Rule2026-05227
Streamlining the Regulations Establishing General Terms and Conditions for the Economic Development Administration's Investment Assistance
Primary source
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Published
March 17, 2026
Effective
March 17, 2026
Issuing agencies
Commerce DepartmentEconomic Development Administration
Abstract
By this rule, EDA amends its regulations establishing general terms and conditions for investment assistance by removing three unnecessary sections. This action is intended to streamline the described body of regulations, eliminate redundant and otherwise unwarranted regulatory text, and to promote administrative efficiency without diminishing any substantive obligations or entitlements related to EDA's investment assistance.
Full Text
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<title>Federal Register, Volume 91 Issue 51 (Tuesday, March 17, 2026)</title>
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[Federal Register Volume 91, Number 51 (Tuesday, March 17, 2026)]
[Rules and Regulations]
[Pages 12675-12676]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-05227]
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DEPARTMENT OF COMMERCE
Economic Development Administration
13 CFR Part 302
[Docket No. 260311-0078]
RIN 0610-AA73
Streamlining the Regulations Establishing General Terms and
Conditions for the Economic Development Administration's Investment
Assistance
AGENCY: Economic Development Administration (EDA), Department of
Commerce (Department).
ACTION: Final rule.
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SUMMARY: By this rule, EDA amends its regulations establishing general
terms and conditions for investment assistance by removing three
unnecessary sections. This action is intended to streamline the
described body of regulations, eliminate redundant and otherwise
unwarranted regulatory text, and to promote administrative efficiency
without diminishing any substantive obligations or entitlements related
to EDA's investment assistance.
DATES: The rule is effective March 17, 2026.
FOR FURTHER INFORMATION CONTACT: Jeffrey Roberson, Chief Counsel,
Economic Development Administration, at (202) 779-0563.
SUPPLEMENTARY INFORMATION: By this rule, the Department amends the
regulations at 13 CFR part 302, which establish the general terms and
conditions for EDA's investment assistance. The Department amends those
regulations in the following ways.
First, the Department is removing Sec. 302.6, which reiterates
that recipients of EDA's investment assistance are ``subject to all
Federal laws and to Federal, Department, and EDA policies, regulations,
and procedures applicable to Federal financial assistance awards,''
including the government-wide requirements at 2 CFR part 200. 13 CFR
302.6. Upon review, the Department has determined that Sec. 302.6 is
appropriate for removal, as the application of part 200 is sufficiently
established by the
[[Page 12676]]
language of part 200, and Sec. 302.6's vague references to other
applicable authorities are of minimal, if any, value; the requirements
of these other authorities apply, and are sufficiently established,
regardless of whether Sec. 302.6 specifically or generally cross-
references them. Accordingly, Sec. 302.6 is appropriate for removal
under the Department's broader deregulatory policies.
Second, the Department is removing Sec. 302.12, which states that
``EDA shall approve Investment Assistance awards only if, as determined
in EDA's sole discretion, the Project for which such Investment
Assistance is awarded will be properly and efficiently administered,
operated and maintained.'' 13 CFR 302.12. But this requirement of
efficiency is already sufficiently established by section 504 of the
Public Works and Economic Development Act of 1965 (42 U.S.C. 3194); the
government-wide regulations at 2 CFR part 200, see 2 CFR 200.400(a),
(c) (establishing, as part of the ``fundamental premises'' guiding
Federal awards, the importance of ``efficient administration''); and
the Department's internal materials, including its Federal Financial
Assistance Manual. Accordingly, Sec. 302.12 is appropriate for removal
under the Department's deregulatory policies.
Third, the Department is removing Sec. 302.15, which states that
``EDA will accept an Eligible Applicant's certifications, accompanied
by evidence satisfactory to EDA, that the Eligible Applicant meets the
requirements for receiving Investment Assistance.'' 13 CFR 302.15. No
statutory provision requires the promulgation and maintenance of such
regulatory language, and the Department finds it to be of little, if
any, value; the rest of part 302 sufficiently addresses the
requirements for receiving assistance and contemplates the presentation
of evidence. Based on the other sections of part 302, the Department is
satisfied that Sec. 302.15 does not serve any meaningful independent
purpose and thus is appropriate for removal under the Department's
deregulatory policies.
