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Congressional Research Service
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                                                                                                January 22, 2024

EDA's Disaster Economic Recovery and Resiliency Roles


Since 2011 Congress has provided $1.9 billion in
supplemental funding for long-term disaster recovery for
selected incidents under the Department of Commerce,
Economic  Development Administration's (EDA's)
economic  adjustment assistance (EAA) program (42 U.S.C.
§§3149(c)(2), 3233). Congress may seek to review EDA's
implementation efforts in facilitating economic resilience in
advance of disasters, as well as its role in supporting
communities during the long-term recovery and
redevelopment phases, which can take years or decades.

Interagency Coordinating Role
Immediately after certain disasters, the federal government
approaches emergency management  and disaster recovery
using a coordinated approach mobilizing more than 30
different agencies. Agency roles are delineated through
interagency guidance, including the National Disaster
Recovery Framework.  Under this framework, the EDA
serves as the lead agency for economic recovery support.
EDA's  role is to facilitate federal economic development
assistance to support long-term economic recovery planning
and project implementation. This role generally involves
EDA  convening state and federal agencies, tribes,
territories, nongovernmental partners and stakeholders and
coordinating certain recovery efforts. For instance, EDA
may  convene federal agencies (e.g., Federal Emergency
Management  Agency  (FEMA),  the Small Business
Administration (SBA), the U.S. Department of Agriculture
(USDA),  Federal Reserve Banks, the Department of
Transportation), EDA-designated economic development
districts (EDDs), and state and local stakeholders for post-
disaster regional resource exchange events or help
stakeholders assess regional assets and challenges related to
long-term recovery. In 2022 and 2023, EDA served as an
interagency coordinator in Arkansas, California, Florida,
Guam,  Hawaii, Kentucky, Mississippi, Missouri, New
Mexico, the U.S. Virgin Islands, Puerto Rico, and Vermont.

Example:   Interagency  Coordinating  Role
Hurricanes Laura and Delta impacted southwest Louisiana
in the winter of 2021. EDA worked with federal partners,
including SBA, USDA,  and Department of Commerce
agencies, to provide assistance to small and tourism-based
businesses, and to support broadband and disaster resilience
activities. EDA also coordinated recovery efforts with
USDA   to assist fisheries and agricultural businesses. EDA
and other agencies led workshops, helped stakeholders with
applications for recovery funding, and linked individuals
and businesses to federal agency representatives.

Disaster Econormic Recovery Grants
Generally, supplemental appropriations laws relevant to the
EDA  specify an amount of funding available for disaster
economic recovery assistance. These appropriations laws


typically state that the relevant funding is to support areas
with Stafford Act declarations during a specific period of
time. For instance, the Consolidated Appropriations Act,
2023 (P.L. 117-328) provided EDA with $500 million in
additional EAA funds for areas that received a major
disaster declaration under the Stafford Act (42 U.S.C.
§5121 et seq.) as a result of Hurricanes Ian and Fiona, as
well as wildfires, flooding, and other natural disasters
occurring in calendar years 2021 and 2022.

EDA's  Notices of Funding Opportunity (NOFOs) outline
the review and selection processes for recovery funding
requests, which are competitively assessed. EDA's
distribution and allocation strategy for supplemental
appropriations may vary by each event or situation. In
recent years, EDA has evaluated several factors-including
measures of impact and economic distress-to determine
supplemental funding allocations for its six regional offices.

EDA  provides financial assistance for disaster economic
recovery efforts directly to public sector stakeholders,
including units of local government, institutions of higher
education, Indian tribes, and nonprofit organizations. EDA
also provides assistance indirectly to businesses through
grantees that administer revolving loan funds (RLFs). EDA
assistance is generally designed to support infrastructure,
long-term community economic  recovery planning, and
other related projects. For instance, EDA disaster economic
recovery funding may be used for resiliency planning,
workforce development, entrepreneurship, RLFs, and
infrastructure projects. Funding may also be used for
strategy grants to develop or update a regional
Comprehensive  Economic  Development Strategy (CEDS).
The CEDS  is a locally developed, long-term regional
economic development  plan. CRS Infographic IG10045
provides a summary of frequently asked questions
regarding EDA's supplemental disaster recovery grants.

Example:   Disaster Recovery  Grants  in Paradise, CA
Following the 2018 wildfires in Paradise, CA, EDA
provided grants for planning and project implementation,
including to support the development of a new
transportation master plan. EDA funding also supported a
disaster recovery management position.

RLFs   for  Businesses
Businesses and individuals do not qualify for EDA grants.
However, in many regions, EDA grantees may receive
EAA  grants to administer RLF programs. RLFs provide
alternative financing options to businesses following
disasters and for non-disaster purposes.

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