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

1[House Hearing, 119 Congress]2[From the U.S. Government Publishing Office]34 SMARTER SPENDING, STRONGER RESULTS: REDUCING DUPLICATION AND ENSURING5           EFFECTIVENESS THROUGH ECONOMIC DEVELOPMENT REFORMS67=======================================================================89                                (119-37)1011                                HEARING1213                               BEFORE THE1415                            SUBCOMMITTEE ON16              ECONOMIC DEVELOPMENT, PUBLIC BUILDINGS, AND17                          EMERGENCY MANAGEMENT1819                                 OF THE2021                              COMMITTEE ON22                           TRANSPORTATION AND23                             INFRASTRUCTURE24                        HOUSE OF REPRESENTATIVES2526                    ONE HUNDRED NINETEENTH CONGRESS2728                             SECOND SESSION29                               __________3031                            JANUARY 22, 202632                               __________3334                       Printed for the use of the35             Committee on Transportation and Infrastructure3637                [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]3839     Available online at: https://www.govinfo.gov/committee/house-40     transportation?path=/browsecommittee/chamber/house/committee/41                             transportation42                                ______4344                   U.S. GOVERNMENT PUBLISHING OFFICE454663-133 PDF                 WASHINGTON : 20264748             COMMITTEE ON TRANSPORTATION AND INFRASTRUCTURE4950                    Sam Graves, Missouri, Chairman51                 Rick Larsen, Washington, Ranking Member52Eric A. ``Rick'' Crawford, Arkansas,    Eleanor Holmes Norton,53  Vice Chairman                           District of Columbia54Daniel Webster, Florida                 Jerrold Nadler, New York55Thomas Massie, Kentucky                 John Garamendi, California56Scott Perry, Pennsylvania               Henry C. ``Hank'' Johnson, Jr.,57Brian Babin, Texas                        Georgia58David Rouzer, North Carolina            Andre Carson, Indiana59Mike Bost, Illinois                     Dina Titus, Nevada60Bruce Westerman, Arkansas               Jared Huffman, California61Brian J. Mast, Florida                  Julia Brownley, California62Pete Stauber, Minnesota                 Frederica S. Wilson, Florida63Tim Burchett, Tennessee                 Mark DeSaulnier, California64Dusty Johnson, South Dakota             Salud O. Carbajal, California65Jefferson Van Drew, New Jersey          Greg Stanton, Arizona66Troy E. Nehls, Texas                    Sharice Davids, Kansas67Tracey Mann, Kansas                     Jesus G. ``Chuy'' Garcia, Illinois68Burgess Owens, Utah                     Chris Pappas, New Hampshire69Eric Burlison, Missouri                 Seth Moulton, Massachusetts70Mike Collins, Georgia                   Marilyn Strickland, Washington71Mike Ezell, Mississippi                 Patrick Ryan, New York72Kevin Kiley, California                 Val T. Hoyle, Oregon73Vince Fong, California                  Emilia Strong Sykes, Ohio,74Tony Wied, Wisconsin                      Vice Ranking Member75Tom Barrett, Michigan                   Hillary J. Scholten, Michigan76Nicholas J. Begich III, Alaska          Valerie P. Foushee, North Carolina77Robert P. Bresnahan, Jr.,               Christopher R. Deluzio, Pennsylvania78  Pennsylvania                          Robert Garcia, California79Jeff Hurd, Colorado                     Nellie Pou, New Jersey80Jefferson Shreve, Indiana               Kristen McDonald Rivet, Michigan81Addison P. McDowell, North              Laura Friedman, California82  Carolina                              Laura Gillen, New York83David J. Taylor, Ohio                   Shomari Figures, Alabama84Brad Knott, North Carolina              Maxwell Frost, Florida85Kimberlyn King-Hinds,86  Northern Mariana Islands87Mike Kennedy, Utah88Robert F. Onder, Jr., Missouri89Jimmy Patronis, Florida90Vacancy9192                                ------9394      Subcommittee on Economic Development, Public Buildings, and95                          Emergency Management9697                  Scott Perry, Pennsylvania, Chairman98                 Greg Stanton, Arizona, Ranking Member99Mike Ezell, Mississippi              Eleanor Holmes Norton,100Kevin Kiley, California                District of Columbia101Tom Barrett, Michigan                Kristen McDonald Rivet, Michigan102Robert P. Bresnahan, Jr.,            Shomari Figures, Alabama103  Pennsylvania                       John Garamendi, California104Kimberlyn King-Hinds,                Dina Titus, Nevada105  Northern Mariana Islands           Laura Friedman, California,106Mike Kennedy, Utah                     Vice Ranking Member107Robert F. Onder, Jr., Missouri,      Rick Larsen, Washington (Ex Officio)108  Vice Chairman109Sam Graves, Missouri (Ex Officio)110111                                CONTENTS112113                                                                   Page114115Summary of Subject Matter........................................     v116117                 STATEMENTS OF MEMBERS OF THE COMMITTEE118119Hon. Scott Perry, a Representative in Congress from the120  Commonwealth of Pennsylvania, and Chairman, Subcommittee on121  Economic Development, Public Buildings, and Emergency122  Management, opening statement..................................     1123    Prepared statement...........................................     2124Hon. Shomari Figures, a Representative in Congress from the State125  of Alabama, and Member, Subcommittee on Economic Development,126  Public Buildings, and Emergency Management, opening statement..     3127    Prepared statement...........................................     5128Hon. Rick Larsen, a Representative in Congress from the State of129  Washington, and Ranking Member, Committee on Transportation and130  Infrastructure, opening statement..............................     5131    Prepared statement...........................................     6132133                               WITNESSES134135Ben Page, Deputy Assistant Secretary for Economic Development and136  Chief Operating Officer, U.S. Economic Development137  Administration, oral statement.................................     8138    Prepared statement...........................................    10139Hon. Gayle Conelly Manchin, Federal Cochair, Appalachian Regional140  Commission, oral statement.....................................    11141    Prepared statement...........................................    12142Hon. Corey Wiggins, Ph.D., Federal Cochair, Delta Regional143  Authority, oral statement......................................    15144    Prepared statement...........................................    17145Hon. Chris Saunders, Federal Cochair, Northern Border Regional146  Commission, oral statement.....................................    20147    Prepared statement...........................................    22148Hon. Jennifer Clyburn Reed, Ed.D., Federal Cochair, Southeast149  Crescent Regional Commission, oral statement...................    24150    Prepared statement...........................................    25151Hon. Juan Sanchez, Federal Cochair, Southwest Border Regional152  Commission, oral statement.....................................    27153    Prepared statement...........................................    29154Jocelyn Fenton, Director of Programs, Denali Commission, oral155  statement......................................................    32156    Prepared statement...........................................    35157158                                APPENDIX159160Post-Hearing Questions for the Record to Ben Page, Deputy161  Assistant Secretary for Economic Development and Chief162  Operating Officer, U.S. Economic Development Administration,163  from Hon. Rick Larsen..........................................    59164165[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]166167                            January 16, 2026168169    SUMMARY OF SUBJECT MATTER170171    TO:      LMembers, Subcommittee on Economic Development,172Public Buildings, and Emergency Management173    FROM:  LStaff, Subcommittee on Economic Development, Public174Buildings, and Emergency Management175    RE:      LSubcommittee Hearing on ``Smarter Spending,176Stronger Results: Reducing Duplication and Ensuring177Effectiveness Through Economic Development Reforms''178_______________________________________________________________________179180                               I. PURPOSE181182    The Subcommittee on Economic Development, Public Buildings,183and Emergency Management of the Committee on Transportation and184Infrastructure will meet on Thursday, January 22, 2026, at18510:00 a.m. ET in 2167 of the Rayburn House Office Building to186receive testimony on a hearing entitled, ``Smarter Spending,187Stronger Results: Reducing Duplication and Ensuring188Effectiveness Through Economic Development Reforms.'' The189hearing will examine the implementation of the economic190development reforms included in the Thomas R. Carper Water191Resources Development Act of 2024 (WRDA). At the hearing,192Members will receive testimony from the Economic Development193Administration (EDA), the Appalachian Regional Commission194(ARC), Delta Regional Authority (DRA), Denali Commission,195Northern Border Regional Commission (NBRC), Southeast Crescent196Regional Commission (SCRC), and the Southwest Border Regional197Commission (SBRC).198199                             II. BACKGROUND200201EDA AND FEDERAL REGIONAL COMMISSIONS AND AUTHORITIES202203    The EDA is the only nationwide Federal agency focused204solely on economic development. Reauthorized for the first time205in 20 years by WRDA 2024, its investments in infrastructure lay206the groundwork for industrial and commercial development.\1\207The EDA was established under the Department of Commerce by the208Public Works and Economic Development Act of 1965.\2\209---------------------------------------------------------------------------210    \1\ U.S. Econ. Dev. Admin., About EDA (last accessed Jan. 8, 2026),211available at https://www.eda.gov/about; Press Release, U.S. Econ. Dev.212Admin., U.S. Economic Development Administration Reauthorized by213Congress for First Time in 20 Years (Dec. 19, 2024), available at214https://www.eda.gov/news/press-release/2024/12/19/us-economic-215development-administration-reauthorized-congress-first.216    \2\ U.S. Econ. Dev. Admin., Title 13 of the Code of Federal217Regulations, available at https://www.eda.gov/sites/default/files/2022-21802/EDAs_regs-13_CFR_Chapter_III.pdf.219---------------------------------------------------------------------------220    Federal regional commissions and authorities are221independent, Congressionally chartered Federal-state222partnerships that seek to address economic distress in223designated regions of the country.\3\ Currently, there are ten224statutorily authorized regional economic development225commissions; however, only six are currently active: ARC, DRA,226Denali Commission, NBRC, SCRC, and SBRC.\4\ Most Commissions227are modeled after the ARC; composed of a Federal Co-Chair,228appointed by the President, and every constituent state229governor (one is appointed the State Co-Chair on a revolving230basis).\5\ The Federal regional commissions operate in231partnership with state governments, with programming focused on232infrastructure, energy, environment, workforce, and business233development.\6\234---------------------------------------------------------------------------235    \3\ Cong. Rsch. Service, IF12165, Federal Regional Commissions and236Authorities: Administrative Expenses (Mar. 25, 2025), available at237https://www.congress.gov/crs-product/IF12165.238    \4\ Cong. Rsch. Service, R45997, Federal Regional Commissions and239Authorities: Structural Features and Function (Jul. 31, 2025),240available at https://www.congress.gov/crs-product/R45997 [hereinafter241CRS R45997].242    \5\ Id.243    \6\ Id.244---------------------------------------------------------------------------245246APPALACHIAN REGIONAL COMMISSION (ARC)247248    The ARC was first established by the Appalachian Regional249Development Act of 1965 (ARDA).\7\ The ARC's membership250consists of all of West Virginia and parts of Alabama, Georgia,251Kentucky, Maryland, Mississippi, New York, North Carolina,252Ohio, Pennsylvania, South Carolina, Tennessee, and Virginia.\8\253The ARC uses an index-based system to classify counties' levels254of economic distress (distressed, at-risk, transitional,255competitive, and attainment) to direct funds to the most256vulnerable communities.\9\ Since 1965, the ARC has invested $6257billion over 34,000 different projects to help improve the258region's economic health.\10\ ARC's five strategic investment259goals and objectives include building businesses, the260workforce, infrastructure, tourism, and community261leadership.\11\ Funding opportunities include the Area262Development Program, the Appalachian Regional Initiative for263Stronger Economies (ARISE), Investments Supporting Partnerships264in Recovery Ecosystems Initiative (INSPIRE), Partnerships for265Opportunity and Workforce and Economic Revitalization266Initiative (POWER), Workforce Opportunity for Rural Communities267(WORC) and the Appalachian Regional Energy Hub Initiative.\12\268---------------------------------------------------------------------------269    \7\ Appalachian Regional Commission, ARC's History and Work in270Appalachia (last accessed Jan. 8, 2026), available at https://271www.arc.gov/arcs-history-and-work-in-appalachia/ [hereinafter ARC's272History].273    \8\ Appalachian Regional Commission, About the Appalachian Region274(last accessed Jan. 8, 2026), available at https://www.arc.gov/about-275the-appalachian-region/.276    \9\ Appalachian Regional Commission, Classifying Economic Distress277in Appalachian Counties (last accessed Jan. 8, 2026), available at278https://www.arc.gov/classifying-economic-distress-in-appalachian-279counties/.280    \10\ ARC's History supra note 7.281    \11\ Appalachian Regional Commission, Appalachia Envisioned: ARC's2822022-2026 Strategic Plan (last accessed Jan. 8, 2026), available at283https://www.arc.gov/strategicplan/.284    \12\ Appalachian Regional Commission, Grants and Opportunities285(last accessed Jan. 8, 2026), available at https://www.arc.gov/grants-286and-opportunities/#funding-opportunities.287---------------------------------------------------------------------------288    The ARC was reauthorized under the Infrastructure289Investment and Jobs Act (IIJA) and was appropriated $200290million (available until expended) per year for every fiscal291year (FY) between FY 2022 and FY 2026.\13\292---------------------------------------------------------------------------293    \13\ Pub. L. No. 117-58, Div. J, Title III.294---------------------------------------------------------------------------295296DELTA REGIONAL COMMISSION (DRA)297298    The DRA was established in 2000 by the Consolidated299Appropriations Act, 2001.\14\ The DRA's membership consists of300255 counties and parishes along the Mississippi River in parts301of Alabama, Arkansas, Illinois, Kentucky, Louisiana,302Mississippi, Missouri, and Tennessee.\15\ The DRA's mission is303to help make investments supporting transportation304infrastructure, basic public infrastructure, workforce305training, business development, and development of economically306distressed communities.\16\ The States' Economic Development307Assistance Program (SEDAP) is the DRA's main investment tool to308fund public infrastructure, transportation infrastructure, and309business development. The Community Infrastructure Fund (CIF)310complements SEDAP with investments in water, sewer, and flood311mitigation. The Public Works and Economic Adjustment Assistance312(PWEAA) program helps distressed communities enhance their313infrastructure.\17\314---------------------------------------------------------------------------315    \14\ CRS R45997 supra note 4.316    \15\ Delta Regional Authority, Service Area Map (last accessed Jan.3178, 2026), available at https://dra.gov/map-room/.318    \16\ Delta Regional Authority, About Delta Regional Authority (last319accessed Jan. 8, 2026), available at https://dra.gov/about/.320    \17\ Delta Regional Authority, Critical Infrastructure (last321accessed Jan. 8, 2026), available at https://dra.gov/programs/critical-322infrastructure/.323---------------------------------------------------------------------------324    The DRA was reauthorized in WRDA 2024 for FY 2025 through325FY 2029.\18\ The DRA was appropriated $31.1 million in FY3262024.\19\ This funding level remained unchanged and was327provided again in the FY 2025 full-year continuing resolution328and the FY 2026 continuing resolution.\20\329---------------------------------------------------------------------------330    \18\ Pub. L. No. 118-272.331    \19\ Pub. L. No. 118-42.332    \20\ Pub. L. 119-4; Pub. L. 119-37.333---------------------------------------------------------------------------334335DENALI COMMISSION336337    The Denali Commission was established in 1998 to provide338job training, economic development, power generation,339transition facilities, modern communication systems, water and340sewage systems, and promote rural development.\21\ The341Commission only represents one state; accordingly, the342Commissioners are comprised of the Governor of Alaska, the343University of Alaska President, the Alaska Municipal League344Executive Director, the Alaska Federation of Natives President,345the Alaska AFL-CIO Executive President, and the Associated346General Contractors of Alaska Executive Director.\22\ Ongoing347projects include construction of the Goiak bulk fuel farm and348power plant and implementation of the Village of Newtok's349relocation to Mertarvik.\23\350---------------------------------------------------------------------------351    \21\ Denali Commission, About Us (last accessed Jan. 8, 2026),352available at https://denali.gov/about/.353    \22\ Pub. L. No. 105-277, Div. C, Title III.354    \23\ Denali Commission, Energy (last accessed Jan. 8, 2026),355available at https://denali.gov/programs/energy/; Denali Commission,356Village Infrastructure Protection (last accessed Jan. 8, 2026),357available at https://denali.gov/programs/village-infrastructure-358protection/.359---------------------------------------------------------------------------360    The Denali Commission's authorization lapsed in FY 2022361through FY 2024 following the sunset of the authorization of362appropriations under the Water Infrastructure Improvements for363the Nation (WIIN) Act. WRDA 2024 subsequently reauthorized an364annual $35 million in funding for FY 2025 through FY 2029.\24\365The Commission was appropriated $17 million in FY 2024 and FY3662025.\25\367---------------------------------------------------------------------------368    \24\ Pub. L. No. 114-322; Pub. L. No. 118-272.369    \25\ CRS R45997 supra note 4.370---------------------------------------------------------------------------371372NORTHERN BORDER REGIONAL COMMISSION (NBRC)373374    The NBRC was authorized by the Food, Conservation, and375Energy Act of 2008 (2008 Farm Bill) and subsequently376reauthorized by the Agriculture Improvement Act of 2018 (2018377Farm Bill) and WRDA 2024. The NBRC's membership includes378distressed communities in Maine, New Hampshire, Vermont, and379New York.\26\ The Commission's main programs include the380Catalyst Program, Forest Economy Program, Timber for Transit381Program, and state-level comprehensive planning.\27\ Since its382establishment, Congress has both reauthorized the NBRC and383provided progressively increasing appropriations, making it one384of only three commissions to receive both.\28\385---------------------------------------------------------------------------386    \26\ Id.387    \27\ Id.388    \28\ Id.389---------------------------------------------------------------------------390    The NBRC was appropriated $41 million in FY 2024 and FY3912025.\29\392---------------------------------------------------------------------------393    \29\ Id.394---------------------------------------------------------------------------395396SOUTHEAST CRESCENT REGIONAL COMMISSION (SCRC)397398    The SCRC, first authorized by the 2008 Farm Bill, serves399distressed counties not covered by the ARC or the DRA in400Virginia, North Carolina, South Carolina, Georgia, Alabama,401Mississippi, and Florida.\30\ Through its strategic plan, the402SCRC advances investments across critical infrastructure,403health access and outcomes, workforce capacity, business404development, affordable housing, and environmental405conservation.\31\ Its primary investment vehicle, the State406Economic and Infrastructure Development (SEID) grant program,407awarded $34.8 million in FY 2025 to support infrastructure,408workforce pathways, and local economic development.\32\409---------------------------------------------------------------------------410    \30\ Id.411    \31\ Id.412    \32\ Southeast Crescent Regional Commission, Homepage (last413accessed Jan. 8, 2026), available at https://grants.scrc.gov/.414---------------------------------------------------------------------------415    After an authorization lapse in FY 2024, WRDA 2024416reauthorized an annual $40 million in funding from FY 2025417through FY 2029.\33\418---------------------------------------------------------------------------419    \33\ CRS R45997 supra note 4.420---------------------------------------------------------------------------421422SOUTHWEST BORDER REGIONAL COMMISSION (SBRC)423424    The SBRC was first established by the 2008 Farm Bill to425represent distressed counties along the southern borders of426Arizona, California, New Mexico, and Texas.\34\ Its strategic427plan targets underserved communities and advances regional428competitiveness, workforce and economic mobility, resiliency,429local capacity, infrastructure, and efficiency.\35\ The SBRC430also sets aside at least five percent of its funding for431indigenous communities.\36\432---------------------------------------------------------------------------433    \34\ Id.434    \35\ Id.435    \36\ Southwest Border Regional Commission, Homepage (last accessed436Jan. 8, 2026), available at https://sbrc.gov/.437---------------------------------------------------------------------------438    The SBRC first received appropriations in FY 2021 and has439been appropriated $5 million annually since FY 2023.\37\440---------------------------------------------------------------------------441    \37\ CRS R45997 supra note 4.442---------------------------------------------------------------------------443444AUTHORIZED COMMISSIONS WITHOUT APPROPRIATIONS445446    Currently, of the ten authorized regional commissions, four447are inactive. This includes the Great Lakes Authority (GLA),448the Mid-Atlantic Regional Commission (MARC), the Northern Great449Plains Regional Authority (NGPRA), and the Southern New England450Regional Commission (SNERC).\38\451---------------------------------------------------------------------------452    \38\ Id.453---------------------------------------------------------------------------454    The GLA was first established by the Consolidated455Appropriations Act of 2023.\39\ Its membership includes456counties surrounding the Great Lakes in Illinois, Indiana,457Michigan, Minnesota, New York, Ohio, Pennsylvania, and458Wisconsin. Unlike most other commissions, GLA overlaps with459counties served by NBRC and NGPRA.\40\460---------------------------------------------------------------------------461    \39\ Id.462    \40\ Id.463---------------------------------------------------------------------------464    The MARC was first authorized by WRDA 2024. Its membership465includes all counties in Delaware, as well as counties in466Maryland and Pennsylvania.\41\467---------------------------------------------------------------------------468    \41\ Id.469---------------------------------------------------------------------------470    The NGPRA was first authorized by the Farm Security and471Rural Investment Act of 2002 (2002 Farm Bill).\42\ Its472membership includes Iowa, Minnesota, North Dakota, Nebraska,473South Dakota, and the portions of Missouri not covered by474DRA.\43\ Congress did not reauthorize the NGPRA at the end of475FY 2018, resulting in a lapse of funding until the WRDA 2024476reauthorization; however, the Commission still lacks a477confirmed Federal co-chair.\44\ Unlike the other commissions,478Northern Great Plains, Inc. (a statutorily established non-479profit) previously served as the de facto bearer of the NGPRA's480mission but is now defunct.\45\481---------------------------------------------------------------------------482    \42\ Id.483    \43\ Id.484    \44\ Id.485    \45\ Id.486---------------------------------------------------------------------------487    The SNERC was first authorized by WRDA 2024. Its membership488includes all of Massachusetts and Rhode Island, as well as six489counties in Connecticut.\46\490---------------------------------------------------------------------------491    \46\ Id.492---------------------------------------------------------------------------493494                      III. PRIOR COMMITTEE ACTIONS495496ECONOMIC DEVELOPMENT REFORMS IN THE WATER RESOURCES DEVELOPMENT ACT OF497            2024498499    Last Congress, Title II of WRDA 2024 included the Economic500Development Reauthorization Act of 2024, which reauthorized the501Economic Development Administration for the first time in 20502years.\47\503---------------------------------------------------------------------------504    \47\ Press Release, U.S. Econ. Dev. Admin., U.S. Economic505Development Administration Reauthorized by Congress for First Time in50620 Years (Dec. 19, 2024), available at https://www.eda.gov/news/press-507release/2024/12/19/us-economic-development-administration-reauthorized-508congress-first.509---------------------------------------------------------------------------510    Included under this reauthorization are provisions that511support EDA's mission and enhance accountability. Specifically:512     LIt strengthens coordination across programs,513provides grants for planning, administrative expenses, supply514chain site development, and supports research and technical515assistance.\48\516---------------------------------------------------------------------------517    \48\ Pub. L. No. 118-272, Div. B, Title II.518---------------------------------------------------------------------------519     LIt also establishes Congressional notification520and reporting requirements, allows greater flexibility in521deploying high-speed broadband, and modernizes environmental522review processes.\49\523---------------------------------------------------------------------------524    \49\ Pub. L. No. 118-272, Div. B, Title II.525---------------------------------------------------------------------------526     LIt establishes technical assistance liaisons,527funds exchanges with other agencies, along with new offices at528the EDA, such as the Office of Tribal Economic Development and529the Office of Disaster Recovery and Resilience.