Congress votes to reauthorize the EDA, marking a historic bipartisan effort to invest in innovation and job creation

For the first time in two decades, the US Economic Development Administration was officially reauthorized by Congress this week, and will soon become law. This rare bipartisan vote signals that elected officials heard their constituents’ concerns about the economy, and are prioritizing efforts to strengthen local communities. 

Not all Americans may recognize the EDA and its critical role in regional economic development. Part of the Department of Commerce created back in 1965, the agency promotes growth through job-creating grants and partnerships — arrangements that generate $10 in returns for every $1 invested. 

Among EDA’s many successes: providing essential seed funds that created North Carolina’s Research Triangle, bringing together the resources and energy of three Tier 1 research universities; the $10 billion Tech Hubs program to spur innovation in new areas of the country; and initiatives like Build to Scale that supercharge technology entrepreneurship.  

EDA’s economic impacts in communities are sizable. Through a number of budgetary vehicles, the agency creates thousands of jobs in underserved regions and gives entrepreneurs the lift they need to compete. 

The provisions of reauthorization will help develop new manufacturing sites in high-growth areas — solar and battery technologies, for example — potentially tripling the number of jobs in those sectors for the next five years. Workforce development projects supported by the law will support workers’ preparedness for the jobs of the future. 

Given these metrics, it makes sense that a bipartisan group of politicians — Sens. Shelley Moore Capito and Tom Carper and Reps. Sam Graves and Rick Larsen and their congressional colleagues — would not only support the bill, but also commit an additional $500 million above targets specifically toward regional tech hubs. 

This development sends a clear message: Despite a political changing of the guard, both parties heard their constituents and are acting to invest in places across the nation that have been left behind. The key to these investments is that they provide meaningful returns, technical support and the capacity-building skills needed to improve America’s competitiveness.

As a leader whose success relies in part on my ability to strengthen communities, I recognize the need for federal agencies to remain an essential service provider while also evolving to meet the particular challenges of the 21st century.

Simply put, the United States must invest in economic development that meets the next industrial revolution if we want to maintain economic competitiveness. And increasingly, communities across the country face basic obstacles — access to broadband, lack of technical skills, and recovery struggles from natural disasters — that require government support to overcome.

The authorization recognizes these basic obstacles and provides resources to address them, such as the establishment of Federal Regional Commissions to work with universities, research labs, community colleges and workforce boards. The commissions highlight Washington’s approach toward place-based economic development, meaning equipping communities beyond traditional centers like Silicon Valley, New York and Boston. This is a modern approach that meets the moment, propelling regional economies toward opportunity and greater prosperity, and positioning the United States for sustainable, inclusive growth. 

This significant legislative achievement emphasizes an important dynamic often debated in economic development: that it’s not merely about improving financial metrics, but about creating ecosystems of opportunity for every American to thrive. 

With intensifying global economic competition, legislative efforts such as this one deliver on the federal government’s mission — help ensure the US remains a leader by investing in people, places, and possibilities.  

With the right tools and resources, local communities can help create the industries of the future, but it falls on local leaders, businesses, and institutions to seize the opportunity. As the American economy continues to face headwinds, let us harness this rare bipartisan action and use it to build thriving ecosystems that will empower the next wave of innovation and ensure America’s enduring economic and technological leadership.

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