42 USC CHAPTER 38, SUBCHAPTER II: GRANTS FOR PUBLIC WORKS AND ECONOMIC DEVELOPMENT

From Title 42—THE PUBLIC HEALTH AND WELFARECHAPTER 38—PUBLIC WORKS AND ECONOMIC DEVELOPMENT

SUBCHAPTER II—GRANTS FOR PUBLIC WORKS AND ECONOMIC DEVELOPMENT

§3141. Grants for public works and economic development

(a) In general

On the application of an eligible recipient, the Secretary may make grants for—

(1) acquisition or development of land and improvements for use for a public works, public service, or development facility or for the improvement of waste management and recycling systems; and

(2) acquisition, design and engineering, construction, rehabilitation, alteration, expansion, increasing the resilience ¹ or improvement of such a facility, including related machinery and equipment.

(b) Criteria for grant

The Secretary may make a grant under this section only if the Secretary determines that—

(1) the project for which the grant is applied for will, directly or indirectly—

(A) improve the opportunities, in the area where the project is or will be located, for the successful establishment, expansion, or retention,² of industrial or commercial plants or facilities;

(B) assist in the creation of additional long-term employment opportunities in the area; or

(2) the project for which the grant is applied for will fulfill a pressing need of the area, or a part of the area, in which the project is or will be located; and

(3) the area for which the project is to be carried out has a comprehensive economic development strategy and the project is consistent with the strategy.

(c) Additional considerations

In awarding grants under subsection (a) and subject to the criteria in subsection (b), the Secretary may also consider the extent to which a project would—

(1) lead to economic diversification in the area, or a part of the area, in which the project is or will be located;

(2) address and mitigate economic impacts from extreme weather events, including development of resilient infrastructure, products, and processes;

(3) benefit highly rural communities without adequate tax revenues to invest in long-term or costly infrastructure;

(4) increase access to high-speed broadband;

(5) support outdoor recreation to spur economic development, with a focus on rural communities;

(6) promote job creation or retention relative to the population of the impacted region with outsized significance;

(7) promote travel and tourism; or

(8) promote blue economy activities.

(d) Maximum assistance for each State

Not more than 15 percent of the amounts made available to carry out this section may be expended in any 1 State.

(Pub. L. 89–136, title II, §201, as added Pub. L. 105–393, title I, §102(a), Nov. 13, 1998, 112 Stat. 3601; amended Pub. L. 118–272, div. B, title II, §2213(a), Jan. 4, 2025, 138 Stat. 3179.)

Editorial Notes

Prior Provisions

A prior section 3141, Pub. L. 89–136, title II, §201, Aug. 26, 1965, 79 Stat. 554; Pub. L. 91–304, §1(b), July 6, 1970, 84 Stat. 375; Pub. L. 92–65, title I, §104, Aug. 5, 1971, 85 Stat. 167; Pub. L. 93–46, §2, June 18, 1973, 87 Stat. 96; Pub. L. 93–423, §4(a), Sept. 27, 1974, 88 Stat. 1158; Pub. L. 94–487, title I, §107(a), (b), Oct. 12, 1976, 90 Stat. 2332; Pub. L. 96–506, §1(3), Dec. 8, 1980, 94 Stat. 2745; Pub. L. 97–35, title XVIII, §1821(a)(2), Aug. 13, 1981, 95 Stat. 766, authorized public works and development facility loans, prior to repeal by Pub. L. 105–393, §102(a).

Amendments

2025—Subsec. (a)(1). Pub. L. 118–272, §2213(a)(1)(A), inserted "or for the improvement of waste management and recycling systems" after "development facility".

Subsec. (a)(2). Pub. L. 118–272, §2213(a)(1)(B), inserted "increasing the resilience" after "expansion,".

Subsec. (b)(1)(A). Pub. L. 118–272, §2213(a)(2)(A), substituted "successful establishment, expansion, or retention," for "successful establishment or expansion".

Subsec. (b)(1)(C). Pub. L. 118–272, §2213(a)(2)(B), inserted "and underemployed" after "unemployed".

Subsecs. (c), (d). Pub. L. 118–272, §2213(a)(3), (4), added subsec. (c) and redesignated former subsec. (c) as (d).

Statutory Notes and Related Subsidiaries

Effective Date

Section effective Feb. 11, 1999, see section 105 of Pub. L. 105–393, set out as a note under section 3121 of this title.

¹ So in original. Probably should be followed by a comma.

² So in original. The comma probably should not appear.

§3142. Base closings and realignments

Notwithstanding any other provision of law, the Secretary may provide to an eligible recipient any assistance available under this subchapter for a project to be carried out on a military or Department of Energy installation that is closed or scheduled for closure or realignment without requiring that the eligible recipient have title to the property or a leasehold interest in the property for any specified term.

(Pub. L. 89–136, title II, §202, as added Pub. L. 105–393, title I, §102(a), Nov. 13, 1998, 112 Stat. 3602.)

Editorial Notes

Prior Provisions

A prior section 3142, Pub. L. 89–136, title II, §202, Aug. 26, 1965, 79 Stat. 556; Pub. L. 93–423, §4(b), Sept. 27, 1974, 88 Stat. 1158; Pub. L. 94–487, title I, §§107(c), (d), 108, Oct. 12, 1976, 90 Stat. 2332, authorized business loans and loan guarantees, prior to repeal by Pub. L. 105–393, §102(a).

A prior section 3142–1, Pub. L. 91–596, §28(d), Dec. 29, 1970, 84 Stat. 1618; Pub. L. 93–237, §2(c), Jan. 2, 1974, 87 Stat. 1024, which authorized loans for small business compliance with occupational safety and health standards, was omitted from the Code in view of the repeal of subchapter II of this chapter by Pub. L. 105–393.

A prior section 3142a, Pub. L. 89–298, title II, §217, Oct. 27, 1965, 79 Stat. 1088, which authorized purchase of indebtedness and loans for waterways projects, was transferred to section 2220 of Title 33, Navigation and Navigable Waters.

Statutory Notes and Related Subsidiaries

Effective Date

Section effective Feb. 11, 1999, see section 105 of Pub. L. 105–393, set out as a note under section 3121 of this title.

§3143. Grants for planning and grants for administrative expenses

(a) In general

On the application of an eligible recipient, the Secretary may make grants to pay the costs of economic development planning and the administrative expenses of organizations that carry out the planning.

(b) Planning process

Planning assisted under this subchapter shall be a continuous process involving public officials and private citizens in—

(1) analyzing local economies;

(2) defining economic development goals;

(3) determining project opportunities; and

(4) formulating and implementing an economic development program that includes systematic efforts to reduce unemployment and increase incomes.

(c) Use of planning assistance

Planning assistance under this subchapter shall be used in conjunction with any other available Federal planning assistance to ensure adequate and effective planning and economical use of funds.

(d) Administrative expenses

Administrative expenses that may be paid with a grant under this section include—

(1) expenses related to carrying out the planning process described in subsection (b);

(2) expenses related to project predevelopment;

(3) expenses related to updating economic development plans to align with other applicable State, regional, or local planning efforts; and

(4) expenses related to hiring professional staff to assist communities in—

(A) project predevelopment and implementing projects and priorities included in—

(i) a comprehensive economic development strategy; or

(ii) an economic development planning grant;

(B) identifying and using other Federal, State, and Tribal economic development programs;

(D) preparing economic recovery plans in response to disasters; and

(E) carrying out economic development and predevelopment activities in accordance with professional economic development best practices.

(e) State plans

(1) Development

Any State plan developed with assistance under this section shall be developed, to the maximum extent practicable, cooperatively by the State, political subdivisions of the State, and the economic development districts located wholly or partially in the State.

(2) Comprehensive economic development strategy

As a condition of receipt of assistance for a State plan under this subsection, the State shall have or develop a comprehensive economic development strategy.

(3) Coordination

Before providing assistance for a State plan under this section, the Secretary shall consider the extent to which the State will consider local and economic development district plans.