\50\530---------------------------------------------------------------------------531    \50\ Pub. L. No. 118-272, Div. B, Title II.532533    WRDA 2024 also reauthorized the regional commissions,534except the ARC which had been previously reauthorized, and535created two new commissions.536537                             IV. WITNESSES538539     LMr. Ben Page, Deputy Assistant Secretary for540Economic Development and Chief Operating Officer, United States541Economic Development Administration542     LThe Honorable Gayle Conelly Manchin, Federal Co-543Chair, Appalachian Regional Commission544     LThe Honorable Corey Wiggins, Federal Co-Chair,545Delta Regional Authority546     LThe Honorable Chris Saunders, Federal Co-Chair,547Northern Border Regional Commission548     LThe Honorable Jennifer Clyburn Reed, Federal Co-549Chair, Southeast Crescent Regional Commission550     LThe Honorable Juan Sanchez, Federal Co-Chair,551Southwest Border Regional Commission552     LMs. Jocelyn Fenton, Director of Programs, Denali553Commission554555  SMARTER SPENDING, STRONGER RESULTS: REDUCING DUPLICATION AND ENSURING556           EFFECTIVENESS THROUGH ECONOMIC DEVELOPMENT REFORMS557558                              ----------559560                       THURSDAY, JANUARY 22, 2026561562                  House of Representatives,563      Subcommittee on Economic Development, Public564               Buildings, and Emergency Management,565            Committee on Transportation and Infrastructure,566                                                    Washington, DC.567    The subcommittee met, pursuant to call, at 10:02 a.m., in568Room 2167, Rayburn House Office Building, Hon. Scott Perry569(Chairman of the subcommittee) presiding.570    Mr. Perry. The Subcommittee on Economic Development, Public571Buildings, and Emergency Management will come to order. The572Chair asks that I be authorized to declare a recess at any time573during today's hearing.574    Without objection, so ordered.575    The Chair asks unanimous consent that Members not on the576subcommittee be permitted to sit with the subcommittee at577today's hearing and ask questions.578    Without objection, so ordered.579    As a reminder, if Members wish to insert a document into580the record, please also email it to DocumentsTI@mail.house.gov.581    The Chair now recognizes himself for purposes of an opening582statement for 5 minutes.583584    OPENING STATEMENT OF HON. SCOTT PERRY OF PENNSYLVANIA,585    CHAIRMAN, SUBCOMMITTEE ON ECONOMIC DEVELOPMENT, PUBLIC586              BUILDINGS, AND EMERGENCY MANAGEMENT587588    Mr. Perry. Thanks to our witnesses, each of you, for coming589here and being here today as we examine the role and590effectiveness of the Economic Development Administration, the591EDA, and the economic development regional commissions in592distressed regions of the country.593    Today, we will hear from the EDA as well as six regional594commissions: the Appalachian Regional Commission, the Delta595Regional Authority, the Northern Border Regional Commission,596the Southeast Crescent Regional Commission, the Southwest597Border Regional Commission, and the Denali Commission. EDA is598the only Federal agency established for the purpose of599supporting economic development in distressed communities600nationwide.601    Meanwhile, the regional commissions were set up602independently to work in partnership with their member State603governments to achieve similar goals, but in regional settings.604Other Federal departments are also involved in economic605development, including the Department of Agriculture, the606Department of Housing and Urban Development, and the Small607Business Administration.608    If this seems like a lot of cooks in the kitchen, I609certainly think it is. And the list doesn't stop there. There610are newly established commissions for southern New England, the611mid-Atlantic region, and the Great Lake States.612    In fact, in our 2023 hearing focused on regional613commissions, I predicted that the list of regional commissions614would continue to proliferate, and it has. It is not the role615of the Federal Government to pick which communities win and616lose. America's private enterprise has historically driven617economic development and done a pretty good job at it. It is618the responsibility of State and local governments to facilitate619a business-friendly environment for its constituents. States620already have the power to lower barriers for entry by621diminishing overly burdensome regulations and the costs of622doing business. But here we are, even more Federal programs623than we had just 2 years ago.624    And, to be crystal clear, I am not blaming you, the625witnesses here today, for this. But it does mean that at the626very least, we need to make sure that your activities and627funding are not duplicative. It is also critical to ensure628accountability and that clear performance metrics are in place.629    The fundamental mission of the economic development630programs is to create jobs in distressed communities. So,631ensuring that funding is not used to backfill State budgets but632instead is targeted and actually producing jobs is fundamental.633    That is why in the reforms passed last Congress, there are634clear mandates for EDA to report performance data, including635job creation numbers. There are mandates for all the witnesses636here today to coordinate and communicate with one another and637with other Federal agencies involved in economic development.638    The Thomas R. Carper Water Resources Development Act of6392024, or WRDA, reauthorized many of the regional commissions,640as well as the EDA, for the first time in 20 years. Given this641new requirement, the American people want to know each of your642game plans. More specifically, I want to know each regional643commission's goals, how you are collecting and reporting644performance data, and how you are coordinating with the EDA,645one another, as well as other Federal programs at USDA, HUD,646and the SBA.647    [Mr. Perry's prepared statement follows:]648649 Prepared Statement of Hon. Scott Perry, a Representative in Congress650 from the Commonwealth of Pennsylvania, and Chairman, Subcommittee on651    Economic Development, Public Buildings, and Emergency Management652    I'd like to thank our witnesses for being here today as we examine653the role and effectiveness of the Economic Development Administration654(EDA) and the economic development regional commissions in distressed655regions of the country.656    Today, we will hear from the EDA, as well as six regional657commissions: the Appalachian Regional Commission (ARC), the Delta658Regional Authority (DRA), the Northern Border Regional Commission659(NBRC), the Southeast Crescent Regional Commission (SCRC), the660Southwest Border Regional Commission (SBRC), and the Denali Commission.661EDA is the only federal agency established for the purpose of662supporting economic development in distressed communities nationwide.663    Meanwhile, the regional commissions were set up independently to664work in partnership with their member state governments to achieve665similar goals, but in regional settings. Other federal departments are666also involved in economic development, including the Department of667Agriculture (USDA), the Department of Housing and Urban Development668(HUD), and the Small Business Administration (SBA).669    If this seems like a lot of cooks in the kitchen, it is. And the670list doesn't stop there. There are newly established commissions for671Southern New England, the mid-Atlantic region, and the Great Lakes672states.673    In fact, in our 2023 hearing focused on regional commissions, I674predicted that the list of regional commissions would continue to675proliferate, and it has. It is not the role of the federal government676to pick which communities win and lose. America's private enterprise677has historically driven economic development. It is the responsibility678of state and local governments to facilitate a business-friendly679environment for its constituents. States already have the power to680lower barriers for entry by diminishing overly burdensome regulations681and the costs of doing business. But here we are with even more federal682programs than we had just two years ago.683    Now, I am not blaming the witnesses here today for this. But it684does mean that, at the very least, we need to make sure your activities685and funding are not duplicative. It is also critical to ensure686accountability and that clear performance metrics are in place.687    The fundamental mission of economic development programs is to688create jobs in distressed communities. So, ensuring that funding is not689used to backfill state budgets but instead is targeted and actually690produces jobs is fundamental.691    That is why in the reforms passed last Congress, there are clear692mandates for EDA to report performance data, including job creation693numbers. There are mandates for all the witnesses here today to694coordinate and communicate with one another and with other federal695agencies involved in economic development.696    The Thomas R. Carper Water Resources Development (WRDA) Act of 2024697reauthorized many of the regional commissions, as well as the EDA, for698the first time in 20 years. The American people want to know each of699your game plans.700    More specifically, I want to know each regional commission's goals,701how you are collecting and reporting performance data, and how you are702coordinating with EDA, one another, as well as other federal programs703at USDA, HUD, and SBA.704705    Mr. Perry. With that, I look forward to hearing from each706of you, our witnesses. And the Chair now recognizes the ranking707member for 5 minutes for an opening statement. Mr. Figures.708709 OPENING STATEMENT OF HON. SHOMARI FIGURES OF ALABAMA, MEMBER,710  SUBCOMMITTEE ON ECONOMIC DEVELOPMENT, PUBLIC BUILDINGS, AND711                      EMERGENCY MANAGEMENT712713    Mr. Figures. Thank you, Chairman Perry. Thank you to all714the witnesses for being here today, and thank you to all of715your teams that have supported your presence here today, as716well.717    Thank you, Chairman, for holding this hearing, this718important hearing to examine the work and effectiveness of719Federal economic development programs at the State and local720level. These programs allow communities to make critical721investments in workforce training, infrastructure,722entrepreneurial development, and other initiatives essential to723advancing sustainable economic growth across this country.724    I want to also thank our witnesses for joining us today and725sharing your perspective on the important work of the Economic726Development Administration and the Federal regional commissions727and authorities that each of you represent. We appreciate your728time and look forward to learning from your experience729administering and engaging with these programs.730    Today's hearing will give us the opportunity to assess how731the EDA and the regional commissions are operating following732their reauthorization under the bipartisan Economic Development733Reauthorization Act, which was included as part of the Water734Resources Development Act of 2024.735    I am interested in understanding what these programs are736doing well, where implementation challenges still remain, and737what improvements could help them work even better for the738communities they are intended to serve.739    EDA plays a critical role in bringing job growth and740economic opportunities to distressed communities in every741region of this country. The agency and commissions support742workforce development, infrastructure investment, and regional743planning efforts that help local economies grow and adapt to744new challenges and opportunities. They also promote innovation745and competitiveness in our local and regional economies,746helping communities succeed in the global marketplace.747    Despite this important work, EDA had not been reauthorized748in over two decades prior to last year. That reauthorization749gave Congress the opportunity to modernize the agency and750strengthen its ability to foster economic growth in today's751rapidly changing business environments.752    As we will hear from our witnesses today, the work of EDA753and the regional commissions impact communities of all sizes,754both urban and rural. In my home State of Alabama, we have seen755this directly. In fiscal year 2024, the Appalachian Regional756Commission worked in partnership with the Alabama Department of757Economic and Community Affairs to support more than 50 projects758in the State, totaling nearly $22 million--investing in759entrepreneurship and business development, workforce760ecosystems, and community infrastructure.761    Additionally, just last month, the Southeast Crescent762Regional Commission announced five State Economic and763Infrastructure Development grants in Alabama, totaling more764than $2 million.765    These investments will support water and sewer766infrastructure, workforce training, and local transportation767planning across several counties, projects that will help these768communities build long-term economic stability and growth.769    As we examine how these programs are being executed and770implemented on the ground, it is essential that EDA and the771regional commissions have the necessary tools and resources772they need to meet the challenges of the regions and the773residents that they serve. We must ensure that these Federal774investments deliver lasting and meaningful economic development775for local communities across this country.776    I thank our witnesses again for appearing before us today,777and I look forward to your testimony. Thank you.778    [Mr. Figures' prepared statement follows:]779780    Prepared Statement of Hon. Shomari Figures, a Representative in781    Congress from the State of Alabama, and Member, Subcommittee on782    Economic Development, Public Buildings, and Emergency Management783    Thank you, Chairman Perry, for holding this important hearing to784examine the work and effectiveness of federal economic development785programs at the state and local level. These programs allow communities786to make critical investments in workforce training, infrastructure,787entrepreneurial development and other initiatives essential to788advancing sustainable economic growth.789    I also want to thank our witnesses for joining us today and for790sharing your perspectives on the important work of the Economic791Development Administration (EDA) and the federal regional commissions792and authorities you represent. We appreciate your time and look forward793to learning from your experience administering and engaging with these794programs on the ground.795    Today's hearing gives us opportunity to assess how the EDA and the796regional commissions are operating following their reauthorization797under the bipartisan Economic Development Reauthorization Act, which798was included as part of the Thomas R. Carper Water Resources799Development Act of 2024.800    I am interested in understanding what these programs are doing801well, where implementation challenges remain and what improvements802could help them work even better for the communities they are intended803to serve.804    EDA plays a critical role in bringing job growth and economic805opportunities to distressed communities in every region of the country.806The agency and commissions support workforce development,807infrastructure investment, and regional planning efforts that help808local economies grow and adapt to new challenges and opportunities.809They also promote innovation and competitiveness in local and regional810economies, helping communities succeed in the global marketplace.811    Despite this important work, EDA had not been reauthorized in more812than two decades prior to last year. That reauthorization gave Congress813the opportunity to modernize the agency and strengthen its ability to814foster economic growth in today's rapidly changing business815environment.816    As we will hear from our witnesses today, the work of EDA and the817regional commissions impact communities of all sizes, both urban and818rural. In my home state of Alabama, we have seen this directly.819    In fiscal year 2024, the Appalachian Regional Commission worked in820partnership with the Alabama Department of Economic and Community821Affairs to support 51 projects in the state totaling nearly $22822million--investing in entrepreneurship and business development,823workforce ecosystems, and community infrastructure.824    Additionally, just last month, the Southeast Crescent Regional825Commission announced five State Economic and Infrastructure Development826grants in Alabama, totaling more than $2 million.827    These investments will support water and sewer infrastructure,828workforce training and local transportation planning across several829counties--projects that will help these communities build long-term830economic stability and growth.831    As we examine how these programs are being executed and implemented832on the ground, it is essential that EDA and the regional commissions833have the necessary tools and resources to meet the needs of the regions834and residents they serve. We must ensure that these federal investments835deliver lasting and meaningful economic development for local836communities across the country.837    I thank our witnesses for appearing before us today, and I look838forward to their testimony.839840    Mr. Perry. The Chair thanks the ranking member.841    The Chair now recognizes the ranking member of the full842committee, Mr. Larsen, Representative Larsen, for 5 minutes.843844 OPENING STATEMENT OF HON. RICK LARSEN OF WASHINGTON, RANKING845     MEMBER, COMMITTEE ON TRANSPORTATION AND INFRASTRUCTURE846847    Mr. Larsen of Washington. Thank you, Mr. Chair. I want to848thank the commissions and the EDA for being here, as well.849    We are going to be voting on the floor at 10:30. I am going850to just ask unanimous consent that my full comments enter the851record and then just point out a few things about the regional852commissions, which are a Federal-State partnership that853Congress created to implement community and economic854development strategies in some of our most disadvantaged855regions.856    The work that you have done, working closely with EDA, is857to build durable regional economies throughout the country. EDA858and the regional commissions provide critical investments in859wastewater treatment facilities, workforce training, industrial860park road improvements, broadband expansion, and a variety of861other areas, and they are an important economic tool for local862regions.863    We reauthorized the EDA as part of the Tom Carper bill--the864WRDA bill--a little over 13, 14 months ago. And, in fact, in865this budget that we are voting on today--we have taken so many866votes over the last week on appropriations bills; I can't keep867track of all of them--we do in fact fund the commissions moving868forward, as well.869    I think what I want to see is to ensure that the work the870commissions are doing does in fact line up with EDA priorities,871and the EDA priorities line up with the commissions. So, as I872know, it is a partnership. It is a constant push and pull to873ensure that you are achieving the goals you need regionally but874also achieving the goals with your partner, the EDA.875    And so, with that, I will end it there, and again just ask876unanimous consent for my full statement to be in the record.877    [Mr. Larsen of Washington's prepared statement follows:]878879 Prepared Statement of Hon. Rick Larsen, a Representative in Congress880    from the State of Washington, and Ranking Member, Committee on881                   Transportation and Infrastructure882    Thank you, Chairman Perry, for holding this hearing on our Nation's883economic development programs and the integral role that they play in884strengthening our communities, our workforce and our infrastructure.885    We are going to hear testimony from witnesses representing886different economic development entities:887      the Department of Commerce's Economic Development888Administration (EDA);889      the Appalachian Regional Commission (ARC);890      the Delta Regional Authority (DRA);891      the Denali Commission (Denali);892      the Northern Border Regional Commission (NBRC); and,893      the Southeast Crescent Regional Commission.894895    To our witnesses, I thank you all for joining us today. I have long896been a champion of leveraging federal support for economic development897via these economic development entities.898    Regional commissions are federal-state partnerships that Congress899created to implement community and economic development strategies in900some of our most disadvantaged regions. By integrating federal, state,901regional and local economic development priorities, the regional902commissions help communities respond to local economic crises, trends903and needs.904    Regional commissions work closely with the Economic Development905Administration (EDA) to build durable regional economies throughout the906country.907    EDA and the regional commissions provide critical investments in908wastewater treatment facilities, workforce training programs,909industrial park road improvements, commercial truck driver training,910and broadband expansion--all vital to local economies.911    Regional commissions are an important economic tool to help912communities respond to economic challenges. These commissions913supplement the work done by EDA to address economic challenges across914states and industries.915    Although there is currently no regional commission for Washington916state, the FY26 Financial Services and General Government917Appropriations bill included $1,000,000 to establish a Northwest918Regional Commission located in Washington, Oregon, Idaho and Montana.919    I support the establishment of the Northwest Regional Commission920and hope this bill will soon be signed into law so communities in my921district and across the Northwest can access the resources and tools922provided by these Commissions to help our regional economy thrive.923    The Thomas R. Carper Water Resources Development Act of 2024924included the Economic Development Reauthorization Act (EDRA), which925reauthorized EDA and seven existing regional commissions.926    Prior to EDRA, EDA administered 11 core programs that funded a927range of construction and non-construction activities in both urban and928rural areas. With the enactment of EDRA, some core programs remain929unchanged, some existing programs have been amended, and some new930programs have been authorized.931    It appears that some previously authorized EDA programs are no932longer accepting new grant applications. In fact, open funding933opportunities seem extremely limited.934    I look forward to hearing from our EDA witness about the Trump935Administration's implementation of EDRA and how EDA is complying with936Congressional mandates.937    EDA is the lead agency for the federal government's Economic938Recovery Support Function (ERSF).939    EDA manages this role on behalf of the Department of Commerce (DOC)940under the National Disaster Recovery Framework (NDRF) and in941coordination with the Federal Emergency Management Agency (FEMA) and942other interagency partners.943    The ERSF integrates the expertise of the federal government to help944state, local, tribal and territorial (SLTT) governments, as well as945private sector partners sustain and rebuild businesses, bolster946employment and develop economic opportunities that result in947economically resilient communities after large-scale and catastrophic948incidents.949    Since the early 1990's, EDA has received $4.71 billion in950supplemental appropriations to support local and regional efforts to951recover from natural disasters.952    The importance of EDA's post disaster work has become painfully953clear to me and to the people I represent in the wake of the December954floods that devastated western Washington. Local businesses are955struggling to rebuild and recover from significant economic losses, and956the need for federal support has never been more urgent.957    Once a major disaster declaration is approved for Washington, I958look forward to working closely with EDA to help the Puget Sound959economy regain its footing and ensure our communities have the support960they need to recover and thrive.961    I look forward to learning more from both EDA and the regional962commissions about any improvements that should be made to the federal963government's disaster recovery efforts.964    I would also like to hear what regional commissions are doing well.965    Thanks again to witnesses for being here, and to the Chairman for966holding this hearing.967968    Mr. Perry. The Chair thanks Representative Larsen.969    I would now like to welcome our witnesses and thank you970again for traveling here today. Briefly, I would like to take a971moment, especially for anybody new, to explain our lighting972system. There are three lights in front of you. Green means go.973Yellow means you are running out of time. And red means please974conclude your remarks. And, if I am hitting the gavel, well,975you don't want me hitting the gavel, right?976    The Chair asks unanimous consent that the witnesses' full977statements be included in the record.978    Without objection, so ordered.979    And I would just encourage you also just be familiar with980the microphone; put it in front of your mouth so that we can981hear you.982    The Chair also asks unanimous consent that the record of983today's hearing remain open until such time as our witnesses984have provided answers to any questions that may be submitted to985them in writing.986    Without objection, so ordered.987    The Chair also asks unanimous consent that the record988remain open for 15 days for any additional comments and989information submitted by the Members or the witnesses to be990included in the record of today's hearing.991    Without objection, so ordered.992    As your written testimonies have been made part of the993record, the subcommittee asks that you limit your oral remarks994to 5 minutes.995    And, just as a reminder, we are scheduled to vote at 10:30.996We are scheduled to vote at 10:30. It doesn't mean we are going997to vote at 10:30. So we are going to try and get through as998much as we can, but you can probably rely on a bathroom break999sometime in the next hour or something like that, just for your1000personal planning purposes.1001    All right. As your written testimonies--we already said1002that.1003    With that, Mr. Page, you are recognized for 5 minutes for1004your testimony, sir.10051006TESTIMONY OF BEN PAGE, DEPUTY ASSISTANT SECRETARY FOR ECONOMIC1007    DEVELOPMENT AND CHIEF OPERATING OFFICER, U.S. ECONOMIC1008DEVELOPMENT ADMINISTRATION; HON. GAYLE CONELLY MANCHIN, FEDERAL1009 COCHAIR, APPALACHIAN REGIONAL COMMISSION; HON. COREY WIGGINS,1010 Ph.D., FEDERAL COCHAIR, DELTA REGIONAL AUTHORITY; HON. CHRIS1011SAUNDERS, FEDERAL COCHAIR, NORTHERN BORDER REGIONAL COMMISSION;1012 HON. JENNIFER CLYBURN REED, Ed.D., FEDERAL COCHAIR, SOUTHEAST1013   CRESCENT REGIONAL COMMISSION; HON. JUAN SANCHEZ, FEDERAL1014  COCHAIR, SOUTHWEST BORDER REGIONAL COMMISSION; AND JOCELYN1015        FENTON, DIRECTOR OF PROGRAMS, DENALI COMMISSION10161017TESTIMONY OF BEN PAGE, DEPUTY ASSISTANT SECRETARY FOR ECONOMIC1018    DEVELOPMENT AND CHIEF OPERATING OFFICER, U.S. ECONOMIC1019                   DEVELOPMENT ADMINISTRATION10201021    Mr. Page. Thank you.1022    Chairman Perry, Representative Figures, distinguished1023members of the subcommittee, thank you for the opportunity to1024testify before you on the Economic Development Administration's1025implementation of the Thomas R. Carper Water Resources1026Development Act of 2024, which reauthorized EDA through fiscal1027year 2029.1028    The Administration is moving to execute on the requirements1029of the statute and is making swift progress. A few of the1030authorities have longer lead times, but I am proud to assure1031you that EDA is working diligently to put them in place. With1032that, I want to run through some of the highlights of EDA's1033implementation so far.1034    First, at the structural level, EDA has already submitted,1035and Congress has approved, a reorganization to stand up the two1036new offices required by the law: the Office of Disaster1037Recovery and Resilience and the Office of Tribal Economic1038Development. The disaster office helped design EDA's fiscal1039year 2025 disaster supplemental funding notice, which was1040released on June 4th, 2025, and is currently accepting1041applications to help areas recover from disasters that occurred1042in 2023 and 2024, including Hurricanes Helene and Milton.1043Further, the Tribal office held a Tribal consultation on1044September 25th, 2025, as part of the process to develop a1045Tribal economic development strategy as required by1046reauthorization.1047    Second, many of the statutory authorities were self-1048executing and became available immediately to EDA. This1049includes the new authorities related to implementing broadband1050projects, new eligible entities, expanded eligible activities,1051and new flexibilities around capacity building and pre-award1052activities.1053    The law also institutionalized many programs where EDA has1054previously only received appropriations. This includes two1055programs in particular: assistance to coal communities and1056assistance to nuclear closure communities. As the President has1057made clear, we must ensure the conditions for energy dominance1058and must course correct after years of decline in critical1059energy sectors like coal and nuclear. To that effect, among the1060Nation's best opportunities for energy independence and1061economic growth are our coal and nuclear communities. Both of1062these communities have special relationships with EDA because1063of the attention called to them in the law. EDA intends to1064leverage these relationships to help advance the President's1065energy dominance agenda and revive these hard-working1066communities after years of decline.1067    Third, EDA quickly adopted Congress' new definitions for1068investment priorities and set up a process to notify Congress1069about upcoming award decisions. We immediately incorporated the1070five new investment priorities into EDA's funding decisions and1071updated them on the website and into our funding announcements.1072    Fourth, EDA is actively working on a new program utilizing1073the workforce authorities Congress enacted. As was mentioned in1074a recent EDA blog post, and consistent with the America's1075Artificial Intelligence Action Plan, we seek to help American1076communities transition towards this new vision by setting aside1077$25 million in grant funding in support of the AI Action Plan.1078    Fifth, EDA is actively working to deepen the integration1079and coordination it already has with the regional commissions.1080In fact, in February, EDA and the commissions are convening in1081West Virginia to foster coordination and dive deeper into three1082important areas: closing the urban-rural divide on economic1083development opportunities, supporting development of a skilled1084workforce that aligns with private-sector needs, and ensuring1085these communities can participate in the economic opportunities1086afforded by emerging technologies.1087    Finally, EDA is actively working to update its economic1088distress criteria and corresponding grant rates. EDA is1089currently researching and conducting due diligence and intends1090to consult with subject-matter experts and stakeholders before1091undertaking notice and comment public rulemaking, which will1092likely take at least another year.1093    As you are aware, the President's budget request for fiscal1094year 2026 proposes to eliminate funding for EDA as part of the1095administration's plans to move the Nation towards fiscal1096responsibility. While EDA and the Department of Commerce stand1097ready to execute this directive, we are committed to ensuring1098that any funds that are executed, including for the activities1099I have described, are deployed in a manner that protects1100American taxpayers and supports communities.1101    In closing, Chairman Perry, Ranking Member Figures, and1102members of the subcommittee, thank you again for the1103opportunity to discuss implementation of EDA's reauthorization.1104I am happy to answer any questions you have.1105    [Mr. Page's prepared statement follows:]11061107Prepared Statement of Ben Page, Deputy Assistant Secretary for Economic1108  Development and Chief Operating Officer, U.S. Economic Development1109                             Administration1110    Chairman Perry, Ranking Member Stanton, and distinguished members1111of the Subcommittee, thank you for the opportunity to testify before1112you on the Economic Development Administration's (EDA) implementation1113of the Thomas R. Carper Water Resources Development Act of 2024, which1114reauthorized EDA through FY 2029.1115    The Administration is moving to execute the requirements of the1116statute and is making swift progress. A few of the authorities have1117longer lead times and will take longer to implement, but I am proud to1118assure you EDA is working diligently to put them in place. EDA has made1119thoughtful decisions in implementing these requirements in the most1120effective ways possible. With that I want to run through some1121highlights of EDA's implementation so far.1122    First, at the structural level, EDA has already submitted, and1123Congress has approved, a reorganization to stand up the two new offices1124required by the law: the Office of Disaster Recovery and Resilience and1125the Office of Tribal Economic Development. EDA is currently updating1126its internal organizational structure to fully reflect each office's1127respective duties and implementing the missions of these offices as set1128out in the statute. The Disaster Office helped design EDA's FY 20251129Disaster Supplemental Notice of Funding Opportunity (NOFO), which was1130released on June 4, 2025, and is currently accepting applications to1131help areas recover from disasters that occurred in calendar years 20231132and 2024, including Hurricanes Helene and Milton. The accompanying1133hiring authority Congress enacted in the section establishing the1134Disaster Office has also been used for EDA's mission delivery strategy.1135EDA was able to quickly onboard additional term staff to help it1136process awards for those areas eligible for funding from the FY 20251137Disaster Supplemental. Further, the Tribal Office held a tribal1138consultation on September 25, 2025, as part of the process to develop a1139Tribal Economic Development Strategy, as required in the1140reauthorization.1141    Second, many of the statutory authorities were self-executing and1142became available immediately to EDA as new available tools. This1143includes the new authorities related to implementing broadband1144projects, new eligible entities, expanded eligible activities under1145EDA's Public Works and Economic Adjustment Assistance authorities, and1146new flexibilities around capacity building and pre-award activities.1147The law also institutionalized many programs where EDA has previously1148received appropriations and now has direction from Congress on1149execution. This includes two programs in particular: Assistance to Coal1150Communities and Assistance to Nuclear Closure Communities. As the1151President has made clear, we must ensure the conditions for energy1152dominance and must course correct after years of decline in critical1153energy sectors like