Hearing of the Economic Development, Public Buildings, and Emergency Management Subcommittee of the House Transportation and Infrastructure Committee - Opening Statement of Rep. Titus, Hearing on "Building Prosperity: EDA's Role in Economic Development and Recovery"

Hearing

Good afternoon. I want to welcome everyone to the first hearing of the Economic Development, Public Buildings, and Emergency Management Subcommittee in the 116th Congress. This hearing is entitled: "Building Prosperity: EDA's Role in Economic Development and Recovery".

I want to recognize the Ranking Member, Mark Meadows, and the welcome all the new members of the subcommittee. I look forward to working with Ranking Member Meadows and members on both sides of the aisle on the many issues we have before this subcommittee.

Additionally, I want to welcome back Dr. John Fleming, Assistant Secretary of Commerce for Economic Development. Dr. Fleming served in this body and I want to congratulate you on your recent confirmation and welcome to the EDA.

Today's hearing will take a closer look at a federal agency that delivers one of the greatest returns on investment to the American taxpayer: the Economic Development Administration.

Our witnesses today will highlight some local examples of how EDA's grant programs have facilitated large-scale economic revitalization and transition in communities that have been in distress. Further, we will explore EDA's important role in disaster recovery and look ahead to how EDA can respond to emerging changes in our country's workforce.

Created in 1965 by the Public Works and Economic Development Act, the EDA has, for the last 54 years, been the only federal agency specifically dedicated to local and regional economic development.

The EDA serves as a clearinghouse for economic development in the federal government and plays a critical role in coordinating federal economic development programs.

With a wide variety of grant programs including planning, public works, trade assistance, economic adjustment, and innovation, EDA provides needed funding to economically distressed communities to strengthen their local business environment, ensure job creation, and fuel sustainable economic growth.

In both its application process and annual reports to Congress, EDA prioritizes job retention and creation as well as private sector leveraging to ensure the greatest return on investment to the American taxpayer.

Despite a comparatively small $300 million annual budget, EDA has helped create or retain more than 275,000 private sector jobs and attract more than $39 billion in private investment in the past six years alone.

These grants, which are awarded only to communities facing significant economic distress, are a lifeline and oftentimes the only source of economic development funding available. EDA grants provide additional capacity, technical and strategic expertise, and targeted infrastructure investments that are guaranteed to preserve or attract new jobs.

EDA has been front and center in responding to massive economic changes brought on by industry failure, trade competition, and persistent unemployment.

Through its trade adjustment assistance for firms program, EDA works with U.S. manufacturing, production, and service firms to help modernize work practices or business models to stay competitive in global markets.

Public Works grants help communities make targeted infrastructure investments like sewer or water access, rail spurs, and roadways to prepare sites for new industry or expanded industry operations.

In addition to its foundational economic development mission, EDA plays an integral role in helping communities recover from disasters. Fires, floods, hurricanes, and winter storms are enormously disruptive events that continue to have an impact well after the storm has passed and debris has been cleared.

Congress, realizing the EDA's record of success in spurring revitalization and economic recovery, has routinely provided sizable appropriations to EDA for disaster recovery. Most recently, Congress appropriated $600 million in disaster recovery funding in the 2018 Disaster Supplemental to respond to Hurricanes Harvey, Irma, and Maria as well as wildfires and other federally declared disasters in 2017.

These resources provide some of the only economic development focused disaster assistance and are crucial to helping communities return to normal after a major event.

After the first responders have left, EDA stays on the ground to help put together the pieces of an economy fractured by natural or other disasters. It helps create economic development plans, provides revolving loans, and fortifies infrastructure to ensure that companies wiped out by disaster return to their communities and are resilient to future disaster events.

Each disaster is different and the needs following disasters are equally diverse. Fortunately, EDA funds are flexible enough within their mission driven purpose to apply to the unique circumstances each community has faced.

Whether it is protecting a manufacturing facility from flooding, creating a small business development center in a fire-ravaged town, or rebuilding a boat manufacturer following a tornado, EDA grants have brought prosperity and recovery to communities hardest hit by natural disasters.

The disaster recovery role, while funded through sporadic appropriations, is just as central to the EDA's mission as its continually-appropriated programs.

I hope that after today's hearing, you will join me in seeing the vitality and importance of the Economic Development Administration in our country's efforts to promote prosperity.

Despite its sterling record of accomplishment, the EDA has been operating for the last eleven years on expired authorization. Even worse, this Administration has proposed in each of its last three budgets to eliminate the EDA altogether.

Congress' failure to reauthorize the EDA means we have missed the opportunity to strengthen programs, increase funding to better meet needs, and expand EDA's mission to respond to a changing economy.

This Congress, I intend to advance an EDA reauthorization that will provide certainty to the communities we are elected to serve that the federal government will remain a committed partner in the pursuit of economic growth.

I look forward to furthering that discussion in today's hearing and learning from our witnesses. I now recognize the Ranking Member, Mr. Meadows, for an opening statement.

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