▶ 0:17:07The subcommittee on e economic development, public buildings and emergency management will come to order. The chair asked unanimous consent that I be rec correction authorized to declare a recess at any time during today's hearing without objection. So ordered. Chair asked unanimous consent that members not on the subcommittee be permitted to sit with the subcommittee at today's hearing and ask questions without objection. So ordered.
▶ 0:17:32As a reminder, if members wish to insert a document into the record, please also email it to documents timail.gov. The chair now recognizes himself for the purposes of an opening statement for five minutes. Thanks to our witnesses, each of you for coming here and being here today as we examine the role and effectiveness of the Economic Development Administration, the EDA, and the Economic Development Regional Commissions in distressed regions of the country.
▶ 0:18:01Today we will hear from the EDA as well as six regional commissions. The Appalachian Regional Commission, the Delta Regional Authority, the Northern Border Regional Commission, the Southeast Crescent Regional Commission, the Southwest Border Regional Commission, and the Denali Commission. Now, EDA is the only federal agency established for the purpose of supporting economic development in distressed communities nationwide.
▶ 0:18:28Meanwhile, the regional commissions were set up independently to work in partnership with their member state governments to achieve similar goals, but in regional settings. Other federal departments are also involved in economic development, including the Department of Agriculture, the Department of Housing and Urban Development, and the Small Business Administration. If this seems like a lot of cooks in the kitchen, I certainly think it is. And the list doesn't stop there.
▶ 0:18:54There are newly established commissions for the s for correction southern New England, the Mid-Atlantic region, and the Great Lakes stakes. In fact, our 2023 hearing focused on regional commissions. I predicted that the list of regional commissions would continue to proliferate, and it has. It is not the role of the federal government to pick which communities win and lose. America's private enterprise has historically driven economic development and done a pretty good job at it.
▶ 0:19:22It is the responsibility of state and local governments to facilitate a businessfriendly environment for its con States already have the power to lower barriers for entry by diminishing overly burdensome regulations and the cost of doing business. But here we are even more federal programs than we had just two years ago. And to be crystal clear, I'm not blaming you, the witnesses here today for this.
▶ 0:19:48But it does mean that at the very least we need make need to make sure that your activities are funding of funding are not duplicative. It is also critical to ensure accountability and that clear performance metrics are in place. The fundamental mission of the economic development programs is to create jobs in distressed communities. So ensuring that funding is not used to backfill state budgets but instead is targeted and actually producing jobs is fundamental.
▶ 0:20:17That is why in the reforms passed last Congress, there are clear mandates for EDA to report performance data, including job creation numbers. There are mandates for all the witnesses here today to coordinate and communicate with one another and with other federal agencies involved in economic development. The Thomas R.
▶ 0:20:37Harper Water Resources Development Act of 2024 or WERA reauthorized many of the regional commissions as well as the EDA for the first time in 20 years. Given this new requirement, the American people want to know each of your game plans.
▶ 0:20:54More specifically, I want to know each regional commission's goals, how you are collecting and reporting performance data, and how you are coordinating with the EDA, one another, as well as other federal programs at USDA, HUD, and the SBA. With that, I look forward to hearing from each of you, our witnesses, and the chair now recognizes the ranking member for five minutes for an opening statement. Mr. Figures.
▶ 0:21:20Thank you, Chairman Perry. Uh thank you to all the witnesses for being here today and thank you to all of your your teams uh that have supported your presence here today uh as well. Uh thank you chairman for holding this hearing uh this important hearing to examine the work and effectiveness of federal economic development programs at the state and local level. Uh these programs allow communities to make critical investment in workforce training and infrastructure entrepreneurial development and other initiatives essential to advancing sustainable economic growth across this country.
▶ 0:21:49I want to also thank our witnesses for joining us today and sharing your perspective on the important work of the Economic Development Administration and the federal regional commissions and authorities that each of you represent. We appreciate your time and look forward to learning from your experience administering and engaging uh with these programs. Uh today's hearing will give us the opportunity to assess how the EDA and the regional commissions are operating following their reauthorization under the bipartisan economic development reauthorization act uh which was included as part of the water resources development act of 2024.
▶ 0:22:19I'm interested in understanding what these programs are doing well, where implementation challenges still 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 this country. The agency and commission support workforce development, infrastructure investment, and regional planning efforts that help local communities grow and adapt to new challenges and opportunities.
▶ 0:22:46They also promote innovation and competitiveness at the local and regional uh in our local and regional economies, helping communities succeed in the global marketplace. Despite this important work, EDA had not been reauthorized in over 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 environments.
▶ 0:23:09As 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 more than 50 projects in the state totaling nearly $22 million, investing um investing in entrepreneurship and business development, workforce ecosystems, and community infrastructure.
▶ 0:23:38Additionally, just last month, the Southeast Crescent Regional Commission announced five state economic and infrastructure development grants in Alabama, totaling more than $2 million. 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.
▶ 0:23:57As 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 they need to meet the challenges of the regions and the residents that they serve. We must ensure that these federal investments deliver lasting and meaningful economic development for local communities across this country. I thank our witnesses again for appearing before us today and I look forward to your testimony. Thank Chair thanks ranking member.
▶ 0:24:26The chair now recognizes the ranking member of the full committee, Mr. Larson, Representative Larson, for five minutes.
▶ 0:24:33Thank you, Mr. Chair. I want to thank uh the commissions and the EDA for being here as well. We're going to be voting on the floor at 10:30. I'm going to just ask unscent my whole full full comment into the record and then just uh um point out a few things about the regional commissions which are a federal state partnership that congress Congress created to implement community and economic development strategies in some of our most disadvantaged regions.
▶ 0:24:57U the work that you've done u working closely with the EDA is to build durable regional economies throughout the country. uh EDA and regional commissions provide critical investments in wastewater treatment facilities, workforce training, industrial park road improvements, uh broadband expansion, and a variety of other areas. And they're an important economic tool um for uh local regions.
▶ 0:25:21We reauthorized the EDA um as part of the Tom Carper bill, WA bill um about a little over 13 14 months ago. And in fact, in this budget that we're voting on today or I we've taken so many votes over the last week on appropriations bills, I can't keep track of all of them. We do in fact fund the commissions um moving forward as well.
▶ 0:25:44I think what I want to see is to ensure that the uh work the commissions are doing uh does in fact line up with uh EDA priorities and the EDA priorities line up with the commissions. So, it's I know it's a partnership. It's a a constant uh push and pull to ensure that you're achieving the goals you need regionally, but also achieving the goals uh with your partner uh the EDA.
▶ 0:26:08And so um with that, I'll end it there and again just ask you now consent for my full uh full statement to be in the record. Chair, thanks uh Representative Larson. I now like to welcome our witnesses and thank you again for traveling here today. Briefly, I'd like to take a moment, especially for anybody new, to explain our lighting system. There are three lights in front of you. Green means go. Yellow means you're running out of time, and red means please conclude your remarks.
▶ 0:26:37And if I'm hitting the gavl, well, you don't you don't want me hitting the gavl, right? Uh chair ask unanimous consent that the witness's full statements be included in the record without objection. So orders and I would just encourage you also just be familiar with the microphone put you know in front of your mouth so that we can hear you. Um chair also ask unanimous consent that the record of today's hearing remain open until such time as our witnesses have provided answers to any questions that may be submitted to them in writing without objection. So order.
▶ 0:27:06The chair also ask unanimous consent that the record remain open for 15 days for any additional comments and information submitted by the members or the witnesses to be included in the record of today's hearing without objection. So ordered as your witness correction written testimonies have been made part of the record. The subcommittee asks that you limit your oral remarks to 5 minutes. And just uh as a reminder, we're scheduled to vote at 10:30. We're scheduled to vote at 10:30. Doesn't mean we're going to vote at 10:30.
▶ 0:27:35So, we're going to try and get through as much as we can. Uh, but you can probably rely on a bathroom break sometime in the next hour or something like that just for your personal planning purposes. All right. Uh, as your written testimonies have, we already said that. With that, Mr. Paige, you are recognized for five minutes for your testimony, sir.
▶ 0:27:56Uh, thank you, Chairman Perry, Representative Figures, distinguished members of the subcommittee. Thank you for the opportunity to testify before you on the Economic Development Administration's implementation of the Thomas R. Carper Water Resources Development Act of 2024, which reauthorized EDA through FY2029. The administration is moving to execute on the requirements of the statute and is making swift progress. A few of the authorities have longer lead times, but I'm proud to assure you that EDA is working diligently to put them in place.
▶ 0:28:24With that, I want to run through some of the highlights of EDA's implementation so far. First, at the structural level, EDA has already submitted and Congress has approved a reorganization to stand up the two new offices required by the law. The Office of Disaster Recovery and Resilience and the Office of Tribal Economic Development.
▶ 0:28:44The disaster office helped design EDA's FY2025 disaster supplemental funding notice, which was released on June 4th, 2025, and is currently accepting applications to help areas recover from disasters that occurred in 2023 and 2024, including hurricanes Helen and Milton. Further, the tribal office held a tribal consultation on September 25th, 2025, as part of the process to develop a tribal economic development strategy as required by reauthorization.
▶ 0:29:12Second, many of the statutory authorities were self-executing and became available immediately to EDA. This includes the new authorities related to implementing broadband projects, new eligible entities, expanded eligible activities, and new flexibilities around capacity building and pre-de pre-awward activities. The law also institutionalized many programs where EDA has previously only received appropriations. This includes two programs in particular, assistance to coal communities and assistance to nuclear closure communities.
▶ 0:29:42As the president has made clear, we must ensure the conditions for energy dominance and must course correct after years of decline in critical energy sectors like coal and nuclear. To that effect, among the nation's best opportunities for energy independence and economic growth are our coal and nuclear communities. Both of these communities have special relationships with EDA because of the attention called to them in law.
▶ 0:30:04EDA intends to leverage these relationships to help advance the president's energy dominance agenda and revive these hardworking communities after years of Third, EDA quickly adopted Congress's new definitions for investment priorities and set up a process to notify Congress about upcoming award decisions. We immediately incorporated the five new investment priorities into EDA's funding decisions and updated them on the website and into our funding announcements.
▶ 0:30:30Fourth, EDA is actively working on a new program utilizing the workforce authorities Congress enacted. As was mentioned in a recent EDA blog post and consistent with the America's artificial intelligence action plan, we seek to help American communities transition towards this new new vision by setting aside 25 million in grant funding in support of the AI action Fifth, EDA is actively working to deepen the integration and coordination it already has with the regional commissions.
