Smarter Spending, Stronger Results: Reducing Duplication and Ensuring Effectiveness Through Economic Development Reforms

Environmental Permitting and Water InfrastructureHouse · January 22, 2026 · 119th Congress
The House Subcommittee on Economic Development, Public Buildings and Emergency Management held this hearing to examine coordination and effectiveness among the Economic Development Administration (EDA) and six regional economic development commissions following their 2024 reauthorization under the Thomas R. Begins at ▶ 0:17:07
Transcript
Highlights

Title

EDA and regional commissions on reducing duplication after 2024 reauthorization

Purpose

The House Subcommittee on Economic Development, Public Buildings and Emergency Management held this hearing to examine coordination and effectiveness among the Economic Development Administration (EDA) and six regional economic development commissions following their 2024 reauthorization under the Thomas R. Carper Water Resources Development Act. Chairman Perry pressed witnesses on duplicative federal programs, performance metrics, and job-creation accountability, while Ranking Member Figures and other members highlighted specific projects and funding impacts in their districts. Begins at▶ 0:17:07

Who spoke

• Chairman Scott Perry (R-PA)▶ 0:17:07: Opened by noting EDA and six regional commissions plus USDA, HUD, and SBA overlap in economic development work, calling it "a lot of cooks in the kitchen"▶ 0:18:28; pressed witnesses throughout on performance metrics and duplication▶ 1:53:18▶ 2:27:06.

• Rep. Shomari Figures (D-AL), Ranking Member▶ 0:21:20: Cited Alabama impacts including 50+ ARC projects worth ~$22 million▶ 0:23:09 and $2 million in Southeast Crescent grants▶ 0:23:38; later questioned Page on the disaster office▶ 1:59:00 and Wiggins on Union Springs infrastructure▶ 2:01:01.

• Rep. John Larson (D-CT), Full Committee Ranking Member▶ 0:24:26: Noted EDA and commissions fund wastewater, workforce training, and broadband, and stressed alignment between commission and EDA priorities▶ 0:25:44.

• Ben Page, EDA Deputy Assistant Secretary/COO▶ 0:27:56: Detailed implementation of the 2024 reauthorization, including new Offices of Disaster Recovery and Resilience and Tribal Economic Development▶ 0:28:24, a $1.5B FY25 disaster supplemental▶ 0:28:44, a $25 million AI workforce set-aside▶ 0:30:30, and confirmed the president's FY26 budget proposes eliminating EDA funding▶ 0:31:28; later described discontinuing university center, STEM talent, and trade adjustment assistance programs to cover a $30 million funding gap▶ 2:43:35.

• Gayle Manchin, Federal Co-Chair, Appalachian Regional Commission▶ 0:32:26: Said ARC leverages $4 in private investment per $1 of funding▶ 0:33:20 and directed 73% of 2025 funds to distressed counties versus a 50% legal minimum▶ 0:34:40; cited the POWER initiative leveraging $473 million into $1.8 billion in private investment▶ 0:35:10.

• Dr. Corey Wiggins, Federal Co-Chair, Delta Regional Authority▶ 0:37:25: Reported DRA programs impacting over 150,000 families and creating/retaining nearly 7,000 jobs▶ 0:38:34; described a $2 million disaster supplemental helping 17,700 households across five communities▶ 0:40:17; later said DRA's community infrastructure fund requests ($245 million) far exceed its $31.1 million appropriation▶ 2:01:55.

• Chris Saunders, Federal Co-Chair, Northern Border Regional Commission▶ 0:42:13: Described the decline of forest-products industries and NBRC's role diversifying into new wood-fiber products▶ 0:43:53; said 50% of recent Catalyst Program awards went to infrastructure, leveraging $273 million in non-federal investment, with 75% going to communities under 5,000 people▶ 0:45:58.

• Dr. Jennifer Reed, Federal Co-Chair, Southeast Crescent Regional Commission▶ 0:46:54: Reported 397 physicians placed in shortage counties via the Crescent Care Collaborative▶ 0:49:08 and $53 million invested across 139 projects in two grant cycles, yielding $2 return per federal dollar▶ 0:49:39▶ 1:51:05; later said lowered cost-sharing requirements boosted applications from 363 to 357 across two rounds with 56 and 83 grants awarded▶ 2:02:55.

• Juan Sanchez, Federal Co-Chair, Southwest Border Regional Commission▶ 0:52:46: Detailed that 43 of 103 counties are economically distressed with an 18% average poverty rate versus 12.4% national▶ 0:53:40, and that Colonias face severe water/sanitation gaps affecting 800,000 people▶ 0:55:09; reported $11.3 million awarded across 22 projects in the first grant cycle, 78% to distressed communities▶ 0:57:26.

• Jocelyn Fenton, Director of Programs, Denali Commission▶ 1:46:12: Described the commission's low 1.4% administrative overhead managing over 300 active projects worth $386 million▶ 1:47:47; cited $100 million deployed for bulk fuel tank farms▶ 1:48:14 and $16.5 million in marine infrastructure leveraging $70 million more▶ 1:50:37.

