Economic Development Reauthorization Act included in Senate NDAA “Manager’s Amendment”

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Michael Matthews

Legislative Director, Community, Economic & Workforce Development | Veterans and Military Services Committee

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Key Takeaways

On Tuesday, September 19, U.S. Senate Armed Services Committee (SASC) Chairman Jack Reed (D-R.I.) and Ranking Member Roger Wicker (R-Miss.) filed a "manager's package" (S.Amdt.3290) to be included into the National Defense Authorization Act (NDAA) for Fiscal Year (FY) 2025. Included in the package was an amendment (S.Amdt.3103), which would reauthorize the Economic Development Administration (EDA).

Now agreed upon by the Senate SCAC, the EDA reauthorization amendment will be negotiated by a joint conference between House and Seante SCAC leadership. 

S.Amdt.3103, the Economic Development Reauthorization Act

The Economic Development Reauthorization Act provides for the first comprehensive reauthorization of the U.S. Department of Commerce’s Economic Development Administration in 20 years. 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.

On June 21, 2023, Commissioner Eileen Higgins, Miami-Dade County, Fla. testified on behalf of NACo at a U.S. Senate Committee on Environment and Public Works hearing on the importance of reauthorizing the EDA to strengthening local economic development efforts.  Additionally, on March 12, 2024, NACo submitted a letter to Congress expressing strong support for the Economic Development Reauthorization Act, highlighting the need to further strengthen the EDA, which is the nation’s indispensable agency for supporting economic growth and resilience in counties across America. On October 15, 2024, NACo, together with other members of the EDA Stakeholder Coalition, sent a letter to congressional leaders urging the inclusion of the Economic Development Reauthorization Act in the FY 2025 NDAA

About the EDA
  • The EDA is the only federal agency solely focused on private sector job creation in distressed areas.
  • It has a strong track record of strategic investments and partnerships to address unemployment, plant closures, natural disasters, and economic hardships.
  • EDA grants play a critical role in county economic development, supporting job growth in struggling regions.
County role in economic development
  • Counties are essential to economic prosperity and resilience, involved in activities like infrastructure, workforce development, and business support.
  • Economic development helps counties retain and grow jobs, expanding the tax base for essential services.
  • Counties, as formal governments, lead regional economic initiatives by collaborating with public and private partners.
Next steps 

The Senate and House Armed Services Committees will now reconcile their NDAA bills through a joint conference. Once agreements are reached, the final NDAA will be sent to both chambers for approval. Counties can reach out to their Members of Congress urging for the inclusion of this amendment using this template letter.

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