(4) Comprehensive planning process

Any overall State economic development planning assisted under this section shall be a part of a comprehensive planning process that shall consider the provision of public works to—

(A) promote economic development and opportunity;

(B) foster effective transportation access;

(D) assist in carrying out the workforce investment strategy of a State;

(E) promote the use of technology in economic development, including access to high-speed telecommunications (including broadband);

(F) address and mitigate economic impacts of extreme weather; and

(G) balance resources through the sound management of physical development.

(5) Report to Secretary

Each State that receives assistance for the development of a plan under this subsection shall submit to the Secretary an annual report on the planning process assisted under this subsection.

(Pub. L. 89–136, title II, §203, as added Pub. L. 105–393, title I, §102(a), Nov. 13, 1998, 112 Stat. 3602; amended Pub. L. 108–373, title II, §201, Oct. 27, 2004, 118 Stat. 1759; Pub. L. 118–272, div. B, title II, §2214, Jan. 4, 2025, 138 Stat. 3180.)

Editorial Notes

Prior Provisions

A prior section 3143, Pub. L. 89–136, title II, §203, Aug. 26, 1965, 79 Stat. 558; Pub. L. 94–273, §2(25), Apr. 21, 1976, 90 Stat. 376, directed deposit of funds into Economic Development Revolving Fund, prior to repeal by Pub. L. 105–393, §102(a).

Amendments

2025—Subsecs. (d), (e). Pub. L. 118–272, §2214(1), (2), added subsec. (d) and redesignated former subsec. (d) as (e).

Subsec. (e)(4)(E). Pub. L. 118–272, §2214(3)(A), substituted "(including broadband);" for "; and".

Subsec. (e)(4)(F), (G). Pub. L. 118–272, §2214(3)(B), (C), added subpar. (F) and redesignated former subpar. (F) as (G).

2004—Subsec. (d)(1). Pub. L. 108–373, §201(1), inserted ", to the maximum extent practicable," after "shall be developed".

Subsec. (d)(3). Pub. L. 108–373, §201(2), added par. (3) and struck out heading and text of former par. (3). Text read as follows: "On completion of a State plan developed with assistance under this section, the State shall—

"(A) certify to the Secretary that, in the development of the State plan, local and economic development district plans were considered and, to the maximum extent practicable, the State plan is consistent with the local and economic development district plans; and

"(B) identify any inconsistencies between the State plan and the local and economic development district plans and provide a justification for each inconsistency."

Subsec. (d)(4)(D) to (F). Pub. L. 108–373, §201(3), added subpars. (D) and (E) and redesignated former subpar. (D) as (F).

Statutory Notes and Related Subsidiaries

Effective Date

Section effective Feb. 11, 1999, see section 105 of Pub. L. 105–393, set out as a note under section 3121 of this title.

§3144. Cost sharing

(a) Federal share

Except as provided in subsection (c), the Federal share of the cost of any project carried out under this subchapter shall not exceed—

(1) 60 percent; plus

(2) an additional percent that—

(A) shall not exceed 30 percent; and

(B) is based on the relative needs of the area in which the project will be located, as determined in accordance with regulations promulgated by the Secretary.

(b) Non-Federal share

(1) In general

In determining the amount of the non-Federal share of the cost of a project, the Secretary may provide credit toward the non-Federal share for all contributions both in cash and in-kind, fairly evaluated, including contributions of space, equipment, assumptions of debt, and services.

(2) Regional Commission funds

Notwithstanding any other provision of law, any funds contributed by a Regional Commission for a project under this subchapter may be considered to be part of the non-Federal share of the costs of the project.

(c) Increase in Federal share

(1) Indian tribes

In the case of a grant to an Indian tribe for a project under this subchapter, the Secretary may increase the Federal share above the percentage specified in subsection (a) up to 100 percent of the cost of the project.

(2) Certain States, political subdivisions, and nonprofit organizations

In the case of a grant to a State, or a political subdivision of a State, that the Secretary determines has exhausted the effective taxing and borrowing capacity of the State or political subdivision or can otherwise document that no local matching funds are reasonably obtainable, or in the case of a grant to a nonprofit organization that the Secretary determines has exhausted the effective borrowing capacity of the nonprofit organization, the Secretary may increase the Federal share above the percentage specified in subsection (a) up to 100 percent of the cost of the project.

(3) Training, research, and technical assistance

In the case of a grant provided under section 3143 or 3147 of this title, the Secretary may increase the Federal share above the percentage specified in subsection (a) up to 100 percent of the cost of the project.

(4) Small communities

In the case of a grant to a political subdivision of a State (as described in section 3122(6)(A)(iv) of this title) that has a population of fewer than 10,000 residents and meets 1 or more of the eligibility criteria described in section 3161(a) of this title, the Secretary may increase the Federal share under paragraph (1) up to 100 percent of the total cost of the project.

(Pub. L. 89–136, title II, §204, as added Pub. L. 105–393, title I, §102(a), Nov. 13, 1998, 112 Stat. 3603; amended Pub. L. 108–373, title II, §202, Oct. 27, 2004, 118 Stat. 1759; Pub. L. 118–272, div. B, title II, §2215, Jan. 4, 2025, 138 Stat. 3181.)

Editorial Notes

Prior Provisions

A prior section 3144, Pub. L. 89–136, title II, §204, as added Pub. L. 94–487, title I, §109, Oct. 12, 1976, 90 Stat. 2333; amended Pub. L. 96–470, title I, §201(d), Oct. 19, 1980, 94 Stat. 2241; Pub. L. 96–506, §1(4), Dec. 8, 1980, 94 Stat. 2745; Pub. L. 97–35, title XVIII, §1821(a)(3), Aug. 13, 1981, 95 Stat. 766, authorized interest free loans to carry out approved redevelopment area plans, prior to repeal by Pub. L. 105–393, §102(a).

Amendments

2025—Subsec. (a)(1). Pub. L. 118–272, §2215(1), substituted "60" for "50".

Subsec. (b). Pub. L. 118–272, §2215(2), designated existing provisions as par. (1), inserted heading, and added par. (2).

Subsec. (c)(2). Pub. L. 118–272, §2215(3)(A), inserted "or can otherwise document that no local matching funds are reasonably obtainable" after "or political subdivision".

Subsec. (c)(3). Pub. L. 118–272, §2215(3)(B), substituted "section 3143 or 3147 of this title" for "section 3147 of this title" and "project." for "project if the Secretary determines that the project funded by the grant merits, and is not feasible without, such an increase."

Subsec. (c)(4). Pub. L. 118–272, §2215(3)(C), added par. (4).

2004—Subsec. (a). Pub. L. 108–373, §202(a), added subsec. (a) and struck out heading and text of former subsec. (a). Text read as follows: "Subject to section 3145 of this title, the amount of a grant for a project under this subchapter shall not exceed 50 percent of the cost of the project."

Subsec. (b). Pub. L. 108–373, §202(b), inserted "assumptions of debt," after "equipment,".

Subsec. (c). Pub. L. 108–373, §202(c), added subsec. (c).

Statutory Notes and Related Subsidiaries

Effective Date

Section effective Feb. 11, 1999, see section 105 of Pub. L. 105–393, set out as a note under section 3121 of this title.

§3145. Supplementary grants

(a) Definition of designated Federal grant program

In this section, the term "designated Federal grant program" means any Federal grant program that—

(1) provides assistance in the construction or equipping of public works, public service, or development facilities;

(2) the Secretary designates as eligible for an allocation of funds under this section; and

(3) assists projects that are—

(A) eligible for assistance under this subchapter; and

(B) consistent with a comprehensive economic development strategy.

(b) Supplementary grants

Subject to subsection (c), in order to assist eligible recipients in taking advantage of designated Federal grant programs, on the application of an eligible recipient, the Secretary may make a supplementary grant for a project for which the recipient is eligible but for which the recipient cannot provide the required non-Federal share because of the economic situation of the recipient.

