Press Releases

Opening remarks, as prepared, of Economic Development, Public Buildings, and Emergency Management Subcommittee Chairman Scott Perry (R-PA) from today’s hearing, entitled, “Smarter Spending, Stronger Results: Reducing Duplication and Ensuring Effectiveness Through Economic Development Reforms”:

I’d like to thank our witnesses for being here today as we examine the role and effectiveness of the Economic Development Administration (EDA) and the economic development regional commissions in distressed regions of the country.

Today, we will hear from the EDA, as well as six regional commissions: the Appalachian Regional Commission (ARC), the Delta Regional Authority (DRA), the Northern Border Regional Commission (NBRC), the Southeast Crescent Regional Commission (SCRC), the Southwest Border Regional Commission (SBRC), and the Denali Commission. EDA is the only federal agency established for the purpose of supporting economic development in distressed communities nationwide.

Meanwhile, the regional commissions were set up independently to work in partnership with their member state governments to achieve similar goals, but in regional settings. Other federal departments are also involved in economic development, including the Department of Agriculture (USDA), the Department of Housing and Urban Development (HUD), and the Small Business Administration (SBA).

If this seems like a lot of cooks in the kitchen, it is. And the list doesn’t stop there. There are newly established commissions for Southern New England, the Mid-Atlantic region, and the Great Lakes states.

In fact, in our 2023 hearing focused on regional commissions, I predicted that the list of regional commissions would continue to proliferate, and it has. It is not the role of the federal government to pick which communities win and lose. America’s private enterprise has historically driven economic development. It is the responsibility of state and local governments to facilitate a business-friendly environment for its constituents. States already have the power to lower barriers for entry by diminishing overly burdensome regulations and the costs of doing business. But here we are with even more federal programs than we had just two years ago.

Now, I am not blaming the witnesses here today for this.  But it does mean that, at the very least, we need to make sure your activities and funding are not duplicative. It is also critical to ensure accountability and that clear performance metrics are in place.

The fundamental mission of economic development programs is to create jobs in distressed communities. So, ensuring that funding is not used to backfill state budgets but instead is targeted and actually produces jobs is fundamental.

That is why in the reforms passed last Congress, there are clear mandates for EDA to report performance data, including job creation numbers. There are mandates for all the witnesses here today to coordinate and communicate with one another and with other federal agencies involved in economic development.

The Thomas R. Carper Water Resources Development (WRDA) Act of 2024 reauthorized many of the regional commissions, as well as the EDA, for the first time in 20 years. The American people want to know each of your game plans.

More specifically, I want to know each regional commission’s goals, how you are collecting and reporting performance data, and how you are coordinating with EDA, one another, as well as other federal programs at USDA, HUD, and SBA. 

Click here for more information from today’s hearing, including video and witness testimony.