Washington, D.C.—The following are opening remarks from Ranking Member of the House Committee on Transportation and Infrastructure Rick Larsen (D-WA) and Member of the Subcommittee on Economic Development, Public Buildings and Emergency Management Rep. Shomari Figures (D-AL), during today’s hearing titled, “Smarter Spending, Stronger Results: Reducing Duplication and Ensuring Effectiveness Through Economic Development Reforms.”
Video of Figures’ opening statement is here.
More information on the hearing can be found here.
Ranking Member Larsen:
Thank you, Chairman Perry, for holding this hearing on our Nation’s economic development programs and the integral role that they play in strengthening our communities, our workforce and our infrastructure.
We are going to hear testimony from witnesses representing different economic development entities:
- the Department of Commerce’s Economic Development Administration (EDA);
- the Appalachian Regional Commission (ARC);
- the Delta Regional Authority (DRA);
- the Denali Commission (Denali);
- the Northern Border Regional Commission (NBRC); and,
- the Southeast Crescent Regional Commission.
To our witnesses, I thank you all for joining us today. I have long been a champion of leveraging federal support for economic development via these economic development entities.
Regional commissions are federal-state partnerships that Congress created to implement community and economic development strategies in some of our most disadvantaged regions. By integrating federal, state, regional and local economic development priorities, the regional commissions help communities respond to local economic crises, trends and needs.
Regional commissions work closely with the Economic Development Administration (EDA) to build durable regional economies throughout the country.
EDA and the regional commissions provide critical investments in wastewater treatment facilities, workforce training programs, industrial park road improvements, commercial truck driver training, and broadband expansion—all vital to local economies.
Regional Commissions are an important economic tool to help communities respond to economic challenges. These commissions supplement the work done by EDA to address economic challenges across states and industries.
Although there is currently no regional commission for Washington state, the FY26 Financial Services and General Government Appropriations bill included $1,000,000 to establish a Northwest Regional Commission located in Washington, Oregon, Idaho and Montana.
I support the establishment of the Northwest Regional Commission and hope this bill will soon be signed into law so communities in my district and across the Northwest can access the resources and tools provided by these Commissions to help our regional economy thrive.
The Thomas R. Carper Water Resources Development Act of 2024 included the Economic Development Reauthorization Act (EDRA), which reauthorized EDA and seven existing regional commissions.
Prior to EDRA, EDA administered 11 core programs that funded a range of construction and non-construction activities in both urban and rural areas. With the enactment of EDRA, some core programs remain unchanged, some existing programs have been amended, and some new programs have been authorized.
It appears that some previously authorized EDA programs are no longer accepting new grant applications. In fact, open funding opportunities seem extremely limited.
I look forward to hearing from our EDA witness about the Trump Administration’s implementation of EDRA and how EDA is complying with Congressional mandates.
EDA is the lead agency for the federal government’s Economic Recovery Support Function (ERSF).
EDA manages this role on behalf of the Department of Commerce (DOC) under the National Disaster Recovery Framework (NDRF) and in coordination with the Federal Emergency Management Agency (FEMA) and other interagency partners.
The ERSF integrates the expertise of the federal government to help state, local, tribal and territorial (SLTT) governments, as well as private sector partners sustain and rebuild businesses, bolster employment and develop economic opportunities that result in economically resilient communities after large-scale and catastrophic incidents.
Since the early 1990’s, EDA has received $4.71 billion in supplemental appropriations to support local and regional efforts to recover from natural disasters.
The importance of EDA’s post-disaster work has become painfully clear to me and to the people I represent in the wake of the December floods that devastated western Washington. Local businesses are struggling to rebuild and recover from significant economic losses, and the need for federal support has never been more urgent.
Once a major disaster declaration is approved for Washington, I look forward to working closely with EDA to help the Puget Sound economy regain its footing and ensure our communities have the support they need to recover and thrive.
I look forward to learning more from both EDA and the regional commissions about any improvements that should be made to the federal government’s disaster recovery efforts.
I would also like to hear what regional commissions are doing well.
Thanks again to witnesses for being here, and to the Chairman for holding this hearing.
Vice Ranking Member Figures:
Thank you, Chairman Perry, for holding this important hearing to examine the work and effectiveness of federal economic development programs at the state and local level. These programs allow communities to make critical investments in workforce training, infrastructure, entrepreneurial development and other initiatives essential to advancing sustainable economic growth.
I also want to thank our witnesses for joining us today and for sharing your perspectives on the important work of the Economic Development Administration (EDA) and the federal regional commissions and authorities you represent. We appreciate your time and look forward to learning from your experience administering and engaging with these programs on the ground.
Today’s hearing gives us opportunity to assess how the EDA and the regional commissions are operating following their reauthorization under the bipartisan Economic Development Reauthorization Act, which was included as part of the Thomas R. Carper Water Resources Development Act of 2024.
I am interested in understanding what these programs are doing well, where implementation challenges remain and what improvements could help them work even better for the communities they are intended to serve.
EDA plays a critical role in bringing job growth and economic opportunities to distressed communities in every region of the country. The agency and commissions support workforce development, infrastructure investment, and regional planning efforts that help local economies grow and adapt to new challenges and opportunities. They also promote innovation and competitiveness in local and regional economies, helping communities succeed in the global marketplace.
Despite this important work, EDA had not been reauthorized in more than two decades prior to last year. That reauthorization gave Congress the opportunity to modernize the agency and strengthen its ability to foster economic growth in today’s rapidly changing business environment.
As we will hear from our witnesses today, the work of EDA and the regional commissions impact communities of all sizes, both urban and rural. In my home state of Alabama, we have seen this directly.
In fiscal year 2024, the Appalachian Regional Commission worked in partnership with the Alabama Department of Economic and Community Affairs to support 51 projects in the state totaling nearly $22 million—investing in entrepreneurship and business development, workforce ecosystems, and community infrastructure.
Additionally, just last month, the Southeast Crescent Regional Commission announced five State Economic and Infrastructure Development grants in Alabama, totaling more than two million dollars.
These investments will support water and sewer infrastructure, workforce training and local transportation planning across several counties—projects that will help these communities build long-term economic stability and growth.
As we examine how these programs are being executed and implemented on the ground, it is essential that EDA and the regional commissions have the necessary tools and resources to meet the needs of the regions and residents they serve. We must ensure that these federal investments deliver lasting and meaningful economic development for local communities across the country.
I thank our witnesses for appearing before us today, and I look forward to their testimony.
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