Senate Committee Approves EDA Reauthorization Bill

On September 17, the Senate Environment and Public Works Committee adopted legislation (currently unnumbered) reauthorizing the Economic Development Administration (EDA) for five years. The compromise measure developed by Sens. Max Baucus (D-MT) and James Inhofe (R-OK) contains a number of NADO-supported provisions.

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 when the full Senate will consider the measure. Currently, the Senate is scheduled to adjourn in less than three weeks, which leaves limited time for the chamber to adopt the bill. In addition, the House Transportation and Infrastructure Committee has yet to develop a reauthorization proposal.

Congressional staff sources have indicated that a measure extending EDA's authorization for one year is still a possibility. A short-term extension of the agency would give both chambers the time needed to complete a broad reauthorization next year.(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.)

NADO has developed a document illustrating how the measure would amend EDA’s existing statute. To view, visit www.nado.org/legaffair/bepw.pdf. To access the EDA legislation, visit www.nado.org/legaffair/beda.pdf. For additional information, contact NADO Legislative Director Jason Boehlert at 202.624.8590 of jboehlert@nado.org.


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