(c) Requirements applicable to supplementary grants

(1) Amount of supplementary grants

The share of the project cost supported by a supplementary grant under this section may not exceed the applicable Federal share under section 3144 of this title.

(2) Form of supplementary grants

The Secretary shall make supplementary grants by—

(A) the payment of funds made available under this chapter to the heads of the Federal agencies responsible for carrying out the applicable Federal programs; or

(B) the award of funds under this chapter, which will be combined with funds transferred from other Federal agencies in projects administered by the Secretary.

(3) Federal share limitations specified in other laws

Notwithstanding any requirement as to the amount or source of non-Federal funds that may be applicable to a Federal program, funds provided under this section may be used to increase the Federal share for specific projects under the program that are carried out in areas described in section 3161(a) of this title above the Federal share of the cost of the project authorized by the law governing the program.

(Pub. L. 89–136, title II, §205, as added Pub. L. 105–393, title I, §102(a), Nov. 13, 1998, 112 Stat. 3603; amended Pub. L. 108–373, title II, §203, Oct. 27, 2004, 118 Stat. 1760.)

Editorial Notes

Amendments

2004—Subsec. (b). Pub. L. 108–373, §203(a), added subsec. (b) and struck out heading and text of former subsec. (b). Text read as follows:

"(1) In general.—On the application of an eligible recipient, the Secretary may make a supplementary grant for a project for which the eligible recipient is eligible but, because of the eligible recipient's economic situation, for which the eligible recipient cannot provide the required non-Federal share.

"(2) Purposes of grants.—Supplementary grants under paragraph (1) may be made for purposes that shall include enabling eligible recipients to use—

"(A) designated Federal grant programs; and

"(B) direct grants authorized under this subchapter."

Subsec. (c)(1), (2). Pub. L. 108–373, §203(b)(1), added pars. (1) and (2) and struck out former pars. (1) and (2), which read as follows:

"(1) Amount of supplementary grants.—Subject to paragraph (4), the amount of a supplementary grant under this subchapter for a project shall not exceed the applicable percentage of the cost of the project established by regulations promulgated by the Secretary, except that the non-Federal share of the cost of a project (including assumptions of debt) shall not be less than 20 percent.

"(2) Form of supplementary grants.—In accordance with such regulations as the Secretary may promulgate, the Secretary shall make supplementary grants by increasing the amounts of grants authorized under this subchapter or by the payment of funds made available under this chapter to the heads of the Federal agencies responsible for carrying out the applicable Federal programs."

Subsec. (c)(4). Pub. L. 108–373, §203(b)(2), struck out heading and text of par. (4). Text read as follows:

"(A) Indian tribes.—In the case of a grant to an Indian tribe, the Secretary may reduce the non-Federal share below the percentage specified in paragraph (1) or may waive the non-Federal share.

"(B) Certain States, political subdivisions, and nonprofit organizations.—In the case of a grant to a State, or a political subdivision of a State, that the Secretary determines has exhausted its effective taxing and borrowing capacity, or in the case of a grant to a nonprofit organization that the Secretary determines has exhausted its effective borrowing capacity, the Secretary may reduce the non-Federal share below the percentage specified in paragraph (1)."

Statutory Notes and Related Subsidiaries

Effective Date

Section effective Feb. 11, 1999, see section 105 of Pub. L. 105–393, set out as a note under section 3121 of this title.

§3146. Regulations on relative needs and allocations

In promulgating rules, regulations, and procedures for assistance under this subchapter, the Secretary shall ensure that—

(1) the relative needs of eligible areas are given adequate consideration by the Secretary, as determined based on, among other relevant factors—

(A) the severity of the rates of unemployment in the eligible areas and the duration of the unemployment;

(B) the per capita income levels, the labor force participation rate, and the extent of underemployment in eligible areas; and

(C) the outmigration of population from eligible areas and the extent to which the outmigration is causing economic injury in the eligible areas;

(2) allocations of assistance under this subchapter are prioritized to ensure that the level of economic distress of an area, rather than a preference for a geographic area or a specific type of economic distress, is the primary factor in allocating the assistance;

(3)(A) rural and urban economically distressed areas are not harmed by the establishment or implementation by the Secretary of a private sector leveraging goal for a project under this subchapter;

(B) any private sector leveraging goal established by the Secretary does not prohibit or discourage grant applicants under this subchapter from public works in, or economic development of, rural or urban economically distressed areas; and

(C) the relevant Committees of Congress are notified prior to making any changes to any private sector leveraging goal; and

(4) grants made under this subchapter promote job creation and retention and will have a high probability of meeting or exceeding applicable performance requirements established in connection with the grants.

(Pub. L. 89–136, title II, §206, as added Pub. L. 105–393, title I, §102(a), Nov. 13, 1998, 112 Stat. 3604; amended Pub. L. 108–373, title II, §204, Oct. 27, 2004, 118 Stat. 1761; Pub. L. 118–272, div. B, title II, §2216, Jan. 4, 2025, 138 Stat. 3181.)

Editorial Notes

Amendments

2025—Par. (1)(B). Pub. L. 118–272, §2216(1), added subpar. (B) and struck out former subpar. (B) which read as follows: "the income levels and the extent of underemployment in eligible areas; and".

Par. (4). Pub. L. 118–272, §2216(2), inserted "and retention" after "creation".

2004—Pars. (3), (4). Pub. L. 108–373 added pars. (3) and (4).

Statutory Notes and Related Subsidiaries

Effective Date

Section effective Feb. 11, 1999, see section 105 of Pub. L. 105–393, set out as a note under section 3121 of this title.

§3147. Grants for training, research, and technical assistance

(a) In general

(1) Grants

On the application of an eligible recipient, the Secretary may make grants for training, research, and technical assistance, including grants for program evaluation and economic impact analyses, that would be useful in alleviating or preventing conditions of excessive unemployment or underemployment.

(2) Types of assistance

Grants under paragraph (1) may be used for—

(A) project planning, project predevelopment, and feasibility studies;

(B) demonstrations of innovative activities or strategic economic development investments;

(D) establishment of university centers;

(E) establishment of business outreach centers;

(F) studies evaluating the needs of, and development potential for, economic growth of areas that the Secretary determines have substantial need for the assistance;

(G) studies that evaluate the effectiveness of coordinating projects funded under this chapter with projects funded under other Acts;

(H) assessment, marketing, and establishment of business clusters; and

(I) other activities determined by the Secretary to be appropriate.

(3) Cooperation requirement

In the case of a project assisted under this section that is national or regional in scope, the Secretary may waive the provision in section 3122(6)(A)(vi) of this title requiring a nonprofit organization or association to act in cooperation with officials of a political subdivision of a State.

(b) Methods of provision of assistance

In providing research and technical assistance under this section, the Secretary, in addition to making grants under subsection (a), may—

(1) provide research and technical assistance through officers or employees of the Department;

(2) pay funds made available to carry out this section to Federal agencies; or

(3) employ private individuals, partnerships, businesses, corporations, or appropriate institutions under contracts entered into for that purpose.

(c) University centers

(1) Establishment

In accordance with subsection (a)(2)(D), the Secretary may make grants to institutions of higher education to serve as university centers.

(2) Geographic coverage

The Secretary shall ensure that the network of university centers established under this subsection provides services in each State.

(3) Duties

To the maximum extent practicable, a university center established under this subsection shall—

(A) collaborate with other university centers;

(B) collaborate with economic development districts and other relevant Federal economic development technical assistance and service providers to provide expertise and technical assistance to develop, implement, and support comprehensive economic development strategies and other economic development planning at the local, regional, and State levels, with a focus on innovation, entrepreneurship, workforce development, and regional economic development;

(C) provide technical assistance, business development, and technology transfer services to businesses in the area served by the university center;

(D) establish partnerships with 1 or more commercialization intermediaries that are public or nonprofit technology transfer organizations eligible to receive a grant under section 1862s–9 of this title;

(E) promote local and regional capacity building; and

(F) provide to communities and regions assistance relating to data collection and analysis and other research relating to economic conditions and vulnerabilities that can inform economic development and adjustment strategies.