coal and nuclear. To that effect, among the1154nation's best opportunities for energy independence and economic growth1155are our coal and nuclear communities--both of which have special1156relationships with EDA because of the attention called to them in the1157law. EDA intends to utilize these relationships to help advance the1158President's energy dominance agenda and revive these hard-working1159communities after years of national destruction.1160    Third, EDA quickly adopted Congress's new definitions for1161Investment Priorities and set up a process to notify Congress about1162upcoming award decisions. We immediately incorporated the five new1163Investment Priorities into EDA's funding decisions and updated them on1164EDA's website. EDA has also implemented a process to give Congress1165three days' advance notice of any grant EDA is about to award.1166    Fourth, EDA is actively working on a new program utilizing the1167workforce authorities Congress enacted. As was mentioned in an EDA blog1168post and consistent with America's Artificial Intelligence Action Plan1169and Executive Order 14179, we seek to help transition American1170communities towards this new vision by setting aside $25 million in1171grant funding in support of the AI action plan. That plan recognizes1172the need for industry-driven training programs that address workforce1173needs tied to AI infrastructure investments.1174    Fifth, EDA is actively working to deepen the integration and1175coordination it already has with the Regional Commissions. In fact, in1176early February, EDA and the Commissions are convening in West Virginia1177to foster improved coordination, and to dive deeper into three specific1178areas that are important to helping distressed communities in areas1179covered by the commissions succeed in our changing economy: 1) closing1180the urban-rural divide on economic development opportunities; 2)1181supporting development of a skilled workforce that aligns with private1182sector needs; and 3) ensuring these communities can participate in the1183economic opportunities afforded by emerging technologies. We look1184forward to working even more closely with our partners, some of whom1185are represented here today, to amplify the impacts of our respective1186investments and collaborate when possible to help improve lives in the1187nation's distressed areas.1188    Finally, EDA is actively working to update its economic distress1189eligibility criteria and corresponding grant rates. EDA is currently1190researching and conducting due diligence and intends to consult with1191subject matter experts and stakeholders before undertaking notice and1192comment public rulemaking. However, to ensure these changes are1193implemented correctly, this effort will likely take at least another1194year, including the solicitation of public comment.1195    President Trump's budget request for FY 2026 proposes to eliminate1196funding for EDA and cancellation of its unobligated balances as part of1197the Administration's plans to move the nation toward fiscal1198responsibility. While EDA and the Department of Commerce stand ready to1199execute this directive, we are committed to ensuring that any funds1200that are executed--including the activities I've described--are1201deployed in a manner that protects American taxpayers and supports1202communities.1203    In closing, Chairman Perry, Ranking Member Stanton, and members of1204the Subcommittee, thank you again for the opportunity to discuss the1205implementation of EDA reauthorization. We appreciate the collaborative1206relationships with you and your staff as we serve the nation's economic1207development interests and create opportunities for distressed1208communities across the country. We look forward to continuing to1209implement this legislation and strengthening EDA's mission.1210    I am happy to answer any questions you might have.12111212    Mr. Perry. The Chair thanks the gentleman.1213    The Chair now recognizes Ms. Manchin for 5 minutes for your1214testimony, ma'am.12151216   TESTIMONY OF HON. GAYLE CONELLY MANCHIN, FEDERAL COCHAIR,1217                APPALACHIAN REGIONAL COMMISSION12181219    Ms. Manchin. Thank you. Good morning.1220    Good morning.1221    Mr. Perry. Pull that mic--there you go.1222    Ms. Manchin. Okay. Thank you for the opportunity for all of1223us to be here today. I am Gayle Manchin, Federal Cochair of the1224Appalachian Regional Commission, whose mission it is to1225strengthen economic growth throughout the Appalachian region's122613-State, 423-county region.1227    We are grateful for the bipartisan support of the committee1228and for the leadership of the Trump administration as we tackle1229Appalachia's unique economic challenges. Our work delivers1230measurable returns on investment and helps narrow the economic1231gap between Appalachia and the rest of the Nation. For every $11232of ARC funding, we attract $4 in private investment. And,1233second, the regional poverty rate has fallen by more than half1234since 1960, when nearly one of three Appalachians lived in1235poverty.1236    ARC's Federal-State-local partnership is one of a kind, and1237it is proving itself to be highly effective. We prioritize1238funding across five evidence-based goals: building businesses,1239developing a skilled workforce, strengthening infrastructure,1240expanding the tourism industry, and enhancing community1241resources.1242    To gauge success, we track and evaluate the outcomes1243related to these strategic areas; for example, including jobs1244created, businesses launched, individuals trained, and1245infrastructure improvements. I am pleased to announce that we1246are on track to meet or exceed all of our outcome targets in1247our current plan as we get ready to introduce our new plan this1248year.1249    In addition, ARC evaluates the economic status of our1250counties each year. Today, the number of distressed Appalachian1251counties is at its lowest level in 20 years. By law, we are1252committed to fund more than 50 percent of our money to the1253distressed communities. However, we generally exceed that. This1254year, 73 percent of our money was directed to our most1255distressed counties in 2025.1256    Two of our initiatives that tackle Appalachia's unique1257challenges is, first, the POWER Initiative, which is dedicated1258to boosting large-scale industry and job growth in our coal1259communities. Additionally, it advances President Trump's1260Executive order on reinvigorating the coal industry. To date,1261$473 million in POWER funding has leveraged $1.8 billion in1262private investment.1263    ARC's Area Development Program also remains a cornerstone1264of our work to tackle infrastructure challenges exacerbated by1265our rugged topography, supporting construction of roads, water1266systems, and broadband, and our INSPIRE Initiative addresses1267the workforce gap created by the substance use disorder.1268    During President Trump's first administration, he1269recognized the urgency of this crisis, and ARC created INSPIRE.1270To date, INSPIRE has provided opportunities for over 18,0001271Appalachians across our 13 States.1272    ARC also collaborates with our Federal partners--USDA, EDA,1273DOT, Office of National Drug Control Policy, to name a few. Our1274programs complement, not duplicate, other Federal efforts1275because we collaborate. And these Federal programs address the1276most distressed areas of Appalachia. Our funds help leverage1277gap funding, matching money, and resources to extend beyond EDA1278to help sustain those communities after the lifecycle of the1279grant.1280    I would like to say in closing that, by strengthening the1281Appalachian region, 26.6 million Appalachians, we bolster not1282only the economy of Appalachia, we bolster the economy of this1283country. Thank you.1284    [Ms. Manchin's prepared statement follows:]12851286  Prepared Statement of Hon. Gayle Conelly Manchin, Federal Cochair,1287                    Appalachian Regional Commission1288    Mr. Chairman and members of the Committee: I'm Gayle Manchin,1289Federal Co-Chair of the Appalachian Regional Commission (ARC), and I'm1290pleased to come before you this morning to discuss ARC's impact to the1291regional economy--and the good return on investment it delivers.1292    ARC is grateful for the bipartisan support from the Transportation1293and Infrastructure Committee over the years. We are also grateful for1294the leadership of the Trump Administration, which supports ARC's work1295to address the unique economic challenges and opportunities facing1296Appalachia--including the loss of coal mining jobs and the substance1297use disorder crisis in Appalachia, topics I will dive into further in1298my testimony.1299    To start, I'd like to share a few data points that underscore ARC's1300good return on investment throughout the 13-state, 423-county1301Appalachian region:13021303      First, every $1 of ARC funding attracts $4 in leveraged1304private investment \1\ (in FY 2025 alone). To be clear, this leveraged1305private investment is different from the matching funds that grantees1306and their partners provide to secure a grant. Leveraged private1307investment refers to the additional money that flows because a grant1308was made. Whether this is from building an ARC-funded water line for an1309industrial park that attracts new business--or from ARC projects that1310provide capital to help small businesses succeed and grow throughout1311the region--we have seen time and time again the multiplier effect of1312ARC's federal investments.1313---------------------------------------------------------------------------1314    \1\ FY 2025 Performance and Accountability Report https://1315www.arc.gov/wp-content/uploads/2025/12/FY-2025-Performance-and-1316Accountability-Report.pdf, pg. 1813171318      And second, we have seen significant reduction in1319regional poverty rates over six decades. For example, in 1960, five1320years before Congress established ARC, nearly 1 in 3 Appalachians lived1321in poverty. Today, the regional poverty rate has been cut by more than1322half. In addition, high-poverty counties have been cut by nearly 601323percent.\2\1324---------------------------------------------------------------------------1325    \2\ High-Poverty Counties in Appalachia, 1960 and 2019-2023--1326Appalachian Regional Commission: https://www.arc.gov/map/high-poverty-1327counties-in-appalachia-1960-and-2019-2023/1328---------------------------------------------------------------------------1329                       ARC's Partnership Approach1330    ARC's first-of-its-kind federal, state, and local partnership1331structure provides an effective approach for addressing Appalachia's1332unique economic development needs, as evidenced by our track record of1333success. Combined with targeting funds to areas of greatest need and a1334``bottom up'' approach to addressing economic challenges and1335opportunities, ARC prioritizes funding to advance its five strategic1336goals: building Appalachia's 1.) businesses, 2.) workforce, 3.)1337infrastructure, 4.) regional tourism industry, and 5.) community1338resources and skills.1339                          Regional Challenges1340    As a region, Appalachia confronts a combination of unique1341challenges that have resulted in economic isolation--its mountainous1342terrain, dispersed population, need for infrastructure, and a lack of1343financial and human resources. These challenges, combined with the1344disproportionate impact of substance use disorder throughout the region1345and the loss of jobs in declining sectors, underscores the importance1346of continued investment in tailored solutions that support Appalachia's1347long-term economic self-sufficiency.1348            Targeting Investments to Areas of Greatest Need1349    One way ARC gauges its progress is through evaluating economic data1350and categorizing the economic status of each county in the Appalachian1351Region as distressed, at-risk, transitional, competitive, or1352attainment. Each economic designation has a different match rate, which1353determines the amount of funding that ARC can provide. By law, ARC must1354direct at least half of its grant funds to projects that benefit1355economically distressed counties and areas in Appalachia. However, the1356Commission routinely exceeds that requirement--in FY 2025, 73% of its1357grant funds were invested in distressed counties or areas.1358    Data over two decades also demonstrates notable improvements in the1359region's economic status designations. Specifically, in FY 2026, the1360number of distressed Appalachian counties declined to the lowest level1361recorded in the 20 years of ARC's index system.\3\1362---------------------------------------------------------------------------1363    \3\ County Economic Status in Appalachia, FY 2026--Appalachian1364Regional Commission: https://www.arc.gov/map/county-economic-status-in-1365appalachia-fy-2026/1366---------------------------------------------------------------------------1367                           Measuring Progress1368    In addition to evaluating the economic status of Appalachia's 4231369counties, ARC also gauges its progress through tracking and examining1370grant outcomes in relation to performance targets from our Strategic1371Plan. Aligning with each goal, our outcome targets measure jobs created1372or retained; businesses created or strengthened; students and workers1373trained; businesses and households served by infrastructure; and1374communities improved through resource-building.1375    While we are preparing to launch an updated strategic plan this1376year, I am pleased to report that we are either on track to meet or1377exceed all of the outcome targets \4\ outlined in our current strategic1378plan.1379---------------------------------------------------------------------------1380    \4\ FY 2025 Performance and Accountability Report: https://1381www.arc.gov/wp-content/uploads/2025/12/FY-2025-Performance-and-1382Accountability-Report.pdf, pg. 191383---------------------------------------------------------------------------1384                      ARC Programs and Initiatives1385    I want to highlight two special initiatives that are advancing1386President Trump's agenda to strengthen America's economy.1387    First is ARC's Partnerships for Opportunity and Workforce and1388Economic Revitalization Initiative (POWER), which advances President1389Trump's Executive Order on Reinvigorating America's Beautiful Clean1390Coal Industry to enhance national and economic security. Between 2011-13912023, 70% of coal mining jobs lost in the U.S. were in Appalachia.\5\1392ARC's POWER Initiative is designed to grow industry and attract private1393investments in Appalachia's coal communities. As a competitive funding1394opportunity, POWER prioritizes projects that emphasize large-scale,1395multi-jurisdictional activities, engage a broad range of partners, and1396are financially sustainable and transformational. Eligible funding uses1397include enhanced job training and re-employment activities, job1398creation activities in existing or emerging industries, and new1399investment development activities for coal communities.1400---------------------------------------------------------------------------1401    \5\ https://www.arc.gov/report/coal-production-and-employment-in-1402the-appalachian-region-2024/1403---------------------------------------------------------------------------1404    Over the last decade \6\, ARC's $473 million investment in 5541405POWER projects has leveraged more than $1.8 billion in private1406investment throughout 365 coal communities. In addition, these grants1407are projected to create or retain over 52,000 jobs and prepare nearly1408170,000 workers and students for new opportunities in high-demand1409industries, including advanced manufacturing, automotive, coal mining,1410aerospace, broadband, and tourism.1411---------------------------------------------------------------------------1412    \6\ Partnerships for Opportunity and Workforce and Economic1413Revitalization Initiative--Appalachian Regional Commission1414---------------------------------------------------------------------------1415    The second initiative I want to highlight is Investments Supporting1416Partnerships In Recovery Ecosystems (INSPIRE), which focuses on1417creating or expanding local networks that lead to workforce entry or1418re-entry for Appalachians recovering from substance use disorder (SUD).1419SUD disproportionately impacts Appalachia \7\ and continues to pose a1420major threat to regional economic prosperity. It's not only a public1421health and safety issue; it's an economic development issue. SUD drains1422the region's resources, both human and financial, and limits economic1423output.1424---------------------------------------------------------------------------1425    \7\ In 2023, the overdose mortality rate was 50% higher in1426Appalachia than in the rest of the country: https://www.arc.gov/wp-1427content/uploads/2025/07/Appalachian-Diseases-of-Despair-Update-2025.pdf1428---------------------------------------------------------------------------1429    During President Trump's first administration, he and the1430Transportation and Infrastructure Committee recognized the urgent need1431to tackle the SUD crisis in Appalachia. To meet this charge, ARC1432identified an opportunity to address an unmet need related to the1433economic impact from the SUD crisis--helping those in recovery enter or1434reenter the workforce. As a result, INSPIRE was created.1435    To date,\8\ ARC has invested nearly $66 million in 200 INSPIRE1436projects that support recovery-to-work programs across 380 counties--1437which is 90 percent of the region. Together, these investments are1438projected to improve nearly 4,000 businesses and provide opportunities1439for over 18,000 students and workers.1440---------------------------------------------------------------------------1441    \8\ Investments Supporting Partnerships in Recovery Ecosystems1442Initiative--Appalachian Regional Commission1443---------------------------------------------------------------------------1444    While INSPIRE and POWER are two examples of specialized initiatives1445to address Appalachia's unique economic needs, ARC's base Area1446Development Program continues to serve as the mainstay of our work.1447    The base Area Development Program provides a way for ARC to adapt1448quickly to Appalachia's emerging economic opportunities. The program1449also helps address timely, region-wide issues affecting the economy.1450For instance, Area Development funding is providing long-term support1451for Appalachian businesses in North Carolina and Virginia as they1452recover from the economic devastation caused by 2024's Hurricane1453Helene. Similarly, it is also rebuilding infrastructure in communities1454impacted by flooding in Kentucky and West Virginia, as it can take1455years for states and localities to rebuild in light of this level of1456devastation.1457    Beyond natural disasters, Appalachia's rugged, mountainous1458geography inherently presents significant barriers to building regional1459infrastructure--including roads, water and wastewater systems, and1460broadband. Strong infrastructure is a prerequisite to creating a strong1461economy. The share of housing units lacking complete plumbing1462facilities is nearly twice as high in Appalachia as in the United1463States overall.\9\ In addition, Appalachian households are less likely1464than U.S. households overall to have broadband.\10\ This is why ARC1465continues to prioritize investments in regional infrastructure to1466expand economic opportunity throughout Appalachia.1467---------------------------------------------------------------------------1468    \9\ https://www.arc.gov/report/a-twenty-year-review-revisiting-the-1469drinking-water-and-wastewater-infrastructure-funding-needs-and-gaps-1470inthe-appalachian-region/, pg. 351471    \10\ https://www.arc.gov/wp-content/uploads/2025/05/1472PRB_ARC_Chartbook_ACS_2019_2023_FINAL_2025-06.pdf#page=851473---------------------------------------------------------------------------1474    In addition to strengthening the region's infrastructure, ARC1475investments are driving economic growth strategies that capitalize on1476Appalachia's unique assets and prioritize assistance for small1477businesses and entrepreneurs. Data shows that these investments are1478proving to be effective.1479    Specifically, a FY 2023 evaluation of ARC's business development1480grants closed between 2017 and 2021 found that those investments1481facilitated the creation or retention of nearly 30,000 jobs and the1482establishment of nearly 2,000 new Appalachian businesses.\11\1483Additionally, these business development grants attracted an astounding1484$923 million in private investment to the region, resulting in1485increased economic opportunity for its 26.6 million residents.1486---------------------------------------------------------------------------1487    \11\ Evaluation of ARC's Business Development Grants Closed Between14882017-2021--Appalachian Regional Commission: https://www.arc.gov/report/1489evaluation-of-arc-business-development-grants-closed-between-2017-2021/1490---------------------------------------------------------------------------1491                    Federal Collaboration and Impact1492    Collaboration with local and state partners cannot act alone to1493uplift the entire regional economy. Our federal partnerships serve as1494key assets to our mission. I know we are all aware that Congress1495created ARC over 60 years ago to partner at all levels--local, state1496and federal--to guide economic development in this challenged region,1497and we are meeting that charge. On the federal level, ARC has strong1498relationships with U.S. Department of Agriculture, the Economic1499Development Administration, the U.S. Department of Transportation, and1500the White House's Office of National Drug Control Policy (ONDCP).1501    ARC is not duplicative, but rather complementary, of other federal1502programs. Through our tailored approach to address specific economic1503challenges that impact Appalachia, ARC can extend the reach of other1504federal programs into some of the most economically distressed parts of1505the nation. This includes gap funding to help Appalachian communities1506plan and implement projects that create economic opportunities. In1507addition, ARC funds can also match other federal funding sources. More1508importantly, we focus on ensuring communities have the resources to1509ensure long-term economic self-sufficiency--beyond the life of a grant.1510    These aspects help attract private sector investment to areas that1511otherwise would not likely be considered competitive investment1512opportunities.1513    Taken together, ARC's program and initiatives are helping to narrow1514the economic gap between Appalachia and the rest of the nation.1515Ultimately, when we strengthen the economies of the Appalachian1516counties throughout our 13-state region, we strengthen the economy of1517each state. When we have strong state economies, this contributes to a1518strong national economy. I look forward to working with the1519Subcommittee in our efforts to expand opportunities for the 26.61520million Americans who call Appalachia home.15211522    Mr. Perry. The Chair thanks the gentlelady.1523    The Chair now recognizes Dr. Wiggins for 5 minutes for your1524testimony, sir.15251526TESTIMONY OF HON. COREY WIGGINS, Ph.D., FEDERAL COCHAIR, DELTA1527                       REGIONAL AUTHORITY15281529    Mr. Wiggins. Mr. Chairman, Ranking Member, and members of1530the committee, my name is Dr. Corey Wiggins, and I serve as the1531Federal Cochair of the Delta Regional Authority. Thank you for1532the opportunity to appear before you today to discuss how we1533can achieve smarter Federal spending, reduce duplication, and1534ensure that economic development investments deliver meaningful1535and lasting results for the communities we serve.1536    The Delta Regional Authority serves 255 counties and1537parishes in 8 States, including Alabama, Arkansas, Illinois,1538Kentucky, Louisiana, Mississippi, Missouri, and Tennessee. At1539its core, DRA operates as a Federal-State partnership designed1540to align regional economic development priorities. Every 51541years, by statute, we develop a regional development plan with1542public input and approval by the Governors of our eight States.1543Our current plan ensures that our investments are not isolated1544transactions, but part of a coordinated regional strategy1545focused on infrastructure resilience, workforce development,1546business competitiveness, and regional capacity.1547    From fiscal years 2024 and 2025, our major investment1548programs produced measurable results. For example, the States'1549Economic Development Assistance Program, one of our most1550diverse investment tools, is expected to improve public1551infrastructure that would impact more than 150,000 families,1552train approximately 3,000 workers, and result in creation or1553retention of almost 7,000 jobs.1554    Through our Community Infrastructure Fund, DRA investments1555will improve critical local infrastructure for more than1556100,000 families, support the training of over 1,0001557individuals, and help create or retain more than 14,000 jobs.1558And through our workforce development program, we invested in1559institutions that will train more than 5,000 individuals and1560support nearly 8,000 jobs across the region.1561    While these data points illustrate the scope of DRA's1562impact, in communities, these investments go much further. For1563example, in northeast Louisiana, a $300,000 DRA investment1564leveraged nearly $1 million in additional public funding to1565modernize the electrical system at a regional trauma and stroke1566center, serving more than 340,000 residents. That single1567project strengthened healthcare delivery, protected more than1568700 jobs, and reinforced regional medical capacity.1569    In Alabama's Black Belt, our investment in water, sewer,1570and roadway improvements in Union Springs addressed1571longstanding public health infrastructure failures, improving1572daily living conditions for residents while positioning the1573community to attract private and public capital for future1574growth.1575    More recently, Congress provided $2 million to DRA through1576supplemental EDA funding for disaster recovery and1577infrastructure restoration. Those funds are now supporting1578recovery efforts across 5 communities in 4 States, helping more1579than 1,700 households to rebuild and stabilize after federally1580declared disasters.1581    To ensure effectiveness, DRA also invests in local1582capacity, not just projects. In 2024, DRA's Local Development1583District Technical Assistance Program supported the 44 local1584development districts in our region and resulted in the1585communities securing more than $50 million in combined Federal1586and State investments. Nearly 90 percent of those funds go1587toward critical public infrastructure and workforce systems.1588    We also operate leadership and technical assistance1589programs that strengthen communities' capacity to develop high-1590quality projects. This early investment improves results,1591minimizes administrative waste, and ensures Federal resources1592are alive with projects that are viable, sustainable, and1593locally supported.1594    Regional commissions coordinate across Federal, State, and1595local systems to ensure that national policy and regional1596priorities are responsive to the distinct conditions and1597challenges of the communities we serve. We operate where1598Federal policy meets State leadership and local implementation.1599From that position, we help reduce duplication by ensuring that1600investments in infrastructure, workforce, health, and business1601development reinforce one another rather than compete or1602overlap.1603    In closing, DRA's value is measured not only in dollars1604invested, but in systems that help rural and distressed1605communities attract capital, manage growth, respond to1606disasters, and participate more fully in the national economy.1607We stand ready to work with this committee to ensure that1608Federal economic development policy remains efficient,1609effective, accountable, and responsive to the communities that1610need it most.1611    Thank you for the opportunity to testify. I look forward to1612your questions.1613    [Mr. Wiggins' prepared statement follows:]16141615Prepared Statement of Hon. Corey Wiggins, Ph.D., Federal Cochair, Delta1616                           Regional Authority1617    On behalf of the Delta Regional Authority (DRA), I am pleased to1618submit the Authority's written testimony.1619    The DRA was established in 2000 to address economic distress in and1620around the Mississippi River Delta and the Alabama Black Belt. Member1621states include Alabama, Arkansas, Illinois, Kentucky, Louisiana,1622Mississippi, Missouri, and Tennessee. Home to more than 10 million1623residents, the DRA region is among the most economically distressed1624parts of the United States. Among the DRA region's 255 counties and1625parishes, most are characterized as distressed and persistently in1626poverty.\1\ \2\ Despite\\ these economic conditions, millions of1627Americans across the country rely on the DRA region for agriculture,1628manufacturing, textiles, and supply chain logistics, as well as natural1629resources.1630---------------------------------------------------------------------------1631    \1\ As of FY 2025, 228 (89 percent) of DRA's counties and parishes1632are economically distressed. In compliance with the statute, the DRA1633calculates distress criteria on an annual basis. To be deemed1634distressed, counties and parishes must meet the following criteria: 1.1635An unemployment rate of one percentage point higher than the national1636average for the most recent 24-month period. 2. Have a per capita1637income of 80 percent or less of the most recent national per capita1638income level.1639    \2\ As of FY 2023, 136 (54 percent) of DRA's counties and parishes1640are in persistent poverty. The DRA follows the definition of persistent1641poverty the definition of persistent poverty provided by the U.S.1642Department of Agriculture's Economic Research Service that designates1643persistent poverty counties as those in which poverty rates of 201644percent or higher have persisted for 30 years or more.1645---------------------------------------------------------------------------1646    Throughout its history, the DRA has responded to the region's1647challenges through programs and strategic investments. The DRA invests1648in a broad range of initiatives that support its four overarching1649goals: investing in public infrastructure, developing local workforces,1650promoting business growth and entrepreneurship, and supporting1651sustainable communities.1652    Research from the Brookings Institution, including its report,1653Unlocking Investment in Distressed Rural Places, finds that federally1654chartered regional commissions allocate a higher share of their1655infrastructure funding to distressed rural communities than many1656federal programs.