Economic Development Administration: FY2016 Appropriations

Summary

The Economic Development Administration (EDA) was created pursuant to the enactment of the Public Works and Economic Development Act of 1965, with the objective of fostering growth in economically distressed areas characterized by high levels of unemployment and low per-capita income levels. EDA, an agency within the Department of Commerce, is the primary federal agency charged with implementing and coordinating federal economic development policy.

For FY2016, the Obama Administration requested significant increases in funding for EDA activities and salaries and expenses. Under the Administration’s proposal, EDA funding would increase by 9.2%, from $250 million to $273 million over the last fiscal year, including significant increases in funding for the following:

salaries and expenses, from $37 million to $45.5 million;

regional Innovation Program grants, from $10 million to $25 million;

economic Adjustment Assistance, from $45 million to $53 million; and

Planning Grants, from $30 million to $39.5 million.

On June 3, 2015, the House approved its version of the Departments of Commerce, Justice, Science, and Related Agencies (CJS) Appropriations Act for FY2016, H.R. 2578. The bill rejects the Administration’s proposed funding increases. Instead, the bill would freeze total funding at the FY2015 level of $250 million. The bill recommends a $5 million increase in funding for coal mining communities (above the amount set aside under the Economic Adjustment Assistance) while recommending eliminating $4 million in funding for Innovative Manufacturing. On June 16, 2015, the Senate Appropriations Committee reported its version of H.R. 2578. This bill also rejects the Administration’s proposed increases in funding and, like its House counterpart, would freeze total funding for EDA at the FY2015 level of $250 million. It would shift funding priorities, eliminating $4 million in funding for Innovative Manufacturing, transferring $10 million in Assistance to Coal Mining Communities from a set-aside under the Economic Adjustment Assistance program to a stand-alone program, and increase funding for Economic Adjustment Assistance by $3 million, from $45 million in FY2015 to $48 million for FY2016.

This report will be updated as events warrant.