The Senate Environment and Public Works Committee recently approved legislation to reauthorize the Economic Development Administration (EDA) for the first time in nearly two decades.
The reauthorization of the EDA is crucial for fostering the growth of small businesses across the United States, and it stands as a bipartisan priority.
Committee Ranking Member Senator Shelley Moore Capito [R-WV] emphasized the significance of this bipartisan legislation, stating, “Today, the EPW Committee took an important step for local communities across the country by passing the Economic Development Reauthorization Act of 2024.
This bipartisan legislation will help the EDA carry out its mission to drive investment, create jobs, and grow our local economies in West Virginia.”
Established by Congress in 1965 within the U.S. Department of Commerce, the EDA offers grants and technical assistance to economically distressed communities, aiming to stimulate job creation and catalyze industrial and commercial development through investment programs.
These initiatives target both rural and urban areas facing challenges such as high unemployment, low income, and severe economic distress.
Moreover, the EDA plays a pivotal role in advancing the White House’s Investing in America agenda. It is actively involved in initiatives like the Recompete Pilot Program and Regional Technology and Innovation Hubs.
These efforts aim to bolster small businesses nationwide by establishing technology hubs in communities, fostering the growth of innovative industries spanning from semiconductors to clean energy and biotechnology.
Notably, these tech hubs are dispersed across 32 states, and Puerto Rico, and include tribal governments, underserved states, and coal communities.
Given its role in supporting marginalized communities, periodic updates are necessary to ensure the EDA remains responsive to current needs.
The Economic Development Reauthorization Act of 2024 (S. 3891) seeks to modernize the EDA’s core programs and enhance efforts in workforce development, disaster assistance, broadband deployment, and renewable energy.
The bill streamlines access to EDA grant opportunities for smaller communities, updates distress criteria to include factors like high underemployment and low median household income, and strengthens the agency’s role in building local economic development capacity.
Committee Chairman Senator Tom Carper [D-DE] expressed confidence in the bill, stating, “The Economic Development Reauthorization Act of 2024 will give the agency the tools and resources it needs to foster economic growth and build resilient supply chains in communities across the country.”
With the bill moving out of committee, the next step is consideration by the full Senate.
Despite political divisions, passing this legislation is essential for supporting Main Streets in some of the nation’s poorest communities, regardless of political affiliation.
Therefore, both the Senate and House should prioritize its passage this year.
