Eugene Boyd
Analyst in Federalism and Economic Development Policy
Oscar R. Gonzales
Analyst in Economic Development Policy
The primary focus of the Department of Commerce’s Economic Development Administration (EDA) is to help regions experiencing long-term economic distress or sudden economic dislocation attract private-sector capital and create higher-skill, higher-wage jobs through investments in public infrastructure, the provision of technical assistance and research, and the development and implementation of Comprehensive Economic Development Strategies (CEDS). EDA was created with the passage of the Public Works and Economic Development Act (PWEDA) of 1965, P.L. 89-136 (79 Stat. 552, 42 U.S.C. §3121).
The 112th Congress may consider legislation to reauthorize and amend PWEDA, whose statutory authority expired on September 30, 2008. As part of those deliberations, Congress may consider a number of changes in the structure of EDA assistance programs. At least one bill, S. 782, the Economic Development Revitalization Act, has been reported by a congressional committee. The Senate Committee on Environment and Public Works reported the bill on May 2, 2011. The bill includes several provisions intended to encourage regional and interagency cooperation, expand the role of regional Economic Development Districts, and modify the factors used to determine the federal share of EDA-funded projects and activities. The bill also includes proposals that would address a number of programmatic concerns raised by grant recipients, including provisions that would
• grant eligible entities, including EDDs, administering revolving loan funds (RLF) greater flexibility in the management and conversion of RLF assets for other EDA-eligible activities; and
• change the current requirements governing the transfer of federal interest in EDA-financed construction projects in an effort to encourage local flexibility in the use of EDA funds.
The Senate began consideration of S. 782 on June 8, 2011. For six days—over a two-week period that ended on June 21, 2011—the Senate debated the bill. In an effort to end debate and bring the bill to a floor vote, a cloture motion was filed on June 16, 2011. Successful adoption of the cloture motion would have limited time for debate on the bill, prohibited consideration of nongermane amendments, and allowed the Senate to vote on passage of S. 782. On June 21, 2011, the chamber rejected the cloture motion, 49-51. Currently, the bill has been set aside and may be considered at a future date in the 112th Congress.
The reauthorization of EDA and its programs will take place within the context of more prominent policy debates regarding efforts to reduce federal spending to address growing budget deficits and the national debt; concerns about the duplication, fragmentation, and effectiveness of federal economic development assistance; and efforts to support economic recovery and job creation following the worst economic recession since the Great Depression. The Obama Administration has requested $325 million for EDA activities, including salaries and expenses, for FY2012. The House Appropriations Committee when reporting out H.R. 2596 recommended $258 million for EDA, $67 million less than requested. The Senate Appropriations Committee included a recommendation of $392 million for EDA activities, including$135 million for disaster recovery assistance. The House bill did not include a similar provision. This report will discuss EDA reauthorization and appropriations-related issues and will be updated as events warrant.
Date of Report: September 22, 2011
Number of Pages: 21
Order Number: R41162
Price: $29.95
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Document available via e-mail as a pdf file or in paper form.
To order, e-mail Penny Hill Press or call us at 301-253-0881. Provide a Visa, MasterCard, American Express, or Discover card number, expiration date, and name on the card. Indicate whether you want e-mail or postal delivery. Phone orders are preferred and receive priority processing.
The reauthorization of EDA and its programs will take place within the context of more prominent policy debates regarding efforts to reduce federal spending to address growing budget deficits and the national debt; concerns about the duplication, fragmentation, and effectiveness of federal economic development assistance; and efforts to support economic recovery and job creation following the worst economic recession since the Great Depression. The Obama Administration has requested $325 million for EDA activities, including salaries and expenses, for FY2012. The House Appropriations Committee when reporting out H.R. 2596 recommended $258 million for EDA, $67 million less than requested. The Senate Appropriations Committee included a recommendation of $392 million for EDA activities, including$135 million for disaster recovery assistance. The House bill did not include a similar provision. This report will discuss EDA reauthorization and appropriations-related issues and will be updated as events warrant.
Date of Report: September 22, 2011
Number of Pages: 21
Order Number: R41162
Price: $29.95
Follow us on TWITTER at http://www.twitter.com/alertsPHP or #CRSreports
Document available via e-mail as a pdf file or in paper form.
To order, e-mail Penny Hill Press or call us at 301-253-0881. Provide a Visa, MasterCard, American Express, or Discover card number, expiration date, and name on the card. Indicate whether you want e-mail or postal delivery. Phone orders are preferred and receive priority processing.
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