Rule2025-20307
Update of Public Works and Economic Adjustment Act Grant Rate Regulations
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
November 19, 2025
Effective
November 19, 2025
Issuing agencies
Commerce DepartmentEconomic Development Administration
Abstract
On January 4, 2025, the Economic Development Reauthorization Act of 2024 became law. The Economic Development Administration ("EDA"), U.S. Department of Commerce, publishes this final rule to reflect an amendment made to the grant rates prescribed by EDA's authorizing statute, the Public Works and Economic Development Act of 1965. Immediate implementation of the rule will prevent public confusion between EDA's implementing regulations and changes enacted in the Economic Development Reauthorization Act of 2024.
Full Text
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<title>Federal Register, Volume 90 Issue 221 (Wednesday, November 19, 2025)</title>
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[Federal Register Volume 90, Number 221 (Wednesday, November 19, 2025)]
[Rules and Regulations]
[Pages 51991-51992]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-20307]
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DEPARTMENT OF COMMERCE
Economic Development Administration
13 CFR Part 301
[Docket No.: 250923-0158]
RIN 0610-AA83
Update of Public Works and Economic Adjustment Act Grant Rate
Regulations
AGENCY: Economic Development Administration, U.S. Department of
Commerce.
ACTION: Final rule.
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SUMMARY: On January 4, 2025, the Economic Development Reauthorization
Act of 2024 became law. The Economic Development Administration
(``EDA''), U.S. Department of Commerce, publishes this final rule to
reflect an amendment made to the grant rates prescribed by EDA's
authorizing statute, the Public Works and Economic Development Act of
1965. Immediate implementation of the rule will prevent public
confusion between EDA's implementing regulations and changes enacted in
the Economic Development Reauthorization Act of 2024.
DATES: This rule is effective November 19, 2025.
FOR FURTHER INFORMATION CONTACT: Jeffrey Roberson, Chief Counsel,
Office of the Chief Counsel, Economic Development Administration, U.S.
Department of Commerce, 1401 Constitution Avenue NW, Suite 72023,
Washington, DC 20230; telephone: (202) 482-1315; email:
<a href="/cdn-cgi/l/email-protection#563c24393433242539381633323778313920"><span class="__cf_email__" data-cfemail="5238203d303720213d3c123736337c353d24">[email protected]</span></a>.
SUPPLEMENTARY INFORMATION:
Background
On January 4, 2025, the Thomas R. Carper Water Resources
Development Act of 2024 (Pub. L. 118-272) became law and contained the
Economic Development Reauthorization Act of 2024 (``the Act'') in Title
II of Division B. The Act reauthorizes EDA through Fiscal Year 2029 and
updates numerous authorities that govern the operation of EDA under its
organic act, the Public Works and Economic Development Act of 1965
(``PWEDA'').
This rule addresses an explicit conflict between EDA's existing
regulations (13 CFR chapter III) and the Act with respect to EDA's cost
sharing requirements for projects that meet EDA's distress criteria.
Prior to the Act, section 204 of PWEDA (42 U.S.C. 3144) specified that
EDA's federal grant rate for projects that meet PWEDA's eligibility
requirements shall not exceed 50 percent. Section 2215 of the Act
[[Page 51992]]
amended section 204 of PWEDA to require that EDA's federal grant rate
for projects that meet PWEDA's eligibility requirements not exceed 60
percent. From this 60 percent federal grant rate, EDA is permitted to
increase the federal grant rate up to 30 percent based on relative
needs, and up to 100 percent in certain circumstances. Thus, prior to
the Act, EDA had a maximum federal grant rate that ranged from 50
percent to 80 percent based on distress with some exceptions to get to
100 percent. Since the enactment of the Act, EDA's maximum federal
grant rate ranges from 60 percent to 90 percent based on distress with
some additional exceptions to get to 100 percent.