▶ 0:30:59In fact, in February, EDA and the commissions are convening in West Virginia to foster coordination and dive deeper into three important areas. Closing the urban rural divide on economic development opportunities, supporting development of a skilled workforce that aligns with private sector needs, and ensuring these communities can participate in the economic opportunities afforded by emerging technologies. Finally, EDA is actively working to update its economic distress criteria and corresponding grant m rates.
▶ 0:31:28EDA is currently researching and conducting due diligence and intends to consult with subject matter experts and stakeholders before undertaking notice and comment public rulemaking, which will likely take at least another year. As you are aware, the president's budget request for FY26 proposes to eliminate funding for EDA as part of the administration's plans to move the nation towards fiscal responsibility.
▶ 0:31:49While EDA and the Department of Commerce stand ready to execute this directive, we are committed to ensuring that any funds that are executed, including for the activities I've described, are deployed in a manner that protects American taxpayers and supports communities. In closing, Chairman Perry, ranking member, figures, and members of the subcommittee, thank you again for the opportunity to discuss implementation of EDA's reauthorization. I'm happy to answer any questions you
▶ 0:32:14Chair, thanks the gentleman. The chair now recognizes Miss Mansion for five minutes for your testimony. Ma'am,
▶ 0:32:26thank you. Good morning.
▶ 0:32:27Pull that. There you go.
▶ 0:32:29Okay. Uh, thank you for the opportunity for all of us to be here today. I am Gail Mansion, federal co-chair of the Appalachin Regional Commission, whose mission it is to strengthen economic growth throughout the Appalachin region's 13 state, 423 county region.
▶ 0:32:50We are grateful for the bipartisan support of the committee and for the leadership of the Trump administration as we tackle Appalachia's unique economic challenges. Our work delivers measurable returns on investment and helps narrow the economic gap between Appalachia and the rest of the nation. For every $1 of ARC funding, we attract $4 in private investment.
▶ 0:33:20And second, the regional poverty rate has fallen by more than half since 1960 when nearly one of three Appalachins lived in ARC's federal, state, local partnership is one-of-a-kind and it is proving itself to be highly effective. We prioritize funding across five evidence-based goals.
▶ 0:33:45Building developing a skilled workforce, strengthening infrastructure, expanding the tourism industry, and enhancing community resources. To gauge success, we track and evaluate the outcomes related to these strategic areas. For example, including jobs created, businesses launched, individuals trained, and infrastructure improvements.
▶ 0:34:12I'm pleased to announce that we are on track to meet or exceed all of our outcome targets in our current plan as we get ready to introduce our new plan this year. In addition, ARC evaluates the economic status of our counties each year. Today, the number of distressed Appalachin counties is at its lowest level in 20 years.
▶ 0:34:40By law, we are committed to fund 50 more than 50% of our money to the distressed communities. However, we all we generally exceed that. This year, 73% of our money was directed uh to our most distressed counties in 2025. Two of our uh initiatives that tackle Appalachia's unique challenges.
▶ 0:35:10First, the power initiative, which is dedicated to boosting large-scale industry and job growth in our coal communities. Additionally, it it advances President Trump's executive order on reinvigorating the coal industry.
▶ 0:35:27To date, 473 million in power funding has leveraged 1.8 billion in private ARC's area development program also re remains a cornerstone of our work to tackle infrastructure challenges exacerbated by our rugged topography. supporting construction of roads, water systems, and broadband.
▶ 0:35:52And our Inspire initiative addresses the workforce gap created by the substance use disorder. During President Trump's first administration, he recognized the urgency of this crisis and ARC created To date, Inspire has provided opportunities for over 18,000 Appalachins across our 13 states.
▶ 0:36:18ARC also collaborates with our federal partners, USDA, EDA, DOT, Office of National Drug Control Policy, to name a few. Our programs complement, not duplicate, other federal efforts because we collaborate. And these federal programs address the most distressed areas of Appalachia.
▶ 0:36:43Our funds help leverage gap funding, matching money, and resources to extend beyond EDA to help sustain those communities after the life cycle of the I would like to say in closing that by strengthening the Appalachin region, 26.6 6 million Appalachins.
▶ 0:37:08We bolster not only the economy of Appalachia, we bolster the economy of this country. Thank you,
▶ 0:37:17chair. Thanks, the gentle lady. Chair now recognizes Dr. Wiggins for five minutes for your testimony, sir.
▶ 0:37:25Mr. Chairman, ranking member, and members of the committee. My name is Dr. Corey Wiggins, and I serve as the federal co-chair of the Delta Regional Authority. Thank you for the opportunity to appear before you today, discuss how we can achieve smarter federal spending, reduce duplication, and ensure that economic development investments deliver meaningful and lasting results for the communities we serve.
▶ 0:37:45The Delta Regional Authority serves 255 counties and parishes in eight states, including Alabama, Arkansas, Illinois, Kentucky, Louisiana, Mississippi, Missouri, and Tennessee. At its core, DRRA operates as a federal state partnership designed to align regional economic development priorities. Every five years, by statute, we develop a regional development plan with public input and approval by the governors of our eight states.
▶ 0:38:13Our current plan ensures that our investments are not isolated transactions, but part of a coordinated regional strategy focused on infrastructure resilience, workforce development, business competitiveness, and regional capacity. From fiscal years 2024 and 2025, our major investment programs produce measurable results.
▶ 0:38:34For example, the state's economic development assistance program, one of our most most diver diverse investment tools, is expected to improve public improve public infrastructure that will impact more than 150,000 families, train approximately 3,000 workers, and result in the creation or retention of almost 7,000 jobs.
▶ 0:38:55Through our community infrastructure fund, DRRA investments will improve critical local infrastructure for more than 100,000 families, support the training of over 1,000 individuals, and help or retain more than 14,000 jobs. And through our workforce development program, we invested in institutions that would train more than 5,000 individuals and support nearly 8,000 jobs across the region. While these data points illustrate the scope of Dr.
▶ 0:39:23DRA's impact in communities, these investments go much further. For example, in northeast Louisiana, a $300,000 DRRA investment leveraged nearly $1 million in additional public funding to modernize the electrical system at a regional trauma and stroke center, serving more than 340,000 residents. That single project strengthened healthcare delivery, protected more than 700 jobs, and reinforced regional medical capacity.
▶ 0:39:51In Alabama's black belt, our investment in water, sewer, and roadway improvements in Union Springs, Union Springs, address long-standing public health and infrastructure failures, improving daily living conditions for residents while positioning the community to attract private and public capital for future growth. More recently, Congress provided $2 million in DRA to DRRA through supplemental EDA funding for disaster recovery and infrastructure restoration.
▶ 0:40:17Those funds are now supporting recovery efforts across five communities and four states, helping more than 17,700 households to rebuild and stabilize after federally declared disasters. To ensure effectiveness, DRA also invests in local capacity, not just projects.
▶ 0:40:34In 2024, DRA's local development district technical assistance program supported the 44 local development districts in our region and resulted in the communities securing more than $50 million in combined federal and state investments. Nearly 90% of those funds go toward critical public infrastructure and workforce systems. We also operate leadership and technical assistance programs that strengthen communities capacity develop highquality projects.
▶ 0:41:00This early investment improves results, minimizes administrative waste, and ensures federal resources are aligned with projects that are viable, sustainable, and locally supported. Regional commissions coordinate across federal, state, and local systems to ensure that national policy and regional priorities are responsive to this distinct conditions and challenges of the communities we serve. We operate where federal policy meets state leadership and local implementation.
▶ 0:41:27From that position, we help reduce duplication by ensuring that investments in infrastructure, workforce, health, and business development reinforce one another rather than compete or overlap. In closing, DRA's value is measured not only in dollars investment invested, but in systems that help rural and distressed communities attract capital, manage growth, respond to disasters, and participate more fully in the national economy.
▶ 0:41:53We stand ready to work with this committee to ensure that federal economic development policy remains efficient, effective, accountable, and responsive to the communities that need it most. Thank you for the opportunity to testify. I look forward to your
▶ 0:42:08Thank you, Dr. Wiggins. Mr. Saunders, you are now recognized for your five medicine testimony, sir.
▶ 0:42:13Thank you, Mr. Chairman, Mr. Ranking Member, members of the subcommittee. My name is Chris Saunders. I'm proud to serve as the federal co-chair of the Northern Border Regional Commission. As you've heard from my colleagues, the regional commissions exist as federal state partnerships and ours in particular serves the economic and community development needs in the northern counties across Maine, New Hampshire, New York, and Vermont. As with our peer commissions, we operate competitive grant programs aimed at supporting locally driven economic development initiatives.
▶ 0:42:43You know, by design, the regional commissions utilize a very highly collaborative model for directing federal public investment. In our case, particularly to rural America, by requiring the participation of governors and member states in the operation of our commission, this structure demands that states see themselves as true partners with the federal government.
▶ 0:43:04And as a result, rather than scattered investments serving the needs of one particular state, common themes of regional economic need emerge and receive support. I think it's this structure along with the flexibility that Congress has granted commissions which allows NBRC to deliver assistance in a manner that not only reflects the needs but the capacity constraints of the communities in our region.
▶ 0:43:30Uh I'm happy to highlight one such example uh which is the forest products industry that's really emerged as one of the defining areas of investment for our commission. For generations, wood products and paper industries were an important driver of the economy across northern New England and New York. Over the past four decades, uh these industries have really faltered.
▶ 0:43:53Pulp and paper mills, often the predominant employer in small towns, uh they've closed, resulting in job losses both at the mills, uh as well as for foresters, loggers, and the communities at large. And what we've heard from local leaders and industry stakeholders that's made clear about this situation is that these economic challenges did not arise overnight. And at the same time, there are no quick fixes to dealing with these job losses.
▶ 0:44:22Instead, what local leaders and communities have advanced is a vision of innovation and economic diversification. Uh, Congress has tasked NBRC to target resources to support this vision, which the commission's done through specific grant offerings that support innovation and infrastructure development in the forest industry. And we're starting to see the results of this approach. They're becoming clear. Targeted investments are transforming paper mills into factories that make new materials from wood products such as housing insulation.
▶ 0:44:52Uh we have uh wood products uh made from wood fibers, housing insulation, new building materials, a host of other products uh which in a state like Maine, the main forest products council has shown that between 2019 and 2024 while paper manufacturing sales have declined by over 40%.
