Policy Brief

U.S. Economic Development Administration (EDA): Support Essential Seed Capital/Gap Financing for Local Job Creation

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    U.S. Economic Development Administration (EDA): Support Essential Seed Capital/Gap Financing for Local Job Creation

    ACTION NEEDED: 

    Urge your members of Congress to support at least $373.5 million in funding for the U.S. Department of Commerce’s Economic Development Administration (EDA) as Congress prepares for FY 2023. EDA funding is important to counties because it helps local communities achieve long-term economic growth based on local and regional priorities.

    BACKGROUND: 

    The U.S. Economic Development Administration (EDA) is the only federal agency with a mission solely focused on private sector job creation in distressed areas. EDA has achieved an impressive track record of making strategic investments and building partnerships that help regions and communities respond to shifts in international markets, address severe unemployment challenges and recover from plant closures, major natural disasters and other chronic, sudden or sever economic hardships.

    At a time when the nation must make the public sector investments necessary to compete in the global economy, the flexibility, partnership structure and accountability of EDA’s programs should be at the forefront of the federal toolbox.

    The agency’s portfolio of economic development infrastructure, business development finance, regional innovation strategies and public-private partnerships are tailored to support the unique needs of each region.

    EDA-funded projects are awarded on a competitive basis and typically require a 50 percent local match and significant private sector investment, helping to ensure projects have local support and are part of a broader regional strategy.

    EDA received $373.5 million in FY 2022, $27.5 million above the FY 2021 level. The American Rescue Plan Act provided an additional $3 billion for EDA in FY 2021, 25 percent of which was reserved to assist communities that suffered economic injury as a result of job losses in the travel, tourism or outdoor recreation sectors related to the COVID-19 pandemic. 

    NACo members are encouraged to contact their members of Congress to support at least level funding at $373.5 million for EDA in FY 2023 appropriations. 

    KEY TALKING POINTS

    • EDA focuses solely on private sector job creation and economic growth. EDA investments promote high quality jobs, especially in advanced manufacturing, science and technology and emerging knowledge-based industries and sectors.

    • EDA’s infrastructure investments are targeted at essential facilities and assets like water and wastewater systems, middle mile broadband networks, workforce training centers, business incubators, intermodal facilities and science and research parks.

    • EDA’s grants are awarded on a competitive basis, based on regional comprehensive economic development strategies (CEDs), and are developed and prioritized by local communities. This helps ensure that projects have significant local support and are part of a broader regional plan, rather than isolated, uncoordinated local projects.

    • Under federal law, EDA projects typically require a 50 percent local cost share and significant private sector investment, ensuring that local leaders and businesses are committed to the project’s success.

    • EDA grants are critical for county economic development, particularly in light of the COVID-19 pandemic and in rural areas, where such resources are often scarce.

     

    Urge your members of Congress to support at least $373.5 million in funding for the U.S. Department of Commerce’s Economic Development Administration (EDA) as Congress prepares for FY 2023. EDA funding is important to counties because it helps local communities achieve long-term economic growth based on local and regional priorities.
    2022-01-13
    Policy Brief
    2022-08-10

ACTION NEEDED: 

Urge your members of Congress to support at least $373.5 million in funding for the U.S. Department of Commerce’s Economic Development Administration (EDA) as Congress prepares for FY 2023. EDA funding is important to counties because it helps local communities achieve long-term economic growth based on local and regional priorities.

BACKGROUND: 

The U.S. Economic Development Administration (EDA) is the only federal agency with a mission solely focused on private sector job creation in distressed areas. EDA has achieved an impressive track record of making strategic investments and building partnerships that help regions and communities respond to shifts in international markets, address severe unemployment challenges and recover from plant closures, major natural disasters and other chronic, sudden or sever economic hardships.

At a time when the nation must make the public sector investments necessary to compete in the global economy, the flexibility, partnership structure and accountability of EDA’s programs should be at the forefront of the federal toolbox.

The agency’s portfolio of economic development infrastructure, business development finance, regional innovation strategies and public-private partnerships are tailored to support the unique needs of each region.

EDA-funded projects are awarded on a competitive basis and typically require a 50 percent local match and significant private sector investment, helping to ensure projects have local support and are part of a broader regional strategy.

EDA received $373.5 million in FY 2022, $27.5 million above the FY 2021 level. The American Rescue Plan Act provided an additional $3 billion for EDA in FY 2021, 25 percent of which was reserved to assist communities that suffered economic injury as a result of job losses in the travel, tourism or outdoor recreation sectors related to the COVID-19 pandemic. 

NACo members are encouraged to contact their members of Congress to support at least level funding at $373.5 million for EDA in FY 2023 appropriations. 

KEY TALKING POINTS

  • EDA focuses solely on private sector job creation and economic growth. EDA investments promote high quality jobs, especially in advanced manufacturing, science and technology and emerging knowledge-based industries and sectors.

  • EDA’s infrastructure investments are targeted at essential facilities and assets like water and wastewater systems, middle mile broadband networks, workforce training centers, business incubators, intermodal facilities and science and research parks.

  • EDA’s grants are awarded on a competitive basis, based on regional comprehensive economic development strategies (CEDs), and are developed and prioritized by local communities. This helps ensure that projects have significant local support and are part of a broader regional plan, rather than isolated, uncoordinated local projects.

  • Under federal law, EDA projects typically require a 50 percent local cost share and significant private sector investment, ensuring that local leaders and businesses are committed to the project’s success.

  • EDA grants are critical for county economic development, particularly in light of the COVID-19 pandemic and in rural areas, where such resources are often scarce.

 

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    Economic Mobility Leadership Network

    The Economic Mobility Leadership Network (EMLN) is a NACo cohort of county leaders that facilitates and incubates county-specific discussion and problem-solving on issues of economic mobility and helps county leaders identify and assess their current barriers to mobility and share scalable and transferable programs across the country.
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    <p>Economic mobility refers to changes in an individual&rsquo;s economic status over a lifetime and across generations&mdash;usually measured in income.

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    Community, Economic & Workforce Development Steering Committee

    Responsible for all matters pertaining to housing, community and economic development, public works, and workforce development including the creation of affordable housing and housing options for different populations, residential, commercial, and industrial development, and building and housing codes. Policy Platform & Resolutions 2022-2023 2022 NACo Legislative Priorities
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    <p>Responsible for all matters pertaining to housing, community and economic development, public works, and workforce development including the creation of affordable housing and housing options for different populations, residential,

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