The Senate Environment and Public Works Committee recently marked up legislation reauthorizing the Economic Development Administration (EDA) for the first time in nearly 20 years. The EDA is vital to growing small businesses across America and its reauthorization is a nonpartisan issue.
“Today, the EPW Committee took an important step for local communities across the country by passing the Economic Development Reauthorization Act of 2024. This bipartisan legislation will help the EDA carry out its mission to drive investment, create jobs, and grow our local economies in West Virginia.,” said Committee Ranking Member Senator Shelley Moore Capito [R-WV] when the bill was passed.
Congress established the EDA in 1965 within the U.S. Department of Commerce and it provides grants and technical assistance to economically distressed communities in order to generate new jobs and kickstart industrial and commercial growth through investment programs. This support is available to rural and urban areas that face high unemployment, low income, and/or other severe economic distress.
In addition, the EDA is playing a critical role in implementing the White House’s Investing in America agenda through efforts that include the Recompete Pilot Program and Regional Technology and Innovation Hubs. The latter program will boost small businesses across the country by creating tech hubs in communities to develop and grow innovative industries that range from semiconductors to clean energy and biotechnology. These tech hubs are located across 32 states and Puerto Rico, with six including a tribal government, four being headquartered in low-population states, and four including coal communities.
With its roles in supporting underserved communities, the EDA needs to be updated from time to time to best respond to the current environment. S. 3891, the Economic Development Reauthorization Act of 2024, seeks to modernize EDA’s core programs and establish efforts to support workforce development, disaster assistance, broadband deployment, and renewable energy. Specifically, the bill makes it easier for smaller communities to access EDA’s grant opportunities, updates the agency’s distress criteria to include high underemployment, low median household income, and high prime-age employment gap, and gives EDA a stronger role in building local economic development capacity,
“The Economic Development Reauthorization Act of 2024 will give the agency the tools and resources it needs to foster economic growth and build resilient supply chains in communities across the country,” said Committee Chairman Senator Tom Carper [D-DE].
With passage out of the committee, the next step is for the Senate to consider the bill. While Congress is divided to a point where passing legislation to keep the government up and running is not guaranteed, this bill will help Main Streets in some of the poorest communities in both red and blue states. The Senate and House should pass it this year.