(4) Consideration

In making grants under this subsection, the Secretary shall consider—

(A) the significant role of regional public universities in supporting economic development in distressed communities through the planning and the implementation of economic development projects and initiatives; and

(B) the location of the university center in or near a distressed community.

(Pub. L. 89–136, title II, §207, as added Pub. L. 105–393, title I, §102(a), Nov. 13, 1998, 112 Stat. 3604; amended Pub. L. 108–373, title II, §205, Oct. 27, 2004, 118 Stat. 1761; Pub. L. 118–272, div. B, title II, §§2211(b), 2217, Jan. 4, 2025, 138 Stat. 3178, 3181.)

Editorial Notes

Amendments

2025—Subsec. (a)(2)(A). Pub. L. 118–272, §2217(1), inserted ", project predevelopment," after "planning".

Subsec. (a)(3). Pub. L. 118–272, §2211(b), substituted "section 3122(4)(A)(vi) of this title" for "section 3122(6)(A)(vi) of this title".

Subsec. (c). Pub. L. 118–272, §2217(2), added subsec. (c).

2004—Subsec. (a)(2)(G) to (I). Pub. L. 108–373, §205(a), added subpars. (G) and (H) and redesignated former subpar. (G) as (I).

Subsec. (a)(3). Pub. L. 108–373, §205(b), added par. (3) and struck out heading and text of former par. (3). Text read as follows: "In the case of a project assisted under this section, the Secretary may reduce or waive the non-Federal share, without regard to section 3144 or 3145 of this title, if the Secretary finds that the project is not feasible without, and merits, such a reduction or waiver."

Statutory Notes and Related Subsidiaries

Effective Date

Section effective Feb. 11, 1999, see section 105 of Pub. L. 105–393, set out as a note under section 3121 of this title.

§3148. Investment priorities

(a) In general

Subject to subsection (b), for a project to be eligible for assistance under this subchapter, the project shall be consistent with 1 or more of the following investment priorities:

(1) Critical infrastructure

Economic development planning or implementation projects that support development of public facilities, including basic public infrastructure, transportation infrastructure, or telecommunications infrastructure.

(2) Workforce

Economic development planning or implementation projects that—

(A) support job skills training to meet the hiring needs of the area in which the project is to be carried out and that result in well-paying jobs; or

(B) otherwise promote labor force participation.

(3) Innovation and entrepreneurship

Economic development planning or implementation projects that—

(A) support the development of innovation and entrepreneurship-related infrastructure;

(B) promote business development and lending; or

(C) foster the commercialization of new technologies that are creating technology-driven businesses and high-skilled, well-paying jobs of the future.

(4) Economic recovery resilience

Economic development planning or implementation projects that enhance the ability of an area to withstand and recover from adverse short-term or long-term changes in economic conditions, including effects from industry contractions or economic impacts from natural disasters.

(5) Manufacturing

Economic development planning or implementation projects that encourage job creation, business expansion, technology and capital upgrades, and productivity growth in manufacturing, including efforts that contribute to the competitiveness and growth of domestic suppliers or the domestic production of innovative, high-value products and production technologies.

(b) Conditions

If the Secretary plans to use an investment priority that is not described in subsection (a), the Secretary shall submit to the Committee on Environment and Public Works of the Senate and the Committee on Transportation and Infrastructure of the House of Representatives a written notification that explains the basis for using that investment priority.

(c) Savings clause

Nothing in this section waives any other requirement of this chapter.

(Pub. L. 89–136, title II, §208, as added Pub. L. 118–272, div. B, title II, §2218, Jan. 4, 2025, 138 Stat. 3182.)

Editorial Notes

Prior Provisions

A prior section 3148, Pub. L. 89–136, title II, §208, as added Pub. L. 105–393, title I, §102(a), Nov. 13, 1998, 112 Stat. 3605, related to prevention of unfair competition, prior to repeal by Pub. L. 108–373, title II, §206(a), Oct. 27, 2004, 118 Stat. 1761.

§3149. Grants for economic adjustment

(a) In general

On the application of an eligible recipient, the Secretary may make grants for development of public facilities, public services, business development (including funding of a revolving loan fund), planning, technical assistance, training, and any other assistance to alleviate long-term economic deterioration and sudden and severe economic dislocation and further the economic adjustment objectives of this subchapter.

(b) Criteria for assistance

The Secretary may provide assistance under this section only if the Secretary determines that—

(1) the project will help the area to meet a special need arising from—

(A) actual or threatened severe unemployment; or

(B) economic adjustment problems resulting from severe changes in economic conditions; and

(2) the area for which a project is to be carried out has a comprehensive economic development strategy and the project is consistent with the strategy, except that this paragraph shall not apply to planning projects.

(c) Particular community assistance

Assistance under this section may include assistance provided for activities identified by communities, the economies of which are injured by—

(1) military base closures or realignments, defense contractor reductions in force, or Department of Energy defense-related funding reductions, for help in diversifying their economies through projects to be carried out on Federal Government installations or elsewhere in the communities;

(2) disasters or emergencies, in areas with respect to which a major disaster or emergency has been declared under the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5121 et seq.), for post-disaster economic recovery;

(3) international trade, for help in economic restructuring of the communities;

(4) fishery failures, in areas with respect to which a determination that there is a commercial fishery failure has been made under section 1861a(a) of title 16;

(5) the loss of manufacturing, travel and tourism, natural resource-based, blue economy, or agricultural jobs, for reinvesting in and diversifying the economies of the communities;

(6) economic dislocation in the steel industry due to the closure of a steel plant, primary steel economy contraction events (including temporary layoffs and shifts to part-time work), or job losses in the steel industry or associated with the departure or contraction of the steel industry, for help in economic restructuring of the communities; or

(7) limited water for industrial consumption in areas impacted by decreased water supplies due to drought or extreme heat.

(d) Assistance to coal communities

(1) Definitions

In this subsection:

(A) Coal economy

The term "coal economy" means the complete supply chain of coal-reliant industries, including—

(i) coal mining;

(ii) coal-fired power plants;

(iii) transportation or logistics; and

(iv) manufacturing.

(B) Contraction event

The term "contraction event" means the closure of a facility or a reduction in activity relating to a coal-reliant industry, including an industry described in any of clauses (i) through (iv) of subparagraph (A).

(2) Authorization

On the application of an eligible recipient, the Secretary may make grants for projects in areas adversely impacted by a contraction event in the coal economy.

(3) Eligibility

(A) In general

In carrying out this subsection, the Secretary shall determine the eligibility of an area based on whether the eligible recipient can reasonably demonstrate that the area—

(i) has been adversely impacted by a contraction event in the coal economy within the previous 25 years; or

(ii) will be adversely impacted by a contraction event in the coal economy.

(B) Prohibition

No regulation or other policy of the Secretary may limit the eligibility of an eligible recipient for a grant under this subsection based on the date of a contraction event except as provided in subparagraph (A)(i).

(C) Demonstrating adverse impact

For the purposes of this paragraph, an eligible recipient may demonstrate an adverse impact by demonstrating—

(i) a loss in employment;

(ii) a reduction in tax revenue; or

(iii) any other factor, as determined to be appropriate by the Secretary.

(e) Assistance to nuclear host communities

(1) Definitions

In this subsection:

(A) Commission

The term "Commission" means the Nuclear Regulatory Commission.

(B) Community advisory board

The term "community advisory board" means a community committee or other advisory organization that—

(i) primarily focuses on the economic impacts of decommissioning activities; and

(ii) aims to foster communication and information exchange between a licensee planning for and involved in decommissioning activities and members of the community that decommissioning activities may affect.

(C) Decommission

The term "decommission" has the meaning given the term in section 50.2 of title 10, Code of Federal Regulations (or successor regulations).

(D) Licensee

The term "licensee" has the meaning given the term in section 50.2 of title 10, Code of Federal Regulations (or successor regulations).