▶ 0:45:11Wood product manufacturing, including the products I referenced, have increased by Our commission has played a role as one of the funders in this market evolution and it represents what's possible through sustained federal investment in a specific sector.
▶ 0:45:28Taking a step back and looking at the commission's work as a whole, we have over 437 active awards uh that include projects such as transportation infrastructure, drinking water and wastewater infrastructure, workforce development, business lending, among many others. In my prepared testimony, I shared examples of some of the specific types of awards we've made in recent years. Um, our appearance in 2003 was referenced uh at the subcommittee and I'm happy to provide an update to some of the statistics NBRC shared at that time.
▶ 0:45:58Uh, in the past two years of the nearly 200 awards from NBRC's catalyst program, 50% have been made to infrastructure. Uh those projects were leveraged at nearly a 1:2 ratio, bringing in an additional $273 million in non-federal investment into our 75% of NBRC awards were made to communities of under 5,000 people and 66% were made to applicants of distressed communities.
▶ 0:46:25I hope what you've heard is that regional commissions can offer the ability to focus in a targeted way on a sector that's important to the region that they serve. They also have a governance model that really requires collaboration and in our estimation produces a very highly effective way of delivering resources to rural America. Thank you for the opportunity to testify and I look forward to your questions.
▶ 0:46:48Thank you, Mr. Saunders, who now turn to Dr. Reid for your testimony. You recognize five minutes, ma'am.
▶ 0:46:54Good morning, Chairman Perry, ranking members and members of the subcommittee. Thank you for the opportunity to testify on behalf of the Southeast Crescent Regional Commission. When I last appeared before this subcommittee in STRC was just getting started. At that time, our focus was on establishing the governance, accountability, and data systems necessary to deploy federal resources responsibly. Today, STRC marks four years of operations.
▶ 0:47:23Statutoily, STERC serves 428 counties across seven states and covers more than 210,000 square miles where 51 million Americans call home. Nearly 40% of these counties are classified as economically distressed where economic growth is constrained by workforce shortages, infrastructure gaps, and limited access to essential services on which employers STRC has prioritized strategic
▶ 0:47:53discipline over speed. Recognizing that effective economic development requires alignment, not duplication. Fiscal investments have followed a structured process. SRC's planning and outreach efforts included sustained coordination with governor's offices, state economic development agencies, and local development districts.
▶ 0:48:17Regionwide data collection efforts allowed STRC to target unmet needs and prioritize projects that deliver measurable economic returns. Furthering this approach, SCRC conducted a 428 county regional health assessment. Three consistent findings emerged from this data. Strong labor markets are foundational to economic stability.
▶ 0:48:44Two, federal dollars deliver the highest return when they strengthen organizations executing the work on the ground. And three, regional coordination improves efficiency and returns on investment. One of the most urgent constraints validated through this assessment was the shortage of medical professionals exacerbated by rural hospital closures.
▶ 0:49:08In response, SCRC developed the Crescent Care Collaborative and partnered with the Department of State to place qualified physicians in designated shortage areas. This targeted workforce strategy is funded through application processing fees, allowing it to operate without federal costs and administrative To date, 397 physicians have been placed in highnee counties, helping stabilize essential services and reversed stagnation
▶ 0:49:39where economic growth was at risk. In addition, SCRC has completed two grant cycles of the state economic and infrastructure development grant program, investing nearly 53 million on 139 projects.
▶ 0:49:55For example, in Bluffing County, Georgia, 1.2 million will fund a workforce training center that will train more than 200 individuals in agriculture and small business development with a focus on transition transitioning veterans into agricultural careers in Henry County, Alabama.
▶ 0:50:15$2 million will develop a workforce technology center providing hands-on training and dual enrollment that creates seamless career pathways for students and adults. In Lauderdale County, Mississippi, $475,000 will expand training in diesel, automotive, and aviation maintenance, supporting 159 new jobs, leveraging nearly $33 million from local investments.
▶ 0:50:44and Clark County, Mississippi, $600,000 for a conf coffer dam to restore Ausa Lake, reviving tourism, and retaining jobs. As outlined in the five-year strategic plan, investments are evaluated on access to infrastructure and services, job creation, and retention.
▶ 0:51:05The two grant cycles funds leverage significant state, local, and private investment producing a return of $2 per every federal dollar. These positive returns on investment are tied to quantifiable outcomes in jobs, infrastructure, and economic capacity. SCRC is design is designed for accountability and efficiency.
▶ 0:51:30The commission maintains a lean federal footprint while governors of member states play an active role in setting priorities and overseeing investment. This governance model ensures local relevance, minimizes administrative duplication, and aligns federal spending with state economic strategies. I appreciate the opportunity to report on STRC's growth and strengthen this region critical to America's long-term economic growth. Thank you for your time.
▶ 0:52:00I look forward to your questions.
▶ 0:52:09All right. We're I was considering uh we'd like to get all of you done, but I don't know if I can. You can see the board over there. Um I know Washington works on a different timetable, but um that's why nobody's ever on time around here, so I'd like not to feed into that too much. But uh I I'll just say thank you uh Dr. read and uh we're going to we're going to let uh Mr.
▶ 0:52:31Sanchez testify and see what we got left and then we'll figure out Fenton if if you can go before before we have to um adjourn or recess for a little while. So go ahead uh Mr. Sanchez you are recognized five minutes.
▶ 0:52:46Thank you chairman be as quick as I can. Uh good morning Chairman Perry, rank and members and members of the committee. Thank you for the invitation to testify today be on behalf of the Southwest Border Regional Commission. I'm Juan Sanchez. I am the commission's federal co-chair and I'm honored to share our progress and challenges as we work to foster economic development across the Southwest region. The SBRC is a partnership between the federal government and the states of Arizona, California, New Mexico, and Texas.
▶ 0:53:13Congress created the commission in the 2008 Farm Bill and most recently reauthorized it under the 2024 award bill. The SBRC's mission is to improve economic infrastructure, foster economic development, and help create jobs by addressing barriers to growth, and providing federal grants distressed communities. The commission's region comprises 103 counties and approximately 36 million people across our four states.
▶ 0:53:40The commission evaluates each one of our counties on a yearly basis, utilizing their economic data, including poverty rates, per capita market income, and unemployment rates, and compares them against counties nationwide. Of our 103 counties, 43 were classified as economically distressed, 44 as transitional, and 13 as attainment. Commissionwide, the average poverty rate was 18%, significantly higher than the national average of 12.4% 4% and representing 5 million people who live in poverty.
▶ 0:54:11The average three-year unemployment rate for the region was 5.2, also exceeding national averages, and our per capita market income was 20% lower than the national average in 2023. These challenges are most acute in distressed counties. Although they represent 11% of the population, they account for approximately 21% of the individuals living in poverty. These counties experience a poverty rate of 24% twice the national average.
▶ 0:54:39Additionally, within our region, we have unique and isolated distressed communities. Colonas, which is a Spanish word for neighborhoods, are distressed communities located within 150 miles of the US Mexico border. These communities are inhabited by individuals and families with very low income. They often lack a governance structure and a meaningful tax base. Many residents live without adequate housing, essential services such as potable water, plumbing, sewage, utilities, broadband, and paved roads.
▶ 0:55:09Approximately 800,000 people in Colonia lack adequate drinking water and sanitation. Onethird of those have no access to water or wastewater facility. Even those with access face water quality and quantity issues posing serious health threats. The commission also includes 51 federally recognized tribes. Collectively, these tribes experience a poverty rate of 44%.
▶ 0:55:34Which is almost four times the national average and an unemployment rate of almost three times the national average. Likewise, these tribal communities face critical infrastructure challenges with limited access to drinking water, sanitation, roads, and broadband. Another critical challenge faced by the commission's region uh is access to health care. All 103 counties in our area contain a federally designated health professional shortage area.
▶ 0:56:01These shortages are most pronounced in our distressed counties where 71% are classified as whole county shortages, meaning the provider shortage affects the entire population. The commission views disparities as a fundamental barrier to workforce participation, economic stability, and long-term community resilience. We surveyed our region meeting with universities, nonprofits, uh, local officials to identify the most common barriers to economic growth.
▶ 0:56:31What we've heard constantly was the capacity gap. Communities lack technical, managerial, and financial capacity. Distressed communities often report that their minimal staff is overburdened by administrative duties. Capacity constraint prevents them from maxing funds which would they would otherwise qualify for. The high cost of infrastructure and matching requirements is another barrier. These are the among the poorest communities in the nation which lacks a tax base to generate matching funds.
▶ 0:56:59The high cost of infrastructure projects often require these communities to piece together multiple funding sources adding to the administrative burden. These communities feel that the grant process is an uneven and unfair playing field as they are disadvantaged when competing against larger municipalities that have grant writers, technical support uh and grant Uh in response to those barriers, the commission directed our grant funding towards distressed areas.
▶ 0:57:26In 2025, we awarded our first grant cycle uh awarding 11.3 million federal funding over 22 projects across the region. 78% of these awards were directed to economically distressed communities. We invested in water and wastewater systems that expanded access to clean water, rural roads, and transportation alternatives that improved safety and connected communities. Uh we invested in equipment to train high need professionals such as engineers, chemists.
▶ 0:57:56Uh we invested in new medical clinics to expand access to healthcare and shortage areas. Overall, our $1.3 million investment will leverage an additional 10.2 million in local uh nearly a dollar for-doll match. The commission estimates that investment supports 700 to 800 permanent jobs, 500 to 600 uh retained positions, and create uh 200 to 250 temporary jobs. We'll assist more than400 small businesses, individuals.
▶ 0:58:26Uh we receive training, technical assistant, and infrastructure support. I want to thank our governors, members of Congress, and the commission staff for their occasion and time. I look forward to working with Congress and pleased to answer any questions.
▶ 0:58:39Chair, thanks, gentlemen. You can see the clock says we got three minutes. I know I don't like going when it says zero, right? You don't want to miss this stuff. So, uh I apologize, Miss Fenton. I promise you will be the star when we return. Uh my best guess is probably 10 after to quarter after. If we're lucky, you can watch. It's a three vote series. This is the first one you can watch on the board. But at this time, the subcommittee shall stand in recess subject to the call of the chair.
▶ 1:46:12The subcommittee on economic development, public buildings and emergency management will reconvene the previously recessed hearing. Miss Fenton, you are now recognized for five minutes of testimony.