\3\ Brookings further notes that regional commissions1657are often more effective at directing resources to places that face1658persistent barriers to accessing federal investment, reflecting their1659grant-based structure, explicit distress-targeting missions, and deep1660regional knowledge.1661---------------------------------------------------------------------------1662    \3\ Anthony F. Pipa, Heather M. Stephens, David Nason, and Zoe1663Swarzenski, ``Unlocking Investment in Distressed Rural Places,''1664Brookings Institution, January 13, 2025, https://www.brookings.edu/1665articles/unlocking-investment-in-distressed-rural-places/1666---------------------------------------------------------------------------1667    The information presented below highlights the Authority's1668investments, activities, and outcomes since its last appearance before1669this Committee in September 2023, reflecting the most recent period of1670program implementation across the Delta region.1671    Key highlights include:16721673      The States' Economic Development Assistance Program1674(SEDAP), one of DRA's main investment tools, provides direct1675investments for basic public infrastructure, transportation1676infrastructure, business development, and workforce development. From1677FY 2024 to FY 2025, project investments in SEDAP resulted in1678approximately 157,000 families positively impacted by infrastructure1679projects, about 3,000 individuals trained in workforce development1680programs, and over 6,700 jobs either created or retained in the region.16811682      The Community Infrastructure Fund (CIF) supports projects1683that address flood control, basic public infrastructure, and1684transportation infrastructure improvements. From FY 2024 to FY 2025,1685CIF investments have resulted in nearly 120,000 families positively1686impacted by infrastructure projects, about 1,100 individuals trained in1687workforce programming, and approximately 14,200 jobs created or1688retained in the region.16891690      The Delta Workforce Grant Program (DWP) is an initiative1691designed to build long-term community capacity and increase economic1692competitiveness by providing grants to support workforce training and1693education programs throughout the lower Mississippi River Delta and1694Alabama Black Belt regions. From 2024 to FY 2025, project investments1695in the DWP resulted in over 5,2000 individuals trained in workforce1696development programs and nearly 7,900 jobs either created or retained1697in the region.16981699      In collaboration with the U.S. Department of Health and1700Human Services, the Delta Region Community Health Systems Development1701Program provides technical assistance to critical access hospitals,1702small rural hospitals, rural health clinics, and other healthcare1703organizations. Since 2017, the program has supported 68 organizations1704in 66 DRA communities across all eight Delta states. Participants in1705the program's 2022 cohort increased their net patient revenue and total1706operating revenue by an average of 9.8 percent, with 89 percent also1707reporting improvements in both financial position and quality of care.17081709    By leveraging its annual appropriations alongside the1710Infrastructure Investment and Jobs Act funding, DRA expects 2024 and17112025 investments to impact over 177,000 families through improved1712access to infrastructure, create or retain nearly 19,000 jobs, and1713train approximately 9,400 individuals.1714    For example, one of these projects includes a DRA SEDAP investment1715of more than $300,000, leveraged by $945,000 in additional public1716investment, to support the Electrical Distribution System Upgrade at1717Ochsner LSU Health Monroe Medical Center in Northeast Louisiana. This1718infrastructure project will modernize aging electrical systems at a1719Level III Trauma Center and Primary Stroke Center that serves more than1720348,000 residents across a largely rural and economically distressed1721region. The upgraded system is expected to improve reliability and1722safety for a facility that delivers more than 134,850 inpatient and1723outpatient services annually, manages over 37,000 emergency department1724visits, and supports more than 1,000 births each year. By reducing the1725risk of power outages and ensuring uninterrupted operation of life-1726saving medical equipment, the project will strengthen access to1727essential healthcare services, help retain more than 700 healthcare1728jobs, and reinforce the medical center's role as a critical regional1729healthcare hub for communities across Northeast Louisiana.1730    Additionally, DRA awarded a CIF investment of more than $662,000 to1731support comprehensive water, sewer, and roadway improvements in the1732City of Union Springs, Alabama, a persistent poverty community in1733Bullock County. This public infrastructure project will upgrade aging1734waterlines and sanitary sewer systems and resurface roadways on1735Abercrombie Street, Baskin Street, and Fourth Street, improvements that1736directly serve more than 140 households and businesses and benefit1737approximately 3,350 residents citywide. By replacing deteriorated1738infrastructure that has contributed to service disruptions, water loss,1739and public health risks, the project is expected to improve access to1740safe drinking water, enhance sanitation, reduce environmental hazards,1741and increase transportation safety. In addition to improving quality of1742life for residents, the project will support local economic stability1743by improving conditions for existing businesses, enhancing the city's1744attractiveness for future investment.1745    Under P.L. 118-158, Congress provided $1.51 billion in supplemental1746funding to the U.S. Economic Development Administration (EDA),1747including $10 million transferred to the DRA for economic adjustment1748assistance related to flood mitigation, disaster relief, long-term1749recovery, and infrastructure restoration in areas with presidential1750major disaster declarations during calendar years 2023 and 2024. DRA1751will invest over $9.8 million across five communities in Alabama,1752Mississippi, Missouri, and Tennessee, supporting recovery efforts that1753impacted more than 1,700 households.1754    As DRA continues to assess FY 2025 project and impact data, some1755highlighted regional investments include:17561757      DRA awarded more than $7 million in investments to 251758projects across Alabama, Arkansas, Illinois, Kentucky, Louisiana,1759Mississippi, Missouri, and Tennessee through the DWP. One of those1760investments included approximately $300,000 to the Center for Rural1761Innovation in Arkansas for a workforce initiative that will provide1762information technology training and industry-recognized certifications1763to address critical workforce challenges in Phillips County.17641765      DRA awarded approximately $6 million in investments to1766three projects across Arkansas, Louisiana, and Missouri through its1767partnership with the EDA. One of these investments, with funds provided1768through EDA's Economic Adjustment Assistance program, included $1.91769million to the City of Poplar Bluff, Missouri, to make improvements to1770the transportation infrastructure within the Poplar Bluff Industrial1771Park, ensuring safer and reliable roadways for employees and freight1772trucks accessing the five manufacturing companies within the park,1773while also attracting new businesses to the park.17741775      DRA awarded nearly $2.5 million to 44 local development1776districts (LDDs) through the LDD Community Support Pilot Program to1777strengthen local capacity and technical assistance for communities1778across the region. Designed to enhance the Delta's ability to compete1779and leverage resources, the program supports LDDs in advancing projects1780in economically distressed communities. On average, participating LDDs1781submit 28 grant applications per fiscal year, securing approximately1782$54 million annually in combined DRA, federal, and state investments,1783nearly 90 percent of which support critical infrastructure (e.g.,1784utilities, transportation) and human infrastructure (e.g., workforce1785training, health care).17861787      DRA awarded over $3.3 million to 29 communities in1788Alabama, Arkansas, Illinois, Kentucky, Louisiana, Mississippi,1789Missouri, and Tennessee through the Strategic Planning Program,1790including $150,000 to the City of Grenada, Mississippi, to develop a1791comprehensive GIS mapping and condition assessment of its entire water1792distribution system to modernize infrastructure management, reduce1793service disruptions and attract economic growth.17941795      DRA awarded more than $44 million in investments to 331796projects in Alabama, Arkansas, Illinois, Kentucky, Louisiana,1797Mississippi, and Tennessee through its CIF program. One of these1798investments included $600,000 to the City of Pangburn, Arkansas, to1799improve its water infrastructure system to ensure residents are1800provided with a safe and affordable water supply.18011802    Every five years, the DRA, by statute, is responsible for creating1803a regional plan with public input and is approved by our board of1804governors. In February 2023, the Authority approved and released1805Navigating the Currents of Opportunity: DRA Regional Development Plan1806IV. Our strategic goals for the next five years include:18071808      DRA will expand and invest in the resiliency of the1809region's public infrastructure to improve residents' quality of life1810and increase economic opportunity.18111812      DRA will improve networks of agencies, organizations,1813businesses, and educational institutions providing workforce1814development opportunities. It will promote access to services, funding,1815and programs that enable career stability.18161817      DRA will strengthen the competitiveness of the region's1818employers, attract new employers to the region, and support the long-1819term growth of micro and small businesses.18201821      DRA will invest in and support local placemaking and1822regional capacity building that improves opportunities for capital and1823federal investment in the DRA region to support economic development.18241825    As part of DRA's commitment to build upon these priorities to1826expand its impact in the region, it includes outreach to DRA1827stakeholders, including local governments, nonprofit organizations,1828LDDs, community colleges, and four-year institutions of higher1829learning. Some of these outreach and technical assistance efforts have1830included:18311832      LDD Trainings: DRA conducted 14 in-person training1833sessions augmented by virtual training sessions focused on providing1834technical assistance and capacity-building support for LDDs. Virtual1835sessions were recorded and provided to LDDs for additional access.18361837      Delta Leadership Institute Executive Academy: In1838September 2025, DRA celebrated the graduation of 35 regional leaders1839from the Delta Leadership Institute (DLI) Executive Academy. This1840intensive nine-month leadership development program unites leaders from1841the public, private, and nonprofit sectors across the Mississippi River1842Delta and Alabama Black Belt regions. The 2025 DLI Executive Academy1843class was selected through a highly competitive application process1844overseen by DRA's federal co-chairman and the governors of the1845Authority's eight member states. The program equips the region's1846leaders with the skills and knowledge needed to inspire change within1847their communities and accelerate prosperity throughout the region.18481849      DRA-supported Capacity-Building Hub: DRA continues to1850support regional capacity building through a suite of targeted1851technical assistance initiatives delivered in partnership with leading1852regional organizations, including the University of Memphis, Hope1853Enterprise Corporations, the Southern Rural Development Center, and the1854North Central Regional Center for Rural Development. Through these1855partnerships, communities across the lower Mississippi River and1856Alabama Black Belt regions receive grant-writing assistance, project1857development support, and project management training to strengthen1858local capacity and improve project readiness. As part of this broader1859technical assistance portfolio, DRA-supportive initiatives have helped1860communities advance locally driven planning efforts, including the1861adoption of strategic development plans in several Alabama Black Belt1862communities, positioning them to pursue future economic and community1863development investments.18641865      Workforce Opportunity for Rural Communities (WORC)1866Initiative: DRA provides technical assistance and capacity-building1867support to both prospective applicants and grant recipients through the1868WORC Initiative, which is a partnership between the U.S. Department of1869Labor's Employment and Training Administration and three regional1870commissions--the Appalachian Regional Commission, DRA, and the Northern1871Border Regional Commission. In 2024, DRA delivered a technical1872assistance webinar and a series of instructional videos to support1873applicants in the DRA region, and it continues to provide direct1874technical assistance to grant recipients throughout the grant period.1875Since 2019, the WORC Initiative has awarded 67 grants to recipients in1876the DRA region across the first six funding rounds.18771878    Thank you again for the opportunity to testify. We appreciate the1879opportunity to discuss the DRA's work in the region and look forward to1880your questions.18811882    Mr. Perry. Thank you, Dr. Wiggins.1883    Mr. Saunders, you are now recognized for your 5 minutes of1884testimony, sir.18851886  TESTIMONY OF HON. CHRIS SAUNDERS, FEDERAL COCHAIR, NORTHERN1887                   BORDER REGIONAL COMMISSION18881889    Mr. Saunders. Thank you, Mr. Chairman, Mr. Ranking Member,1890members of the subcommittee. My name is Chris Saunders. I am1891proud to serve as the Federal Cochair of the Northern Border1892Regional Commission.1893    As you have heard from my colleagues, the regional1894commissions exist as Federal-State partnerships, and ours in1895particular serves the economic and community development needs1896in the northern counties across Maine, New Hampshire, New York,1897and Vermont.1898    As with our peer commissions, we operate competitive grant1899programs aimed at supporting locally driven economic1900development initiatives. By design, the regional commissions1901utilize a very highly collaborative model for directing Federal1902public investment; in our case, particularly to rural America.1903By requiring the participation of Governors and member States1904in the operation of our commission, this structure demands that1905States see themselves as true partners with the Federal1906Government. And, as a result, rather than scattered investments1907serving the needs of one particular State, common themes of1908regional economic need emerge and receive support.1909    I think it is this structure along with the flexibility1910that Congress has granted commissions which allows NBRC to1911deliver assistance in a manner that not only reflects the1912needs, but the capacity constraints of the communities in our1913region. I am happy to highlight one such example, which is the1914forest products industry. That has really emerged as one of the1915defining areas of investment for our commission.1916    For generations, wood products and paper industries were an1917important driver of the economy across northern New England and1918New York. Over the past four decades, these industries have1919really faltered. Pulp and paper mills, often the predominant1920employer in small towns, they have closed, resulting in job1921losses both at the mills as well as for foresters, loggers, and1922the communities at large. And what we have heard from local1923leaders and industry stakeholders that is made clear about this1924situation is that these economic challenges did not arise1925overnight. And, at the same time, there are no quick fixes to1926dealing with these job losses.1927    Instead, what local leaders and communities have advanced1928is a vision of innovation and economic diversification.1929Congress has tasked NBRC to target resources to support this1930vision, which the commission has done through specific grant1931offerings that support innovation and infrastructure1932development in the forest industry.1933    And we are starting to see the results of this approach.1934They are becoming clear. Targeted investments are transforming1935paper mills into factories that make new materials from wood1936products, such as housing insulation, we have wood products1937made from wood fibers, new building materials, a host of other1938products which, in a State like Maine--the Maine Forest1939Products Council has shown that between 2019 and 2024, while1940paper manufacturing sales have declined by over 40 percent,1941wood product manufacturing, including the products I1942referenced, have increased by 45 percent.1943    Our commission has played a role as one of the funders in1944this market evolution that represents what is possible through1945sustained Federal investment in a specific sector.1946    Taking a step back and looking at the commission's work as1947a whole, we have over 437 active awards that include projects1948such as transportation infrastructure, drinking water and1949wastewater infrastructure, workforce development, business1950lending, among many others. In my prepared testimony, I shared1951examples of some of the specific types of awards we have made1952in recent years.1953    Our appearance in 2023 was referenced at the subcommittee,1954and I am happy to provide an update to some of the statistics1955NBRC shared at that time. In the past 2 years, of the nearly1956200 awards from NBRC's Catalyst Program, 50 percent have been1957made to infrastructure. Those projects were leveraged at nearly1958a 1-to-2 ratio, bringing in an additional $273 million in non-1959Federal investment into our region. Seventy-five percent of1960NBRC awards were made to communities of under 5,000 people, and196166 percent were made to applicants of distressed communities.1962    I hope what you have heard is that regional commissions can1963offer the ability to focus in a targeted way on a sector that1964is important to the region that they serve. They also have a1965governance model that really requires collaboration and, in our1966estimation, produces a very highly effective way of delivering1967resources to rural America.1968    Thank you for the opportunity to testify, and I look1969forward to your questions.1970    [Mr. Saunders' prepared statement follows:]19711972 Prepared Statement of Hon. Chris Saunders, Federal Cochair, Northern1973                       Border Regional Commission1974    Mr. Chairman, Mr. Ranking Member, Members of the Subcommittee,1975thank you for the invitation to appear before the Subcommittee today to1976discuss the work of the Northern Border Regional Commission (NBRC).1977Among federal funders, the regional commissions have a unique approach1978to economic development, and I appreciate the opportunity to1979participate in this hearing. As part of today's testimony, NBRC is1980happy to provide a brief overview of its operations and areas of focus,1981and how it has prioritized investment of federal funds.1982                            NBRC Operations1983    Created by Congress in the 2008 Farm Bill, the Northern Border1984Regional Commission is a federal-state partnership serving the economic1985and community development needs in the northern counties across Maine,1986New Hampshire, New York and Vermont. As with its peer Commissions, NBRC1987operates competitive grant programs aimed at supporting locally driven1988economic development initiatives. All NBRC awards involve the1989recommendations of the Governors of member states and are approved by1990votes from the Federal Co-Chair and Governors.1991    By design, the regional commissions utilize this highly1992collaborative model for directing federal public investment to rural1993America. In requiring the participation of Governors and member states1994in the governance of a Commission, this structure demands that states1995see themselves as regional partners with the federal government. As a1996result, common themes of economic need emerge and receive investment--1997rather than a specific need of an individual state.1998    This structure, along with flexibility Congress has granted1999Commissions, allows for consideration of how best to deliver assistance2000in a manner that reflects the needs, and recognizes the capacity2001constraints of the communities within the region. One example is the2002forest products industry, which has emerged as a defining area of focus2003in the NBRC territory.2004                 Promoting Increased Timber Production2005    For generations, the wood products and paper industries were2006significant drivers of the economy in Northern New England and New2007York. Over the past four decades these legacy industries have faltered.2008Pulp and paper mills--often the predominant employer in small, rural2009communities have closed. These closures have resulted in job losses2010both at the mills as well as for loggers and foresters. There has been2011a follow-on negative impact for small businesses located in these2012communities who have lost customers and revenue. What local leaders and2013industry stakeholders have made clear is that these economic challenges2014did not sprout up overnight, and there are no quick fixes to replacing2015these job losses.2016    In response, what local industry leaders and communities have2017advanced is a vision of innovation and economic diversification.2018Congress has directed NBRC to target resources to support this vision,2019which the Commission has done through specific grant offerings that2020support innovation and infrastructure within the forest products2021industry.2022    The results of this approach are becoming clear. Targeted2023investments are transforming paper mills into factories that make new2024materials, such as housing insulation products, packing materials and2025other products from wood fibers. In Maine, the Maine Forest Products2026Council has shown that between 2019 and 2024, while paper manufacturing2027sales declined by over 40%, wood product manufacturing sales, including2028these new products, increased by 45% \1\.2029---------------------------------------------------------------------------2030    \1\ https://maineforest.org/wp-content/uploads/2025/10/2024-2031Economic-Report-FINAL-for-printing-AK.pdf2032---------------------------------------------------------------------------2033    Mass timber, an engineered wood product comprised of layers of wood2034that are typically glued or nailed together, represents another2035significant market opportunity for the region. The northeast lags2036behind other areas of the country that have established markets for2037buildings constructed with mass timber panels and columns.2038Transportation infrastructure has been identified as a potential market2039opportunity for mass timber. NBRC has awarded funds to spur the2040adoption of this building material in bridges, airport terminals and2041other transportation projects.2042   Prioritization of Infrastructure, Distressed and Rural Communities2043    In October 2023, the Subcommittee invited the Regional Commissions2044to participate in a hearing about their role in economic development.2045At that time, NBRC shared details of its investments, including its2046approach to target resources to the most distressed areas in the2047region, evaluating infrastructure projects and other investment2048principles. I am pleased to provide an update to the information NBRC2049shared at that hearing.20502051      Investing in infrastructure--NBRC awards funds to2052infrastructure projects with the goal of facilitating additional2053private and public investments. Congress has determined this should be2054a priority funding area for NBRC, stipulating in NBRC's statute that a2055minimum of 40 percent of grant awards should be made to infrastructure2056projects. NBRC meets and exceeds this threshold with its investments2057across the region on an annual basis. Over the past two years of the2058194 awards from NBRC's Catalyst Program, 50 percent were made to2059projects classified as infrastructure.20602061      Leveraging other sources of funding--While NBRC requires2062a local match for its funding, the Commission has a track record of2063supporting projects that incorporate non-federal funding sources. In20642024 and 2025 NBRC funds were matched at a nearly 1:2 ratio, leveraging2065an additional $273 million in non-federal investment across our four-2066state region.\2\2067---------------------------------------------------------------------------2068    \2\ https://www.nbrc.gov/userfiles/files/Annual%20Reports/NBRC-20692024-Annual-Report-Web-version%20(1).pdf20702071      Centering the needs of rural communities--The regional2072commission model is designed around the origination of projects at the2073local level, and developing the capacity of rural communities. In the2074NBRC region, the Commission maintains a network of built-in technical2075assistance providers referred to as Local Development Districts. These2076partners support rural leaders and collaborate with municipalities and2077non-profits for grants administration and management of federal funds.2078In 2024 and 2025 75% of NBRC awards were made to communities with under20795,000 people and 66% of NBRC awards were made to NBRC applicants in2080distressed communities.\3\2081---------------------------------------------------------------------------2082    \3\ Ibid.2083---------------------------------------------------------------------------2084                             Award Examples2085    NBRC is currently managing 437 active awards. Across its grants2086portfolio, the Commission has funded projects including transportation2087infrastructure, drinking water and wastewater infrastructure, workforce2088development, and business lending, among many other categories. The2089following are a few examples of the types of awards NBRC might make in2090a typical year.2091    The St. Lawrence County Industrial Development Agency in New York2092was awarded funding to establish a purification pilot facility for2093Empire State Mines' new graphite processing operation. This public-2094private partnership will support the first fully integrated U.S.2095natural flake graphite production since 1956, a critical access to2096mineral supply chains. It will create jobs, attract investment, and2097position the region as a leader in domestic graphite production.2098    The town of Jonesport, Maine was awarded funding to construct a2099commercial working waterfront facility at Henry Point, including a boat2100launch, parking, and floating docks. The project will support 2502101fishers and 20-50 marine businesses, enhancing economic resilience and2102access to deep water. This initiative supports infrastructure,2103fisheries, and rural economic development.2104    Paul Smith's College, located in the Adirondacks of New York, was2105awarded funding to launch the Troops to Timber program, which will2106train veterans and transitioning service members for careers in2107forestry and logging. The program offers stackable credentials and2108hands-on training in collaboration with Fort Drum and regional2109employers. It addresses workforce shortages in the forest economy and2110supports veteran employment in rural communities.2111    These three examples represent the types of awards NBRC makes in a2112typical grant round. I hope this brief overview offers insight into the2113role regional commissions play in the economic development ecosystem.2114    We appreciate the opportunity to answer questions regarding the2115Commissions' work in the region. Thank you again for the opportunity to2116testify and I look forward to your questions.21172118    Mr. Perry. Thank you, Mr. Saunders.2119    We now turn to Dr. Reed for your testimony. You are2120recognized for 5 minutes, ma'am.21212122    TESTIMONY OF HON. JENNIFER CLYBURN REED, Ed.D., FEDERAL2123        COCHAIR, SOUTHEAST CRESCENT REGIONAL COMMISSION21242125    Ms. Reed. Good morning, Chairman Perry, Ranking Members,2126and members of the subcommittee. Thank you for the opportunity2127to testify on behalf of the Southeast Crescent Regional2128Commission.2129    When I last appeared before this subcommittee in 2023, SCRC2130was just getting started. At that time, our focus was on2131establishing the governance, accountability, and data systems2132necessary to deploy Federal resources responsibly. Today, SCRC2133marks 4 years of operations. Statutorily, SCRC serves 4282134counties across 7 States and covers more than 210,000 square2135miles where 51 million Americans call home. Nearly 40 percent2136of these counties are classified as economically distressed,2137where economic growth is constrained by workforce shortages,2138infrastructure gaps, and limited access to essential services2139on which employers rely.2140    SCRC has prioritized strategic discipline over speed,2141recognizing that effective economic development requires2142alignment, not duplication. Fiscal investments have followed a2143structured process. SCRC's planning and outreach efforts2144included sustained coordination with Governors' offices, State2145economic development agencies, and local development districts.2146    Regionwide, data collection efforts allowed SCRC to target2147unmet needs and prioritize projects that deliver measurable2148economic returns. Furthering this approach, SCRC conducted a2149428-county regional health assessment. Three consistent2150findings emerged from this data: Strong labor markets are2151foundational to economic stability. Two, Federal dollars2152deliver the highest return when they strengthen organizations2153executing the work on the ground. And, three, regional2154coordination improves efficiency and returns on investment.2155    One of the most urgent constraints validated through this2156assessment was the shortage of medical professionals2157exacerbated by rural hospital closures. In response, SCRC2158developed the Crescent Care Collaborative and partnered with2159the Department of State to place qualified physicians in2160designated shortage areas. This targeted workforce strategy is2161funded through application processing fees, allowing it to2162operate without Federal cost and administrative overhead. To2163date, 397 physicians have been placed in high-need counties,2164helping stabilize essential services and reversed stagnation2165where economic growth was at risk.2166    In addition, SCRC has completed two grant cycles of the2167State Economic and Infrastructure Development grant program,2168investing nearly $53 million on 139 projects. For example, in2169Bluffton County, Georgia, $1.2 million will fund a workforce2170training center that will train more than 200 individuals in2171agriculture and small business development, with a focus on2172transitioning veterans into agricultural careers. In Henry2173County, Alabama, $2 million will develop a workforce technology2174center, providing hands-on training and dual enrollment that2175creates seamless career pathways for students and adults. In2176Lauderdale County, Mississippi, $475,000 will expand training2177in diesel, automotive, and aviation maintenance, supporting 1592178new jobs, leveraging nearly $33 million from local investments.2179In Clarke County, Mississippi, $600,000 for a cofferdam to2180restore Archusa Lake, reviving tourism and retaining jobs.2181    As outlined in the 5-year strategic plan, investments are2182evaluated on access to infrastructure and services, job2183creation, and retention. The two grant cycles' funds leveraged2184significant State, local, and private investment, producing a2185return of $2 per every Federal dollar. These positive returns2186on investment are tied to quantifiable outcomes in jobs,2187infrastructure, and economic capacity.2188    SCRC is designed for accountability and efficiency. The2189commission maintains a lean Federal footprint while Governors2190of member States play an active role in setting priorities and2191overseeing investment. This governance model ensures local2192relevance, minimizes administrative duplication, and aligns2193Federal spending with State economic strategies.2194    I appreciate the opportunity to report on SCRC's growth and2195strength in this region, critical to America's long-term2196economic growth. Thank you for your time. I look forward to2197your questions.2198    [Ms. Reed's prepared statement follows:]21992200   Prepared Statement of Hon. Jennifer Clyburn Reed, Ed.D., Federal2201            Cochair, Southeast Crescent Regional Commission2202    Good morning Chairman Perry, Ranking Member Stanton, and Members of2203the Subcommittee. Thank you for the opportunity to testify on behalf of2204the Southeast Crescent Regional Commission (SCRC).2205    When I last appeared before this Subcommittee in 2023, the2206Southeast Crescent Regional Commission was just getting started. At2207that time, our focus was on establishing the governance,2208accountability, and data systems necessary to deploy federal resources2209responsibly.2210    Today, SCRC marks four years of operations. I am here to report2211activities and outcomes across the Southeast Crescent region.2212    Statutorily, SCRC serves 428 counties across seven states and2213covers more than 210,000 square miles where 51 million Americans call2214home. Nearly 40 percent of these counties are classified as2215economically distressed. In many of these communities, economic growth2216is constrained by workforce shortages, infrastructure gaps, and limited2217access to essential services that employers rely on to operate and2218expand. Many of these challenges are regional in nature.2219    From the outset, SCRC prioritized strategic discipline over speed,2220recognizing that effective economic development requires alignment, not2221duplication. Fiscal investments followed a structured process.2222    SCRC's planning and outreach efforts included sustained2223coordination with Governors' offices, state economic development2224agencies, and Local Development Districts.2225    Regionwide data collection efforts such as the Love Where You Live2226survey; and a county-by-county review of economic conditions alongside2227current state and federal programs allowed SCRC to target unmet needs2228and prioritize projects capable of delivering measurable economic2229returns.2230    To further strengthen this evidence-based approach, SCRC conducted2231a comprehensive 428-county regional health assessment. This analysis2232confirmed the interconnected relationship between workforce2233participation, access to essential services, and regional economic2234stability. Three consistent findings emerged:22352236    1.  