By now, you probably have heard the good news – EDA reauthorization made it through both houses of Congress as part of the Water Resources Development Act! This reauthorization was 20 years in the making and will help transform EDA into a more modern-day economic development. As we look to the future, state leaders, economic development district leaders, and university economic development professionals have much to gain from the act’s provisions.
Below are the 10 biggest wins which, from our perspective, will have a significant long-term impact on regional economic growth.
1. Increased Coordination: Enhancing Federal, State, and Regional Collaboration
A key theme of this reauthorization is increased coordination (Sec. 2212) among federal, state, and regional economic development entities. The Secretary of Commerce is now obligated to convene regular meetings with these stakeholders to align strategies and reduce duplication of efforts. This collaborative approach will help streamline resources and ensure that economic development efforts are both strategic and effective.
2. Workforce Training Grants: Addressing Industry Staffing Shortages
The bill allows EDA to support workforce development in new ways (Sec. 2221) to address talent shortages in key industries. States and higher education institutions can leverage EDA as a partner in training for sectors with high demand for skilled workers. These grants will support the development of new training facilities and the purchase of equipment, ultimately creating pathways to high-quality jobs and helping to bridge skills gaps.
3. State Capacity Building: Empowering States and Universities to Support Distressed Communities
Another powerful feature of the bill is the emphasis on state capacity building (Sec. 2248). States and universities can be key partners in this initiative, especially in distressed counties where project management, financial planning, and workforce development expertise may be lacking. By leveraging their resources along with EDA, states and universities can help elevate locally driven economic strategies, create job opportunities, and foster long-term sustainability in the most economically challenged regions.
4. University Centers: A Vital Resource for Local Innovation and Workforce Development
One of the most exciting developments for universities in this reauthorization is the formal recognition of university centers (Sec. 2217). 72 of these centers already exist, and under the reauthorized act they provide strategic planning support, capacity building, and support for research and technical assistance in innovation, entrepreneurship, and workforce development. By partnering with local governments and businesses, universities play a pivotal role in helping distressed communities revitalize their economies and promoting innovation-based economic development, and this bill will boost their impact on communities and regions.
5. Broadband Infrastructure: A Game-Changer for Underserved Areas
The bill’s focus on expanding broadband infrastructure (Sec. 2233) through targeted grants for rural and underserved areas is a major win for states and regions looking to close the digital divide. This initiative will unlock new opportunities for remote work, education, and access to essential services in these areas.
6. Critical Supply Chain Site Development: Preparing for the Future of Manufacturing
The creation of a new Critical Supply Chain Site Development Grant Program (Sec. 2244) could be a game-changer for states that are preparing for expected re-shoring of manufacturing activity. This program will support the EDA’s role as an active player in developing manufacturing-ready sites, particularly in rural and disadvantaged areas. By preparing sites for critical industries, including those tied to national security, this program offers a forward-looking solution for states seeking to boost their manufacturing capabilities and create new jobs in the process.
7. Disaster Recovery and Resilience: Strengthening Communities in the Face of Adversity
EDA remains a leader in responding to natural disasters. The establishment of an Office of Disaster Recovery and Resilience (Sec. 2228) ensures that communities affected by natural disasters will receive the long-term support needed for economic recovery. For states that have suffered from hurricanes, floods, or wildfires, this office will provide vital resources and technical assistance. With this support, universities can partner with local governments to help affected communities rebuild smarter, stronger, and more resilient.
8. Renewable Energy: Revitalizing Brownfield Sites
The bill’s emphasis on renewable energy technologies (Sec. 2220) offers a significant opportunity for states committed to sustainable development. By focusing on redeveloping brownfield sites, this provision supports green infrastructure projects that create jobs and promote environmental resilience using technologies like solar, wind, and geothermal. States and universities can leverage these resources to drive sustainable economic growth.
9. Authorization of Several Regional Commissions – including two new ones
The new law also includes authorization for several regional commissions—Northern Border, Southwest Border, Great Lakes Authority, Delta Regional Authority, Denali Regional and the Denali Housing Fund — and the establishment of two new ones —the Mid-Atlantic and the Southern New England Regional Commissions. A much larger swath of the U.S. is covered by the 10 state-federal Regional Commissions as Congress continues to highlight the importance of targeting investments to rural and distressed communities.
10. Greater Flexibility on Cost Share, especially in collaboration with the Regional Commissions
EDA can now cover up to 60% of the costs for most projects and has greater flexibility to help small or under-resourced communities meet their requirements. For instance, funds contributed by Regional Commissions can now count toward the non-federal share of project costs. For communities with 10,000 or fewer people and meeting other criteria, EDA may be able to fund up to 100% of a project.
In sum, the Economic Development Reauthorization Act of 2024 provides economic development leaders with an array of new tools to support innovation, workforce development, infrastructure improvements, and economic resilience. With a focus on strategic collaboration, financial flexibility, and targeted investments in underserved communities, this legislation offers a roadmap for Federal involvement in supporting state and regional efforts to address current and future economic challenges. We look forward to working with Federal leaders as they translate this important new authorization into policy over the next several years.
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