▶ 1:46:26Wonderful. Thank you. Thank you everyone for the opportunity for the regional commissions to be here with you today. My name is Jocelyn Fenton and I serve as the director of programs for the Denali The Denali Commission is the only Alaska headquartered federal agency and a 25year federal state partnership focused on the most remote high-cost communities in the nation. Alaska's communities are lynchpins for Arctic posture, disaster response, and resource development.
▶ 1:46:52So, every federal dollar invested there has both local and national security Reauthorized in 2024, the commission is tightly aligned with President Trump's executive orders on unleashing Alaska's resource potential, strengthening American energy, and improving maritime and transportation infrastructure, among others. The commission stretches limited resources by braiding multiple federal tools into a single streamlined entity for rural infrastructure.
▶ 1:47:20The commission blends congressional appropriations, interest from the Trans Alaska pipeline liability fund and inter agency transfers to build comprehensive projects instead of scattering one-off grants. Section 311 transfer authority and the section 305C gift authority allow multiple federal partners to pull even small amounts of funding into a single project management pipeline, reducing fragmentation, duplicative designs, and competing timelines.
▶ 1:47:47Annual work plans go through a public comment process and are approved by commissioners and the secretary of commerce, ensuring alignment with congressional intent, administration priorities, and communitydriven needs. With these tools, the commission currently manages more than 300 active projects totaling roughly 386 million while operating with a 1.4% administrative overhead, an efficiency level that rivals or exceeds many larger programs.
▶ 1:48:14The Denali Commission's core value proposition is partnership. Federal, tribal, state, local, and private partners all leverage a shared platform instead of building parallel Through direct partnerships with the Alaskan Native Tribal Health Consortium, Alaska Energy Authority, and Alaska Village Electric Cooperative, the commission has deployed $100 million to modernize bulk fuel tank farms that power rural clinics, schools, and homes.
▶ 1:48:40Collaboration with the Department of War's Innovation and Readiness Training Program has delivered dual-use projects like the Shephard Point Road extension and port complex in Cordova, combining local emergency access with national readiness and strategic defense benefits. Following Typhoon Halong, the commission convened with the National Guard, US Coast Guard, FEMA, State of Alaska, and tribal partners to align recovery investments and explore a design for regional network of multi-use emergency response centers and public safety buildings in western Alaska.
▶ 1:49:10These partnerships mean that agencies do not have to build separate project pipelines for the same communities, reducing duplication and accelerating delivery in places where construction seasons are short and logistics are In rural Alaska, a single dock, powerhouse, or clinic often has to do the work of many facilities. That's why the commission focuses on projects that serve multiple purposes, stretching each federal dollar across several missions.
▶ 1:49:36This dual and multi-use approach strengthens local resilience while also advancing national security and economic priorities. We're emphasizing three main areas. First, infrastructure hardening. We're upgrading energy systems, transportation links, and emergency communications so that docks, barge landings, air strips, and public buildings can operate as reliable staging areas when disasters strike. Second, technology and innovation.
▶ 1:50:01We're partnering with National Energy Labs and others to test cold water cold weather technologies, develop value added local lumber and biomass products, and explore energy resilient data and communication facilities that can operate off-rid or in islanded systems. And third, resource and access corridors.
▶ 1:50:19We're investing in Arctic and inland roads, bridges, and marine facilities that can open access to critical minerals, timber, and fisheries, while also ensuring redundant routes for delivering fuel, food, and medical supplies during emergencies. The commission's waterfront investments illustrate this multi-use strategy.
▶ 1:50:37Since 2022, approximately $16.5 million has been directed to marine infrastructure, leveraging more than $70 million from other sources to build barge landings, small ports, and related facilities over two dozen coastal communities. These assets function much like rural highways and intermodal facilities in other states. They are often the only freight and fuel lifeline for communities with no road access with direct implications for emergency response and federal disaster costs when they fail.
▶ 1:51:07Broadband and communications are another dual-use priority. The commission has helped secure 187 tribal spectrum licenses and more than $200 million in broadband related funding, coordinating with NTIA, USDA's Reconnect program, FEMA, tribes, and private providers. These investments reduce dependence on single points of failure and create redundant land-based fiber routes that could keep communications functioning during severe weather and emergency events.
▶ 1:51:35Recently expanded authorities allow the commission to support housing and commi uh critical community facilities that address overcrowding and homelessness in rural areas. Health clinics, community buildings, and public service facilities frequently double as emergency shelters and coordination centers, mirroring the multi-use demands of public facilities nationwide, but under far more extreme conditions.
▶ 1:51:58The commission's inter agency transfer model, low overhead, and dual use focus offer a practical template for stretching limited federal resources in high-cost, high-risk environments. Instead of multiple agencies, each paying for their own procurements, design teams, and mobilizations, the commission provides a shared platform where costs and risks are spread and investments are sequenced logically across sectors: energy, transportation, communication, and community facilities.
▶ 1:52:27Projects are prioritized through clear strategic evaluation process that ensures the most consequential dual use facilities rise to the top. Those that strengthen community well-being while advancing national security and resil resilience by coupling infrastructure with targeted technical assistance. For example, working with the Alaska Small Business Development Center to build local business capacity. The commission turns place-based federal investments into long-term private sector opportunity.
▶ 1:52:55For more than 25 years, this model has shown when Congress empowers a locally grounded, partnership-driven entity with flexible tools and clear authorities, it is possible to reduce duplication, deliver durable infrastructure, and multiply the impact of every federal dollar. Thank you for your attention and for your continued support of the commissions as proven efficiency models for rural infrastructure and national
▶ 1:53:18Chair, thanks the gentle lady. Thank you all for your testimony. We will now turn to questions for our witnesses. as the chair will recognize himself for five minutes for questions. And I was told by one of my colleagues, uh, Representative Quayor from Texas to be particularly rough on Mr. Sanchez. Um, and while I considered what he was telling me, I thought, well, this committee really, look, we might not agree on everything, but it's not about being rough, it's about getting answers.
▶ 1:53:46So, when you see Representative Quayar, uh, Mr. Sanchez, I hope that you will tell him that we treated you with the dignity and respect and decorum that the institution uh so warrants. Uh with that, as I started off at the 2023 hearing, through no fault of your own, Congress has created all your agencies that seem duplicative of one another one or another uh federal program.
▶ 1:54:12The Water Resources Development Act of 2024 added even more regional commissions, but did include clear requirements for transparency and coordination, which I think is a good thing. I'm going to turn to Mr. Page. Uh, section 2212 of WERA, the Water Resources Development Act of 2024 requires the Secretary of Commerce to convene a meeting with the regional commissions within one year of enactment and every two years thereafter.
▶ 1:54:40I understand EDA has set a date for the first meeting and maybe that's the one you referenced uh in February in West Virginia, but can you provide the committee any details on the meeting, what you plan to discuss, why if there's a good reason why there was a delay in scheduling of the first meeting and uh and and and we'll get into a conversation depend on what you say there, sir.
▶ 1:55:04Uh absolutely and thank you for the question. Uh so yes, the convening in West Virginia in February is the convening to fulfill the requirement in the statute. Uh I've been using the opportunity here today to uh pigeon hole some of my other panel members here to make sure that they will be in attendance. Um obviously the real intent of the uh the legislation there was to improve coordination and I think we that was obviously what we will be focusing on and we will do it through a report that follows it.
▶ 1:55:31But I think most importantly we don't want this to just be platitudes about how we can better coordinate. We are going to focus on three specific topics. How do we ensure that we are closing the urban rural divide? Many of the areas represented by the commissions here uh represent some of the areas that have specific and very acute distress. We want to make sure they don't fall further behind. Uh the second topic is going to be addressing workforce issues. Uh so how do we make sure we have a skilled workforce that meets private sector needs?
▶ 1:55:59Uh and finally, obviously the economy is changing with the advent of new technologies. We want to have a fruitful discussion around how we can best support uh making sure that these communities can participate in the economy as these emerging technologies develop. A subcurrent throughout every one of those topics will be how do we coordinate in addressing those acute I appreciate that.
▶ 1:56:24Um, and and I know you're fairly new to the operation and I understand you kind of have, as you mentioned in your opening remarks, somewhat of Damocles sword hanging over your head, but I appreciate that you're on the mission now and focused on it as you should be. Can't predict the future. Um, do you actively communicate on any kind of regular basis with your colleagues here uh from the various commissions and and is there a tenor to that?
▶ 1:56:50Is there like an agenda that we might be privy to at some point?
▶ 1:56:55Uh, yes sir, thanks for the question. Um, we do not actively communicate at a leadership level. However, our regional staff are communicating on a project by project basis all the time. Um, we have several working partnerships with uh particularly with ARC where we will jointly manage a project so that we can both reduce the burden on applicants but also be more efficient at a federal level.
▶ 1:57:18We also do some of that work with DRA and on the ground some of our partners and uh our local staff are working with many of these other
▶ 1:57:26So I'm running out of time here, but performance metrics, I've talked about this before. I think that the American people are due, you know, they they want to see how well you're doing, right? And that's appropriate. We are told that the core commission of your agencies is to support investment in distressed communities that leverage private investment and create long-term jobs. At some point, if these investments are working, we should see counties or areas moving out of the distressed column.
▶ 1:57:51Is there a can each of you at some point provide this committee for the record snapshot maps of your areas that show some progression of how you how well you've done over the course and I know some of the commissions are fairly new but at least a starting point so we have a benchmark and then we can look at some goals because I would think and look maybe you can tell me look representative the map is not indicative of our success and this is why or we don't really use that in that in that fashion But but
▶ 1:58:22I will tell you for a quick snapshot, members of this committee look at that to determine if you're being successful or not. So if we're wrong, we need to know. And if there's a better way of doing it, we need to know. But if there isn't, then we want to see we want to see how you're progressing. Can and and look, you can all just kind of raise your hand or tell me, you know, I can't do it or I can't do it because I don't want you to I'm beyond my time here. So is that something each one of you can provide?
▶ 1:58:47Yes, we'll give that to your office.
▶ 1:58:49All right, Miss Fenton. Yes, sir.
▶ 1:58:51Yes. Thank you, ma'am. All right. Um, I will now turn to the rank.
▶ 1:58:56Yeah. The ranking member, Mr. Figures. Here's five minutes of questioning.