Strong labor markets are foundational to economic stability.2237Employers are less likely to invest or expand in communities where2238workforce participation is constrained by deficiencies in2239transportation, housing, healthcare, or basic infrastructure.22402241    2.  Targeted investments deliver the highest return when they2242strengthen organizations already executing work on the ground. In2243distressed and rural areas, these institutions--community colleges,2244hospitals, workforce entities, and local governments--form the backbone2245of local economies.22462247    3.  Regional coordination improves efficiency and return on2248investment. Addressing challenges at the scale they exist--not through2249fragmented, jurisdiction-by-jurisdiction solutions--delivers greater2250impact for communities.22512252    One of the most urgent constraints validated through this2253assessment was the shortage of medical professionals across rural2254counties in the region. Persistent provider shortages--exacerbated by2255rural hospital closures--directly undermine workforce participation,2256increase employer risk, and weaken regional competitiveness.2257    In response, SCRC developed the Crescent Care Collaborative,2258partnering with the U.S. Department of State to place qualified2259physicians in designated shortage areas where the domestic labor supply2260is insufficient or unavailable.2261    This initiative exemplifies smart federal design: it is a targeted2262workforce placement strategy funded through application processing2263fees, allowing it to operate without federal cost and administrative2264overhead.2265    To date, 397 physicians have been placed in high-need counties,2266with approximately 50 applications currently under review. These2267placements have stabilized essential services, reduced business2268operating risk, and helped reverse stagnation in communities where2269economic growth was at risk.2270    In addition to workforce-driven interventions, SCRC has completed2271two cycles of the State Economic and Infrastructure Development (SEID)2272Grant Program. SEID grants deliberately target job creation, address2273infrastructure gaps, and increase access to capital.2274    Of the 139 SEID projects funded to date, I would like to highlight2275four:22762277      Georgia: A $1.2 million investment in Bluffton funded a2278workforce training center that will train more than 200 individuals in2279agriculture and small business development, with a focus on2280transitioning veterans into agricultural careers.22812282      Alabama: A $2 million investment in Henry County to2283develop a Workforce Technology Center, providing hands-on training and2284dual enrollment partnerships that create seamless career pathways for2285students and adults.22862287      Mississippi: A $475,000 investment to expand training in2288diesel, automotive, and aviation maintenance--directly addressing2289skilled labor shortages and supporting 159 new jobs while leveraging2290nearly $33 million in regional investment.22912292      South Carolina: A $500,000 investment in trail2293construction supporting immediate construction jobs and creating a2294long-term tourism asset to drive sustained employment and visitor2295spending in Georgetown and Williamsburg Counties.22962297    Structurally, SCRC is designed for accountability and efficiency.2298The Commission maintains a lean federal footprint, while Governors of2299member states play a direct and active role in setting priorities and2300overseeing investments. This governance model ensures local relevance,2301minimizes administrative duplication, and aligns federal spending with2302state economic strategies.2303    From the beginning, SCRC paired this structure with clear2304performance measures. As outlined in our five-year strategic plan,2305investments are evaluated based on expanded access to infrastructure2306and services, job creation and retention, strengthened local capacity,2307and long-term economic sustainability.2308    Across the 2024 and 2025 grant cycles, SCRC invested nearly $532309million in 139 projects across six states. These funds leveraged2310significant state, local, and private investment--producing an2311estimated return of $2.49 for every federal dollar invested in 2024 and2312$1.52 per federal dollar in 2025. These positive returns on investment2313are tied to quantifiable outcomes in jobs, infrastructure, and economic2314capacity.2315    I appreciate the opportunity to report before the Subcommittee on2316SCRC's work to strengthen a region critical to America's long-term2317economic growth.2318    Thank you for your time. I look forward to answering your2319questions.23202321    Mr. Perry. All right. I was considering--we would like to2322get all of you done, but I don't know if I can. As you can see2323the board over there--I know Washington works on a different2324timetable, but that is why nobody is ever on time around here,2325so I would like not to feed into that too much. But I will just2326say thank you, Dr. Reed. And we are going to let Mr. Sanchez2327testify and see what we have left. And then we will figure out,2328Ms. Fenton, if you can go before we have to recess for a little2329while.2330    So, go ahead, Mr. Sanchez. You are recognized for 52331minutes.23322333  TESTIMONY OF HON. JUAN SANCHEZ, FEDERAL COCHAIR, SOUTHWEST2334                   BORDER REGIONAL COMMISSION23352336    Mr. Sanchez. Thank you, Chairman. I will be as quick as I2337can.2338    Good morning, Chairman Perry, Ranking Members, and members2339of the committee. Thank you for the invitation to testify today2340on behalf of the Southwest Border Regional Commission. I am2341Juan Sanchez. I am the commission's Federal Cochair, and I am2342honored to share our progress and challenges as we work to2343foster economic development across the Southwest region.2344    The SBRC is a partnership between the Federal Government2345and the States of Arizona, California, New Mexico, and Texas.2346Congress created the commission in the 2008 farm bill and most2347recently reauthorized it under the 2024 WRDA bill.2348    The SBRC's mission is to improve economic infrastructure,2349foster economic development, and help create jobs by addressing2350barriers to growth and providing Federal grants to distressed2351communities. The commission's region comprises 103 counties and2352approximately 36 million people across our 4 States. The2353commission evaluates each one of our counties on a yearly2354basis, utilizing their economic data, including poverty rates,2355per capita market income, and unemployment rates, and compares2356them against counties nationwide. Of our 103 counties, 43 were2357classified as economically distressed, 44 as transitional, and235813 as attainment.2359    Commissionwide, the average poverty rate was 18 percent,2360significantly higher than the national average of 12.4 percent,2361and representing 5 million people who live in poverty. The2362average 3-year unemployment rate for the region was 5.2, also2363exceeding national averages, and our per capita market income2364was 20 percent lower than the national average in 2023.2365    These challenges are most acute in distressed counties.2366Although they represent 11 percent of the population, they2367account for approximately 21 percent of the individuals living2368in poverty. These counties experience a poverty rate of 242369percent, twice the national average.2370    Additionally, within our region, we have unique and2371isolated distressed communities. Colonias, which is a Spanish2372word for ``neighborhoods,'' are distressed communities located2373within 150 miles of the U.S.-Mexico border. These communities2374are inhabited by individuals and families with very low income.2375They often lack a governance structure and a meaningful tax2376base. Many residents live without adequate housing and2377essential services such as potable water, plumbing, sewage,2378utilities, broadband, and paved roads.2379    Approximately 800,000 people in colonias lack adequate2380drinking water and sanitation. One-third of those have no2381access to water or a wastewater facility. Even those with2382access face water quality and quantity issues, posing serious2383health threats.2384    The commission also includes 51 federally recognized2385Tribes. Collectively, these Tribes experience a poverty rate of238644 percent, which is almost four times the national average,2387and an unemployment rate of almost three times the national2388average. Likewise, these Tribal communities face critical2389infrastructure challenges with limited access to drinking2390water, sanitation, roads, and broadband.2391    Another critical challenge faced by the commission's region2392is access to healthcare. All 103 counties in our area contain a2393federally designated health professional shortage area. These2394shortages are most pronounced in our distressed counties where239571 percent are classified as whole county shortages, meaning2396the provider shortage affects the entire population. The2397commission views disparities as a fundamental barrier to2398workforce participation, economic stability, and long-term2399community resilience.2400    We surveyed our region, meeting with universities,2401nonprofits, local officials, to identify the most common2402barriers to economic growth. What we have heard constantly was2403the capacity gap; communities lack technical, managerial,2404financial capacity. Distressed communities often report that2405their minimal staff is overburdened by administrative duties.2406Capacity constraint prevents them from accessing funds which2407they would otherwise qualify for.2408    The high cost of infrastructure and matching requirements2409is another barrier. These are among the poorest communities in2410the Nation, which lacks a tax base to generate matching funds.2411The high cost of infrastructure projects often require these2412communities to piece together multiple funding sources, adding2413to the administrative burden. These communities feel that the2414grant process is an uneven and unfair playing field, as they2415are disadvantaged when competing against larger municipalities2416that have grant writers, technical support, and grant2417administrators.2418    In response to those barriers, the commission directed our2419grant funding towards distressed areas. In 2025, we awarded our2420first grant cycle, awarding $11.3 million in Federal funding,2421over 22 projects across the region. Seventy-eight percent of2422these awards were directed to economically distressed2423communities. We invested in water and wastewater systems that2424expanded access to clean water, rural roads, and transportation2425alternatives that improved safety and connected communities. We2426invested in equipment to train high-need professionals such as2427engineers, chemists. We invested in new medical clinics to2428expand access to healthcare shortage areas.2429    Overall, our $11.3 million investment will leverage an2430additional $10.2 million in local funding, nearly a dollar-for-2431dollar match. The commission estimates that investment supports2432700 to 800 permanent jobs, 500 to 600 retained positions, and2433creates 200 to 250 temporary jobs, will assist more than 1,4002434small businesses; individuals will receive training, technical2435assistance, and infrastructure support.2436    I want to thank our Governors, Members of Congress, and the2437commission staff for their dedication and time. I look forward2438to working with Congress and pleased to answer any questions.2439    [Mr. Sanchez's prepared statement follows:]24402441  Prepared Statement of Hon. Juan Sanchez, Federal Cochair, Southwest2442                       Border Regional Commission2443    Good morning, Chairman Perry, Ranking Member Stanton, and2444distinguished Members of the Committee. Thank you for the opportunity2445to testify today on behalf of the Southwest Border Regional Commission2446(SBRC). My name is Juan Sanchez, and I serve as the Commission's2447Federal Co-Chair. I appreciate the opportunity to discuss the progress2448the Commission has made and the challenges that remain in supporting2449economic development across the Southwest Border region.2450    The Southwest Border Regional Commission is a federal-state2451economic development partnership between the federal government and the2452states of Arizona, California, New Mexico, and Texas. The Commission2453provides federal grant funding to economically distressed and2454persistent poverty communities for infrastructure improvements and2455economic development projects. Congress created the Commission in the2456Food, Conservation, and Energy Act of 2008, (the Farm Bill), and most2457recently reauthorized it through the Thomas R. Carper Water Resources2458Development Act of 2024.2459    The Commission is governed by a Federal Co-Chair and the Governors2460of the four member states, one of whom serves as the State Co-Chair.2461State Governors appoint state staff to jointly administrate and oversee2462the Commission's performance and deliverables. Administrative costs are2463shared with our state partners, minimizing federal overhead while2464advancing locally driven projects that align with both state and2465federal administration priorities.2466    The Southwest Border Commission's region encompasses 103 counties2467and approximately 36.3 million people across Arizona, California, New2468Mexico, and Texas. This region is rich in cultural diversity, natural2469resources, economic activity, international trade, and potential, yet2470it also includes some of the most economically distressed and2471persistently low-income communities in the nation. The Commission's2472mission is to create and retain jobs, maximize private and public2473funds, increase regional and tax revenue while empowering underserved2474communities, reducing economic disparities, and improving quality of2475life throughout this four-state region.2476                              SBRC Region2477    Of the 103 counties in the SBRC's service area, 46 are classified2478as economically distressed, 44 as transitional, and 13 as attainment2479counties. Distressed counties account for approximately 11 percent of2480the region's population, transitional counties account for 77 percent,2481and attainment counties comprise the remaining 12 percent. Economic2482distress designations are determined through a statutory process that2483evaluates county-level unemployment rates, per capita income, and2484poverty rates. These designations guide the Commission's investment2485decisions to ensure that resources are targeted first at communities2486facing the most severe economic challenges.2487                               Challenges2488    The Southwest Border region continues to face persistent and2489significant economic challenges. The average poverty rate across the2490SBRC region is approximately 18 percent, well above the national2491average of 12.4 percent, representing an estimated five million2492individuals living in poverty. The three-year average unemployment rate2493within the SBRC region is 5.2 percent, compared to a national average2494of 4.2 percent. Per capita market income in the SBRC region was more2495than 20 percent lower than the national average in 2023.2496    Distressed counties illustrate the severity of these challenges.2497Although they represent only 11 percent of the region's population,2498they account for approximately 21 percent of individuals living in2499poverty. These counties experience an average poverty rate of 242500percent, nearly double the national average, and an average2501unemployment rate of approximately 6 percent. Even among working2502households, poverty rates remain high, underscoring the depth and2503persistence of economic hardship in these communities.2504               Unique and Isolated Distressed Communities2505Colonias2506    Colonias are geographic areas located within 150 miles of the U.S.-2507Mexico border that are predominantly inhabited by individuals and2508families of very low income. These communities often lack formal2509governance structures and a meaningful tax base. Many residents live2510without access to safe, sanitary, public schools, libraries, sound2511housing and lack basic services such as potable water, adequate2512wastewater systems, drainage, utilities, and paved roads. All2513communities defined as colonias fall within the SBRC's service area.2514    An estimated 800,000 people lack adequate drinking water and2515sanitation facilities, such as household plumbing or proper sewage2516disposal systems. Approximately one-third have no drinking water or2517wastewater facilities. The Rural Community Assistance Partnership2518(RCAP), a national non-profit studying access to water, estimates that2519these historically underinvested colonias need over $10 billion in2520water and wastewater infrastructure investment across the four Border2521States (CA, AZ, NM, & TX).\1\ Even when access exists, water quality2522and reliability are often compromised, posing significant public health2523risks. Providing safe and clean drinking water and adequate sanitation2524facilities to these severely underserved communities continues to pose2525challenges.2526---------------------------------------------------------------------------2527    \1\ Rural Community Assistance Partnership (RCAP). (2016). Colonias2528phase II assessment report. Retrieved from https://rcap.org/wp-content/2529uploads/2016/03/RCAP_Colonias-Phase-II-Assessment-Report_FINAL_web.pdf.2530---------------------------------------------------------------------------2531    The Government Accountability Office, in report GAO-24-106732,2532found that infrastructure investments in colonias are frequently cost-2533prohibitive due to rural and dispersed development patterns and2534distance from existing systems. GAO documented instances in which2535officials determined that system connections were not economically2536feasible, leaving residents reliant on hauled water or inadequate2537sanitation. The GAO also found these challenges are compounded by2538limited local fiscal and administrative capacity to meet matching fund2539requirements or manage complex federal funding programs.\2\2540---------------------------------------------------------------------------2541    \2\ GAO, Rural Development: Actions Needed to Improve Assistance to2542Southwest Border Communities Known as Colonias, GAO-24-1067322543(Washington, D.C.: Sept. 2024) https://www.gao.gov/assets/gao-24-2544106732.pdf.2545---------------------------------------------------------------------------2546Tribal Communities2547    The SBRC region includes 51 federally recognized tribes. Tribal2548communities in the region experience a poverty rate of approximately 442549percent and an unemployment rate of 12 percent, compared to national2550averages of 12.4 percent and 4.2 percent, respectively. Tribal2551communities face severe infrastructure challenges, including limited2552access to reliable drinking water, sanitation facilities, and broadband2553connectivity.2554    Nearly half of tribal households lack access to reliable water2555sources, clean drinking water, or basic sanitation.\3\ A 2022 study by2556Columbia University found that tribal communities in the Southwest are2557disproportionately exposed to elevated levels of arsenic and uranium in2558public drinking water systems, contributing to serious health2559disparities and long-term risks.\4\2560---------------------------------------------------------------------------2561    \3\ Tribal Clean Water. (2024). Universal access to clean water for2562tribal communities. Retrieved from https://tribalcleanwater.org/.2563    \4\ Martinez-Morata, I., Bostick, B.C., Conroy-Ben, O. et al.2564Nationwide geospatial analysis of county racial and ethnic composition2565and public drinking water arsenic and uranium. Nat Commun. 13, 74612566(2022). https://doi.org/10.1038/s41467-022-35185-6.2567---------------------------------------------------------------------------2568    The Commission is committed to strengthening tribal capacity,2569supporting self-governance, and ensuring tribal communities are full2570partners in regional economic development. To that end, the SBRC has2571established a policy reserving a minimum of five percent of total grant2572funds for projects benefiting tribal communities.2573Healthcare Workforce Shortages2574    The SBRC service area faces a systemic healthcare workforce crisis2575characterized by both the pervasiveness and severity of provider2576shortages. All 103 counties in the SBRC region contain at least one2577federally designated Health Professional Shortage Area (HPSA),2578underscoring that unmet healthcare need is universal across the2579region.\5\2580---------------------------------------------------------------------------2581    \5\ HRSA.gov, and tabulated by SBRC. https://data.hrsa.gov/topics/2582health-workforce/shortage-areas/hpsa-find.2583---------------------------------------------------------------------------2584    HPSA designations in the SBRC region take multiple forms, including2585countywide geographic designations as well as population-group and2586facility-based designations. These distinctions reflect how shortages2587are distributed--not whether they exist. For example, the absence of a2588countywide HPSA designation does not imply that shortages are less2589acute; designation patterns are shaped by application processes, data2590availability, and administrative thresholds, not solely by the level of2591need.2592    Nearly two-thirds of SBRC counties (65 of 103, or 63.1%) are2593designated as countywide HPSAs, meaning provider shortages affect the2594entire population rather than being limited to specific neighborhoods,2595facilities, or subgroups. In the remaining counties, population-based2596and sub-county designations still signal serious access barriers,2597particularly for low-income and medically underserved residents.2598    When viewed through SBRC's economic distress classifications, a2599stark health equity pattern emerges. All 42 counties designated as2600economically distressed contain HPSAs, and their shortages are more2601likely to be widespread and severe. More than 7 in 10 distressed2602counties (30 of 42, or 71.4%) are designated as countywide HPSAs--2603meaning that in most distressed communities, provider shortages affect2604the entire population. By contrast, only 6.5% of transitional counties2605(3 of 46) and none of the attainment counties carry countywide2606designations. This indicates that shortages in more economically stable2607areas are more likely to be geographically or demographically2608concentrated, while shortages in distressed areas are more likely to be2609comprehensive and structural.2610    This pattern demonstrates that healthcare workforce shortages in2611the SBRC region are not randomly distributed. They track closely with2612economic vulnerability. Communities with the fewest resources are also2613the most likely to face shortages that are widespread, persistent, and2614difficult to address through incremental interventions alone. Even2615where HPSAs are formally designated for specific populations or2616facilities, these designations often reflect deeper systemic barriers2617tied to poverty, rurality, and historical underinvestment.2618    The Commission views these inequities as a fundamental barrier to2619regional economic stability, workforce participation, and long-term2620community resilience.2621                    Barriers to Economic Development2622    The Commission conducted extensive outreach and engagement with2623stakeholders across the four-state region, including meetings and2624surveys involving local officials, tribal leaders, nonprofit2625organizations, industry representatives, state agencies, universities,2626chambers of commerce, and development districts. Through this outreach2627and engagement, stakeholders reported the following recurring barriers2628to economic development:26292630      Capacity: Distressed communities often lack the2631technical, managerial, and financial capacity needed to fully access2632federal and state resources and funding opportunities. Unincorporated2633areas, such as colonias, frequently lack governing structures, while2634communities with formal governance report limited staff who are2635overburdened by administrative duties. Stakeholders noted that with2636appropriate support, many communities could qualify for state or2637federal funding but are currently constrained by these capacity2638limitations.26392640      High Cost & Cost-Prohibitive Matching Requirements: The2641SBRC serves some of the nation's poorest communities, many of which2642lack a sufficient tax base to generate revenue or secure required2643matching funds. Because matching funds are often necessary to compete2644for federal and state grants, this requirement presents a significant2645barrier for the most underserved communities. High capital costs of2646infrastructure project often mean these communities have to cobble2647together multiple funding sources, adding to the historical challenge.26482649      Data Availability and Limitations: Respondents reported2650insufficient access to data and research related to challenges facing2651their communities, citing persistent gaps in the availability and2652accessibility of publicly available information.26532654      Uneven Playing Field: Distressed communities reported2655disadvantages in competing for grants and infrastructure funding due to2656structural biases and limited access to technical support, resources,2657predevelopment studies, and specialized staff need to apply and manage2658federal grants.26592660    In response, the SBRC adopted guiding principles that prioritize2661investment in the most economically distressed communities, build local2662capacity, funding predevelopment studies and technical assistance,2663reduce barriers to economic development, and leverage partnerships to2664maximize the impact of federal funding.2665                    Grant Program Summary and Awards2666    In 2025, the SBRC completed its first year of grantmaking, awarding2667$11.3 million in federal funding in response to project funding2668requests of more than 10 times the available amount. In its first year,2669the program invested in some of the poorest and most underleveraged2670regions of Arizona, California, New Mexico, and Texas, awarding grants2671to 22 projects across the four states.2672    Funds were concentrated where need is greatest. Seventy-eight2673percent of awards were directed to economically distressed counties,2674exceeding the statutory requirement that at least 50 percent of funds2675benefit distressed areas. The remaining 22 percent supported2676economically transitional counties.2677    The 11.3-million-dollar investment will leverage an additional 10.22678million in local and state matching funds. SBRC estimates that its2679federal investment will support roughly 750-800 permanent jobs, help2680retain approximately 500-600 positions, and create approximately 200-2681250 temporary jobs.2682    More than 1,400 small businesses and individuals will be assisted2683with training, technical support, or infrastructure improvements, with2684potential multiplying effects on job creation, retention, and economic2685stabilization in the places that need it most.2686    SBRC investments will strengthen essential infrastructure and2687expand economic opportunity through investments in water and wastewater2688systems, rural road rehabilitation, workforce training, new medical2689clinics, entrepreneurship support, and equipment to train high-demand2690professionals.2691    Projects will expand clean water access and redevelop blighted and2692underutilized properties in some of the nation's most impoverished2693communities, and repair long-neglected rural roads to improve safety,2694reduce costs for farmers, and reconnect local economies.2695    Our workforce development investments focus on training Americans2696for high-need, high-demand jobs, including engineers needed for2697critical mineral extraction, medical professionals in shortage areas,2698and workers in both traditional skilled trades and emerging industries2699such as superconductors, while supporting small businesses