Economic Development Administration: FY2016 Appropriations (CRS Report for Congress)
| Release Date |
Revised July 29, 2016 |
| Report Number |
R44112 |
| Report Type |
Report |
| Authors |
Eugene Boyd, Analyst in Federalism and Economic Development Policy, |
| Source Agency |
Congressional Research Service |
| Older Revisions |
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Summary:
The Economic Development Administration 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 have increased 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 rejected the Administration's proposed funding increases. Instead, the bill recommended freezing total EDA funding at the FY2015 level of $250 million. The bill also recommended 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 rejected the Administration's proposed increases in funding and, like its House counterpart, would have frozen total funding for EDA at the FY2015 level of $250 million. The bill would have shifted 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 increasing funding for Economic Adjustment Assistance by $3 million, from $45 million in FY2015 to $48 million for FY2016.
Unable to reach agreement on a final appropriations for FY2016 for the Departments of Commerce, Justice, Science, and Related Agencies (CJS) Appropriations Act for FY2016, Congress passed a series of continuing resolutions providing funding for government operations through December 22, 2015. On December 18, 2015, the President signed the Consolidated Appropriations Act of 2016, P.L. 114-113, which appropriated $261 million in total funding for EDA, including $222 million for EDA programs and activities and $39 million for salaries and expenses. Total funding for FY2016 was 4.4% ($141 million) higher than the amount appropriated for FY2015, including a $5 million increase in the amount of funds targeted to assist coal mining communities and a $2 million increase in funding for Planning Assistance. The increased funding for coal-impacted communities and planning assistance was offset by a $10 million reduction in the amount appropriated for Economic Adjustment Assistance and the elimination of $4 million funding for activities supporting innovative manufacturing.