▶ 1:59:00Thank you, Mr. Chairman. Mr. Paige, I'll start with you. Uh, I represent Mobile, Alabama as part of my district, uh, which is right along the Gulf Coast, right in Hurricane Alley. So the work of the office of disaster recovery and resilience uh is something that is particularly relevant to us and and obviously you know the 2024 reauthorization of the public works and economic development act established uh that office within EDA and it is expected to report annually on EDA's activities and disaster response uh here to Congress.
▶ 1:59:28Uh so can you briefly give me an update on the status of the office of disaster recovery and response and uh how many people are employed there uh as well as uh what disasters they've responded to? Yeah, absolutely. And uh thanks for the question, Congressman. Um the office has been officially established as part of our reorganization that was submitted to Congress earlier this year. Uh we have the exoskeleton. We're working through the particulars internally about all of the authorities.
▶ 1:59:56Uh because we did a comprehensive reorg of the whole agency as a result of the two new offices. Um we actually on net we reduced the number of uh organizational offices within the organization by six even when adding the two. Um but the team and the expertise was brought to bear in the development of our 2025 disaster supplemental no not notice of funding opportunity and it is a novel approach uh that I think is really designed to both leverage the expertise that EDA has built built
▶ 2:00:26through some of its programs that we've developed tech hubs and recompete so we can go large scale it focuses on kind of our traditional programming and infrastructure and it also can provide capacity assistance and it allows us to seamlessly meet communities where they're at along that continuum. That is a direct uh development based on the expertise the engagement of that office of disaster recovery in supporting different disasters. Um one in particular is we have been on the ground supporting the FEMA designated mission in North Carolina.
▶ 2:00:56That has been a big focal point uh following Hurricane
▶ 2:01:00All right. Thank you. We'll follow up to see if we can get some um some more specifics with you regarding it, but I'm pressed for time. Um Mr. Mr. Wiggins or Dr. Wiggins rather um my hometown regional authority uh my home state regional authority but um infrastructure remains a major barrier to growth in in Delta communities. You mentioned in your opening statement some of the work that you guys have done in Union Springs, Alabama, which for those that don't know, that part of the country uh suffers from some very unique um barriers from from an infrastructure standpoint.
▶ 2:01:28The a lot of those communities are too rural for traditional sewer systems and the soil composition in that part of the country is actually not conducive to septic tanks. Um and so you end up with large swaths of people that have some significant uh sewage issues uh which creates some of those health concerns that you guys have helped address. Uh can you speak uh a little bit to uh the investments in water and sewer and broadband transportation to support long-term economic development particularly in in those sorts of areas?
▶ 2:01:55Sure. Thank you. Uh what I will say what we're seeing across our region is there is a strong need for some of the basic building blocks of economic development water sewer. Uh we see some of our communities who are progressing well. They have those basic building blocks. Um but it's been a struggle in some of our rural communities.
▶ 2:02:13Just to give an example of how much need is out there, our annual appropriations last year was $31.1 million, but for our community infrastructure fund, which only does public infrastructure, our request from the region was about $245 million from the region. And so speaking to the need, um we are leveraging our funding um at DRA by partnering with our federal partners. Uh there are even some times where we able to part with regional commissions like ARC, uh where there's some overlap.
▶ 2:02:42And so I think the need exists. Um we're meeting the need as best as we can, not only from a funding standpoint, but also how we support communities with some of the technical assistance and support they need uh along the way in the project development process, too.
▶ 2:02:55Yeah. Well, we we certainly appreciate the work that you guys are doing down there. Uh Dr. Reid, EDR allowed EDA to lower cost sharing requirements for small and economically distressed uh communities. And has that uh lower cost sharing requirement impacted the number or volume of applications or the types of projects that you guys are able uh that have been proposed to you guys?
▶ 2:03:14Yes, it has had a positive effect on the number of applications. In round one, we received 363 applications and only uh granted 56 um projects. In uh round two, 357 applications and 83 projects.
▶ 2:03:35Um and many of those that cost share has been a positive factor in not only the applications but in the execution of the grants themselves. Well, thank you. Uh, I appreciate the work that you guys do. Um, and look forward to working with you guys um, in ways to better support what you guys do and the service you guys provide to this country. Thank you. I yield back.
▶ 2:03:58Chair thanks gentlemen. The chair now recognizes Representative King Hans from the Northern Marian Islands. It's a long way from home.
▶ 2:04:06It sure is. Uh, good morning everybody and and thank you for your testimony today. And I want to especially thank Mr. Paige. Uh and you know we I had a little bit of an opportunity to chat back in the waiting room back here. Um so in the Marianis EDA investments have supported economic recovery, workforce development and long-term resilience.
▶ 2:04:28These include the Gapan revitalization project, the Marpy tourist sites improvement project and the OI sports complex sports and cultural complex which are central to revi revitalizing our tourism industry.
▶ 2:04:42EDA has also invested in economic diversification and workforce readiness through projects such as the new department of finance economic resiliency center, new educational facilities at Northern Mariana's College, and the Northern Marianas Technical Institute, a public school system vocational training center, amongst others. For a small, remote, and highly distressed territory, these projects are foundational.
▶ 2:05:06They support small businesses, expand workforce training, strengthen government capacity, and help the Cinema build a more resilient economy beyond tourism. And so my focus is ensuring that the flexibility Congress provides is translating into timely support for territories like the CNMI and that the ongoing investments are protected. So, you know, right now our economy is at the brink of collapse. Some would say that it is it has already collapsed, right?
▶ 2:05:36And so the government is operating under severe cash flow constraints and at this point in time must uh front costs for EDA funded projects. So under EDA's original grant procedures, the CNMI was able to submit reimbursement requests based on co costs incurred allowing these projects to move forward through phase um dispersement.
▶ 2:06:00But e from what I've been told, EDA has since changed this process to require proof of payment before reimbursement is issued, which has created significant challenges for an economically distressed government, particularly given what's happening with the economy and uh to the point where we've the government itself has had to take out a loan to be able to cover some of these costs, right?
▶ 2:06:24And so I just kind of want to understand the rationale for that change and and whether there is consideration for what the CNMI is going through right now as it relates to some of these processes.
▶ 2:06:40Yes, thank you for the uh question, Congresswoman, and uh again, appreciated talking in the back there a little bit about the challenges that you do face and uh I know we are tracking it. Um it's, you know, as I look here at just the investments that EDA has made in the area, uh it's about $100 million that's expected to create or retain almost 5,000 jobs, which I did not realize until we were just talking is somewhere between 8 and 12% of your total population out there. So I I understand the impact these can have.
▶ 2:07:08Um to your specific question about the uh way that we can make payments, we do operate on a reimbursement model. Um, and that is really so that we can make sure that we are operating and protecting the American taxpayers's interest. Uh, when we make an award, uh, we obviously lay out terms, conditions, the dispersement of funds is one of our final checks to make sure that those terms are being met and adhered to. And it's a a good way of fiscal control.
▶ 2:07:36Um and uh also for us to make sure that the projects are progressing and that we are not leaving any cost uh out there that shouldn't be paid, but we're also not paying costs that weren't uh applicable. Um there are some limited instances where we can do advancements and we're happy to work with you and your staff and uh and the grantees to do to explore those.
▶ 2:07:56Thank you very much for that. Um so it's been very fascinating to listen to the different commissions in particular. I was fascinated by the con, you know, but by the presentation of the Denali commissioner. Um, and so I just wanted to ask right because we don't have a commission that directly speaks to the territories and the challenges obviously are very unique in comparison to what you know Appalachia is experiencing or what Alaska is actually very similar to what
▶ 2:08:26Alaska is experiencing. So I wanted to kind of hear from your perspective, Mr. page. How do these partnership improve project delivery and outcomes in distress regions when you when you do work with these commissions?
▶ 2:08:43Absolutely. So the partnerships with these commissions tend to bring localized knowledge um about the challenges for these very distinct geographic regions. Uh we obviously have state representatives that cover the entire country and the territories uh including CNMI. Um I think the regional commissions can help in a doubling down and bringing a on the ground perspective that can help with that.
▶ 2:09:09Uh that being said, I do know that we have an outstanding economic development representative that does cover all the uh territories in the Pacific. uh he is uh make sure that he is spending time to be very attuned to the challenges so that he can speak to it uh and recognizes that they are unique versus many of the other parts of the country.
▶ 2:09:31I'm out of time. I yield back.
▶ 2:09:33Chair. Thank you, gentle lady. The chair now recognizes the representative from the District of Columbia, Miss Norton.
▶ 2:09:42Thank you, Mr. Chairman. I strongly oppose uh the Trump administration's efforts to gut the federal workforce and the federal contractor workforce and to move federal agencies out of the District of Columbia. Last year, DC lost at least 24,000 federal government jobs.
▶ 2:10:11Deputy Secretary Page How is the Economic Development Administration working to support the creation of new jobs and industries in the District of Columbia?
▶ 2:10:29Uh, thank you for the question, Congresswoman. Um, we are tracking the uh what you cite here. Um, at the end of the day, EDA works, the projects that EDA receives are developed from the ground up consistent with economic development strategies and projects that can meet the unique distress characteristics of a community. So, a workforce disruption, uh, unemployment levels, things like that can be a qualifying event.
▶ 2:10:58and our local uh Philadelphia regional office, I believe, is already working with entities in the district to explore projects. I know that there's one that's already in consideration, but I'd also say longer term, um, the District of Columbia and the National Capital Region is not actually covered by an economic development district where you would actually have a comprehensive economic development strategy that would lay out the long-term goals for diversification of the economy and and strate strengths, weaknesses, opportunities, and threats.
▶ 2:11:28Um happy to report that we've actually engaged with some local entities uh most notably the Metropolitan Washington Council of Governments to start discussions around how they could actually start to develop a Saids and create an EDDD so that they can lay out those strategies and identify the unique programming that can support the
▶ 2:11:49Thank you uh Deputy Secretary Page and I yield back
▶ 2:11:54chair. Thanks a gentle lady. The chair now recognizes a gentleman, Representative Barrett.
▶ 2:12:00Thank you, Mr. Chairman. Thank you, uh, to the panelists that are here. Um, appreciate your, uh, testimony. I served in the state legislature before coming here to our nation's capital, and we had some robust debates about economic development back home in Michigan. Um, you know, I kind of start from the position that government doesn't create jobs. government can create government jobs, but private industry creates the jobs that ultimately pay for government jobs.