and long-2700term economic growth.2701    I appreciate the opportunity to report before the Subcommittee on2702SBRC's work to strengthen a region critical to America's long-term2703economic growth.2704    Thank you for your time. I look forward to answering your2705questions.27062707    Mr. Perry. The Chair thanks the gentleman.2708    You can see that clock says we've got 3 minutes. I don't2709like going when it says zero, right? You don't want to miss2710this stuff. So I apologize, Ms. Fenton. I promise you will be2711the star when we return. My best guess is probably 10 after to2712quarter after if we are lucky. You can watch. It is a three-2713vote series. This is the first one. You can watch on the board.2714But at this time, the subcommittee shall stand in recess2715subject to the call of the chair.2716    [Recess.]2717    [11:31 a.m.]2718    Mr. Perry. The Subcommittee on Economic Development, Public2719Buildings, and Emergency Management will reconvene the2720previously recessed hearing.2721    Ms. Fenton, you are now recognized for 5 minutes of2722testimony.27232724   TESTIMONY OF JOCELYN FENTON, DIRECTOR OF PROGRAMS, DENALI2725                           COMMISSION27262727    Ms. Fenton. Wonderful. Thank you. Thank you, everyone, for2728the opportunity for the regional commissions to be here with2729you today. My name is Jocelyn Fenton, and I serve as the2730director of programs for the Denali Commission.2731    The Denali Commission is the only Alaska-headquartered2732Federal agency and a 25-year Federal-State partnership focused2733on the most remote, high-cost communities in the Nation.2734Alaska's communities are linchpins for Arctic posture, disaster2735response, and resource development. So every Federal dollar2736invested there has both local and national security2737implications.2738    Reauthorized in 2024, the commission is tightly aligned2739with President Trump's Executive orders on unleashing Alaska's2740resource potential, strengthening American energy, and2741improving maritime and transportation infrastructure, among2742others.2743    The commission stretches limited resources by braiding2744multiple Federal tools into a single streamlined entity for2745rural infrastructure. The commission blends congressional2746appropriations, interest from the Trans-Alaska Pipeline2747Liability Fund, and interagency transfers to build2748comprehensive projects instead of scattering one-off grants.2749Section 311 transfer authority and the section 305(c) gift2750authority allow multiple Federal partners to pool even small2751amounts of funding into a single project management pipeline,2752reducing fragmentation, duplicative designs, and competing2753timelines.2754    Annual work plans go through a public comment process and2755are approved by commissioners and the Secretary of Commerce,2756ensuring alignment with congressional intent, administration2757priorities, and community-driven needs. With these tools, the2758commission currently manages more than 300 active projects,2759totaling roughly $386 million while operating with a 1.4-2760percent administrative overhead, an efficiency level that2761rivals or exceeds many larger programs.2762    The Denali Commission's core value proposition is2763partnership. Federal, Tribal, State, local, and private2764partners all leverage a shared platform instead of building2765parallel systems.2766    Through direct partnerships with the Alaska Native Tribal2767Health Consortium, Alaska Energy Authority, and Alaska Village2768Electric Cooperative, the commission has deployed $100 million2769to modernize bulk fuel tank farms that power rural clinics,2770schools, and homes.2771    Collaboration with the Department of War's Innovation and2772Readiness Training Program has delivered dual-use projects like2773the Shepard Point Road Extension and Port Complex in Cordova,2774combining local emergency access with national readiness and2775strategic defense benefits.2776    Following Typhoon Halong, the commission convened with the2777National Guard, U.S. Coast Guard, FEMA, State of Alaska, and2778Tribal partners to align recovery investments and explore a2779design for a regional network of multiuse emergency response2780centers and public safety buildings in western Alaska.2781    These partnerships mean that agencies do not have to build2782separate project pipelines for the same communities, reducing2783duplication and accelerating delivery in places where2784construction seasons are short and logistics are complex.2785    In rural Alaska, a single dock, powerhouse, or clinic often2786has to do the work of many facilities. That is why the2787commission focuses on projects that serve multiple purposes,2788stretching each Federal dollar across several missions. This2789dual and multiuse approach strengthens local resilience while2790also advancing national security and economic priorities.2791    We are emphasizing three main areas. First, infrastructure2792hardening. We are upgrading energy systems, transportation2793links, and emergency communications so that docks, barge2794landings, airstrips, and public buildings can operate as2795reliable staging areas when disasters strike.2796    Second, technology and innovation. We are partnering with2797national energy labs and others to test cold-weather2798technologies, develop value-added local lumber and biomass2799products, and explore energy-resilient data and communication2800facilities that can operate off grid or in islanded systems.2801    And third, resource and access corridors. We are investing2802in Arctic and inland roads, bridges, and marine facilities that2803can open access to critical minerals, timber, and fisheries,2804while also ensuring redundant routes for delivering fuel, food,2805and medical supplies during emergencies.2806    The commission's waterfront investments illustrate this2807multiuse strategy. Since 2022, approximately $16.5 million has2808been directed to marine infrastructure, leveraging more than2809$70 million from other sources to build barge landings, small2810ports, and related facilities over two dozen coastal2811communities. These assets function much like rural highways in2812intermodal facilities in other States. They are often the only2813freight and fuel lifeline for communities with no road access,2814with direct implications for emergency response and Federal2815disaster costs when they fail.2816    Broadband and communications are another dual-use priority.2817The commission has helped secure 187 Tribal spectrum licenses,2818and more than $200 million in broadband-related funding,2819coordinating with NTIA, USDA's Reconnect Program, FEMA, Tribes,2820and private providers. These investments reduce dependence on2821single points of failure and create redundant land-based fiber2822routes that can keep communications functioning during severe2823weather and emergency events.2824    Recently expanded authorities allow the commission to2825support housing and critical community facilities that address2826overcrowding and homelessness in rural areas. Health clinics,2827community buildings, and public service facilities frequently2828double as emergency shelters and coordination centers,2829mirroring the multiuse demands of public facilities nationwide,2830but under far more extreme conditions.2831    The commission's interagency transfer model, low overhead,2832and dual-use focus offer a practical template for stretching2833limited Federal resources in high-cost, high-risk environments.2834Instead of multiple agencies each paying for their own2835procurements, design teams, and mobilizations, the commission2836provides a shared platform where costs and risks are spread and2837investments are sequenced logically across sectors: energy,2838transportation, communication, and community facilities.2839    Projects are prioritized through a clear, strategic2840evaluation process that ensures the most consequential dual-use2841facilities rise to the top, those that strengthen community2842well-being while advancing national security and resilience2843objectives.2844    By coupling infrastructure with targeted technical2845assistance--for example, working with the Alaska Small Business2846Development Center to build local business capacity--the2847commission turns place-based Federal investments into long-2848term, private-sector opportunity.2849    For more than 25 years, this model has shown when Congress2850empowers a locally grounded, partnership-driven entity with2851flexible tools and clear authorities, it is possible to reduce2852duplication, deliver durable infrastructure, and multiply the2853impact of every Federal dollar.2854    Thank you for your attention and for your continued support2855of the commission's proven efficiency models for rural2856infrastructure and national readiness.2857    [Ms. Fenton's prepared statement follows:]28582859  Prepared Statement of Jocelyn Fenton, Director of Programs, Denali2860                               Commission2861    Chairman Perry, Ranking Member Stanton, and Honorable Members of2862the Committee:2863    Thank you for the opportunity to appear before you today to discuss2864the Denali Commission and ``Smarter Spending, Stronger Results:2865Reducing Duplication and Ensuring Effectiveness Through Economic2866Development Reforms.'' As a federal-state partnership with 25 years of2867experience, the Commission has worked to address the critical2868infrastructure and development needs of rural Alaska, as well as the2869nation's growing Arctic and security imperatives.2870           Strategic Reauthorization and Executive Alignment2871    The Denali Commission was recently reauthorized in section 213 of2872the Economic Development Reauthorization Act of 2024 (Division B, Title2873II, P.L. 118-272), signed into law on January 4, 2025. The Commission2874has aligned its operations with President Trump's Executive Orders to2875ensure consistency with Administration priorities, with its work2876strongly aligning with Executive Order 14153, ``Unleashing Alaska's2877Extraordinary Resource Potential,'' which emphasizes energy and mineral2878development, national security, and efficient federal investment in2879Alaska's resources.2880    As the only Alaska-headquartered federal agency, the Denali2881Commission has unique access to--and trust from--remote communities. We2882have aligned our work with both civilian and defense objectives. In2883rural Alaska, this means hardening power, fuel, and broadband systems2884that serve as community lifelines and as part of the national2885communications backbone. The Commission has prioritized dual-use2886infrastructure--projects that meet civilian needs while supporting2887homeland and national security--stretching limited resources to address2888critical priorities.2889    Several projects have included partnerships with the Department of2890War's Innovation and Readiness Training (IRT) program to advance dual-2891use objectives. In partnership with the Native Village of Eyak, the2892Denali Commission funded critical equipment for the Shepard Point Road2893Extension and Port Complex Project in Cordova, strengthening local2894emergency response capacity while supporting national readiness and2895strategic defense operations. IRT partnerships have also supported2896shipping and logistics to Nome, as well as road construction, housing2897development, and workforce training in Mertarvik as part of the Newtok2898relocation effort.2899    Following Typhoon Halong and other recent natural disasters along2900Alaska's west coast, the Denali Commission convened the Alaska National2901Guard, U.S. Coast Guard, FEMA, Association of Village Council2902Presidents (AVCP), and State department Commissioners to coordinate2903recovery, align infrastructure projects, and advance a regional public2904safety concept for Bethel and surrounding hub communities. The2905Commission funded AVCP to design an emergency response center in Bethel2906and plan a network of five regional centers, each supporting multiple2907uses--emergency training, search and rescue, critical supply storage,2908and homeland security operations--strengthening both community2909resilience and strategic readiness.2910    In addition to Unleashing Alaska's Extraordinary Resource2911Potential, many Executive Orders mesh with our existing programs and2912focus areas like energy (Unleashing American Energy, Unleashing2913America's Offshore Critical Minerals and Resources), transportation2914(Restoring America's Maritime Dominance), workforce development2915(Preparing Americans for High-Paying Skilled Trade Jobs of the Future),2916and land and water resources partnerships with USDA Forest Service and2917Natural Resources Conservation Service (Unleashing American Commercial2918Fishing in the Pacific, Immediate Expansion of American Timber2919Production), among others.2920              Alaska's National and Strategic Significance2921    Alaska is one-fifth the size of the continental U.S., with over292233,000 miles of shoreline--longer than the rest of the U.S. combined--2923and plays a central position in U.S. Arctic policy. The state hosts2924over 100 F-35 aircraft, missile defense systems, and Arctic maritime2925operations, and sits astride emerging Arctic shipping lanes whose2926viability is increasing as sea ice recedes.2927    Russia holds more than half of the Arctic landmass and continues to2928assert dominance in the region, while China has declared itself a2929``near-Arctic'' state and is pursuing infrastructure and resource2930access across the circumpolar North. In this context, sustained U.S.2931presence--anchored by reliable energy, transportation, communications,2932health, and waterfront infrastructure in rural Alaska--is essential to2933homeland security, economic opportunity, and emergency readiness.2934    The Denali Commission has served as a centralized mechanism for2935infrastructure investments in rural Alaska, coordinating with federal2936agencies, the State of Alaska, and local communities to deliver high-2937priority projects in some of the most remote parts of the United2938States. This includes assets that function simultaneously as economic2939lifelines and as platforms for disaster response and recovery, directly2940intersecting this Subcommittee's jurisdiction.2941                   Programmatic Impact and Efficiency2942    Since its inception in 1998, the Denali Commission has invested2943over $1 billion in Alaska, and currently manages 322 active projects2944totaling approximately $386 million while operating with about 1.42945percent administrative overhead. The Commission's model blends2946Congressional appropriations, interest from the Trans-Alaska Pipeline2947Liability Fund, and interagency transfers to braid funding together.2948    The Commission's statutory program areas include: energy2949reliability and security; bulk fuel safety and access; public2950infrastructure, communications, and housing; surface and waterfront2951transportation; water and sanitation; and job training and rural2952development. Many of these projects directly intersect with this2953Subcommittee's responsibilities--public buildings and clinics that2954serve as community shelters, waterfront and barge landing facilities2955that act as lifelines for supply chains, and critical access roads that2956support both daily commerce and emergency response.2957    Every year since its creation, the Commission developed an annual2958workplan that set project and program priorities based on statutory2959authorities, community needs, and federal policy direction. Workplans2960are reviewed and approved by the Commission's Federal Co-Chair and2961Commissioners, go through a public comment process, and then are2962approved by the Secretary of Commerce, ensuring alignment with2963Administration priorities and Congressional intent. To further sharpen2964its focus, over the last year the Commission has explored additional2965tools--such as a strategic-location decision matrix--to help ensure2966that the most consequential projects, including those with dual-use2967benefits, rose to the top of the annual workplan.2968                Dual-Use Infrastructure: Strategic Pivot2969    In recent years, the Commission's portfolio has emphasized dual-use2970infrastructure--projects that meet year-round civilian needs while2971advancing homeland and national security objectives. This approach has2972been especially critical for communities that rely on the same docks,2973airstrips, powerhouses, and public buildings for daily life, economic2974activity, and disaster response. Such infrastructure also enables2975private sector access to natural resources, local commerce, and energy2976development, amplifying the economic return on federal investments.2977    Key areas of emphasis have included:29782979      Infrastructure Hardening: Improving energy systems,2980transportation links, emergency communications, and search and rescue2981capabilities so that rural docks, barge landings, and public buildings2982can function as reliable staging areas for disaster response and2983recovery.29842985      Technology and Innovation: Working with national energy2986laboratories and partners to test cold-weather technologies, extend2987battery life, and explore energy-resilient data and communications2988facilities suitable for off-grid or islanded systems.29892990      Resource and Access Corridors: Supporting Arctic and2991inland infrastructure--roads, bridges, and marine facilities--that2992enable access to critical minerals, timber, and fisheries while also2993ensuring redundant routes for emergency fuel, food, and medical2994transport.29952996    These dual-use investments have complemented the Subcommittee's2997work to strengthen FEMA programs and improve the durability and cost-2998effectiveness of public facilities and transportation links before and2999after disasters.3000                 Key Initiatives and National Relevance3001    The Commission's current initiatives demonstrate how targeted3002investments in rural Alaska support national economic, security, and3003emergency management objectives.3004      Bulk Fuel and Energy Security--The Commission's $1003005million investment in bulk fuel infrastructure is a cornerstone of its3006efforts to strengthen energy security, reduce costs, and support3007emergency preparedness in rural Alaska. Through a direct partnership3008with Alaska Native Tribal Health Consortium (ANTHC) and subcontracts3009with the Alaska Energy Authority and Alaska Village Electric3010Cooperative, this investment targets aging bulk fuel tank farms that3011are critical to electricity generation, heating, and transportation in3012remote communities. Many of these facilities are decades old and must3013be upgraded to remain code-compliant, prevent environmental spills, and3014ensure fuel can be delivered efficiently by barge during short seasonal3015windows rather than by significantly more expensive air transport.30163017       Strategic federal investments in bulk fuel infrastructure have3018already reduced fuel costs by more than $2.00 per gallon in some3019communities, directly benefiting households, schools, clinics, and3020local governments. The Commission's $100 million commitment helps3021address a portion of the more than $1 billion backlog of needed3022upgrades across approximately 400 rural tank farms, while reinforcing3023the durability of power systems, water and sewer utilities, and3024emergency services during extreme weather events and disasters.30253026       The Executive Orders underscore the urgent need for robust3027public investment in critical energy infrastructure, including the role3028of advanced reactors in supporting national, energy, and economic3029security. This emphasis has direct relevance for Department of War and3030Department of Energy applications in Alaska, where the state is3031uniquely suited to serve as a proving ground for small modular and3032micro-nuclear technologies due to its energy isolation, remote3033communities, and extreme operating conditions.30343035      Transportation and Waterfront Investments--Through its3036Waterfront Program, the Commission has directed approximately $16.53037million since 2022 to marine infrastructure that ensures vital access3038to fuel, food, and emergency services for remote Alaska communities.3039These investments have leveraged over $70 million from other sources3040and improved reliability and connectivity across more than two dozen3041coastal communities, strengthening both daily commerce and Arctic3042readiness.30433044       Barge landings, small ports, and related waterfront structures3045in Alaska play a role similar to rural highways and intermodal3046facilities in other states: they are the only freight and fuel lifeline3047for communities with no road access. When these facilities fail or are3048destroyed in storms, whole regions can be cut off from supply chains,3049with direct implications for emergency response and the federal cost of3050disaster relief. These investments not only strengthen emergency and3051public service access but also create conditions for private investment3052in resource transportation, local manufacturing, and commercial3053logistics, enabling communities to leverage federal infrastructure for3054broader economic growth.30553056      Broadband and Communications--The Commission has helped3057secure 187 Tribal spectrum licenses and more than $200 million in3058broadband-related funding for rural Alaska. In coordination with NTIA,3059USDA Reconnect Program, FEMA, Tribal and private entities, the3060Commission has supported efforts to complete projects that prevent3061service losses and build redundancy--such as land-based fiber routes3062that reduce dependence on single points of failure.30633064      Timber, Working Lands, and Food Security--In partnership3065with the U.S. Department of Agriculture and regional entities, the3066Commission has participated in initiatives that support local wood-use3067innovation, fire fuel mitigation, and localized food production. These3068efforts are designed to reduce disaster risk, strengthen local building3069materials supply chains, and create new economic opportunities in areas3070where traditional wage employment is scarce.30713072      Housing and Critical Community Facilities--Recently3073expanded authorities have allowed the Commission to support housing and3074community facilities that address overcrowding and homelessness in3075rural Alaska. Health clinics, community buildings, and public service3076facilities frequently double as emergency shelters and coordination3077centers in disasters, mirroring the multi-use demands on public3078buildings across the country.30793080      National Security Support--The Commission can support3081strategic systems, critical communications, and emergency readiness in3082the Arctic. We have contributed to over 175 village health clinics and3083two regional hospitals, further supporting public health infrastructure3084critical to homeland security.3085               Strengthening Alaska's Business Ecosystem3086    Commission-supported infrastructure has helped create the3087conditions under which private capital and entrepreneurship can succeed3088in rural Alaska. Reliable barge landings, roads, bridges, and3089waterfront facilities reduce logistics risk and costs for small3090manufacturers, processors, and service firms, while modern clinics,3091community buildings, and communications infrastructure make it possible3092for businesses to attract and retain workers in remote communities.3093    A recent technical assistance project with the Alaska Small3094Business Development Center (SBDC), supported by the Denali Commission,3095illustrates this connection between infrastructure and the business3096ecosystem. Through this project, SBDC established a Rural Business3097Working Group that brought together Tribal governments, Native3098corporations, and regional economic development organizations;3099developed a statewide marketing and outreach strategy; and deployed a3100comprehensive rural business training program built around completing3101business plans and preparing for lending.3102    During the project period, SBDC's digital outreach grew3103significantly: social media impressions rose to over 700,000,3104engagement and link clicks increased several-fold, and the3105organization's audience expanded to more than 13,000 followers, while3106its newsletter subscriber base climbed to approximately 24,000 with3107open rates more than double industry benchmarks. These efforts,3108combined with workshops, one-on-one advising, and integration with3109federal programs such as the State Small Business Credit Initiative,3110helped more rural entrepreneurs access capital, improve financial3111literacy, and take advantage of the opportunities created by improved3112infrastructure.3113    By coupling place-based infrastructure--such as barge landings that3114lower freight costs, bridge and road segments that connect resource3115hubs to markets, and broadband that enables online training and e-3116commerce--with targeted technical assistance, the Commission has3117contributed to an environment where private lenders, investors, and3118entrepreneurs can participate in Alaska's economy on more comparable3119terms to the rest of the nation. This linkage between federal3120infrastructure investment, small-business capacity, and private capital3121formation is central to long-term economic resilience.3122             Interagency Resource Pooling: A Scalable Model3123    The Denali Commission is, at its core, about partnerships. Using3124its Section 311 transfer authority and Section 305(c) gift authority,3125the Commission has developed a multi-agency transfer model that allows3126federal partners to pool funds--even in small amounts--for high-3127priority projects managed by the Commission. This approach has been3128applied in coordination with agencies such as the Environmental3129Protection Agency, the Department of the Interior, the Department of3130Energy, and many others to deliver bulk fuel, power, and community3131infrastructure projects in high-risk communities more quickly and3132efficiently than would be possible through separate, duplicative3133efforts.3134    These models align with the Subcommittee's interest in ensuring3135that federal disaster and mitigation dollars are used efficiently, that3136programs avoid fragmentation, and that public buildings and essential3137facilities are delivered and maintained in a cost-effective manner.3138    In a state defined by vast distances, limited road access, and3139extreme operating conditions, this partnership-driven model is a3140practical way to deliver hardened, cost-effective infrastructure that3141meets critical community and national needs.3142                               Conclusion3143    For more than 25 years, the Denali Commission has demonstrated a3144practical, place-based approach to delivering infrastructure and3145economic development in some of the most remote and hazard-prone3146communities in the United States. Alaska's infrastructure needs amount3147to several billion dollars, far exceeding available resources, so we3148have deliberately focused on projects that provide multi-use benefits--3149encouraging private investment and meeting critical community needs3150while supporting national and homeland security objectives. The3151Commission's work shows that when Congress directs resources through3152mechanisms that are close to communities, coordinated across agencies,3153and focused on dual-use outcomes, rural infrastructure can support3154economic opportunity, national security, and emergency readiness at the3155same time.3156    Thank you for your time and consideration. I welcome your3157questions.31583159    Mr. Perry. The Chair thanks the gentlelady.3160    Thank you all for your testimony. We will now turn to3161questions for our witnesses.3162    The Chair will recognize himself for 5 minutes for3163questions.3164    And I was told by one of my colleagues, Representative3165Cuellar from Texas, to be particularly rough on Mr. Sanchez.3166And, while I considered what he was telling me, I thought,3167well, this committee really--we might not agree on everything,3168but it is not about being rough. It is about getting answers.3169So, when you see Representative Cuellar, Mr. Sanchez, I hope3170that you will tell him that we treated you with the dignity and3171respect and decorum that the institution so warrants.3172    With that, as I started off at the 2023 hearing, through no3173fault of your own, Congress has created all your agencies that3174seem duplicative of one or another Federal program. The Water3175Resources Development Act of 2024 added even more regional3176commissions but did include clear requirements for transparency3177and coordination, which I think is a good thing.3178    I am going to turn to Mr. Page. Section 2212 of WRDA, the3179Water Resources Development Act of 2024, requires the Secretary3180of Commerce to convene a meeting with the regional commissions3181within 1 year of enactment and every 2 years thereafter. I3182understand EDA has set a date for the first meeting, and maybe3183that is the one you referenced in February in West Virginia.3184But can you provide the committee any details on the meeting,3185what you plan to discuss? If there is a good reason why there3186was a delay in scheduling the first meeting? And we will get3187into a conversation depending on what you say there, sir.3188    Mr. Page. Absolutely. And thank you for the question.3189    So yes. The convening in West Virginia in February is the3190convening to fulfill the requirement in the statute. I have3191been using the opportunity here today to pigeonhole some of the3192other panel members here to make sure that they will be in3193attendance.3194    Obviously, the real intent of the legislation there was to3195improve coordination, and that was obviously what we will be3196focusing on, and we will do it through a report that follows3197it. But I think, most importantly, we don't want this to just3198be platitudes about how we can better coordinate. We are going3199to focus on three specific topics: How do we ensure that we are3200closing the urban-rural divide? Many of the areas represented3201by the commissions here represent some of the areas that have3202specific and very acute distress. We want to make sure they3203don't fall further behind.3204    The second topic is going to be addressing workforce3205issues. So how do we make sure we have a skilled workforce that3206meets private-sector needs?3207    And, finally, obviously the economy is changing with the3208advent of new technologies. We want to have a fruitful3209discussion around how we can best support making sure that3210these communities can participate in the economy as these3211emerging technologies develop.3212    A subcurrent throughout every one of those topics will be,3213how do we coordinate in addressing those acute problems?3214    Mr. Perry. I appreciate that. And I know you are fairly new3215to the operation, and I understand you kind of have, as you3216mentioned in your opening remarks, somewhat a Damocles sword3217hanging over your head, but I appreciate that you are on the3218mission now and focused on it as you should be. You can't3219predict the future.3220    Do you actively communicate on any kind of regular basis3221with your colleagues here from the various commissions? And is3222there a tenor to that? Is there, like, an agenda that we might3223be privy to at some