(A) construction of on-site utility infrastructure; (B) construction of last-mile infrastructure, including road infrastructure, water infrastructure, power infrastructure, broadband infrastructure, and other physical last-mile infrastructure; (C) site grading; and (D) other activities to extend public utilities or services to a site, as determined appropriate by the Secretary
  • Investments in site readiness, including—(A) land assembly; (B) environmental reviews; (C) zoning; (D) design; (E) engineering; and (F) permitting.
  • Investments in workforce development and sustainability programs, including job training and retraining programs.
  • Investments to ensure that disadvantaged communities have access to on-site jobs.
• The bill (Sec. 116) would update distress criteria and grant rates to direct the Secretary to consider additional factors when determining economic distress. These factors include:
  • Unemployment, Underemployment or Economic Adjustment Problems: an area that the Secretary determines has experienced or is about to experience a special need arising from actual or threatened severe unemployment, underemployment, or economic adjustment problems resulting from severe short-term or long-term changes in economic conditions.
  • Low Median Household Income: the area has a median household income of 80 percent or less of the national average.
  • Workforce Participation: The area has (A) a labor force participation rate of 90 percent or less of the national average; or (B) a prime-age employment gap of five percent or more.
  • Expected Economic Dislocation and Distress from Energy Industry Transitions: This is an area that is expected to experience actual or threatened severe unemployment or economic adjustment problems resulting from severe short-term or long-term changes in economic conditions from energy industries that are experiencing accelerated contraction.
• The bill (Sec. 117) would update requirements for certain awards made regarding Comprehensive Economic Development Strategies (CEDS).
• The bill (Sec. 118) would establish a new Office of Tribal Economic Development.
• The bill (Sec. 119) would establish a new Office of Disaster Recovery and Resilience to (1) direct and implement the post-disaster economic recovery responsibilities of the Economic Development Administration pursuant to subsections; (2) to direct and implement economic recovery and enhanced resilience support function activities as directed under the National Disaster Recovery Framework; and (3) support long-term economic recovery in communities in which a major disaster or emergency has been declared under the Robert T. Stafford Dis aster Relief and Emergency Assistance Act.
• The bill (Sec. 120) would allow EDA to designate a regional staff member to act as a "Technical Assistance Liaison" for any State served by a regional office.
  • The legislation includes language that states, "The Secretary may enter into a contract or cooperative agreement with an eligible recipient for the purpose of providing technical assistance to eligible recipients that are under resourced communities that have submitted or may submit an application for assistance."
• The bill (Sec. 122) would modernize environmental reviews by directing the Secretary to submit to Congress a report on efforts to facilitate efficient, timely, and predictable environmental reviews of projects. It also directs the Secretary to promulgate a rulemaking within two years of completing the report to implement, to the maximum extent practicable, measures considered in the report to streamline environmental reviews.
• The bill (Secs. 123, 124, 125) would require the Government Accountability Office (GAO) to provide the following reports or information to Congress:
  • Provide an evaluation of economic development programs administered by EDA and the regional commissions.
  • Report on any EDA regulations and policies that may have hindered the ability of communities to apply for and administer EDA grants. This provision would apply to small communities with less than 10,000 year-round residents.
  • Report to Congress on the impacts of EDA funding in distressed communities located in least five geographically diverse rural areas.
• The bill (Sec. 126) would authorize funding for EDA’s programs for fiscal years 2025 through 2029, subject to the availability of appropriations. The authorization is for a total of just over $3 billion over the five years of authorization, with a total of $540 million for 2025 and increasing to $740 million in 2029.
• The bill (Secs. 201 and 202) would amend Section 15751 of Title 40, U.S.C., to reauthorize regional commissions for fiscal years 2025 through 2029.It would also update and modify administrative requirements for the commissions.
• The bill (Sec. 203) would allow certain regional commissions to transfer funds to and accept transfers of funds from other Federal agencies where funds are appropriated for similar purposes.
• The bill (Secs. 204 and 205) would amend Section 15501 of Title 40, U.S.C., to revise the eligibilities for economic and infrastructure development grants for certain regional commissions. It would also allow certain regional commissions funding to count as non-federal match for a project under another federal grants program under certain circumstances.
• The bill (Sec. 206) addresses the Northern Border Regional Commission area and adds Lincoln, Merrimack, and Wyoming Counties to the area covered by the Northern Border Regional Commission.
• The bill (Sec. 207) addresses Southwest Border Regional Commission area and adds Bernalillo, Cibola, Curry, De Baca, Guadalupe, Roosevelt, Socorro, Torrance, and Valencia Counties to the area covered by the Southwest Border Regional Commission.
• The bill (Sec. 208) addresses the Great Lakes Authority area and attributes counties to the area covered by the Great Lakes Authority.
• The bill (Sec. 209) would codify the existing State Capacity Building Grant Program and allow for limited demonstration health projects to be carried out by certain regional commissions.
• The bill (Sec. 210) would authorize the Southwest Border Regional Commission and specifies tribal and colonia participation in southwest border region.
• The bill (Secs. 211 and 212) would establish the Mid-Atlantic Regional Commission and the Southern New England Regional Commission.
• The bill (Secs. 213 and 214) would reauthorize the Denali Commission from fiscal years 2025 through 2029 and makes changes to improve the function of the Commission. It would also authorize the establishment of a Denali Housing Fund.