▶ 2:12:27Um, so you might maybe consider me a bit of a skeptic around some economic development programs and some of the lofty prognosis of what they are set to bring in, what, you know, what accomplishments we've had, kind of glossing over some of the, you know, failures of certain economic development programs, uh, that I think deserve rational debate. Um and then sometimes maybe the data that we get is a little bit um optimistic.
▶ 2:12:58Uh but with that being said, I I do appreciate you being here today. Uh I know that we have a lot of programs that were initiated during the COVID 19 pandemic. There was obviously a massive disruption to the economy and Congress and really all levels of government took action to really manage as best we were able. And you know, in hindsight, maybe things could have been done differently, but um I uh I do acknowledge that there was a lot of uncertainty then.
▶ 2:13:25Um at the time though, Congress provided the EDA with significant supplemental funding uh to support economic recovery, including I think a billion and a half from the car's act, three billion from ARPA. uh the EDA played a sizable role in administer administering these COVID related economic recovery funds that were intended to stabilize communities quickly predominantly under the previous Um Mr.
▶ 2:13:51Paige, I'm curious if you know if these funds were targeted well and if they produced measurable results and for COVID projects, did the EDA use the same performance metric framework that it currently uses uh for infrastructure and non-infrastructure data or was some other metric used at that time?
▶ 2:14:12Uh yes sir, thanks for the question and uh yes, you're correct. We did receive substantial supplemental funding uh 4.5 billion total through two supplementals in response to those. Um many of those projects are still in development and they are actually producing uh results now particularly construction. Uh a lot of the awards went out at the end of 2021 and they are just kind of finishing their design phase. They're about to enter into a construction or they're they're in construction but they're not quite complete.
▶ 2:14:41Um but I am happy to report that with our total with our portfolio of grants that we have right now uh 5.8 billion in total we are seeing an 8:1 return on private investment uh for every dollar invested. Uh that being said we are actively monitoring these projects.
▶ 2:14:58uh we now have a risk assessment tool that we've put in place for every one of these awards to make sure that they are advancing and if they are not if for some reason the beneficiary has changed and therefore the actual expected value has changed if there are complications if there are cost overruns uh we are willing to work with the applicant to terminate the
▶ 2:15:19Sure. And and and I appreciate that. I'm just like to me sometimes we uh force a idea that we're going to do something that the market may not necessarily otherwise demand. Um and I think you know when it comes to infrastructure those are uh community funded and then sometimes have state and federal money combined for you know roads, bridges, pipelines and other things that provide a benefit to everyone in that community and can hopefully then attract more economic development.
▶ 2:15:50um less so than some other projects that may be like oh we're going to you know guarantee this many jobs and then 10 years goes by and new people are sitting in your seat and my seat those jobs don't materialize and it's impossible to hold accountable then at that point and I want to make sure that we prevent that circumstance from happening I guess you know to go through a design phase for five years I mean we are five years post 2021 right now I flipped the calendar over like everybody else a few weeks ago and it said 2026 on Um,
▶ 2:16:21how are we supposed to effectively deploy these resources when it takes five years to get through just a design phase of a project?
▶ 2:16:31Yes, sir. And uh I should have said the CARES Act was uh earlier the ARP funds did not deploy until uh a little bit later because they were appropriated in
▶ 2:16:41Um but at the end of the day, I understand what you're saying about the private investment. Uh at EDA, we look at the private investment not as an outcome but actually as a market signal that the investment that we're going to make actually has real benefit. We get uh we have named beneficiaries for projects that are local entities. Uh oftentimes we will get letters of support from them and then we do follow up at 3, six and nine years to make sure that we are getting reporting from the grantee that those have actually
▶ 2:17:11Okay. Thank you. Thank you, Mr. Chairman. I yield back.
▶ 2:17:14Chair. Thanks. The gentleman. The chair now recognizes recognizes the ranking member from Arizona, Representative
▶ 2:17:20Thank you very much, Mr. Chairman. Thank you all of the commissioners for being here today and the important work you do for the citizens of the United States. As I'm a former mayor before I got to Congress, I know firsthand the federal government can be an important and powerful economic development partner, but economic development is not Federal support for regional economic development is crucial because every community faces unique challenges. What works in Appalachia won't necessarily work in the desert southwest that I represent.
▶ 2:17:50That's why regional commission's quasi governmental partnerships between the federal government and states and essential f are essential federal tools. The partnership structure represents a unique federal approach to economic development requiring substantial input from leaders who know their communities best. Chair Sanchez, the Southwest Border Regional Commission is one of the newer regional commissions, and it's doing important work in my home state of Arizona.
▶ 2:18:14One grant allocated last year funds advanced manufacturing workforce development in collaboration with partners in the private sector and our state universities. Other grants are going towards funding critical water infrastructure projects in rural Arizona and on tribal lands because in Arizona, water security and economic security go hand in hand. Um, Chair Sanchez, how does the SBRC maximize its investments in impoverished communities in the
▶ 2:18:44Thank you for the question, Ranking Member Lars St. We prioritize funding to distressed communities. uh 80% of our funds went to distressed communities. And we did that by targeting outreach specifically to these communities, working with our local development districts, with our mayors, county judges, but we also did that in a structural way where we provided additional points in the grant competition if you your project
▶ 2:19:14was from a distressed area. Uh what was surprising is that we managed to pro to get a $1 per dollar matching from these communities. So for every dollar the federal government invested, these folks provided additional funds. So I think that leveraged our projects uh immensely uh and we're providing the infrastructure that's necessary for the private sector to thrive.
▶ 2:19:41for providing the roads and the water and the sewage that is needed to develop businesses.
▶ 2:19:47Thank you so much. In December of 24, Congress reauthorized and modernized the economic development administration for the first time in 20 years. I was proud to back that legislation. The bipartisan reauthorization was crafted to help EDA carry out its founding mission, bringing new investment and good jobs to every corner of this country. To bring EDA into the 21st century, the reauthorization bill prioritized investments like manufacturing, supply chain capabilities, and industry-ledd workforce training partnerships.
▶ 2:20:15This investment is critical not just for strengthening struggle economies around this country, but also improving our nation's ability to compete on a global scale. I am concerned that staff reductions under this administration are limiting this important bipartisan goal. Deputy Assistant Secretary Paige, what are EDA staffing levels compared to a year ago and what effects have those staffing reductions had on EDA's operational capacity?
▶ 2:20:43Uh, thank you for the question. Um, EDA as a whole is uh the staffing levels are down, but we do have adequate staff to meet the mission. We have been able to streamline the agency. We've been able to increase our efficiency through the reorder uh that we submitted to Congress and was approved by Congress and through some reforms internally. Uh things like we were able to consolidate from three grant systems into one. It reduces our administrative burden.
▶ 2:21:12We've standardized some of our operating procedures which is saving over 4,000 hours of staff time. So while the overall staffing level is down, we were able to adapt and we have um made great progress to still be able to meet the mission. Uh we are actually also have a staffing plan that will allow us to backfill for certain critical vacancies.
▶ 2:21:32Thank you very much Mr. Chairman. I yel
▶ 2:21:37Sure. Thanks a gentleman. The chair thanks a or now recognizes a gentle lady from Nevada, Miss Titus.
▶ 2:21:43Thank you Mr. Chairman. Uh I I represent Las Vegas. That's the Nevada's first congressional district. And so you can't talk about economic development without talking about tourism and hospitality. You know, in my district alone, the industry supports 1.6 billion dollars in state and local taxes. It's the top industry for employment. But it's not just the strip that draws people. We've got all the sports teams now, and we've got the beautiful scenery around Las Vegas.
▶ 2:22:12It's kind of something for everybody. However, tourism is in a slump. Uh, as you know, I'm sure it's down about 7% from what it was last year. And so, a lot of people's jobs are are being threatened over 300,000 hospitality workers. But I believe the expertise at the EDA could help us with your assistance programs kind of during these tough times.
▶ 2:22:35I was the ranking member of this committee last Congress, and I was proud to play a role in the reauthorization of economic development for the first time in 20 years, as Mr. uh was was mentioned by the ranking member. Now, there are provisions that we got in the bill to consider travel and tourism when making grant decisions. So, Mr. Paige, would you talk about how y'all are implementing that provision? I think it's section 2219.
▶ 2:23:02Uh yes, and uh thanks for the question. Um I appreciate the authorities that uh you did provide in the reauthorization act. I think it helped clarify uh that travel and tourism and outdoor recreation entities are eligible entities for our PUIA public works and economic adjustment assistance programming and be this is one of the uh pieces of the legislation and so those entities became immediately available uh or eligible to apply
▶ 2:23:32for funding uh through our notice of funding and our regular programming that's out on the street right now. So, are there the grant processes in the works? Are there people applying for the grant? Have you done anything to let folks know that it's available? Could you give me a little detail about how you're implementing it?
▶ 2:23:49Sure. I think ultimately, you know, the projects are locally driven. Um, we have on the ground representation. In fact, we have a new economic development representative who's covering the state of uh Nevada. I know that she just was able to visit there last uh and meet a lot of the stakeholders in the state last week. um she will work with the local economic development districts, nonprofits, state and local entities. They will identify projects consistent with their own economic development strategies and then advance them.
▶ 2:24:18But one thing that she is being able to communicate now is that the eligibility and how to best apply for uh EDA funds.
▶ 2:24:26Well, great. Would you ask her to kind of get in touch with Claire and my office and let us know kind of what's going on? see if any of those groups that locally that might need our assistance to to help push these grants
▶ 2:24:38Absolutely. We'd be happy to make that
▶ 2:24:40Okay. Well, thank you. We'll look forward to that. The second thing that y'all look at that's so important in my district is water. you know, we are in the desert and last session we did my legislation, Water Conservation Economic Adjustment Act, and that's part of your reauthorization, too. And it clarifies that you can use economic assistance uh funding for industrial water conservation in areas where you got decreased water supplies as a result of drought.
▶ 2:25:10So, we attract businesses that aren't big water users. I don't see anything about water conservation as a eligible use in the notice of funding opportunity that y'all published in September. Uh are you planning on doing new guidance? Where does that stand? Could you talk about that for a minute? Uh yes, happy to talk about that. Uh the notice of funding opportunity really represents a highle frame of the types of investments.