point?3224    Mr. Page. Yes, sir. Thanks for the question.3225    We do not actively communicate at a leadership level.3226However, our regional staff are communicating on a project-by-3227project basis all the time. We have several working3228partnerships, particularly with ARC, where we will jointly3229manage a project so that we can both reduce the burden on3230applicants, but also be more efficient at a Federal level. We3231also do some of that work with DRA. And, on the ground, some of3232our partners and our local staff are working with many of these3233other commissions.3234    Mr. Perry. So I am running out of time here, but3235performance metrics--I have talked about this before. I think3236that the American people are due--they want to see how well3237you're doing, right? And that is appropriate. We are told that3238the core mission of your agencies is to support investment in3239distressed communities that leverage private investment and3240create long-term jobs. At some point, if these investments are3241working, we should see counties or areas moving out of the3242distressed column.3243    Can each of you at some point provide this committee, for3244the record, snapshot maps of your areas that show some3245progression of how well you have done over the course--and I3246know some of the commissions are fairly new, but at least a3247starting point so we have a benchmark and then we can look at3248some goal. Because I would think--and look. Maybe you can tell3249me, ``Look, Representative, the map is not indicative of our3250success, and this is why,'' or ``We don't really use that in3251that fashion.'' But I will tell you, for a quick snapshot,3252members of this committee look at that to determine if you are3253being successful or not. So, if we are wrong, we need to know.3254And, if there is a better way of doing it, we need to know.3255But, if there isn't, then we want to see how you are3256progressing.3257    And look. You can all just kind of raise your hand or tell3258me, ``I can't do it'' or ``I can do it,'' because I am beyond3259my time here. So is that something each one of you can provide?3260    Ms. Reed. Yes. We will get that to your office.3261    Mr. Page. Yes, sir.3262    Mr. Perry. Ms. Fenton? Thank you, ma'am.3263    All right. I will now turn to the ranking member, Mr.3264Figures, 5 minutes of questioning.3265    Mr. Figures. Thank you, Mr. Chairman.3266    Mr. Page, I will start with you. I represent Mobile,3267Alabama, as part of my district, which is right along the gulf3268coast right in Hurricane Alley, so the work of the Office of3269Disaster Recovery and Resilience is something that is3270particularly relevant to us. And obviously, the 20243271reauthorization of the Public Works and Economic Development3272Act established that office within EDA, and it is expected to3273report annually on EDA's activities and disaster response here3274to Congress. So can you briefly give me an update on the status3275of the Office of Disaster Recovery and Response, and how many3276people are employed there as well as what disasters they have3277responded to?3278    Mr. Page. Absolutely. And thanks for the question,3279Congressman.3280    The office has been officially established as part of our3281reorganization that was submitted to Congress earlier this3282year. We have the exoskeleton. We are working through the3283particulars internally about all of the authorities. Because we3284did a comprehensive reorg of the whole agency as a result of3285the two new offices, we actually--on net, we reduced the number3286of organizational offices within the organization by six, even3287when adding the two.3288    But the team and the expertise was brought to bear in the3289development of our 2025 disaster supplemental notice of funding3290opportunity. And it is a novel approach that I think is really3291designed to both leverage the expertise that EDA has built3292through some of its programs that we have developed tech hubs3293and recompetes so we can go large scale. It focuses on kind of3294our traditional programming of infrastructure. And it also can3295provide capacity assistance. And it allows us to seamlessly3296meet communities where they are at along that continuum. That3297is a direct development based on the expertise, the engagement3298of that Office of Disaster Recovery in supporting different3299disasters.3300    One in particular is we have been on the ground supporting3301the FEMA-designated mission in North Carolina. That has been a3302big focal point following Hurricane Helene.3303    Mr. Figures. All right. Thank you. We will follow up to see3304if we can get some more specifics with you regarding it, but I3305am pressed for time.3306    Mr. Wiggins, or Dr. Wiggins, rather, my hometown regional3307authority, my home State regional authority, but infrastructure3308remains a major barrier to growth in Delta communities. You3309mentioned in your opening statement some of the work that you3310guys had done in Union Springs, Alabama, which, for those who3311don't know, that part of the country suffers from some very3312unique barriers from an infrastructure standpoint.3313    A lot of those communities are too rural for traditional3314sewer systems, and the soil composition in that part of the3315country is actually not conducive to septic tanks, and so you3316end up with large swaths of people that have some significant3317sewage issues, which creates some of those health concerns that3318you guys have helped address.3319    Can you speak a little bit to the investments in water and3320sewer and broadband and transportation to support long-term3321economic development, particularly in those sorts of areas?3322    Mr. Wiggins. Sure. Thank you. What I will say, what we are3323seeing across our region is there is a strong need for some of3324the basic building blocks of economic development: water,3325sewer. We see some of our communities who are progressing well.3326They have those basic building blocks, but it has been a3327struggle in some of our rural communities.3328    I guess to give an example of how much need is out there,3329our annual appropriations last year was $31.1 million, but for3330our Community Infrastructure Fund, which only does public3331infrastructure, our request from the region was about $2453332million from the region.3333    And so, speaking to the need, we are leveraging our funding3334at DRA by partnering with our Federal partners. There are even3335some times that we are able to partner with regional3336commissions like ARC where there is some overlap.3337    And so, I think the need exists. We are meeting the need as3338best as we can, not only from a funding standpoint, but also3339how we support communities with some of the technical3340assistance and support they need along the way in the project3341development process, too.3342    Mr. Figures. We certainly appreciate the work that you guys3343are doing down there.3344    Dr. Reed, EDRA allowed EDA to lower cost-sharing3345requirements for small and economically distressed communities,3346and has that lower cost-sharing requirement impacted the number3347or volume of applications or the types of projects that have3348been proposed to you guys?3349    Ms. Reed. Yes, it has had a positive effect on the number3350of applications. In round 1, we received 363 applications and3351only granted 56 projects. In round 2, 357 applications and 833352projects. In many of those, that cost share has been a positive3353factor in not only the applications, but in the execution of3354the grants themselves.3355    Mr. Figures. Well, thank you.3356    I appreciate the work that you guys do. I look forward to3357working with you guys in ways to better support what you guys3358do and the service you guys provide to this country.3359    Thank you. I yield back.3360    Mr. Perry. The Chair thanks the gentleman.3361    The Chair now recognizes Representative King-Hinds from the3362Northern Mariana Islands. That is a long way from home.3363    Ms. King-Hinds. It sure is.3364    Good morning, everybody, and thank you for your testimony3365today, and I want to especially thank Mr. Page. We had a little3366bit of an opportunity to chat back in the waiting room back3367here.3368    So, in the Marianas, EDA investments have supported3369economic recovery, workforce development, and long-term3370resilience. These include the Garapan revitalization project,3371the Marpi tourist site improvement project, and the Oleai3372Sports and Cultural Complex, which are central to revitalizing3373our tourism industry.3374    EDA has also invested in economic diversification and3375workforce readiness through projects such as the new Department3376of Finance Economic Resiliency Center, new educational3377facilities at Northern Marianas College and the Northern3378Marianas Technical Institute, a public school system vocational3379training center, amongst others.3380    For a small, remote, and highly distressed Territory, these3381projects are foundational. They support small businesses,3382expand workforce training, strengthen government capacity, and3383help the CNMI build a more resilient economy beyond tourism.3384And so my focus is ensuring that the flexibility Congress3385provides is translating into timely support for Territories3386like the CNMI and that the ongoing investments are protected.3387    So, right now, our economy is at the brink of collapse.3388Some would say that it has already collapsed, right, and so the3389government is operating under severe cash flow constraints and3390at this point in time must front costs for EDA-funded projects.3391    So, under EDA's original grant procedures, the CNMI was3392able to submit reimbursement requests based on costs incurred,3393allowing these projects to move forward through phase3394disbursement. From what I have been told, EDA has since changed3395this process to require proof of payment before reimbursement3396is issued, which has created significant challenges for an3397economically distressed government, particularly given what is3398happening with the economy and to the point where the3399government itself has had to take out a loan to be able to3400cover some of these costs, right.3401    And so, I just kind of want to understand the rationale for3402that change and whether there is consideration for what the3403CNMI is going through right now as it relates to some of these3404processes.3405    Mr. Page. Yes. Thank you for the question, Congresswoman,3406and, again, I appreciated talking in the back there a little3407bit about the challenges that you do face, and I know we are3408tracking it.3409    As I look here at just the investments that EDA has made in3410the area, it is about $100 million that is expected to create3411or retain almost 5,000 jobs, which I did not realize until we3412were just talking is somewhere between 8 and 12 percent of your3413total population out there. So I understand the impact these3414can have.3415    To your specific question about the way that we can make3416payments, we do operate on a reimbursement model, and that is3417really so that we can make sure that we are operating and3418protecting the American taxpayers' interests. When we make an3419award, we, obviously, lay out terms, conditions. The3420disbursement of funds is one of our final checks to make sure3421that those terms are being met and adhered to, and it is a good3422way of fiscal control and also for us to make sure that the3423projects are progressing and that we are not leaving any costs3424out there that shouldn't be paid, but we are also not paying3425costs that weren't applicable.3426    There are some limited instances where we can do3427advancements, and we are happy to work with you and your staff3428and the grantees to explore this.3429    Ms. King-Hinds. Thank you very much for that.3430    So it has been very fascinating to listen to the different3431commissions. In particular, I was fascinated by the3432presentation of the Denali commissioner, and so I just wanted3433to ask, right, because we don't have a commission that directly3434speaks to the Territories, and the challenges, obviously, are3435very unique in comparison to what Appalachia is experiencing or3436Alaska--actually, very similar to what Alaska is experiencing.3437    So I wanted to kind of hear, from your perspective, Mr.3438Page, how do these partnerships improve project delivery and3439outcomes in distressed regions when you do work with these3440commissions?3441    Mr. Page. Absolutely. So the partnerships with these3442commissions tend to bring localized knowledge about the3443challenges for these very distinct geographic regions. We,3444obviously, have State representatives that cover the entire3445country and the Territories, including CNMI. I think the3446regional commissions can help in a doubling down and bringing3447an on-the-ground perspective that can help with that.3448    That being said, I do know that we have an outstanding3449economic development representative that does cover all of the3450Territories in the Pacific. He makes sure that he is spending3451time to be very attuned to the challenges so that he can speak3452to it and recognizes that they are unique versus many of the3453other parts of the country.3454    Ms. King-Hinds. I am out of time. I yield back.3455    Mr. Perry. The Chair thanks the gentlelady.3456    The Chair now recognizes the Representative from the3457District of Columbia, Ms. Norton.3458    Ms. Norton. Thank you, Mr. Chairman.3459    I strongly oppose the Trump administration's efforts to gut3460the Federal workforce and the Federal contractor workforce and3461to move Federal agencies out of the District of Columbia.3462    Last year, DC lost at least 24,000 Federal Government jobs.3463Deputy Secretary Page, how is the Economic Development3464Administration working to support the creation of new jobs and3465industries in the District of Columbia?3466    Mr. Page. Thank you for the question, Congresswoman.3467    We are tracking what you cite here. At the end of the day,3468the projects that EDA receives are developed from the ground3469up, consistent with economic development strategies and3470projects that can meet the unique distressed characteristics of3471a community. So a workforce disruption, unemployment levels,3472things like that can be a qualifying event.3473    And our local Philadelphia regional office, I believe, is3474already working with entities in the District to explore3475projects. I know that there is one that is already in3476consideration.3477    But I would also say, longer term, the District of Columbia3478and the National Capital region is not actually covered by an3479economic development district where you would actually have a3480comprehensive economic development strategy that would lay out3481the long-term goals for diversification of the economy and3482strengths, weaknesses, opportunities, and threats.3483    I am happy to report that we have actually engaged with3484some local entities, most notably the Metropolitan Washington3485Council of Governments, to start discussions around how they3486could actually start to develop a CEDS and create an EDD so3487that they can lay out those strategies and identify the3488programming that can support the District.3489    Ms. Norton. Thank you, Deputy Secretary Page.3490    And I yield back.3491    Mr. Perry. The Chair thanks the gentlelady.3492    The Chair now recognizes the gentleman, Representative3493Barrett.3494    Mr. Barrett. Thank you, Mr. Chairman. Thank you to the3495panelists that are here. I appreciate your testimony.3496    I served in the State legislature before coming here to our3497Nation's Capital, and we had some robust debates about economic3498development back home in Michigan.3499    I kind of start from the position that Government doesn't3500create jobs. Government can create Government jobs, but private3501industry creates the jobs that ultimately pay for Government3502jobs. So you might maybe consider me a bit of a skeptic around3503some economic development programs and some of the lofty3504prognosis of what they are set to bring in, what3505accomplishments we have had, kind of glossing over some of the3506failures of certain economic development programs that I think3507deserve rational debate. And then sometimes maybe the data that3508we get is a little bit optimistic.3509    But, with that being said, I do appreciate you being here3510today. I know that we have a lot of programs that were3511initiated during the COVID-19 pandemic. There was, obviously, a3512massive disruption to the economy, and Congress and really all3513levels of Government took action to really manage as best we3514were able, and in hindsight, maybe things could have been done3515differently, but I do acknowledge that there was a lot of3516uncertainty then.3517    At the time, though, Congress provided the EDA with3518significant supplemental funding to support economic recovery,3519including, I think, $1\1/2\ billion from the CARES Act, $33520billion from ARPA. The EDA played a sizable role administering3521these COVID-related economic recovery funds that were intended3522to stabilize communities quickly, predominantly under the3523previous administration.3524    Mr. Page, I am curious if you know if these funds were3525targeted well and if they produced measurable results? And, for3526COVID projects, did the EDA use the same performance metric3527framework that it currently uses for infrastructure and3528noninfrastructure data, or was some other metric used at that3529time?3530    Mr. Page. Yes, sir. Thanks for the question.3531    And, yes, you are correct. We did receive substantial3532supplemental funding, $4.5 billion total through two3533supplementals in response to those. Many of those projects are3534still in development, and they are actually producing results3535now, particularly construction.3536    A lot of the awards went out at the end of 2021, and they3537are just kind of finishing their design phase. They are about3538to enter into construction, or they are in construction, but3539they are not quite complete.3540    But I am happy to report that with our portfolio of grants3541that we have right now, $5.8 billion in total, we are seeing an35428-to-1 return on private investment for every dollar invested.3543That being said, we are actively monitoring these projects. We3544now have a risk assessment tool that we have put in place for3545every one of these awards to make sure that they are advancing,3546and if they are not--if for some reason the beneficiary has3547changed and, therefore, the actual expected value has changed,3548if there are complications, if there are cost overruns--we are3549willing to work with the applicant to terminate the grant.3550    Mr. Barrett. Sure. And I appreciate that. To me, sometimes3551we force an idea that we are going to do something that the3552market may not necessarily otherwise demand, and I think when3553it comes to infrastructure, those are community funded and then3554sometimes have State and Federal money combined for roads,3555bridges, pipelines, and other things that provide a benefit to3556everyone in that community and can hopefully then attract more3557economic development, less so than some other projects that may3558be like, oh, we are going to guarantee this many jobs, and3559then, 10 years go by, and new people are sitting in your seat3560and my seat.3561    Those jobs don't materialize, and it is impossible to hold3562accountable then at that point, and I want to make sure that we3563prevent that circumstance from happening.3564    I guess, to go through a design phase for 5 years, I mean,3565we are 5 years post-2021 right now. I flipped the calendar over3566like everybody else a few weeks ago, and it said 2026 on it.3567    How are we supposed to effectively deploy these resources3568when it takes 5 years to get through just the design phase of a3569project?3570    Mr. Page. Yes, sir. And I should have said the CARES Act3571was earlier. The ARC funds did not deploy until a little bit3572later because they were appropriated in 2021.3573    But, at the end of the day, I understand what you are3574saying about the private investment. At EDA, we look at the3575private investment not as an outcome, but actually as a market3576signal that the investment that we are going to make actually3577has real benefit. We have named beneficiaries for projects that3578are local entities. Oftentimes, we will get letters of support3579from them.3580    And then we do follow up at 3, 6, and 9 years to make sure3581that we are getting reporting from the grantee that those have3582actually materialized.3583    Mr. Barrett. Okay. Thank you.3584    Thank you, Mr. Chairman. I yield back.3585    Mr. Perry. The Chair thanks the gentleman.3586    The Chair now recognizes the ranking member from Arizona,3587Representative Stanton.3588    Mr. Stanton. Thank you very much, Mr. Chairman.3589    Thank you to all of the commissioners for being here today3590and the important work you do for the citizens of the United3591States.3592    I was a former mayor before I got to Congress. I know3593firsthand the Federal Government can be an important and3594powerful economic development partner, but economic development3595is not one-size-fits-all. Federal support for regional economic3596development is crucial because every community faces unique3597challenges. What works in Appalachia won't necessarily work in3598the desert Southwest that I represent.3599    That is why regional commissions, quasi-governmental3600partnerships between the Federal Government and States, are3601essential Federal tools. The partnership structure represents a3602unique Federal approach to economic development requiring3603substantial input from leaders who know their communities best.3604    Chair Sanchez, the Southwest Border Regional Commission is3605one of the newer regional commissions, and it is doing3606important work in my home State of Arizona. One grant allocated3607last year funds advanced manufacturing workforce development in3608collaboration with partners in the private sector and our State3609universities.3610    Other grants are going toward funding critical water3611infrastructure projects in rural Arizona and on Tribal lands,3612because in Arizona, water security and economic security go3613hand in hand.3614    Chair Sanchez, how does the SBRC maximize its investments3615in impoverished communities in the Southwest?3616    Mr. Sanchez. Thank you for the question, Ranking Member3617Stanton.3618    We prioritize funding to distressed communities. Eighty3619percent of our funds went to distressed communities, and we did3620that by targeting outreach specifically to these communities,3621working with our local development districts, with our mayors,3622county judges, but we also did that in a structural way where3623we provided additional points in the grant competition if your3624project was from a distressed area.3625    What was surprising is that we managed to get a $1 per3626dollar matching from these communities. So, for every dollar3627the Federal Government invested, these folks provided3628additional funds. So I think that leveraged our projects3629immensely, and we are providing the infrastructure that is3630necessary for the private sector to thrive. We are providing3631the roads and the water and the sewage that is needed to3632develop businesses.3633    Mr. Stanton. Thank you so much.3634    In December of 2024, Congress reauthorized and modernized3635the Economic Development Administration for the first time in363620 years. I was proud to back that legislation. The bipartisan3637reauthorization was crafted to help EDA carry out its founding3638mission, bringing new investment and good jobs to every corner3639of this country.3640    To bring EDA into the 21st century, the reauthorization3641bill prioritized investments like manufacturing, supply chain3642capabilities, and industry-led workforce training partnerships.3643This investment is critical not just for strengthening3644struggling economies around this country, but also improving3645our Nation's ability to compete on a global scale. I am3646concerned that staff reductions under this administration are3647limiting this important bipartisan goal.3648    Deputy Assistant Secretary Page, what are EDA's staffing3649levels compared to a year ago, and what effects have those3650staffing reductions had on EDA's operational capacity?3651    Mr. Page. Thank you for the question.3652    EDA, as a whole, the staffing levels are down, but we do3653have adequate staff to meet the mission. We have been able to3654streamline the agency. We have been able to increase our3655efficiency through the reorg that we submitted to Congress and3656was approved by Congress and through some reforms internally.3657Things like we were able to consolidate from three grant3658systems into one. It reduces our administrative burden. We have3659standardized some of our operating procedures, which is saving3660over 4,000 hours of staff time.3661    So, while the overall staffing level is down, we were able3662to adapt, and we have made great progress to still be able to3663meet the mission. We actually also have a staffing plan that3664will allow us to backfill for certain critical vacancies.3665    Mr. Stanton. Thank you very much.3666    Mr. Chairman, I yield back.3667    Mr. Perry. The Chair thanks the gentleman.3668    The Chair now recognizes the gentlelady from Nevada, Ms.3669Titus.3670    Ms. Titus. Thank you, Mr. Chairman.3671    I represent Las Vegas. That is Nevada's First Congressional3672District. And so you can't talk about economic development3673without talking about tourism and hospitality.3674    In my district alone, the industry supports $1.6 billion in3675State and local taxes as the top industry for employment. It is3676not just the strip that draws people. We have got all the3677sports teams now, and we have got the beautiful scenery around3678Las Vegas. There is kind of something for everybody.3679    However, tourism is in a slump, as you know, I am sure. It3680is down about 7 percent from what it was last year. So a lot of3681people's jobs are being threatened, over 300,000 hospitality3682workers, but I believe the expertise at the EDA could help us3683with your assistance programs kind of during these tough times.3684    I was the ranking member of this subcommittee last3685Congress, and I was proud to play a role in the reauthorization3686of the Economic Development Administration for the first time3687in 20 years, as was mentioned by the ranking member.3688    Now, there are provisions that we have got in the bill to3689consider travel and tourism when making grant decisions. So,3690Mr. Page, would you talk about how you all are implementing3691that provision in section 2219?3692    Mr. Page. Yes, and thanks for the question.3693    I appreciate the authorities that you did provide in the3694reauthorization act. I think it helped clarify that travel and3695tourism and outdoor recreation entities are eligible entities3696for our PWEAA, Public Works and Economic Adjustment Assistance,3697programming, and this is one of the self-effectuating pieces of3698the legislation. And so those entities became immediately3699eligible to apply for funding through our notice of funding and3700our regular programming that is out on the street right now.3701    Ms. Titus. So the grant process is in the works? Are there3702people applying for the grant? Have you done anything to let3703folks knows that it is available? Could you give me a little3704detail about how you are implementing it?3705    Mr. Page. Sure. I think ultimately the projects are locally3706driven. We have on-the-ground representation. In fact, we have3707a new economic development representative who is covering the3708State of Nevada. I know that she just was able to visit there3709and meet a lot of the stakeholders in the State last week.3710    And she will work with the local economic development3711districts, nonprofits, State and local entities. They will3712identify projects consistent with their own economic3713development strategies and then advance them. But one thing3714that she is being able to communicate now is the eligibility3715and how to best apply for EDA funds.3716    Ms. Titus. Well, great. Would you ask her to come and get3717in touch with Claire in my office and let us know kind of what3718is going on and see if any of those groups locally might need3719our assistance to help push these grants forward?3720    Mr. Page. Absolutely. We would be happy to make that3721connection.3722    Ms. Titus. Okay. Well, thank you. We look forward to that.3723    The second thing that you all look at that is so important3724in my district is water. We are in the desert. And, last3725session, we did my legislation, the Water Conservation Economic3726Adjustment Act, and that is part of your reauthorization, too,3727and it clarifies that you can use economic assistance funding3728for industrial water conservation in areas where you have got3729decreased water supplies as a result of droughts so we attract3730businesses that aren't big water users.3731    I don't see anything about water conservation as an3732eligible use in the notice of funding opportunity that you all3733published in September. Are you planning on doing new guidance?3734Where does that stand? Could you talk about that for a minute?3735    Mr. Page. Yes. I am happy to talk about that.3736    The notice of funding opportunity really represents a high-3737level frame of the types of investments. It does not list out3738every single type of project, and that is really because the3739variety of projects that a local community may need is almost3740limitless.3741    So what we do is we do train our staff, and our economic3742development representatives are on-the-ground representatives3743of the agency. They are experts in our funding announcement.3744They are experts in our programming, and they work hand in3745glove with local entities to identify types of projects that3746could advance.3747    They are there to provide consultation on ``is it3748eligible'' and then how to best structure an application such3749that it can be reviewed and deliver the type of impact3750necessary consistent with an economic development strategy.3751    Ms. Titus. So you don't really have any guidance that you3752have issued? Is it the same lady that is doing the tourism3753stuff on the ground out there that you mentioned, the staff on3754the ground?3755    Mr. Page. Yes.3756    Ms. Titus. Maybe, when she meets with Claire, she could3757talk about what is going on with the water projects, too,3758because we don't see any evidence of it, as well as tourism.3759    Thank you, and I yield back.3760    Mr. Perry. The Chair thanks the gentlelady.3761    The Chair is now going to stall a little bit to see if some3762other Members show up. Many of you came from long, long3763distances to be here, and, quite honestly, it is embarrassing3764that more Members aren't here, and we would like to hear from3765you, and you are here, and we appreciate that. We want to honor3766the sacrifice that you have made.3767    So I will start kind of down at this end of the row and go3768down that way. Look, one of the things that people want to know3769is kind of what you do and how you measure it. And, if you3770could, and you don't have to get too indepth, but just kind of,3771generally speaking, we will start with Ms. Fenton. If you can3772share like the top two or three