(E) Nuclear host community

The term "nuclear host community" means an eligible recipient that has been economically impacted, or reasonably demonstrates to the satisfaction of the Secretary that it will be economically impacted, by a nuclear power plant licensed by the Commission that—

(i) is not co-located with an operating nuclear power plant;

(ii) is at a site with spent nuclear fuel; and

(iii) as of January 4, 2025—

(I) has ceased operations; or

(II) has provided a written notification to the Commission that it will cease operations.

(2) Authorization

On the application of an eligible recipient, the Secretary may make grants—

(A) to assist with economic development in nuclear host communities; and

(B) to fund community advisory boards in nuclear host communities.

(3) Requirement

In carrying out this subsection, to the maximum extent practicable, the Secretary shall implement the recommendations described in the report submitted to Congress under section 108 of the Nuclear Energy Innovation and Modernization Act (Public Law 115–439; 132 Stat. 5577) entitled "Best Practices for Establishment and Operation of Local Community Advisory Boards Associated with Decommissioning Activities at Nuclear Power Plants".

(4) Distribution of funds

The Secretary shall establish a methodology to ensure, to the maximum extent practicable, geographic diversity among grant recipients under this subsection.

(f) Special provisions relating to revolving loan fund grants

(1) In general

The Secretary shall promulgate regulations to maintain the proper operation and financial integrity of revolving loan funds established by recipients with assistance under this section.

(2) Efficient administration

The Secretary may—

(A) at the request of a grantee, amend and consolidate grant agreements governing revolving loan funds to provide flexibility with respect to lending areas and borrower criteria;

(B) assign or transfer assets of a revolving loan fund to third party for the purpose of liquidation, and the third party may retain assets of the fund to defray costs related to liquidation; and

(C) take such actions as are appropriate to enable revolving loan fund operators to sell or securitize loans (except that the actions may not include issuance of a Federal guaranty by the Secretary).

(3) Treatment of actions

An action taken by the Secretary under this subsection with respect to a revolving loan fund shall not constitute a new obligation if all grant funds associated with the original grant award have been disbursed to the recipient.

(4) Preservation of securities laws

(A) Not treated as exempted securities

No securities issued pursuant to paragraph (2)(C) shall be treated as exempted securities for purposes of the Securities Act of 1933 (15 U.S.C. 77a et seq.) or the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.), unless exempted by rule or regulation of the Securities and Exchange Commission.

(B) Preservation

Except as provided in subparagraph (A), no provision of this subsection or any regulation promulgated by the Secretary under this subsection supersedes or otherwise affects the application of the securities laws (as the term is defined in section 3(a) of the Securities Exchange Act of 1934 (15 U.S.C. 78c(a))) or the rules, regulations, or orders of the Securities and Exchange Commission or a self-regulatory organization under that Commission.

(g) Disaster mitigation

In providing assistance pursuant to subsection (c)(2), if appropriate and as applicable, the Secretary may encourage hazard mitigation in assistance provided pursuant to such subsection.

(Pub. L. 89–136, title II, §209, as added Pub. L. 105–393, title I, §102(a), Nov. 13, 1998, 112 Stat. 3605; amended Pub. L. 108–373, title II, §207, Oct. 27, 2004, 118 Stat. 1762; Pub. L. 115–254, div. D, §1217(a), Oct. 5, 2018, 132 Stat. 3451; Pub. L. 118–272, div. B, title II, §2219, Jan. 4, 2025, 138 Stat. 3183.)

Editorial Notes

References in Text

The Robert T. Stafford Disaster Relief and Emergency Assistance Act, referred to in subsec. (c)(2), is Pub. L. 93–288, May 22, 1974, 88 Stat. 143, which is classified principally to chapter 68 (§5121 et seq.) of this title. For complete classification of this Act to the Code, see Short Title note set out under section 5121 of this title and Tables.

Section 108 of the Nuclear Energy Innovation and Modernization Act, referred to in subsec. (e)(3), is section 108 of Pub. L. 115–439, title I, Jan. 14, 2019, 132 Stat. 5577, which is not classified to the Code.

The Securities Act of 1933, referred to in subsec. (f)(4)(A), is title I of act May 27, 1933, ch. 38, 48 Stat. 74, which is classified generally to subchapter I (§77a et seq.) of chapter 2A of Title 15, Commerce and Trade. For complete classification of this Act to the Code, see section 77a of Title 15 and Tables.

The Securities Exchange Act of 1934, referred to in subsec. (f)(4)(A), is act June 6, 1934, ch. 404, 48 Stat. 881, which is classified principally to chapter 2B (§78a et seq.) of Title 15, Commerce and Trade. For complete classification of this Act to the Code, see section 78a of Title 15 and Tables.

Amendments

2025—Subsec. (c)(5). Pub. L. 118–272, §2219(1)(B)(i), inserted ", travel and tourism, natural resource-based, blue economy, or agricultural" after "manufacturing".

Subsec. (c)(6), (7). Pub. L. 118–272, §2219(1)(A), (B)(ii), (C), added pars. (6) and (7).

Subsecs. (d) to (g). Pub. L. 118–272, §2219(2), (3), added subsecs. (d) and (e) and redesignated former subsecs. (d) and (e) as (f) and (g), respectively.

2018—Subsec. (e). Pub. L. 115–254 added subsec. (e).

2004—Subsec. (c)(5). Pub. L. 108–373, §207(a), added par. (5).

Subsec. (d). Pub. L. 108–373, §207(b), added subsec. (d) and struck out heading and text of former subsec. (d). Text read as follows:

"(1) In general.—Subject to paragraph (2), an eligible recipient of a grant under this section may directly expend the grant funds or may redistribute the funds to public and private entities in the form of a grant, loan, loan guarantee, payment to reduce interest on a loan guarantee, or other appropriate assistance.

"(2) Limitation.—Under paragraph (1), an eligible recipient may not provide any grant to a private for-profit entity."

Statutory Notes and Related Subsidiaries

Effective Date

Section effective Feb. 11, 1999, see section 105 of Pub. L. 105–393, set out as a note under section 3121 of this title.

§3150. Changed project circumstances

In any case in which a grant (including a supplementary grant described in section 3145 of this title) has been made by the Secretary under this subchapter (or made under this chapter, as in effect on the day before the effective date of the Economic Development Administration Reform Act of 1998) for a project, and, after the grant has been made but before completion of the project, the purpose or scope of the project that was the basis of the grant is modified, the Secretary may approve, subject (except for a grant for which funds were obligated in fiscal year 1995) to the availability of appropriations, the use of grant funds for the modified project if the Secretary determines that—

(1) the modified project meets the requirements of this subchapter and is consistent with the comprehensive economic development strategy submitted as part of the application for the grant; and

(2) the modifications are necessary to enhance economic development in the area for which the project is being carried out.

(Pub. L. 89–136, title II, §210, as added Pub. L. 105–393, title I, §102(a), Nov. 13, 1998, 112 Stat. 3606.)

Editorial Notes

References in Text

For the effective date of the Economic Development Administration Reform Act of 1998, referred to in text, see section 105 of Pub. L. 105–393, set out as an Effective Date note under section 3121 of this title.

Statutory Notes and Related Subsidiaries

Effective Date

Section effective Feb. 11, 1999, see section 105 of Pub. L. 105–393, set out as a note under section 3121 of this title.

§3151. Use of funds in projects constructed under projected cost

(a) In general

In the case of a grant to a recipient for a construction project under section 3141 or 3149 of this title, if the Secretary determines, before closeout of the project, that the cost of the project, based on the designs and specifications that were the basis of the grant, has decreased because of decreases in costs, the Secretary may approve, without further appropriation, the use of the excess funds (or a portion of the excess funds) by the recipient—

(1) to increase the Federal share of the cost of a project under this title to the maximum percentage allowable under section 3144 of this title; or

(2) to improve the project.

(b) Other uses of excess funds

Any amount of excess funds remaining after application of subsection (a) may be used by the Secretary for providing assistance under this chapter.