▶ 2:25:39it does not list out every single type of project and that's really because the variety of projects that a local community may need is almost uh
▶ 2:25:48Uh so what we do is we do train our staff and our economic development representatives are on the ground um uh representatives of the agency. They are experts in our funding announcement. They are experts in our programming and they work handinand glove with local entities to identify types of projects that could advance.
▶ 2:26:06They are there to provide consultation on is it eligible uh and then how to best structure an application such that it can be reviewed and deliver the type of impact necessary consistent with an economic development
▶ 2:26:20So you don't really have any guidance that you've issued. But is it this same lady that is doing the tourism stuff on the ground out there that you mentioned your staff on the ground? Well, maybe when she meets with Claire, she could talk about what's going on in the water projects, too, because we don't see any evidence of it as well as tourism.
▶ 2:26:38Thank you. I yield back.
▶ 2:26:41Chair, thanks a gentle lady. And the chair is now going to stall a little bit to see if some other members showed up. You uh many of you um came from long distances to be here and it's quite honestly it's embarrassing that more members aren't here. and uh you know we would like to hear from you and you're you're here and we appreciate that. We want to honor the sacrifice that you've made. So I I I'll start kind of down in this end of the road and go that way.
▶ 2:27:06And look, one of the things that people want to know is is kind of what you do and how you measure it. And if you could and you don't have to get too in depth, but just kind of generally speaking, we'll start with Miss Fenton. What are if you can share like the top two or three performance metrics that you use to measure the effectiveness of of you know the money that's coming in and and the management of it and how your selection process how do you do that?
▶ 2:27:31Well, first I would say um our administrative overhead is an easy um indicator of the funds that we're able to manage and deploy compared to you know our staffing. That's the boots on the ground in Alaska. Local expertise. Other agencies look to us to provide that expertise in deploying um funds in a um efficient manner.
▶ 2:27:55Uh our bulk fuel and energy program is one of our top programs um top funding coming into the state, top needs across the state. And sorry those performance metrics uh we get you know lower uh you know cost per um gallon of diesel you know in these series of micro grids across the state.
▶ 2:28:17uh lowering the the cost of fuel, uh making efficiencies for delivery and consolidating fuels into bulk fuel um to maximize costs, sorry, to maximize uh gallons per dollar um and lowering that kilowatt hour cost among uh communities. And then also, you know, every gallon saved through energy efficiency projects.
▶ 2:28:41I know effic energy efficiency is kind of um a negative term these days, but it means a lot to rural Alaska and Arctic conditions. Uh you know, making sure the envelope of a house is secure and uh you know, we're using every kilowatt hour of power um and electricity uh to its max to maximize its use. So those are two I think top um you know performance metrics that we have at the commission but uh we can provide additional information to your office as well.
▶ 2:29:11We continually continually communicate with GAO on some of their inquiries on how um you know the commission's report on various metrics and whatnot as well.
▶ 2:29:21Thank you. I'm going to recognize uh Mr. Sanchez. I know you've been writing there so I want to honor your your thinking about it so I want to know what you have to say. Uh, thank you, Chairman Perry. We, as I mentioned in my testimony, we track the unemployment rate, the poverty rate, uh, and the per capita income in each of our counties. We focus our investments in the counties that have, uh, those metrics in the bottom of the 25% in the country.
▶ 2:29:50Um, our projects are underway now. They're just getting started, but we are tracking on a monthly basis the, you know, how they're using the federal investment, how they're using the local investment that they provided, the jobs that they've created on a quarterly basis, uh, jobs retained, how many households they've served, uh, and the estimated population that would benefit from the grant. So,
▶ 2:30:14every quarter we make grantees, uh, explain to us exactly how they spend the money and how they met those metrics. And look, I'm not trying to be difficult and I get that each one of your regions you know, there there are different projects and different uh challenges that you have and every project is not the same. So, you know, you can't have a boilerplate template that just says this much in equals this much out equals this was what we get. I get that.
▶ 2:30:42But it's important that we know and that the American people know that that there's, you know, the value is coming out of this and we're actually achieving what we're trying to achieve. So I would encourage you to work with maybe Mr. Paige and each other to come up with some kind of at least some kind of a common standard that you can all agree with that generally captures some of that information not only for our well-being but quite honestly yours.
▶ 2:31:07You don't want to come here and try and, you know, explain this if you if you don't, you know, have it wired in already and then I'm up here asking you questions and you're trying to figure that's not the time you want to figure it out, right? Uh Dr. Reid, what you got, you got anything you'd like to impart?
▶ 2:31:21Yes, thank you so much. Um, we do track uh and these are projections at this point. Um, our first round is in their second year of implementation, the grants. Um and the second round is in the planning phase um of implementation. So these are projections that we're using.
▶ 2:31:43Um but we do calculate new jobs projected um and household supported businesses impacted and as I said in the testimony we look at infrastructure and economic capacity um when we are evaluating the successes of these grants.
▶ 2:32:02But to your point, we're also working with our communications firms and working on a map that will be interactive so that when you hover over the actual grant, it will give you the information that you provided that for that particular grant and that particular um
▶ 2:32:22yeah, I think you know in layman's terms, we'd like to know how many jobs created over what period of time. So the longevity of those jobs
▶ 2:32:30and and maybe you know the income level generally speaking or something so that we see that this is making progress. It's improving lives. It's it's having the impact that's so intended. Mr.
▶ 2:32:42I think we uh collect a a comparable level of KPIs as as our peer commissions. Uh businesses served, jobs created, uh households served, um linear feed of water infrastructure. I I think we have
▶ 2:32:58that be one you could measure, right? Yeah, that's yeah,
▶ 2:33:00I I think we have this data and and happy to take your suggestion to collaborate with our commissions and and the EDA to to standardize some base level that's useful for the committee. I
▶ 2:33:09think it would help us, right? Because we you know, we want to feel comfortable that that this is all happening the right way as it should be and you know we have questions of our bosses too, right? They demand that their money is spent wisely and that's reasonable as well. Dr. Wiggins.
▶ 2:33:26Yes, sir. as federal coach Sanders mentioned uh our metrics jobs created jobs retained families affected by infrastructure projects also looking at individual trained for our workforce programs and we tracked this day for a number of years the thing I would add is that we have a really strong robust uh monitoring program so not only do we look at these numbers coming in uh our monitoring team is going out checking in on these projects quarter reports being sent in to the projects and tracking the numbers as the pro uh project
▶ 2:33:56is progressing as well.
▶ 2:33:57Okay, great. U I'm gonna just select you, Miss Mansion, because you're probably one of the most experienced people here. Do you have like an annual report that you could I mean, is that is that something that you do on a regular basis or some other iteration that we can see that kind of outlines all that kind of thing?
▶ 2:34:17Abs excuse me. Absolutely. We do an annual report every year. I think if you look at the framework, you're right. We've been here historical period of time, but economic development is the focus. So every grant that comes in is weighed on how it's going to affect as an economic stimulator,
▶ 2:34:39right? And then uh so again as everyone said it's it's new businesses, jobs created, infrastructure, um communities improved and every grant uh is evaluated on the how many jobs, how many people.
▶ 2:35:00So as we look at that and we look at this year winding down, we have found that our grants have met or exceeded their input, their outcomes for that grant. And so
▶ 2:35:14do you when do you do the report? Just out of cur do you all do it at the same time? Is it a certain point of the year like it's got to be done by September 30th or November 5th? Is there a particular period of time or a suspense date as an old army guy would call it? Well, interestingly for us, our we have a five-year strategic plan and that is coming to an end. So, obviously, we're looking not only at one year,
▶ 2:35:40but at this five-year strategic plan and how how we met that. One of our measures is that we have the the le the number of distressed states, counties, is lower than it has been. and it's the lowest in the last 20 years. So, we obviously have made an impact.
▶ 2:36:02Well, that's yeah, that's the goal.
▶ 2:36:03In our most distressed areas and the fact that while we're have to commit we do more. We we actually committed 73% of our appropriations. So, all of this we believe does lead to this kind of lifting the most distressed counties through infrastructure. And
▶ 2:36:25I agree. We and we want to see that and I think maybe if you guys can work together to harmonize when you do that and then we if we could get that in advance of you coming up then we can have a discussion about the things you want to highlight and your successes but taking a lot of time. Representative Isel is recognized.
▶ 2:36:43Thank you and thank you all for being here today and being so patient. Only bad thing about going last is everything's been asked. So uh but if I repeat some of the questions that's uh it's just part of the program. So thank you all for being here today and and uh thank you Mr. Chairman.
▶ 2:37:00Uh the water resources development act of 2024 included important economic development reforms intended to improve coordination, reduce duplication, and ensure federal dollars are producing real results. As Congress continues to its work on WRA in 2026, it's critical that we understand what is and what is not working under these new authorities in coastal communities. Mississippi's fourth district.
▶ 2:37:31Uh economic development is closely tied to ensuring reliance in our infrastructure, ports, waterways, uh and disaster recovery. uh as everybody in this country has been hit with some kind of disaster and ideally word authorized programs complement not complicate these efforts.
▶ 2:37:51Today I hope to hear how word of 2024 reforms are being implemented, whether agencies are meeting uh our standards, and what changes Congress uh should consider making for word of 2026 to further streamline programs and strengthen outcomes for local Mr. page.
▶ 2:38:13Uh, what were the 2024 economic development reforms have been implemented that are most relevant to coastal disasterprone regions and how are these reforms affecting communities along the Mississippi Gulf Coast?
▶ 2:38:32Uh, Congressman, thanks for the question. Um, I think the most important for the communities that you referenced was the establishment of our disaster recovery office and then the input that they provided to shape our FY25 disaster supplemental funding opportunity. Uh, Congress appropriated $1.5 billion to uh allow for e to support economic recovery for communities that were hit by natural disasters in 23 and 24.
▶ 2:39:00And in June of last year, we were able to release that notice of funding opportunity. I think it takes a very novel approach and one that is a first of its kind for EDA based in large part on our experience with different disasters and leveraging the expertise of our disaster office. Uh it basically allows us to meet a community where it's at either providing readiness funding. We have a readiness path which can support pre-development cost and capacity.
▶ 2:39:26Uh we have a um infrastructure path, implementation path that can do traditional type infrastructure projects, workforce training projects as kind of single entities. But then also it has a much broader path three which we call industry transformation. Uh which allows us to cluster projects together where the whole can be greater than the sum of the parts in order to really change the economic trajectory of a community. And this is based on some of our programming there. So that is on the street.
