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R48516 — Economic Development Reauthorization Act (EDRA) of 2024

Reports · published 2025-04-17 · v1 · Active · crsreports.congress.gov ↗

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Authors
Julie M. Lawhorn
Report id
R48516
Summary

The U.S. Economic Development Administration (EDA) and active federal regional commissions and authorities (FRCAs) administer numerous federal economic development programs that support workforce training, disaster economic recovery, and infrastructure and entrepreneurial development activities at the state and local levels. The Economic Development Reauthorization Act (EDRA) of 2024—enacted as a part of the Thomas R. Carper Water Resources Development Act of 2024 (P.L. 118-272 Division B, Title II) on January 4, 2025—reauthorized EDA and seven existing FRCAs. EDRA also established two new regional commissions for the Mid-Atlantic and Southern New England regions. Congress last broadly amended and extended EDA authorities in 2004 through the Economic Development Administration Reauthorization Act (EDARA; P.L. 108-373). EDA, as well as the Appalachian Regional Commission (ARC)—the first of the 10 FRCAs, was authorized in 1965 with economic development as one of their main policy objectives. Since 1965, Congress has occasionally passed legislation to reauthorize EDA, ARC, and other FRCAs, and to create new FRCAs. Such legislation has typically provided authorizations of appropriations; updated or added programs or requirements; and addressed changing socioeconomic and technological conditions. Prior to the 2025 enactment of EDRA, some Members of Congress had recently expressed interest in modifying aspects of EDA and FRCAs to address specific economic development challenges and opportunities (i.e., by authorizing programs for energy communities, apprenticeships, or broadband). Other Members of Congress expressed interest in maintaining broad-based, “foundational” authorities—particularly for EDA—preferring not to authorize new programs or significantly alter EDA’s core roles and programs. Hearings during the 117th and 118th Congresses indicated that certain Members sought to pursue reauthorization in order to address “changes in industries, technology, and trade patterns” that have occurred since prior reauthorization legislation was enacted. EDRA included significant revisions to the authorizing statutes for EDA and 9 of the 10 FRCAs. EDRA did not specifically address the programs or funding level for ARC as it was previously reauthorized by the Infrastructure Investment and Jobs Act in FY2021 (P.L. 117-58). In addition to reauthorizing appropriations through FY2029, EDRA created new program authorities and amended existing administrative powers, authorities, and requirements for EDA and FRCAs. For EDA, EDRA established five investment priorities and explicitly authorized assistance for certain new project activities. The legislation directed EDA to prioritize or otherwise consider small, rural, under-resourced and/or tribal communities in several ways, and emphasized ongoing, expanded roles for EDA in disaster economic recovery and interagency coordination. For the FRCAs, EDRA made several FRCAs administratively consistent in terms of programs, authorities, and levels and periods of authorized appropriations. EDRA authorized several FRCAs to administer state capacity building and demonstration health project programs. EDRA also reauthorized an inactive FRCA, the Northern Great Plains Regional Authority, and increased the regions of four FRCAs. In light of recent changes provided in EDRA, Congress may be interested in tracking the implementation of new programs, roles, and coordination activities and their impact on communities. Congress may also continue to have an interest in overseeing the coordination of EDA and FRCA activities as well as new reporting and other agency requirements provided in EDRA.

Bills cited (15)

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