(c) Transferred funds

In the case of excess funds described in subsection (a) in projects using funds transferred from other Federal agencies pursuant to section 3214 of this title, the Secretary shall—

(1) use the funds in accordance with subsection (a), with the approval of the originating agency; or

(2) return the funds to the originating agency.

(Pub. L. 89–136, title II, §211, as added Pub. L. 105–393, title I, §102(a), Nov. 13, 1998, 112 Stat. 3606; amended Pub. L. 108–373, title II, §208, Oct. 27, 2004, 118 Stat. 1763; Pub. L. 111–8, div. G, title I, §1301(b), Mar. 11, 2009, 123 Stat. 829; Pub. L. 111–68, div. A, title I, §1501(a), Oct. 1, 2009, 123 Stat. 2041.)

Editorial Notes

Prior Provisions

Prior sections 3151 and 3151a were repealed by Pub. L. 105–393, §102(a).

Section 3151, Pub. L. 89–136, title III, §301, Aug. 26, 1965, 79 Stat. 558; Pub. L. 91–123, title III, §302, Nov. 25, 1969, 83 Stat. 219; Pub. L. 93–46, §3(a), June 18, 1973, 87 Stat. 96, authorized technical assistance to alleviate or prevent excessive unemployment or underemployment.

Section 3151a, Pub. L. 89–136, title III, §302, as added Pub. L. 93–423, §5(b), Sept. 27, 1974, 88 Stat. 1159; amended Pub. L. 94–487, title I, §110, Oct. 12, 1976, 90 Stat. 2333, authorized grants for economic development planning.

Amendments

2009—Subsec. (d). Pub. L. 111–68 struck out subsec. (d). Text read as follows: "The Comptroller General of the United States shall regularly review the implementation of this section."

Pub. L. 111–8 added subsec. (d) and struck out former subsec. (d) which required the Comptroller General to review and report on the implementation of this section.

2004—Pub. L. 108–373 reenacted section catchline without change and amended text generally. Prior to amendment, text read as follows: "In any case in which a grant (including a supplementary grant described in section 3145 of this title) has been made by the Secretary under this subchapter (or made under this chapter, as in effect on the day before the effective date of the Economic Development Administration Reform Act of 1998) for a construction project, and, after the grant has been made but before completion of the project, the cost of the project based on the designs and specifications that was the basis of the grant has decreased because of decreases in costs—

"(1) the Secretary may approve, subject to the availability of appropriations, the use of the excess funds or a portion of the funds to improve the project; and

"(2) any amount of excess funds remaining after application of paragraph (1) shall be deposited in the general fund of the Treasury."

Statutory Notes and Related Subsidiaries

Effective Date

Section effective Feb. 11, 1999, see section 105 of Pub. L. 105–393, set out as a note under section 3121 of this title.

§3152. Reports by recipients

(a) In general

Each recipient of assistance under this subchapter shall submit reports to the Secretary at such intervals and in such manner as the Secretary shall require by regulation, except that no report shall be required to be submitted more than 10 years after the date of closeout of the assistance award.

(b) Contents

Each report shall contain an evaluation of the effectiveness of the economic assistance provided under this subchapter in meeting the need that the assistance was designed to address and in meeting the objectives of this chapter.

(Pub. L. 89–136, title II, §212, as added Pub. L. 105–393, title I, §102(a), Nov. 13, 1998, 112 Stat. 3606.)

Editorial Notes

Prior Provisions

A prior section 3152, Pub. L. 89–136, title III, §303, formerly §302, Aug. 26, 1965, 79 Stat. 560, amended Pub. L. 91–123, title III, §303, Nov. 25, 1969, 83 Stat. 219; Pub. L. 91–304, §1(c), July 6, 1970, 84 Stat. 375; Pub. L. 92–65, title I, §105, Aug. 5, 1971, 85 Stat. 167; Pub. L. 93–46, §3(b), June 18, 1973, 87 Stat. 96; renumbered §303 and amended Pub. L. 93–423, §5(a), (c), Sept. 27, 1974, 88 Stat. 1159, 1160; Pub. L. 94–487, title I, §111, Oct. 12, 1976, 90 Stat. 2334; Pub. L. 96–506, §1(5), Dec. 8, 1980, 94 Stat. 2745; Pub. L. 97–35, title XVIII, §1821(a)(4), Aug. 13, 1981, 95 Stat. 766, authorized appropriations for technical assistance and economic development planning, prior to repeal by Pub. L. 105–393, §102(a).

Statutory Notes and Related Subsidiaries

Effective Date

Section effective Feb. 11, 1999, see section 105 of Pub. L. 105–393, set out as a note under section 3121 of this title.

§3153. Prohibition on use of funds for attorney's and consultant's fees

Assistance made available under this subchapter shall not be used directly or indirectly for an attorney's or consultant's fee incurred in connection with obtaining grants and contracts under this subchapter.

(Pub. L. 89–136, title II, §213, as added Pub. L. 105–393, title I, §102(a), Nov. 13, 1998, 112 Stat. 3607.)

Editorial Notes

Prior Provisions

A prior section 3153, Pub. L. 89–136, title III, §304, as added Pub. L. 93–423, §5(d), Sept. 27, 1974, 88 Stat. 1160; amended Pub. L. 94–487, title I, §112, Oct. 12, 1976, 90 Stat. 2334; Pub. L. 96–506, §1(6), Dec. 8, 1980, 94 Stat. 2745; Pub. L. 97–35, title XVIII, §1821(a)(5), Aug. 13, 1981, 95 Stat. 766, authorized appropriations for supplemental and basic grants and loans, prior to repeal by Pub. L. 105–393, §102(a).

Statutory Notes and Related Subsidiaries

Effective Date

Section effective Feb. 11, 1999, see section 105 of Pub. L. 105–393, set out as a note under section 3121 of this title.

§3154. Special impact areas

(a) In general

On the application of an eligible recipient that is determined by the Secretary to be unable to comply with the requirements of section 3162 of this title, the Secretary may waive, in whole or in part, the requirements of section 3162 of this title and designate the area represented by the recipient as a special impact area.

(b) Conditions

The Secretary may make a designation under subsection (a) only after determining that—

(1) the project will fulfill a pressing need of the area; and

(2) the project will—

(A) be useful in alleviating or preventing conditions of excessive unemployment or underemployment; or

(B) assist in providing useful employment opportunities for the unemployed or underemployed residents in the area.

(c) Notification

At the time of the designation under subsection (a), the Secretary shall submit to the Committee on Environment and Public Works of the Senate and the Committee on Transportation and Infrastructure of the House of Representatives a written notice of the designation, including a justification for the designation.

(Pub. L. 89–136, title II, §214, as added Pub. L. 108–373, title II, §209(a), Oct. 27, 2004, 118 Stat. 1763.)

§3154a. Performance awards

(a) In general

The Secretary may make a performance award in connection with a grant made, on or after October 27, 2004, to an eligible recipient for a project under section 3141 or 3149 of this title.

(b) Performance measures

(1) Regulations

The Secretary shall promulgate regulations to establish performance measures for making performance awards under subsection (a).

(2) Considerations

In promulgating regulations under paragraph (1), the Secretary shall consider the inclusion of performance measures that assess—

(A) whether the recipient meets or exceeds scheduling goals;

(B) whether the recipient meets or exceeds job creation goals;

(D) such other factors as the Secretary determines to be appropriate.

(c) Amount of awards

(1) In general

The Secretary shall base the amount of a performance award made under subsection (a) in connection with a grant on the extent to which a recipient meets or exceeds performance measures established in connection with the grant.

(2) Maximum amount

The amount of a performance award may not exceed 10 percent of the amount of the grant.

(d) Use of awards

A recipient of a performance award under subsection (a) may use the award for any eligible purpose under this chapter, in accordance with section 3212 of this title and such regulations as the Secretary may promulgate.

(e) Federal share

Notwithstanding section 3144 of this title, the funds of a performance award may be used to pay up to 100 percent of the cost of an eligible project or activity.

