EDA Appropriations up $20 Million for FY10

Congressional conferees on the FY10 Consolidated Appropriations Act picked the higher funding level between the House and Senate versions of the FY10 budget on many line items of interest to the TBED community. Despite its high-wage job potential, direct support for innovation-based regional growth strategies is not as easy to come by in the federal budget as is money for conventional economic development/infrastructure projects. That said, the most adaptable source of funding – the Economic Development Administration – received a $20 million increase over last year’s appropriations, excluding ARRA funds. Included in the $293 million appropriation is language encouraging EDA to support climate change mitigation and regional cluster initiatives. Highlights from the appropriation language [Emphasis added.]:

• No less than $25 million is to be spent for a Global Climate Change Mitigation Fund to expand EDA support for economic development projects beyond LEED certification. New priorities include “renewable energy; energy efficiency; reuse, restoration and recycling; green buildings; the development of green products; the greening of an existing function, process or activity; and the creation renovation of green buildings.”
• On regional clusters, the conferees direct EDA to focus “first efforts” on “mostly planning grants to communities.” In the first 90 days, EDA “is directed to identify appropriate agencies; establish coordination and alignment of priorities, applications and working relationships; and report” back to the two Appropriations committees.
• EDA is to continue its current approach to supporting business incubators at the same time it is to work on a coordination strategy with the Small Business Administration, the Minority Business Development Agency, and the Department of Agriculture.
• Of importance for state and local strategies to secure future EDA funding, the conferees are committed to re-establishing a minimum of one Economic Development Representative within each state to control flow of project funding. Within 60 days EDA is to report to the two appropriation committees on the costs associated with this change, to include funding in the FY11 budget request to ensure it happens, and to use current funding to begin implementation.

EDA budget language is included in statement accompanying Division B of the FY10 Consolidated Appropriations Act available at: http://appropriations.house.gov/FY2010_consolidated.shtml.