▶ 2:39:53We've already been able to make uh our first round of awards for underneath that notice uh only two months after it was released. We have had active engagement with communities throughout the south and uh and active um tracking of all those engagements through a recently implemented CRM system so we can actually know everybody we've talked to and and follow up.
▶ 2:40:14Thank you. One more. for uh for coastal communities uh that rely on ports, maritime industries and disaster recovery. How has the word of 24 improved coordination between EDA and regional commissions and what can Congress do with word of 26 to continue to improve it?
▶ 2:40:36Yes, sir. So I think there were some inherent uh pieces in the legislation that can help us better coordinate including the ability for regional commission funds to serve as matching funds for EDA investments. Uh but we are actually scheduled to have a convening of all the regional commissions in February where we're going to really dive deep into this topic uh to figure out how do we best work together dive you know a little bit under the hood.
▶ 2:41:01Um, as I said earlier, we do work together at a a staff level, on a project by project level, uh, as we're trying to help assess how to best help communities. But I think what we hope to do through this is look at a few broad topics and figure out how we can better coordinate together.
▶ 2:41:17Thank you.
▶ 2:41:18One more. I'll just kind of throw this out there for all of you. In your experience implementing the word of 2024, are there specific lessons that could help guide Congress in ensuring that investments support long-term coastal resilience and port related growth rather than duplicative or shortterm projects?
▶ 2:42:00Go ahead.
▶ 2:42:01Yes, sir. Um,
▶ 2:42:02anybody? In addition to what I've already been able to articulate, and I'll actually reference back to the conversation I had with Congresswoman Titus, there was uh the uh reauthorization bill did provide some clarity around eligibility of outdoor recreation projects and travel and tourism. Uh I believe that that could help with many of the coastal communities and we are working to educate through our local representatives how those projects are eligible uh and so that we can work with communities to bring them in and evaluate them for their effectiveness.
▶ 2:42:32Thank you. And thank you all for being here again today.
▶ 2:42:35Chair, thanks a gentleman. And in case you wondered, it's all of us that had the accent. If you didn't understand the guy from Mississippi, it's that's why uh the chair now recognizes again the gentle lady from Nevada for five
▶ 2:42:47Thank you, Mr. Chairman. I What accent? I don't know what accent you're talking about. Uh I was going to ask Mr. page about something else that was in the uh reauthorization bill and that was to update and modernize the use of uh university centers programs. I noticed that in the uh December 2025 blog post, you've discontinued funding for the university center programs.
▶ 2:43:11I wonder isn't that in are you in compliance with the law that we passed and that President Trump signed or are you just ignoring it or what's the reason you quit funding it? And I would ask other members from regional offices if they benefited from having university centers or how they worked with them or they didn't notice that they're gone or what's going on.
▶ 2:43:35Uh yes, Congresswoman, thanks for the question. So, uh, the FY25 appropriation for EDA appropriated $400 million, but 30 million of that was disaster delegated funding and was inelig was not available for obligation. So, we did have to identify $30 million within our programming where we would not expend those funds.
▶ 2:43:57Uh in order to make that decision, we did a comprehensive review of all of our programs to assess them based on the stakeholder impact and the level of effort. Through that process, we did identify three programs that we were going to discontinue funding for in 2025. That was the university centers, the STEM talent partnership, and the trade adjustment assistance for firms.
▶ 2:44:20Um as it pertains to the university centers, they have had a several decade um carveout within our our programming to provide assistance and to serve as a central coordinating function for technical assistance in communities with a more limited portfolio. Uh it was our perspective that we needed to broaden that and we are no longer going to have the carveout for a university center.
▶ 2:44:47But those universities that still provide the greatest benefit can still apply for technical assistance funding if they are best positioned to help their communities. But by removing that specific set aside, we've actually opened the aperture so that if there are other entities that are best positioned to provide that type of organizing principle, capacity building in a community, they can also apply.
▶ 2:45:08What about the STEM program that you just mentioned? I would think that'd be very important right now. all the emphasis on STEM and its connection to future jobs.
▶ 2:45:19Yes, ma'am. One of the things that I often talk about uh with my team and and and how to think about our programming and I think this particularly relates for this panel is what is our comparative advantage? Uh we are $400 million in a $30 trillion economy. So we can't solve everything. The STEM talent partnership was a $2.5 million program.
▶ 2:45:40it was very costly to administer and when you look at the other STEM programs that are out there that are supported by the federal government we just did not have the comparative advantage or the reach. So as I as I mentioned as we evaluate our programs on those two axes of stakeholder impact and level of effort STEM talent partnership relative to our other programs did score substantially lower.
▶ 2:46:04Juice wasn't worth the squeeze.
▶ 2:46:07The juice wasn't worth the squeeze. Is that what you're telling us
▶ 2:46:10at at $2.5 million? This is not an indictment on STEM education efforts. It's an indictment on EDA's effort and funding at that level.
▶ 2:46:19Do the do the regional offices have any input into these three programs that you decided not to fund?
▶ 2:46:27Uh the regional commissions?
▶ 2:46:28Uh they did not. This was an internal exercise because we were faced with because of the way that the Congress had appropriated the funds and with $30 million being unavailable for obligation, uh, we did have to make those trade-offs.
▶ 2:46:42Did that have a negative impact on the work that y'all do on the ground and in those regional areas? didn't have any impact?
▶ 2:47:00Not that we're aware. Just so we know, this is a the federal state partnership
▶ 2:47:06um requires our um communication with the governor's offices and their priorities. So the governors of each state, they have their priorities and we work together
▶ 2:47:20in order to actualize those um priorities. So if um that were to be a priority then we would of course be involved but to insert ourselves um in that don't have any input at the federal federal
▶ 2:47:36correct you're just subject to what they hand out to you so you okay I got it well then wouldn't wouldn't it work better if you did have some input what what you are seeing on the ground that you all need in your states that we would uh advise the federal level agencies that when they're making decisions of where to put money for what kind of grants that they would hear from y'all directly just doesn't work that way, huh?
▶ 2:48:06Well, I think u part of what we're doing as we're getting together and meeting u next month is doing more around coordination. As federal co-chairwoman re mentioned, we do work a lot with our states. We most of all is do have regional development plans.
▶ 2:48:22It's input from local community and our state partners uh our member states and so we try to align those resources uh as mentioned earlier our team our programmatic teams also do work with the program staff at EDA um for the very purpose of this hearing and making sure we have more alignment we're not duplicating so services but from the focus I think of our at least from a DRA perspective as a commission making sure we are meeting uh the regional needs of the 255 counties counties in our region that we're serving
▶ 2:48:53of getting local input as well.
▶ 2:48:55Yeah. Well, thank you. I appreciate
▶ 2:48:57Chair, thanks the gentle lady. The chair now recognizes the representative from Pennsylvania, Representative Presnahan.
▶ 2:49:04Well, thank you, Chairman Perry, and to Ranking Member Stanton, for holding this hearing today and to all the witnesses for being here. Uh just last week I had the opportunity to tour Toby Hannah Army Depot to highlight a $68 million investment in its radar systems, a project that supports both our national security and goodaying jobs in northeastern Pennsylvania.
▶ 2:49:27Uh I was joined on that tour by representatives from the NEPA Alliance, uh the regional development organization that serves the five counties in my district. During that visit, we discussed how they work with the EDA and the ARC to help bring federal investment dollars back to our community. Um, so this hearing times out very well. Uh, my first question will be for Mr. Paige and Honorable Mansion. Uh, both of your testimonies emphasize strengthening coordination with regional commissions and local partners.
▶ 2:49:58Can you expand on how you gather local feedback and how that input is used to identify and prioritize and ultimately shape projects and funding opportunities to ensure they reflect real local community
▶ 2:50:14Uh absolutely happy to answer that question, Congressman. Um, for us, you know, EDA really is about funding locally driven projects and that starts with a communitydeveloped economic development strategy. Um, it sounds like you were there with one of our economic development districts. uh they are our partners on the ground and in order to be eligible for our funding through our public works and economic adjustment assistance program.
▶ 2:50:41They have to have a strategy either an EDA sponsored SDS community comprehensive economic development strategy or something equivalent that lays out the strengths, weaknesses, opportunities and threats that they have within their community and how they plan to address it and leverage local assets and resources. As part of those plans, they will often articulate partnerships that they have with other regional uh commissions or federal entities so that we can make sure that we are doing complimentary investments, not duplicative investments.
▶ 2:51:14And not to repeat because everything that he said obviously also matches the mission of the Appalachin Regional Comm Commission in terms of economic development. But what I would say is due to the collaboration, the way that we don't duplicate is that we come in with offering some gra gant funding, matching money, which for many of these rural areas that becomes some of the most difficult part of getting a
▶ 2:51:44grant is getting the match money. So we make sure that our resources and as he said when grants come in they are highly evaluated on meeting both the outcomes for economic development for ARC but also what other monies are they receiving so that as he said they're both evaluated but at the end of the day this allows resources to go into
▶ 2:52:14ways that provides resources from ARC that that grant money once it ends there is some sustainability that that project can continue to grow and develop and create what they're trying to do economic development more jobs created. And so the very fact of this collaboration and working together is what strengthens the the end result of these grants and what happens in these communities.
▶ 2:52:44So, it's not a duplication. It actually strengthens and elongates um how those resources are used.
▶ 2:52:53Just as a quick followup, is there anything that you would suggest that could be done better, different, more efficiently, or is there anything that Congress can help ultimately get these projects funded quicker, faster, more I'll just redirect it to both Mr. page in honorable mention.
▶ 2:53:14Sure. Um I think we're really hoping uh we've referenced this a couple times. We are going to be getting together uh in February as a group to discuss and to meet the legislative requirement from the uh word bill last year to get together and talk about that exact thing. So I think we'd hope to have uh some of those recommendations that come out of that convening and the report that's due out of it.
▶ 2:53:38I appreciate that, Mr. Chairman. I yield the balance of my time. Chair. Thanks. The gentleman. Gentleman yields back. Are there any further questions from any members of the subcommittee who have not been recognized? Seeing none, that concludes our hearing for today. I want to thank all the witnesses. Appreciate you taking the time to be here.
▶ 2:54:00um it is important and uh we're very grateful that you took the time and made the travel and uh and were prepared and uh look forward to seeing you again soon as we kind of go on this journey together. So with that um that concludes the subcommittee and the subcommittee stands adjourned.
▶ 2:54:19Thank you Mr. Chairman. Thank you.