(f) Treatment in meeting non-Federal share requirements

For the purposes of meeting the non-Federal share requirements under this, or any other, Act the funds of a performance award shall be treated as funds from a non-Federal source.

(g) Terms and conditions

In making performance awards under subsection (a), the Secretary shall establish such terms and conditions as the Secretary considers to be appropriate.

(h) Funding

The Secretary shall use any amounts made available for economic development assistance programs to carry out this section.

(i) Reporting requirement

The Secretary shall include information regarding performance awards made under this section in the annual report required under section 3213 of this title.

(j) Review by Comptroller General

(1) Review

The Comptroller General shall regularly review the implementation of this section.

(2) Report

Not later than 1 year after October 27, 2004, the Comptroller General shall submit to the Committee on Environment and Public Works of the Senate and the Committee on Transportation and Infrastructure of the House of Representatives a report on the findings of the Comptroller on implementation of this subsection.

(Pub. L. 89–136, title II, §215, as added Pub. L. 108–373, title II, §210(a), Oct. 27, 2004, 118 Stat. 1764.)

§3154b. Planning performance awards

(a) In general

The Secretary may make a planning performance award in connection with a grant made, on or after October 27, 2004, to an eligible recipient for a project under this subchapter located in an economic development district.

(b) Eligibility

The Secretary may make a planning performance award to an eligible recipient under subsection (a) in connection with a grant for a project if the Secretary determines before closeout of the project that—

(1) the recipient actively participated in the economic development activities of the economic development district in which the project is located;

(2) the project is consistent with the comprehensive economic development strategy of the district;

(3) the recipient worked with Federal, State, and local economic development entities throughout the development of the project; and

(4) the project was completed in accordance with the comprehensive economic development strategy of the district.

(c) Maximum amount

The amount of a planning performance award made under subsection (a) in connection with a grant may not exceed 5 percent of the amount of the grant.

(d) Use of awards

A recipient of a planning performance award under subsection (a) shall use the award to increase the Federal share of the cost of a project under this subchapter.

(e) Federal share

Notwithstanding section 3144 of this title, the funds of a planning performance award may be used to pay up to 100 percent of the cost of a project under this subchapter.

(f) Funding

The Secretary shall use any amounts made available for economic development assistance programs to carry out this section.

(Pub. L. 89–136, title II, §216, as added Pub. L. 108–373, title II, §211(a), Oct. 27, 2004, 118 Stat. 1765.)

§3154c. Direct expenditure or redistribution by recipient

(a) In general

Subject to subsection (b), a recipient of a grant under section 3141, 3143, or 3147 of this title may directly expend the grant funds or may redistribute the funds in the form of a subgrant to other eligible recipients to fund required components of the scope of work approved for the project.

(b) Limitation

A recipient may not redistribute grant funds received under section 3141 or 3143 of this title to a for-profit entity.

(c) Economic adjustment

Subject to subsection (d), a recipient of a grant under section 3149 of this title may directly expend the grant funds or may redistribute the funds to public and private entities in the form of a grant, loan, loan guarantee, payment to reduce interest on a loan guarantee, or other appropriate assistance.

(d) Limitation

Under subsection (c), a recipient may not provide any grant to a private for-profit entity.

(Pub. L. 89–136, title II, §217, as added Pub. L. 108–373, title II, §212(a), Oct. 27, 2004, 118 Stat. 1766.)

§3154d. Renewable energy program

(a) Definition of renewable energy site

In this section, the term "renewable energy site" means a brownfield site that is redeveloped through the incorporation of 1 or more renewable energy technologies, including solar, wind, geothermal, ocean, and emerging, but proven, renewable energy technologies.

(b) Establishment

On the application of an eligible recipient, the Secretary may make a grant for a project for the development of a renewable energy site if the Secretary determines that the project will—

(1) use 1 or more renewable energy technologies described in subsection (a), to develop abandoned or contaminated sites for commercial use; and

(2) improve the commercial and economic opportunities in the area in which the project is located.

(c) Savings clause

To the extent that any portion of a grant awarded under subsection (b) involves remediation, the remediation shall be subject to section 3222 of this title.

(Pub. L. 89–136, title II, §218, as added Pub. L. 108–373, title II, §213(a), Oct. 27, 2004, 118 Stat. 1766; amended Pub. L. 118–272, div. B, title II, §2220, Jan. 4, 2025, 138 Stat. 3185.)

Editorial Notes

Amendments

2025—Pub. L. 118–272, §2220(1), substituted "Renewable energy" for "Brightfields demonstration" in section catchline.

Subsec. (a). Pub. L. 118–272, §2220(2), added subsec. (a) and struck out former subsec. (a). Prior to amendment, text read as follows: "In this section, the term 'brightfield site' means a brownfield site that is redeveloped through the incorporation of 1 or more solar energy technologies."

Subsec. (b). Pub. L. 118–272, §2220(3)(A), (B), substituted "Establishment" for "Demonstration program" in heading and "renewable energy" for "brightfield" in introductory provisions.

Subsec. (b)(1). Pub. L. 118–272, §2220(3)(C), substituted "renewable energy technologies described in subsection (a)," for "solar energy technologies".

Subsec. (d). Pub. L. 118–272, §2220(4), struck out subsec. (d). Text read as follows: "There is authorized to be appropriated to carry out this section $5,000,000 for each of fiscal years 2004 through 2008, to remain available until expended."

§3154e. Workforce training grants

(a) In general

On the application of an eligible recipient, the Secretary may make grants to support the development and expansion of innovative workforce training programs through sectoral partnerships leading to quality jobs and the acquisition of equipment or construction of facilities to support workforce development activities.

(b) Eligible uses

Funds from a grant under this section may be used for—

(1) acquisition or development of land and improvements to house workforce training activities;

(2) acquisition, design and engineering, construction, rehabilitation, alteration, expansion, or improvement of such a facility, including related equipment and machinery;

(3) acquisition of machinery or equipment to support workforce training activities;

(4) planning, technical assistance, and training;

(5) sector partnerships development, program design, and program implementation; and

(6) in the case of an eligible recipient that is a State, subject to subsection (c), a State program to support individual trainees for employment in critical industries with high demand and vacancies necessary for further economic development of the applicable State that—

(A) requires significant post-secondary training; but

(B) does not require a post-secondary degree.

(c) State grant pilot program

(1) In general

The Secretary may award grants to States for the purpose described in subsection (b)(6).

(2) Application

To be eligible to receive a grant under this subsection, the Chief Executive of a State shall submit to the Secretary an application at such time, in such manner, and containing such information as the Secretary may require, which shall include, at a minimum, the following:

(A) A method for identifying critical industry sectors driving in-State economic growth that face staffing challenges for in-demand jobs and careers.

(B) A governance structure for the implementation of the program established by the State, including defined roles for the consortia of agencies of such State, at a minimum, to include the State departments of economic development, labor, and education, or the State departments or agencies with jurisdiction over those matters.

(C) A strategy for recruiting participants from at least 1 community that meets 1 or more of the criteria described in section 3161(a) of this title.

(D) A plan for how the State will develop a tracking system for eligible programs, participant enrollment, participant outcomes, and an application portal for individual participants.

(3) Selection

The Secretary shall award not more than 1 grant under this subsection to any State.

(4) Eligible uses

A grant under this subsection may be used for—

(A) necessary costs to carry out the matters described in this subsection, including tuition and stipends for individuals that receive funds under the program established by the applicable State, subject to the requirements described in paragraph (6); and

(B) program implementation, planning, technical assistance, or training.

(5) Federal share

Notwithstanding section 3144 of this title, the Federal share of the cost of any award carried out with a grant made under this subsection shall not exceed 70 percent.

(6) Participant amounts

A State shall ensure that grant funds provided under this subsection to each individual that receives funds under the program established by the applicable State is the lesser of the following amounts:

(A) In a case in which the individual is also eligible for a Federal Pell Grant under section 1070a of title 20 for enrollment at the applicable training program for any award year of the training program, $11,000 minus the amount of the awarded Federal Pell Grant.

