Just before Congress passed a 3-month continuing resolution and adjourned early for a pre-election recess, Senate Armed Services Committee (SASC) Chair Jack Reed (D-RI) and Ranking Member Roger Wicker (R-MS) filed a manager’s package of amendments to the FY 2025 National Defense Authorization Act (NDAA). Among the 93 amendments included in the package is the text of the Economic Development Reauthorization Act of 2024, which reauthorizes the EDA and modernizes the agency’s statutory authorities.

The amendment makes comprehensive changes to the Public Works and Economic Development Act of 1965 (PWEDA). A summary of some of the key sections is included below.

Definitions: the amendment expands its 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 and grants for disaster recovery 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 (Authorized) Funding: 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

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

The upcoming retirement of Senate Environment and Public Works Committee Chair Tom Carper (D-DE) and the sense of urgency to move the FY 2025 NDAA (which is considered a “must-pass” bill) both help the chances of an EDA reauthorization this Congress. It's also important to note that the reauthorization includes House Transportation and Infrastructure Committee Chair Sam Graves’ (R-MO) E-BRIDGE Act, which allows EDA to award economic development grants for public-private partnerships and consortiums to carry out broadband projects. This creates critical buy-in for the influential committee chair who oversees EDA policy in the House.

A press release on the package states that in order “[t]o enact the bill in a timely manner, the SASC-passed NDAA and the House-passed NDAA will be combined through a series of negotiations led by the leadership of SASC and [the House Armed Services Committee]. The amendments included in the Reed-Wicker manager’s package will be considered during the NDAA negotiations.”

If this amendment is kept in the enacted NDAA, increased funding, expanded eligibility, and newly created programs at EDA will likely lead to a spike in grant applications. Take time to review these changes and consult experts to understand the new authorities and funding that could impact your organization.