crs_reports: R46991

Congressional Research Service reports with summaries, authors, and topic classifications.

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R46991 Economic Development Administration: An Overview of Programs and Appropriations (FY2012-FY2026) 2026-02-24T05:00:00Z 2026-02-27T10:53:05Z Active Reports Julie M. Lawhorn U.S. Economy, Economic Development The Economic Development Administration (EDA), a bureau of the U.S. Department of Commerce (DOC), is the only federal agency with economic development as its sole mission. The agency was established pursuant to the enactment of the Public Works and Economic Development Act (PWEDA) of 1965 (42 U.S.C. §§3121 et seq.) to assist state and local stakeholders with developing the conditions and amenities to grow businesses, create jobs, and expand investment in economically distressed areas. Changing industry dynamics, global competition, technological developments, and other events, conditions, and priorities have shifted EDA’s programs and priorities over time. During the agency’s first 30 years, its programs focused on industrial growth and emphasized public works, roads, and infrastructure. Since then, Congress has supported an expanded portfolio of EDA programs to also advance existing and emerging industry clusters, develop human capital, strengthen supply chains, expand access to capital, build new types of infrastructure, and implement regional innovation and technology strategies. Additionally, EDA has also taken on new roles in developing state and local capacity, resiliency, disaster and economic recovery, as well as economic development integration across federal agencies. EDA generally administers multiple programs that fund a range of construction and non-construction activities in both urban and rural areas—primarily through competitive processes that solicit community-directed proposals aligned with the agency’s investment priorities. EDA administers both flexible and targeted programs focused on innovation, technical assistance, and support for long-term, regional economic development planning. In 2025 and 2026 (to date), EDA has open funding notifications for a subset of its typical programs. Congress approves annual appropriations for EDA programs as well as administration expenses, and occasionally approves supplemental appropriations for economic recovery purposes. Between FY2012 and FY2026, EDA’s annual appropriations (not including supplemental appropriations) averaged approximately $337 million. Annual appropriations decreased between FY2012 and FY2013, and then increased each year between FY2014 and FY2023. In FY2024, the agency received $468 million in annual appropriations—a decrease of $30 million (or 6%) from the annual appropriations provided in FY2023 (excluding supplemental appropriations). EDA funding remained flat in FY2025 at $468 million and decreased slightly to $466 million in FY2026. The Trump Administration proposed to eliminate the EDA in its FY2026 discretionary funding request. In January 2025, the Economic Development Reauthorization Act (EDRA) of 2024 (P.L. 118-272) reauthorized the EDA. EDRA revised existing authorities, codified new and existing roles, expanded criteria for existing programs, and changed program and administrative requirements. Although EDRA implementation may not be complete as of the date of publication, EDA has initiated activities associated with several new programs authorized by the legislation. Prior to 2025, Congress last amended and extended EDA authorities in 2004. Congress may wish to consider policies to change, expand, or focus the distribution of the agency’s funding and related program requirements. Congress may also seek to adjust the overall role and authority of EDA and its programs in the context of changing economic conditions, specific industry trends, innovation, and disaster economic recovery and resiliency funding. Congress may consider the role of broad-based and/or targeted approaches to the allocation of economic development resources. For instance, Congress has approved appropriations to address coal-impacted and nuclear closure communities as well as demands for a STEM-capable workforce and innovation-ready regions. Congress may consider reviewing the implementation, interagency coordination, and outcomes of new programs as well as the staffing resources required for such programs. For instance, in FY2023 Congress authorized two new regional programs, which received over $600 million in their first round of appropriations (i.e., the Recompete Pilot and the Tech Hubs programs), and Congress may want to conduct oversight on how those programs as well as a new Artificial Intelligence workforce program are implemented. Congress may also seek to conduct oversight on the implementation of reauthorization legislation as well as plans for administering programs that have received appropriations in recent years, including programs that have recently been discontinued by the EDA (i.e., the University Center, Trade Adjustment Assistance for Firms, and STEM Talent Challenge programs). https://www.congress.gov/crs_external_products/R/PDF/R46991/R46991.30.pdf https://www.congress.gov/crs_external_products/R/HTML/R46991.html

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