• Rep. Kimberlyn King-Hinds (R-N. Mariana Islands)▶ 2:04:06: Highlighted EDA-funded projects in the CNMI including the Garapan revitalization and OI sports complex▶ 2:04:06; raised concerns that EDA's shift to requiring proof of payment before reimbursement is straining the territory's cash-strapped government▶ 2:06:00.

• Rep. Eleanor Holmes Norton (D-DC)▶ 2:09:42: Criticized federal workforce cuts costing DC at least 24,000 jobs last year▶ 2:10:11 and asked how EDA supports DC job creation, noting the district lacks a formal economic development district▶ 2:10:29.

• Rep. Tom Barrett (R-MI)▶ 2:12:00: Expressed skepticism of government-driven job creation▶ 2:12:27 and questioned EDA on outcomes from $4.5 billion in CARES/ARPA COVID recovery funding, noting some projects remain undelivered five years later▶ 2:14:12▶ 2:16:21.

• Rep. Yassamin Ansari (D-AZ), Ranking Member▶ 2:17:20: Praised SBRC's Arizona water and workforce projects▶ 2:18:14 and asked about EDA staffing reductions' effect on operational capacity▶ 2:20:15.

• Rep. Dina Titus (D-NV)▶ 2:21:43: Noted Las Vegas tourism is down 7% and pressed Page on implementation of new tourism/travel eligibility (Section 2219)▶ 2:22:35 and water conservation eligibility under her legislation, finding no guidance issued yet▶ 2:24:38.

• Rep. Mike Ezell (R-MS)▶ 2:36:43: Asked how WRDA 2024 reforms are helping Mississippi Gulf Coast disaster recovery and port/coastal resilience efforts▶ 2:38:13▶ 2:40:36.

• Rep. Rob Bresnahan (R-PA)▶ 2:49:04: Cited a $68 million Tobyhanna Army Depot investment and asked Page and Manchin how local input shapes EDA/ARC project selection▶ 2:49:58.

Key moments

• Page confirmed the president's FY26 budget proposes eliminating all EDA funding, even as the agency continues implementing its 2024 reauthorization▶ 0:31:28.

• Chairman Perry asked all commissions to provide the committee snapshot maps showing counties moving out of "distressed" status over time as a benchmark for success▶ 1:57:26.

• King-Hinds pressed Page on EDA's shift from cost-incurred reimbursement to requiring proof of payment before disbursement, which forced the CNMI government to take out a loan amid economic collapse▶ 2:06:00▶ 2:06:24.

• Barrett noted EDA received $4.5 billion in COVID-era CARES/ARPA supplemental funding, with some projects still not complete five years later despite an 8:1 private investment return figure cited by Page▶ 2:13:25▶ 2:14:41.

• Titus revealed EDA has not issued guidance implementing her Water Conservation Economic Adjustment Act provision, and no water conservation eligibility appears in the September funding notice▶ 2:25:10.

• Titus, questioning cuts to the university center and STEM talent partnership programs, got Page to acknowledge the STEM program's $2.5 million cost wasn't worth the administrative burden — "the juice wasn't worth the squeeze"▶ 2:45:19▶ 2:46:07.

• Page said EDA and regional commissions will hold a joint convening in West Virginia in February 2026 — fulfilling a WRDA Section 2212 requirement — to focus on urban-rural divide, workforce, and emerging technology▶ 1:55:04▶ 1:55:31.

• Sanchez said Southwest Border Regional Commission's 43 distressed counties have a 24% poverty rate — twice the national average — and that 51 federally recognized tribes in the region face a 44% poverty rate, nearly four times the national average▶ 0:54:39▶ 0:55:09.

• Page disclosed EDA staffing is down but the agency streamlined operations, consolidating three grant systems into one and saving over 4,000 staff hours▶ 2:20:43.

• Reed noted lower cost-sharing requirements under the 2024 reauthorization contributed to a jump from 56 grants awarded in round one to 83 in round two▶ 2:03:14.

Metadata

Committee—
Chamber / CongressHouse · 119th Congress
DateJanuary 22, 2026
TypeHearing
Witnesses
The Honorable Corey Wiggins — Federal Co-Chair, Delta Regional Authority
The Honorable Chris Saunders — Federal Co-Chair, Northern Border Regional Commission
The Honorable Jennifer Reed — Federal Co-Chair, Southeast Crescent Regional Commission
The Honorable Juan Sanchez — Federal Co-Chair, Southwest Border Regional Commission
Ms. Jocelyn Fenton — Director of Programs, Denali Commission
Mr. Ben Page — Deputy Assistant Secretary for Economic Development and Chief Operating Officer, United States Economic Development Administration
The Honorable Gayle Manchin — Federal Co-Chair, Appalachian Regional Commission
Videoyoutube
Transcript311 caption blocks · 17,316 words · 2:54:23 runtime
EventCongress.gov 118896