In this rule-making, EDA is taking a conservative approach and only
updating the parts of its regulations that are explicitly contradicted
by the Act and are necessary for ongoing EDA operations. EDA
anticipates additional rule-makings to fully implement the Act,
including at least one that would solicit notice and comment on a
comprehensive update to EDA's distress criteria and grant rates.
Classification
Administrative Procedure Act and Regulatory Flexibility Act
Pursuant to 5 U.S.C. 553(a)(2), prior notice and opportunity for
public comment are not required for rules concerning public property,
loans, grants, benefits, and contracts. This rule conforms EDA's grant
regulations with a statutory change directed by Congress.
Because prior notice and an opportunity for public comment are not
required pursuant to 5 U.S.C. 553, or any other law, the analytical
requirements of the Regulatory Flexibility Act (5 U.S.C. 601 et seq.)
are inapplicable. Therefore, a regulatory flexibility analysis has not
been prepared.
Executive Orders No. 12866, 13563, and 14192
This final rule was drafted in accordance with Executive Orders
12866, 13563, and 14192. OMB has determined that this rule is a
significant regulatory action for purposes of Executive Orders 12866,
as defined in section 3(f), and 13563. This rule is not an E.O. 14192
regulatory action because it is does not impose any more than de
minimis regulatory costs.
Congressional Review Act
This final rule is not major under the Congressional Review Act (5
U.S.C. 801 et seq.).
Executive Order No. 13132
This final rule does not contain policies that have federalism
implications.
Paperwork Reduction Act
The Paperwork Reduction Act of 1995 (44 U.S.C. 3501 et seq.)
(``PRA'') requires that a Federal agency consider the impact of
paperwork and other information collection burdens imposed on the
public and, under the provisions of PRA section 3507(d), obtain
approval from OMB for each collection of information it conducts,
sponsors, or requires through regulations. This final rule does not
require the collection of any information and is therefore not subject
to the PRA.
List of Subjects in 13 CFR Part 301
Applicant and application requirements, Economic distress levels,
Eligibility requirements, Grant administration, Grant programs,
Investment rates.
For the reasons discussed above, EDA is amending title 13, chapter
III of the Code of Federal Regulations as follows:
PART 301--ELIGIBILITY, INVESTMENT RATE AND APPLICATION REQUIREMENTS
0
1. The authority citation for part 301 continues to read as follows:
Authority: 42 U.S.C. 3121; 42 U.S.C. 3141-3147; 42 U.S.C. 3149;
42 U.S.C. 3161; 42 U.S.C. 3175; 42 U.S.C. 3192; 42 U.S.C. 3194; 42
U.S.C. 3211; 42 U.S.C. 3233; Department of Commerce Delegation Order
10-4.
0
2. Amend Sec. 301.4 by:
0
a. In paragraph (b)(1), removing the number ``50'' and adding in its
place the number ``60'';
0
b. Revising Table 1 to paragraph (b)(1)(ii); and
0
c. In paragraph (b)(3)(i), removing the number ``50'' and adding in its
place the number ``60''.
The revision reads as follows:
Sec. 301.4 Investment rates.
* * * * *
(b) * * *
(1) * * *
(ii) * * *
Table 1
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Maximum allowable
Projects located in regions in which: investment rates
(percentage)
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(A) The 24-month unemployment rate is at least 225% 80
of the national average; or.......................
(B) The per capita income is not more than 50% of 80
the national average..............................
(C) The 24-month unemployment rate is at least 200% 70
of the national average; or.......................
(D) The per capita income is not more than 60% of 70
the national average..............................
(E) The 24-month unemployment rate is at least one 60
percentage point greater than the national
average; or.......................................
(F) The per capita income is not more than 80% of 60
the national average..............................
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* * * * *
Dated: November 17, 2025.
Benjamin Page,
Deputy Assistant Secretary and Chief Operating Officer.
[FR Doc. 2025-20307 Filed 11-18-25; 8:45 am]
BILLING CODE 3510-24-P
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