How to Download Economic Development Administration: Reauthorization and Funding Issues in the 112th Congress DOC
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 non- germane 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 requested $325 million for EDA activities, including salaries and expenses, for FY2012. On November 18, 2011, the President signed into law P.L. 112-55, which appropriated $457.5 million in EDA assistance and salaries and expenses, including $200 million in supplemental disaster assistance for states and communities in presidentially declared disaster areas. For FY2013, excluding supplemental disaster assistance, the President has proposed to reduce program funds by $38 million to $220 million, including $182 for program activities and $38 million for salaries and expenses. This report will be updated as events warrant.