(B) For an individual not described in paragraph (1), the lesser of—

(i) $11,000; and

(ii) the total cost of the training program in which the individual is enrolled, including tuition, fees, career navigation services, textbook costs, expenses related to assessments and exams for certification or licensure, equipment costs, and wage stipends (in the case of a training program that is an earn-and-learn program).

(7) Termination

The authority provided under this subsection shall expire on September 30, 2029.

(d) Coordination

The Secretary shall coordinate the development of new workforce development models with the Secretary of Labor and the Secretary of Education.

(Pub. L. 89–136, title II, §219, as added Pub. L. 118–272, div. B, title II, §2221, Jan. 4, 2025, 138 Stat. 3186.)

§3154f. Congressional notification requirements

(a) In general

In the case of a project described in subsection (b), the Secretary shall provide to the Committee on Environment and Public Works of the Senate and the Committee on Transportation and Infrastructure of the House of Representatives notice, in accordance with subsection (c), of the award of a grant for the project not less than 3 business days before notifying an eligible recipient of their selection for that award.

(b) Projects described

A project referred to in subsection (a) is a project that the Secretary has selected to receive a grant administered by the Economic Development Administration in an amount not less than $100,000.

(c) Requirements

A notification under subsection (a) shall include—

(1) the name of the project;

(2) the name of the applicant;

(3) the region in which the project is to be carried out;

(4) the State in which the project is to be carried out;

(5) the 1 or more counties or political subdivisions in which the project is to be carried out;

(6) the number of jobs expected to be created or retained as a result of the project;

(7) the estimated date of completion of the project;

(8) the amount of the grant awarded;

(9) a description of the project; and

(10) any additional information, as determined to be appropriate by the Secretary.

(d) Public availability

The Secretary shall make a notification under subsection (a) publicly available not later than 60 days after the date on which the Secretary provides the notice.

(Pub. L. 89–136, title II, §220, as added Pub. L. 118–272, div. B, title II, §2222, Jan. 4, 2025, 138 Stat. 3187.)

§3154g. High-speed broadband deployment initiative

(a) Definitions

In this section:

(1) Broadband project

The term "broadband project" means, for the purposes of providing, extending, expanding, or improving high-speed broadband service to further the goals of this chapter—

(A) planning, technical assistance, or training;

(B) the acquisition or development of land; or

(C) the acquisition, design and engineering, construction, rehabilitation, alteration, expansion, or improvement of facilities, including related machinery, equipment, contractual rights, and intangible property.

(2) Eligible recipient

(A) In general

The term "eligible recipient" means an eligible recipient.

(B) Inclusions

The term "eligible recipient" includes—

(i) a public-private partnership; and

(ii) a consortium formed for the purpose of providing, extending, expanding, or improving high-speed broadband service between 1 or more eligible recipients and 1 or more for-profit organizations.

(3) High-speed broadband

The term "high-speed broadband" means the provision of 2-way data transmission with sufficient downstream and upstream speeds to end users to permit effective participation in the economy and to support economic growth, as determined by the Secretary.

(b) Broadband projects

(1) In general

On the application of an eligible recipient, the Secretary may make grants under this subchapter for broadband projects, which shall be subject to the provisions of this section.

(2) Considerations

In reviewing applications submitted under paragraph (1), the Secretary shall take into consideration geographic diversity of grants provided, including consideration of underserved markets, in addition to data requested in paragraph (3).

(3) Data requested

In reviewing an application submitted under paragraph (1), the Secretary shall request from the Federal Communications Commission, the Administrator of the National Telecommunications and Information Administration, the Secretary of Agriculture, and the Appalachian Regional Commission data on—

(A) the level and extent of broadband service that exists in the area proposed to be served; and

(B) the level and extent of broadband service that will be deployed in the area proposed to be served pursuant to another Federal program.

(4) Interest in real or personal property

For any broadband project carried out by an eligible recipient that is a public-private partnership or consortium, the Secretary shall require that title to any real or personal property acquired or improved with grant funds, or if the recipient will not acquire title, another possessory interest acceptable to the Secretary, be vested in a public partner or eligible nonprofit organization or association for the useful life of the project, after which title may be transferred to any member of the public-private partnership or consortium in accordance with regulations promulgated by the Secretary.

(5) Procurement

Notwithstanding any other provision of law, no person or entity shall be disqualified from competing to provide goods or services related to a broadband project on the basis that the person or entity participated in the development of the broadband project or in the drafting of specifications, requirements, statements of work, or similar documents related to the goods or services to be provided.

(6) Broadband project property

(A) In general

The Secretary may permit a recipient of a grant for a broadband project to grant an option to acquire real or personal property (including contractual rights and intangible property) related to that project to a third party on such terms as the Secretary determines to be appropriate, subject to the condition that the option may only be exercised after the Secretary releases the Federal interest in the property.

(B) Treatment

The grant or exercise of an option described in subparagraph (A) shall not constitute a redistribution of grant funds under section 3154c of this title.

(c) Non-Federal share

In determining the amount of the non-Federal share of the cost of a broadband project, the Secretary may provide credit toward the non-Federal share for the present value of allowable contributions over the useful life of the broadband project, subject to the condition that the Secretary may require such assurances of the value of the rights and of the commitment of the rights as the Secretary determines to be appropriate.

(Pub. L. 89–136, title II, §221, as added Pub. L. 118–272, div. B, title II, §2223, Jan. 4, 2025, 138 Stat. 3188.)

§3154h. Critical Supply Chain Site Development grant program

(a) In general

On the application of an eligible recipient, the Secretary may make grants under the "Critical Supply Chain Site Development grant program" (referred to in this section as the "grant program") to carry out site development or expansion projects for the purpose of making the site ready for manufacturing projects.

(b) Considerations

In providing a grant to an eligible recipient under the grant program, the Secretary may consider whether—

(1) the proposed improvements to the site will improve economic conditions for rural areas, Tribal communities, or areas that meet 1 or more of the criteria described in section 3161(a) of this title;

(2) the project is consistent with regional economic development plans, which may include a comprehensive economic development strategy;

(3) the eligible recipient has initiatives to prioritize job training and workforce development; and

(4) the project supports industries determined by the Secretary to be of strategic importance to the national or economic security of the United States.

(c) Priority

In awarding grants to eligible recipients under the grant program, the Secretary shall give priority to eligible recipients that propose to carry out a project that—

(1) has State, local, private, or nonprofit funds being contributed to assist with site development efforts; and

(2) if the site development or expansion project is carried out, will result in a demonstrated interest in the site by commercial entities or other entities.

(d) Use of funds

A grant provided under the grant program may be used for the following activities relating to the development or expansion of a site:

(1) Investments in site utility readiness, including—

(A) construction of on-site utility infrastructure;

(B) construction of last-mile infrastructure, including road infrastructure, water infrastructure, power infrastructure, broadband infrastructure, and other physical last-mile infrastructure;

(D) other activities to extend public utilities or services to a site, as determined appropriate by the Secretary.

(2) Investments in site readiness, including—

(A) land assembly;

(B) environmental reviews;

(D) design;

(E) engineering; and

(F) permitting.

(3) Investments in workforce development and sustainability programs, including job training and retraining programs.

(4) Investments to ensure that disadvantaged communities have access to on-site jobs.

(e) Prohibition

(1) In general

Subject to paragraph (2), in awarding grants under the grant program, the Secretary shall not require an eligible recipient to demonstrate that a private company or investment has selected the site for development or expansion.

(2) Safeguards

In awarding grants under the grant program, the Secretary shall include necessary safeguards to ensure that—

(A) the site development is fully completed within a reasonable timeframe; and

(B) the eligible recipient has sufficiently demonstrated private sector interest.

(Pub. L. 89–136, title II, §222, as added Pub. L. 118–272, div. B, title II, §2224, Jan. 4, 2025, 138 Stat. 3189.)