Just before Congress left D.C. for the holiday recess, the Senate passed the Thomas R. Carper Water Resources Development Act of 2024, the most recent iteration of the biennial water resources bill that authorizes U.S. Army Corps of Engineers projects for flood control, navigation, and ecosystem restoration, by a vote of 97-1. Included in that bill was a slightly revised version of the Economic Development Reauthorization Act of 2024, which reauthorized the Economic Development Administration (EDA) for the first time in 20 years.

The bill makes comprehensive changes to the Public Works and Economic Development Act of 1965 (PWEDA). Some key provisions include:  

Definitions: Expands PWEDA’s definitions to include concepts like the “blue economy,” “capacity building,” “outdoor recreation,” and “predevelopment.” It also expands the number of federally-chartered regional commissions recognized under PWEDA.

Increased Coordination: Gives EDA the authority to convene federal agencies and regional commissions to improve coordination and develop best practices for implementing economic development programs.

Expanded Grant Eligibility: Expands eligibility for public works grants to include projects that would lead to economic diversification; increase access to high-speed broadband; support outdoor recreation; promote travel and tourism; and promote blue economies. Also opens up eligibility for economic adjustment assistance grants for travel and tourism, natural-resource based, blue economy, and agriculture projects.

Codification of Existing Programs: Formally codifies EDA’s Assistance to Coal Communities, Assistance to Nuclear Host Communities, and University Center programs.

Creation of New Offices and Programs: Creates an Office of Tribal Economic Development and an Office of Disaster Recovery at EDA. Replaces EDA’s defunct Brightfields Demonstration program with a renewable energy technologies grant program and creates programs to fund workforce training programs, career scholarships, and critical supply chain site development. Also authorizes EDA regional directors to designate state technical assistance liaisons to assist under-resourced communities.

Increased Federal Cost Share: Increases the federal cost share for grants from 50 percent to 60 percent and clarifies that regional commission funding may be used for the non-federal share. Also states that the federal share for a grant to communities with a population under 10,000 may be increased to 100 percent.

Congressionally-directed Investment Priorities: Formally codifies EDA’s investment priorities, which have historically determined by the White House. Requires that funded projects support public infrastructure, promote workforce participation, support innovation and business development, improve resilience, expand manufacturing, and more.

Increased Funding Authorization: Authorizes over $540 million in funding for EDA in FY 2025 across multiple accounts:

• Public Works and Economic Development grants: $170 million (to be increased by $25 million annually)

• Planning and Administration grants: $90 million (to be increased by $10 million annually)

• Training, Research, and Technical Assistance grants: $25 million (to be increased by $5 million annually)

• Economic Adjustment grants: $65 million (to be increased by $10 million annually)

• Assistance to Coal Communities: $75 million 

• Assistance to Nuclear Host Communities: $35 million

• Renewable Energy grants: $5 million

• Workforce Training grants: $50 million

• Critical Supply Chain Site Development: $20 million

• Technical Assistance Liaisons: $5 million

In addition to updating EDA’s authorities, the bill reauthorizes existing regional commissions with an authorized appropriation of $40 million (a $7 million annual increase). It also authorized the establishment of two new commissions in the Mid-Atlantic and Southern New England, and authorized grant programs for state capacity building and demonstration health projects.

Reauthorizing the EDA for the first time in two decades is a major milestone for regional economic development. The agency has played a significant role in fostering innovation and diversifying local economies, building local capacity, and helping distressed communities recover from natural disasters and the pandemic. Providing EDA with these new authorities will allow the agency to modernize its approach to supporting workforce and infrastructure development and will greatly benefit communities across the country.

Stakeholders from a wide range of industries and professional backgrounds have worked tirelessly to advance this legislation over the years. This is a major legislative achievement that should be celebrated as an example of bipartisan collaboration that will improve the lives of thousands of Americans.