Overall, the Department has determined that these amendments to
part 302 are warranted, as they will remove unnecessary regulatory
language of little to no value and generally streamline part 302,
thereby promoting simplicity and efficiency without diminishing any
substantive rights or obligations related to EDA's investment
assistance.
Classifications
A. Administrative Procedure Act
Pursuant to 5 U.S.C. 553(b)(B), the Department finds good cause to
waive the prior notice and opportunity for public participation
requirements of the Administrative Procedure Act for this final rule.
The Department considers this rule to be uncontroversial, and has
determined that prior notice and opportunity for public participation
is unnecessary, because this rule only removes regulatory language that
is unnecessary and does not serve any meaningful significant function;
none of the language being removed by this rule is statutorily
required, and public participation could not justify the continued
maintenance of any of the language at issue under the Department's
broader regulatory policies. For the same reasons, the Department has
determined that delaying the effectiveness of these amendments would be
contrary to the public interest. The language being removed by this
rule adds complexity and clutter to part 302; the removal of this
language will immediately streamline part 302, thereby promoting
administrative efficiency and benefiting the public, at little to no
cost. The Department therefore finds good cause to waive the public
notice and comment period under 553(b)(B) and to waive the 30-day delay
in effectiveness under 553(d).
B. Executive Orders 12866, 14192, 13132
The Office of Management and Budget has determined this rule is not
significant pursuant to Executive Order (``E.O.'') 12866. This rule is
an E.O. 14192 deregulatory action. This rule does not contain policies
having federalism implications as the term is defined in E.O. 13132.
C. Regulatory Flexibility Act
Because a notice of proposed rulemaking and an opportunity for
public participation are not required to be given for this rule by 5
U.S.C. 553(b)(B), the analytical requirements of the Regulatory
Flexibility Act (5 U.S.C. 601 et seq.) are not applicable. Accordingly,
no regulatory flexibility analysis is required, and none has been
prepared.
D. Paperwork Reduction Act
This rule will not impose additional reporting or recordkeeping
requirements under the Paperwork Reduction Act of 1995, 44 U.S.C. 3501
et seq.
List of Subjects for 13 CFR Part 302
Federal policy and procedures, Pre-approval requirements, Reporting
and audit requirements, Project administration, Post-approval
requirements.
Dated: March 13, 2026.
Benjamin Page,
Deputy Assistant Secretary and Chief Operating Officer.
For the reasons set forth in the preamble, EDA amends 13 CFR part
302 as follows:
PART 302--GENERAL TERMS AND CONDITIONS FOR INVESTMENT ASSISTANCE
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1. The authority citation for part 302 continues to read as follows:
Authority: 19 U.S.C. 2341 et seq.; 42 U.S.C. 3150; 42 U.S.C.
3152; 42 U.S.C. 3153; 42 U.S.C. 3192; 42 U.S.C. 3193; 42 U.S.C.
3194; 42 U.S.C. 3211; 42 U.S.C. 3212; 42 U.S.C. 3216; 42 U.S.C.
3218; 42 U.S.C. 3220; 42 U.S.C. 5141; 15 U.S.C. 3701; Department of
Commerce Delegation Order 10-4.
Sec. 302.6 [Removed and Reserved]
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2. Remove and reserve Sec. 302.6.
Sec. 302.12 [Removed and Reserved]
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3. Remove and reserve Sec. 302.12.
Sec. 302.15 [Removed and Reserved]
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4. Remove and reserve Sec. 302.15.
[FR Doc. 2026-05227 Filed 3-16-26; 8:45 am]
BILLING CODE 3510-24-P
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