EDA Reauthorization Update

On Wednesday, September 17, the Senate Environment and Public Works Committee is tentatively scheduled to consider a five-year reauthorization bill for the Economic Development Administration (EDA).

Over the past weeks, NADO has been working with Democratic and Republican staff to push several provisions of significant importance to economic development districts and regional development organizations. 

It is unclear if the bill would actually move to the full Senate this session. The House Transportation and Infrastructure Committee has yet to take any action on the issue this year.  Regardless of the legislative outcome in 2008, the bill being negotiated by Sens. Max Baucus (D-MT) and James Inhofe (R-OK) would likely be the starting point for next year.  House and Senate leaders are also keeping the option open of adopting a simple one-year extension of the agency.  (It is important to note that EDA can and would continue to function and fund projects without the reauthorization, as long as the agency is funded through the annual appropriations process or the anticipated continuing resolution.)

The highlights of the Baucus EDA package are:

• Puts federal-local cost share rates into law, rather than regulations and lowers the local cost share rates for distressed communities.
• Puts into law that EDA may provide up to 100% federal share for projects in areas with federally declared disasters.
• Authorizes EDA to support a peer exchange program for economic development districts.
• Implements the administration’s reforms for the Revolving Loan Fund (RLF) program.
• Requires EDA to solicit comments and suggestions of the public and RLF operators on an annual basis, including ways to improve program operations.
• Puts into law the primary roles and functions of economic development districts, rather than the current requirements which are only in regulation.
• Modifies the treatment of federal property interest for projects.
• Reauthorizes the agency at $400 million in FY2009 and increases to $500 million by FY2013.  Agency is actually funded at $280 million through annual appropriations process.
• Provides a potential increase in EDD planning grant funding as the overall agency appropriations increases.  It maintains the minimum floor established in the 2004 bill at $27 million, which was up from traditional level of $24 million.  If EDA overall program funding reaches $280 million, planning would increase to $28 million; $320 million would result in planning at $29.5 million; $350 million would give planning program $31 million; $380 million would set planning at $32.5 million and $420 million would give planning program $34.5 million.
• Moves Montana from Denver regional office to Seattle regional office.
  

It is unclear what additional revisions may be made during mark up. For additional information, contact NADO Legislative Director Jason Boehlert at 202.624.8590 or jboehlert@nado.org.


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