EDA Reauthorization: Economic Development Act Summary

Talking Points: EDA Reauthorization (S.3891)/S.Admt. 3103 to the Senate-passed National Defense Authorization Act (NDAA) in Fiscal Year 2025 (FY25)

LEGISLATIVE SUMMARY: Economic Development Reauthorization Act of 2024 (S.3891) The Economic Development Reauthorization Act of 2024 (S.3891) would authorize a total of $3 billion USD of funding from FY25-FY29 and update the programs of the U.S. Department of Commerce Economic Development Administration (EDA), under the Public Works and Economic Development Act of 1965, for the first time since 2004. Authorized Line Items FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 5-Year Total (a) Public Works 170,000,000 195,000,000 220,000,000 245,000,000 270,000,000 1,100,000,000 (b) Planning 90,000,000 100,000,000 110,000,000 120,000,000 130,000,000 550,000,000 (c) Train., Res., TA 25,000,000 30,000,000 35,000,000 40,000,000 45,000,000 175,000,000 The measure was introduced on March 7, 2024, and sponsored by Senate Environment and Public Works (EPW) Chair Tom Carper (D-DE) and co-sponsored by ranking member Shelley Moore Capito (R-WV), Transportation and Infrastructure Subcommittee Chair Mark Kelly (D-AZ) and ranking member Kevin Cramer (R-ND). (d) Econ. Adjust. 65,000,000 75,000,000 85,000,000 95,000,000 105,000,000 425,000,000 (e) Asst. to Coal Comm. (fa) Nuclear Host Comm. (fb) Other Nuclear (g) Renewal Energy 75,000,000 75,000,000 75,000,000 75,000,000 75,000,000 375,000,000 35,000,000 35,000,000 35,000,000 35,000,000 35,000,000 175,000,000 5,000,000 5,000,000 5,000,000 0 0 15,000,000 On March 12, 2024, the EPW advanced the measure by voice vote out of committee. 5,000,000 5,000,000 5,000,000 5,000,000 5,000,000 25,000,000 On July 24, 2024, Chair Tom Carper filed S.Admt 3103 to the Senate passed NDAA as a vehicle to enact S.3891. The amendment will be considered in the Senate and House Conference (negotiations) on NDAA. (h) Workforce 50,000,000 50,000,000 50,000,000 50,000,000 50,000,000 250,000,000 (i) Crit. Supply Chain 20,000,000 20,000,000 20,000,000 20,000,000 20,000,000 100,000,000 (j) Liaisons 5,000,000 5,000,000 5,000,000 5,000,000 5,000,000 25,000,000 2

Talking Points: Key wins for IEDC members Provides overall authorization of $3 billion USD in funding over the course of the five-year authorization period (FY25-FY29) for Partnership Planning; Public Works; Economic Adjustment Assistance; Training, Research, and Technical Assistance; Assistance to Coal Communities; and a variety of other EDA functions. Revises cost sharing requirements, increasing the baseline percentage for EDA s federal share to 60 percent and reducing the baseline requirement for local matching funds. (Section 106) Includes carve outs for communities of less than 10,000 in population and disaster impacted areas to waive match requirements entirely. (Section 106) Increases the authorized funding level for EDA Partnership Planning from $27 million USD to $90 million USD in FY25 (escalating to $130 million USD by FY29). (Section 105) Gives EDA the ability to increase the federal share for Partnership Planning Grants up to 100% (no local match). (Section 106) Authorizes EDA planning grants to be utilized for predevelopment activities, capacity building, and administrative expenses. (Section 105) 3

Talking Points: Key wins for IEDC members ModernizesEDA s authorities to award grants to public-private partnerships or consortia for high- speed broadband projects. (Section 114) Establishes an Office of Disaster Recovery and Resilience within EDA. (Section 119) Authorizes EDA to make grants to support the development and expansion of workforce training programs. (Section 112) Reauthorizesand updates certain provisions relating to Federal Regional Commissions, as well as creates two new Federal Regional Commissions: Mid-Atlantic Regional Commission and the Southern New England Regional Commission. (Sections 201, 211 and 212) Allows funding contributed by a Federal Regional Commission to be used as a source of non-federal match for projects. (Section 205) 4

Additional wins for IEDC members Inclusion of key provisions from the following economic development legislation: Rural Outdoor Investment Act (S.2604) ONSHORE Manufacturing Act (S.44) Invest in Our Communities Act (S.4077) Senators Michael Bennet (D-CO), Chuck Schumer (D-NY) and U.S. Representative Melanie Stansbury s (D-NM-1) legislation to invest in Outdoor Recreation and boost rural economies. (Section 102) Senators Mark Kelly (D-AZ), JD Vance (R-OH) andTom Cotton s (R- AR) bill which would accelerate development of shovel-ready sites needed to attract supply-chain manufactures from critical industries such as clean technology (e.g. solar panel and battery manufacturers). (Section 115) Senators Mark Kelly (D-AZ) and Catherine Cortez Masto s (D-NV) bill to improve access to economic development resources for rural and tribal communities. (Section 118) 5

Penny Tilghman Director, Government Affairs International Economic Development Council (IEDC) Cell: 202-276-5383 Email: ptilghman@iedconline.org 6