	Introduction

The 112 th Congress may consider legislation to fund, reauthorize, and amend the Public Works and Economic Development Act (PWEDA) of 1965, P.L. 89-136 (79 Stat. 552, 42 U.S.C. §3121). It will do so within the context of the more prominent policy debates regarding efforts to reduce federal spending to address growing budget deficits and the national debt; concerns about the duplication, fragmentation, and effectiveness of federal economic development assistance; and efforts to support economic recovery and job creation following the worst economic recession since the Great Depression. The PWEDA, whose statutory authority expired at the end of September 2008, authorized the creation of the Department of Commerce's Economic Development Administration (EDA). EDA's primary focus is to help regions experiencing long-term economic distress or sudden economic dislocation through grants in public infrastructure, the provision of technical assistance and research, and the development and implementation of comprehensive economic development strategies. Program Reauthorization Issues

As Congress debates legislation to reauthorize and appropriate funding for the programs of EDA, it may consider questions such as the following:
Should grantees administering Revolving Loan Funds (RLFs) be granted greater flexibility in the management and conversion of RLF assets for other EDA-eligible activities? Should Congress change the current requirements governing the transfer of federal interest in EDA-financed construction projects in an effort to encourage local flexibility in the use of EDA funds? Legislative Activity in the 112th Congress

On May 2, 2011, the Senate Committee on Environment and Public Works reported S. 782 , the Economic Development Revitalization Act of 2011. In addition to recognizing business incubators as a key strategy for developing high-skill, high-wage jobs, and fostering regional cooperation through the planning process, the bill proposes to
add outmigration and job losses in specific industry sectors (manufacturing and information technology) to the definition of economic distress; adjust the relative need measures used to calculate the federal-local cost share of EDA-financed projects; allow greater flexibility in the conversion and management of EAA financed RLFs; modify the rules governing the transfer or buyout of the federal interest in property financed with EDA Public Works or Economic Adjustment Assistance; target assistance to communities with the greatest need as measured by economic distressed; encourage regional and interagency cooperation in carrying out economic development strategies; and authorize $500 million in funding for each of the next five fiscal years for EDA activities, including an annual minimum allocation for planning assistance grants. Consideration of S. 782 in the Senate

The Senate began consideration of S. 782 on June 8, 2011. For six days—over a two-week period that ended on June 21, 2011—the Senate debated the bill. A cloture motion was filed on June 16, 2011. Successful adoption of the cloture motion would have limited time for debate on the bill, prohibited consideration of non-germane amendments, and allowed the Senate to vote on passage of S. 782 . On June 21, 2011, the chamber rejected the cloture motion, 49-51. The bill has been set aside and may be considered at a future date in the 112 th Congress. The bill was approved by both houses on November 17, 2011, and signed into law by the President on November 18, 2011 ( P.L. 112-55 appropriates $457.5 million in EDA assistance and salaries and expenses, including $200 million in supplemental disaster assistance for states and communities in presidentially-declared disaster areas, and $37.5 million for EDA salaries and expenses. The bill includes $220 million for EDA programs and salaries and expenses. The House bill recommends $182 million for EDA programs.
The primary focus of the Department of Commerce's Economic Development Administration (EDA) is to help regions experiencing long-term economic distress or sudden economic dislocation attract private-sector capital and create higher-skill, higher-wage jobs through investments in public infrastructure, the provision of technical assistance and research, and the development and implementation of Comprehensive Economic Development Strategies (CEDS). EDA was created with the passage of the Public Works and Economic Development Act (PWEDA) of 1965, P.L. 89-136 (79 Stat. 552, 42 U.S.C. §3121).
The 112th Congress may consider legislation to reauthorize and amend PWEDA, whose statutory authority expired on September 30, 2008. As part of those deliberations, Congress may consider a number of changes in the structure of EDA assistance programs. At least one bill, S. 782, the Economic Development Revitalization Act, has been reported by a congressional committee. The Senate Committee on Environment and Public Works reported the bill on May 2, 2011. The bill includes several provisions intended to encourage regional and interagency cooperation, expand the role of regional Economic Development Districts, and modify the factors used to determine the federal share of EDA-funded projects and activities. The bill also includes proposals that would address a number of programmatic concerns raised by grant recipients, including provisions that would
grant eligible entities, including EDDs, administering revolving loan funds (RLF) greater flexibility in the management and conversion of RLF assets for other EDA-eligible activities; and change the current requirements governing the transfer of federal interest in EDA-financed construction projects in an effort to encourage local flexibility in the use of EDA funds.
The Senate began consideration of S. 782 on June 8, 2011. For six days—over a two-week period that ended on June 21, 2011—the Senate debated the bill. In an effort to end debate and bring the bill to a floor vote, a cloture motion was filed on June 16, 2011. Successful adoption of the cloture motion would have limited time for debate on the bill, prohibited consideration of non-germane amendments, and allowed the Senate to vote on passage of S. 782. On June 21, 2011, the chamber rejected the cloture motion, 49-51. Currently, the bill has been set aside and may be considered at a future date in the 112th Congress.
The reauthorization of EDA and its programs will take place within the context of more prominent policy debates regarding efforts to reduce federal spending to address growing budget deficits and the national debt; concerns about the duplication, fragmentation, and effectiveness of federal economic development assistance; and efforts to support economic recovery and job creation following the worst economic recession since the Great Depression. On November 18, 2011, the President signed into law P.L. 112-55, which appropriated $457.5 million in EDA assistance and salaries and expenses, including $200 million in supplemental disaster assistance for states and communities in presidentially declared disaster areas. For FY2013, excluding supplemental disaster assistance, the President has proposed to reduce program funds by $38 million to $220 million, including $182 million for program activities and $38 million for salaries and expenses. A bill, S. 2323, reported by the Senate Appropriations Committee recommends $200 million for EDA activities while a bill reported by the House would appropriate $182 million for EDA programs for FY2013. This report will be updated as events warrant.