Congress Reauthorizes Economic Development Administration for First Time in 20 years

Key Takeaways

On December 18, the U.S. Senate passed the bipartisan, bicameral Thomas R. Carper Water Resources Development Act (WRDA) (S. 4367). The proposal authorizes new ports, waterways, flood protection and ecosystem restoration projects around the country, while making policy changes at the Army Corps of Engineers. Other measures in the package include the Fiscally Responsible Highway Funding Act of 2024 (S. 5235), which would allow unobligated balances from an innovative transportation infrastructure funding program to be redistributed. 

The bill also included a modified version of the Economic Development Reauthorization Act of 2024 (S. 3891), which would reauthorize the U.S. Department of Commerce’s Economic Development Administration (EDA), the only federal agency solely dedicated to economic development activities. The EDA is vital for county economic development investments by helping foster resilient and diversified local economies, support American businesses, strengthen workforce development, and enhance critical infrastructure including broadband.

Economic Development Administration Reauthorization

Title II of the Thomas R. Carper Water Resources Development Act provides for the first comprehensive reauthorization of EDA since 2004. Key provisions of the bill include:

• Amend EDA authorities to allow for investments in high-speed broadband development, capacity building and project predevelopment activities to be listed as eligible uses, ensuring counties have the flexibility to meet the unique needs within their community. 
• Expand EDA’s role in disaster relief by establishing an EDA Office of Disaster and Recovery Relief and allowing EDA to increase the federal share to 100 percent of the project cost where a major disaster or emergency has been declared.
• Strengthens EDA’s role in building local economic development capacity, supporting project predevelopment activities at the local level, and increases the resources available for planning and technical assistance.
• Codifies a program at EDA to support the development and expansion of facilities and programs for workforce training and development activities.
• Establishes two new regional commissions to address economic development in the Mid-Atlantic and Southern New England regions, in addition to reauthorizing current regional commissions.

Continue to check NACo’s advocacy hub for additional resources, including a more in-depth legislative analysis, implementation guide and more.

View NACo’s statement on the reauthorization of the Economic Development Administration here.