performance metrics that you3773use to measure the effectiveness of the money that is coming in3774and the management of it and how your selection process--how do3775you do that?3776    Ms. Fenton. Well, first I would say our administrative3777overhead is an easy indicator of the funds that we are able to3778manage and deploy compared to our staffing. That is the boots3779on the ground. In Alaska, local expertise, other agencies look3780to us to provide that expertise in deploying funds in an3781efficient manner.3782    Our bulk fuel and energy program is one of our top3783programs, top funding coming into the State, top needs across3784the State, and so the performance metrics we get lower costs3785per gallon of diesel in these series of microgrids across the3786State, lowering the cost of fuel, making efficiencies for3787delivery and consolidating fuels into bulk fuel to maximize3788gallons per dollar and lowering that kilowatthour cost among3789communities.3790    And then, also, every gallon saved through energy3791efficiency projects, I know ``energy efficiency'' is kind of a3792negative term these days, but it means a lot to rural Alaska3793and arctic conditions, making sure the envelope of the house is3794secure and we are using every kilowatthour of power and3795electricity to maximize its use.3796    So those are two, I think, top performance metrics that we3797have at the commission, but we can provide additional3798information to your office as well. We continually communicate3799with GAO on some of their inquiries on the commission's report3800on various metrics and whatnot, as well.3801    Mr. Perry. Thank you.3802    I am going to recognize Mr. Sanchez. I know you have been3803writing there, so I want to honor your--you are thinking about3804it, so I want to know what you have to say.3805    Mr. Sanchez. Thank you, Chairman Perry.3806    We, as I mentioned in my testimony, we track the3807unemployment rate, the poverty rate, and the per capita income3808in each of our counties. We focus our investments in the3809counties that have those metrics in the bottom of the 253810percent in the country.3811    Our projects are underway now. They are just getting3812started, but we are tracking on a monthly basis how they are3813using the Federal investment, how they are using the local3814investment that they provided, the jobs that they have created3815on a quarterly basis, jobs retained, how many households they3816have served, and the estimated population that would benefit3817from the grants.3818    So every quarter, we make grantees explain to us exactly3819how they spend the money and how they have met those metrics.3820    Mr. Perry. And, look, I am not trying to be difficult, and3821I get that each one of your regions provides--there are3822different projects and different challenges that you have, and3823every project is not the same. So, you can't have a boilerplate3824template that just says ``this much in equals this much out3825equals this is what we get.'' I get that, but it is important3826that we know and that the American people know that the value3827is coming out of this, and we are actually achieving what we3828are trying to achieve.3829    So I would encourage you to work with maybe Mr. Page and3830each other to come up with at least some kind of common3831standard that you all can agree with that generally captures3832some of that information--not only for our well-being but,3833quite honestly, yours. You don't want to come here and try and3834explain this if you don't have it wired in already, and then I3835am up here asking you questions, and you are trying to figure3836it out. That is not the time you want to figure it out, right.3837    Dr. Reed, do you have anything you would like to impart?3838    Ms. Reed. Yes. Thank you so much.3839    We do track--and these are projections at this point. Our3840first round is in their second year of implementation, the3841grants, and the second round is in the planning phase of3842implementation. So these are projections that we are using.3843    What we do calculate, new jobs projected and households3844supported, businesses impacted, and, as I said in the3845testimony, we look at infrastructure and economic capacity when3846we are evaluating the successes of these grants.3847    But, to your point, we are also working with our3848communications firms and working on a map that will be3849interactive so that, when you hover over the actual grant, it3850will give you the information that you provided for that3851particular grant and that particular county.3852    Mr. Perry. I think in laymen's terms, we would like to know3853how many jobs created, over what period of time, so the3854longevity of those jobs, and maybe the income level generally3855speaking or something so that we see that this is making3856progress; it is improving lives; it is having the impact that3857it so intended.3858    Mr. Saunders.3859    Mr. Saunders. I think we collect a comparable level of KPIs3860as our peer commissions: businesses served, jobs created,3861households served, linear-feet of water infrastructure.3862    Mr. Perry. That would be one you could measure, right?3863    Mr. Saunders. I think we have this data, and I am happy to3864take your suggestion to collaborate with our commissions and3865the EDA to standardize some base level that is useful for the3866committee.3867    Mr. Perry. It would help us, right, because we want to feel3868comfortable that this is all happening the right way, as it3869should be, and we have questions of our bosses, too, right.3870They demand that their money is spent wisely, and that is3871reasonable as well.3872    Dr. Wiggins.3873    Mr. Wiggins. Yes, sir. As Federal Cochair Saunders3874mentioned, our metrics: jobs created, jobs retained, families3875affected by infrastructure projects, also looking at3876individuals trained from our workforce programs, and we have3877tracked this data for a number of years.3878    The thing I will add is that we have a really strong,3879robust monitoring program. So, not only do we look at these3880numbers coming in, our monitoring team is going out, checking3881in on these projects, quarterly reports being issued on these3882projects, and tracking the numbers as the project is3883progressing, as well.3884    Mr. Perry. Okay, great.3885    I am going to just select you, Ms. Manchin, because you are3886probably one of the most experienced people here.3887    Do you have like an annual report that you could--I mean,3888is that something that you do on a regular basis or some other3889iteration that we can see that kind of outlines all that kind3890of thing?3891    Ms. Manchin. Absolutely. We do an annual report every year.3892I think, if you look at the framework, you are right. We have3893been here for an historical period of time, but economic3894development is the focus. So every grant that comes in is3895weighed on how it is going to affect as an economic stimulator.3896    Mr. Perry. Right.3897    Ms. Manchin. So, again, as everyone says, it's new3898businesses, jobs created, infrastructure, communities improved.3899And every grant is evaluated on the outcomes, how many jobs,3900how many people.3901    So, as we look at that and we look at this year winding3902down, we have found that our grants have met or exceeded their3903input, their outcomes for that grant.3904    Mr. Perry. When do you do the reports, just out of3905curiosity? Do you all do it at the same time? Is it a certain3906point of the year, like it has got to be done by September 303907or November 5? Is there a particular period of time or a3908suspense date, as an old Army guy would call it?3909    Ms. Manchin. Well, interestingly for us, we have a 5-year3910strategic plan, and that is coming to an end. So, obviously, we3911are looking not only at 1 year but at this 5-year strategic3912plan and how we met that. One of our measures is that we have3913the number of distressed States, counties, is lower than it has3914been. It is the lowest in the last 20 years. So we, obviously,3915have made an impact----3916    Mr. Perry [interrupting]. Well, that is the goal, right.3917    Ms. Manchin [continuing]. In our most distressed areas.3918    And the fact that, while we have to commit 50 percent, we3919do more. We actually committed 73 percent of our3920appropriations. So all of this we believe does lead to this3921kind of lifting the most distressed counties through3922infrastructure----3923    Mr. Perry [interrupting]. And I agree, and we want to see3924that, and I think maybe if you guys could work together to3925harmonize when you do that, and then, if we could get that in3926advance of you coming up, then we can have a discussion about3927the things you want to highlight and your successes. But I am3928taking a lot of time.3929    Representative Ezell is recognized.3930    Mr. Ezell. Thank you and thank you all for being here today3931and being so patient. The only bad thing about going last is3932everything has been asked. So, if I repeat some of the3933questions, that is just part of the program. So thank you all3934for being here today, and thank you, Mr. Chairman.3935    The Water Resources Development Act of 2024 included3936important economic development reforms intended to improve3937coordination, reduce duplication, and ensure Federal dollars3938are producing real results. As Congress continues its work on3939WRDA in 2026, it is critical that we understand what is and3940what is not working under these new authorities.3941    In coastal communities, Mississippi's Fourth District,3942economic development is closely tied to ensuring reliance in3943our infrastructure, ports, waterways, and disaster recovery.3944Everybody in this country has been hit with some kind of3945disaster. And, ideally, WRDA authorized programs to complement,3946not complicate, these efforts.3947    Today, I hope to hear how WRDA 2024 reforms are being3948implemented, whether agencies are meeting our standards, and3949what changes Congress should consider making for WRDA 2026 to3950further streamline programs and strengthen outcomes for local3951communities.3952    Mr. Page, what WRDA 2024 economic development reforms have3953been implemented that are most relevant to coastal disaster-3954prone regions, and how are these reforms affecting communities3955along the Mississippi gulf coast?3956    Mr. Page. Congressman, thanks for the question.3957    I think the most important for the communities that you3958referenced was the establishment of our disaster recovery3959office and then the input that they provided to shape our3960fiscal year 2025 disaster supplemental funding opportunity.3961Congress appropriated $1.5 billion to support economic recovery3962for communities that were hit by natural disasters in 2023 and39632024. And, in June of last year, we were able to release that3964notice of funding opportunity.3965    I think it takes a very novel approach and one that is a3966first of its kind for EDA based in large part on our experience3967with different disasters and leveraging the expertise of our3968disaster office. It basically allows us to meet a community3969where it's at, either providing readiness funding--we have a3970readiness path which can support predevelopment costs and3971capacity. We have an infrastructure path, implementation path3972that can do traditional types of infrastructure projects,3973workforce training projects as kind of single entities.3974    But then also it has a much broader path 3, which we call3975industry transformation, which allows us to cluster projects3976together where the whole can be greater than the sum of the3977parts in order to really change the economic trajectory of a3978community. And this is based on some of our programming there.3979    So that is on the street. We have already been able to make3980our first round of awards underneath that notice only 2 months3981after it was released. We have had active engagement with3982communities throughout the South and active tracking of all3983those engagements through a recently implemented CRM system so3984we can actually know everybody we have talked to and follow up.3985    Mr. Ezell. Thank you.3986    One more. For coastal communities that rely on ports,3987maritime industries, and disaster recovery, how has the WRDA39882024 improved coordination between EDA and regional3989commissions, and what can Congress do with WRDA 2026 to3990continue to improve it?3991    Mr. Page. Yes, sir. So I think there were some inherent3992pieces in the legislation that can help us better coordinate,3993including the ability for regional commission funds to serve as3994matching funds for EDA investments.3995    But we are actually scheduled to have a convening of all3996the regional commissions in February where we are going to3997really dive deep into this topic to figure out how do we best3998work together, a little bit under the hood. As I said earlier,3999we do work together at a staff level on a project-by-project4000level as we are trying to help assess how to best help4001communities, but I think what we hope to do through this is4002look at a few broad topics and figure out how we can better4003coordinate together.4004    Mr. Ezell. Thank you.4005    One more? I will just kind of throw this out there for all4006of you. In your experience implementing the WRDA 2024, are4007there specific lessons that could help guide Congress in4008ensuring that investments support long-term coastal resilience4009and port-related growth rather than duplicative or short-term4010projects?4011    Anybody? Go ahead.4012    Mr. Page. Yes, sir.4013    Mr. Ezell. Anybody.4014    Mr. Page. In addition to what I have already been able to4015articulate, and I will actually reference back to the4016conversation I had with Congresswoman Titus, the4017reauthorization bill did provide some clarity around4018eligibility of outdoor recreation projects and travel and4019tourism. I believe that could help with many of the coastal4020communities, and we are working to educate through our local4021representatives how those projects are eligible so that we can4022work with communities to bring them in and evaluate them for4023their effectiveness.4024    Mr. Ezell. Thank you. And thank you all for being here4025again today.4026    Mr. Perry. The Chair thanks the gentleman.4027    And, in case you wondered, it is all of us that have the4028accent. If you didn't understand the guy from Mississippi,4029that's why.4030    The Chair now recognizes again the gentlelady from Nevada4031for 5 minutes.4032    Ms. Titus. Thank you, Mr. Chairman. What accent? I don't4033know what accent you are talking about.4034    I was going to ask Mr. Page about something else that was4035in the reauthorization bill, and that was to update and4036modernize the use of university centers programs. I noticed4037that, in the December 2025 blog post, you have discontinued4038funding for the university centers programs.4039    And I wonder, are you in compliance with the law that we4040passed and that President Trump signed, or are you just4041ignoring it, or what is the reason you quit funding it? And I4042would ask other members from regional offices if they benefited4043from having university centers or have they worked with them,4044or they didn't notice that they are gone or what is going on?4045    Mr. Page. Yes, Congresswoman. Thanks for the question.4046    So the fiscal year 2025 appropriation for EDA appropriated4047$400 million, but $30 million of that was disaster-delegated4048funding and was not available for obligation. So we did have to4049identify $30 million within our programming where we would not4050expend those funds.4051    In order to make that decision, we did a comprehensive4052review of all of our programs to assess them based on the4053stakeholder impact and the level of effort. Through that4054process, we did identify three programs that we were going to4055discontinue funding for in 2025. That was the university4056centers, the STEM talent partnership, and the trade adjustment4057assistance for firms.4058    As it pertains to the university centers, they have had a4059several decade carveout within our programming to provide4060assistance and to serve as a central coordinating function for4061technical assistance in communities. With a more limited4062portfolio, it was our perspective that we needed to broaden4063that, and we are no longer going to have the carveout for a4064university center, but those universities that still provide4065the greatest benefit can still apply for technical assistance4066funding if they are best positioned to help their communities.4067    But, by removing that specific set-aside, we have actually4068opened the aperture so that if there are other entities that4069are best positioned to provide that type of organizing4070principle and capacity building in a community, they can also4071apply.4072    Ms. Titus. What about the STEM program that you just4073mentioned? I would think that would be very important right4074now, all the emphasis on STEM and its connection to future4075jobs.4076    Mr. Page. Yes, ma'am. One of the things that I often talk4077about with my team and how to think about our programming, and4078I think it particularly relates for this panel, is, what is our4079comparative advantage? We are $400 million in a $30 trillion4080economy, so we can't solve everything.4081    The STEM talent partnership was a $2.5 million program. It4082was very costly to administer, and when you look at the other4083STEM programs that are out there that are supported by the4084Federal Government, we just did not have the comparative4085advantage or the reach. So, as I mentioned, as we evaluate our4086programs on those two axes of stakeholder impact and level of4087effort, STEM talent partnership, relative to our other4088programs, did score substantially lower.4089    Ms. Titus. The juice wasn't worth the squeeze.4090    Mr. Page. Pardon?4091    Ms. Titus. The juice wasn't worth the squeeze. Is that what4092you are telling us?4093    Mr. Page. At $2.5 million, this is not an indictment on4094STEM education efforts. It is an indictment on EDA's effort and4095funding at that level.4096    Ms. Titus. Do the regional offices have any input into4097these three programs that you decided not to fund?4098    Mr. Page. The regional commissions?4099    Ms. Titus. Yes.4100    Mr. Page. They did not. This was an internal exercise4101because of the way that the Congress had appropriated the funds4102and with $30 million being unavailable for obligation, we did4103have to make those tradeoffs.4104    Ms. Titus. Did that have a negative impact on the work that4105you all do on the ground and in those regional areas?4106    Anybody?4107    It didn't have any impact?4108    Ms. Reed. Not that we are aware.4109    Just so we know, the Federal-State partnership requires our4110communication with the Governors' offices and their priorities.4111So the Governors of each State, they have their priorities, and4112we work together in order to actualize those priorities. So, if4113that were to be a priority, then we would, of course, be4114involved, but to insert ourselves in that, we have not done4115that.4116    Ms. Titus. So you just don't have any input at the Federal?4117    Ms. Reed. Correct.4118    Ms. Titus. You are just subject to what they hand out to4119you. Okay. I got it.4120    Well, wouldn't it work better if you did have some input of4121what you are seeing on the ground that you all need in your4122States that you would advise the Federal-level agencies that4123when they are making decisions of where to put money for what4124kind of grants, that they would hear from you all directly? It4125just doesn't work that way?4126    Mr. Wiggins. Well, I think part of what we are doing as we4127are getting together and meeting next month is doing more4128around coordination. As Federal Cochairwoman Reed mentioned, we4129do work a lot with our States. Most all of us do have regional4130development plans that have input from the local community and4131our State partners, our member States, so we try to align those4132resources.4133    As mentioned earlier, our team, our programmatic teams also4134do work with the program staff at EDA for the very purpose of4135just hearing and making sure we have more alignment, and we are4136not duplicating services. From the focus I think of at least4137from the DRA perspective as a commission, making sure we are4138meeting the regional needs of the 255 counties in our region4139that we are serving but getting local input as well.4140    Ms. Titus. Well, thank you. I appreciate that.4141    Mr. Perry. The Chair thanks the gentlelady.4142    The Chair now recognizes the Representative from4143Pennsylvania, Representative Bresnahan.4144    Mr. Bresnahan. Well, thank you, Chairman Perry and Ranking4145Member Stanton, for holding this hearing today and to all the4146witnesses for being here.4147    Just last week, I had the opportunity to tour Tobyhanna4148Army Depot to highlight a $68 million investment in its radar4149systems, a project that supports both our national security and4150good-paying jobs in northeastern Pennsylvania. I was joined on4151that tour by representatives from the NEPA Alliance, the4152regional development organization that serves the five counties4153in my district.4154    During that visit, we discussed how they work with the EDA4155and the ARC to help bring Federal investment dollars back to4156our community. So this hearing times out very well.4157    My first question will be for Mr. Page and Honorable4158Manchin. Both of your testimonies emphasize strengthening4159coordination with regional commissions and local partners. Can4160you expand on how you gather local feedback and how that input4161is used to identify and prioritize and ultimately shape4162projects and funding opportunities to ensure they reflect real4163local community needs?4164    Mr. Page. Absolutely. I am happy to answer that question,4165Congressman.4166    For us, EDA really is about funding locally driven4167projects, and that starts with a community-developed economic4168development strategy. It sounds like you were there with one of4169our economic development districts. They are our partners on4170the ground, and in order to be eligible for our funding through4171our Public Works and Economic Adjustment Assistance program,4172they have to have a strategy, either an EDA-sponsored CEDS,4173comprehensive economic development strategy, or something4174equivalent that lays out the strengths, weaknesses,4175opportunities, and threats that they have within their4176community and how they plan to address it and leverage local4177assets and resources.4178    As part of those plans, they will often articulate4179partnerships that they have with other regional commissions or4180Federal entities so that we can make sure that we are doing4181complementary investments, not duplicative investments.4182    Ms. Manchin. And, not to repeat, because everything that he4183said, obviously, also matches the mission of the Appalachian4184Regional Commission in terms of economic development.4185    But what I would say is, due to the collaboration, the way4186that we don't duplicate is that we come in with offering some4187gap funding, matching money, which for many of these rural4188areas, that becomes some of the most difficult part of getting4189a grant is getting the match money. So we make sure that our4190resources, and, as he said, when grants come in, they are4191highly evaluated on meeting both the outcomes for economic4192development for ARC, but also what other moneys are they4193receiving so that, as he said, they are both evaluated.4194    But, at the end of the day, this allows resources to go4195into ways that provide resources from ARC that that grant4196money, once it ends, there is some sustainability, that that4197project can continue to grow and develop and create what they4198are trying to do: economic development, more jobs created.4199    And so the very fact of this collaboration and working4200together is what strengthens the end result of these grants and4201what happens in these communities. So it is not a duplication.4202It actually strengthens and elongates how those resources are4203used.4204    Mr. Bresnahan. Just as a quick followup, is there anything4205that you would suggest that could be done better, different,4206more efficiently, or is there anything that Congress can help4207ultimately get these projects funded quicker, faster, more4208efficiently? I will just redirect it to both Mr. Page and4209Honorable Manchin.4210    Mr. Page. Sure. I think we are really hoping--we have4211referenced this a couple of times. We are going to be getting4212together in February as a group to discuss and to meet the4213legislative requirement from the WRDA bill last year, to get4214together and talk about that exact thing. So I think we hope to4215have some of those recommendations that come out of that4216convening and the report that is due out of it.4217    Mr. Bresnahan. I appreciate that.4218    Mr. Chairman, I yield the balance of my time.4219    Mr. Perry. The Chair thanks the gentleman. The gentleman4220yields back.4221    Are there any further questions from any members of the4222subcommittee who have not been recognized?4223    Seeing none, that concludes our hearing for today.4224    I want to thank all the witnesses. I appreciate you taking4225the time to be here. It is important, and we are very grateful4226that you took the time and made the travel and were prepared,4227and we look forward to seeing you again soon as we kind of go4228on this journey together.4229    So, with that, that concludes the subcommittee, and the4230subcommittee stands adjourned.4231    [Whereupon, at 12:40 p.m., the subcommittee was adjourned.]42324233                               Appendix42344235                              ----------42364237  Post-Hearing Questions for the Record to Ben Page, Deputy Assistant4238 Secretary for Economic Development and Chief Operating Officer, U.S.4239       Economic Development Administration, from Hon. Rick Larsen42404241    Question 1. The 2024 reauthorization of the Economic Development4242Administration (EDA) established within EDA an Office of Disaster4243Recovery and Resilience. What is the status of the Office of Disaster4244Recovery and Response, how many people work there and which disasters4245have they supported?4246    Answer. In August 2025, the Department notified Congress of a4247reorganization to stand up the Office of Disaster Recovery and4248Resilience (Disaster Office). EDA is currently updating its internal4249organizational structure to reflect the office's duties fully and4250remains hard at work implementing the office's missions. Staff that4251would subsequently become the Disaster Office helped design EDA's FY42522025 Disaster Supplemental Notice of Funding Opportunity (NOFO), which4253was released on June 4, 2025, and is currently accepting applications4254to help areas recover from disasters that occurred in calendar years42552023 and 2024, including Hurricanes Helene and Milton.4256    EDA was able to quickly onboard additional critical term staff to4257help it process awards for those areas eligible for funding from the FY425825 Disaster Supplemental. To date, 17 people have been onboarded. EDA4259will continue to assess workload and leverage the hiring authority4260provided in the reauthorization act as necessary to deliver assistance4261to impacted communities.42624263    Question 2. What are EDA's staffing levels today compared to one4264year ago? What effects have staff reductions had on EDA's operational4265capacity? Are EDA staff currently allowed to travel?4266    Answer. While EDA staffing levels are lower than last year, EDA has4267sufficient staff to meet its mission due to operational and4268organizational reforms. Yes, in accordance with Department of Commerce4269guidance, EDA is approving mission-critical travel for staff.42704271    Question 3. How is EDA planning to help communities, businesses,4272and workers adjust to changes stemming from artificial intelligence4273(AI)? How will EDA make AI-related initiatives available to workers and4274businesses in distressed rural communities?4275    Answer. In December 2025, EDA announced its intention to set aside4276$25 million in grant funding for workforce initiatives in support of4277the Administration's AI Action Plan. This initiative aims to upskill4278workers in AI tools that are in demand by industry. EDA recognizes that4279AI proficiency is becoming a must-have skill across many industries,4280and workers without skills will be overlooked. This pilot program will4281provide valuable information to EDA and help direct future federal4282investments in support of America's workforce, which includes workers4283in distressed rural communities.42844285    Question 4. The 2024 reauthorization of the Public Works and4286Economic Development Act established as the sense of Congress that EDA4287should continue to promote access to its programs through its use of4288economic development representatives. How many economic development4289representatives worked at EDA one year ago and how many work at EDA4290today?4291    Answer. Economic Development Representatives (EDRs) play a critical4292role in EDA programming as the interface with communities and4293districts. EDA currently has 29 EDRs on board. These positions are4294assigned geographic coverage areas based on a number of factors4295including level of distress, disaster impacted areas, economic4296conditions, and geography. By taking each of these factors into4297account, EDA is able to balance workload across its staff while4298ensuring coverage for all states.42994300    Question 5. The 2024 Public Works and Economic Development Act4301updated and modernized EDA's existing University Centers program. But4302according to your December 2025 blog post, EDA has discontinued funding4303for the University Centers program. Is EDA in compliance with the law4304which was passed by Congress and signed by President Trump?4305    Answer. EDA's reauthorization language authorizes the program4306pending Administration priorities and adequate appropriations and does4307not require EDA to execute the University Centers program in any given4308year. While University Centers no longer have a dedicated funding line,4309universities that previously received funds are eligible to apply for4310funding via other EDA programs, including Economic Adjustment4311Assistance and Technical Assistance, to support local economic growth.43124313    Question 6. The 2024 Public Works and Economic Development Act4314directed EDA's regional directors to designate a regional staff member4315to act as a ``Technical Assistance Liaison'' for their office. Have the4316regional offices complied with this mandate?4317    Answer. EDA recognizes the value of technical assistance and is4318exploring the best model to meet this mandate as it implements the4319broader reorganization communicated to Congress last year.43204321    Question 7. Has EDA's regional office structure changed in the last4322year? If so, how?4323    Answer. In the past year, the Regional Office structure has not4324changed. EDA still operates in six offices and considers applications4325for disaster, public works, economic adjustment assistance, technical4326assistance, and planning grants through investment review committees4327convened by each of those six offices.43284329                               [all]