Rebuilding Economies and Creating Opportunities for More People Everywhere To Excel Act or the RECOMPETE Act
This bill establishes a grant program to assist economically distressed local communities and labor markets that meet specified economic criteria, including employment criteria.
The Economic Development Administration (EDA) must award 10-year grants to a local government, tribal government, economic development district, or consortium of local government units located in such areas. Each grant recipient must develop and implement a comprehensive strategy to address the economic challenges specific to the area. The grants may be used to increase employment opportunities, increase local per capita income, support economic development, and develop infrastructure and housing.
Additionally, the EDA must periodically evaluate each grant recipient based on certain benchmark criteria and annually report on the implementation of the program.
The bill specifies formulas for determining the grant amount for each community or market and the federal share of the cost of each program or activity conducted under the program.
[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4651 Introduced in House (IH)]
<DOC>
117th CONGRESS
1st Session
H. R. 4651
To require the Secretary of Commerce, acting through the Assistant
Secretary for Economic Development, to establish a RECOMPETE grant
program to provide flexible, 10-year block grants for purposes of
creating quality jobs, providing resources to help local residents
access opportunities and attain and retain employment, increasing local
per capita income and employment rates, and supporting long-term,
sustained economic growth and opportunity in persistently distressed
areas, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
July 22, 2021
Mr. Kilmer (for himself, Ms. Herrera Beutler, Ms. DelBene, Mr. LaMalfa,
Mr. Aguilar, Mr. Palazzo, Mr. Bera, Mr. Beyer, Mr. Blumenauer, Ms.
Blunt Rochester, Mrs. Bustos, Mr. Carbajal, Mr. Cicilline, Mr. Cooper,
Ms. Craig, Mr. Crow, Ms. Davids of Kansas, Mrs. Demings, Mr. Deutch,
Mrs. Dingell, Mr. Foster, Mr. Harder of California, Mr. Himes, Mr.
Horsford, Ms. Houlahan, Mr. Jeffries, Mr. Khanna, Mr. Kildee, Mr. Kind,
Mr. Larson of Connecticut, Mrs. Luria, Ms. Manning, Mrs. McBath, Mr.
Morelle, Mrs. Murphy of Florida, Mr. Norcross, Mr. Panetta, Mr.
Perlmutter, Mr. Peters, Mr. Phillips, Miss Rice of New York, Mr. Ryan,
Mr. Schiff, Ms. Schrier, Ms. Sewell, Ms. Sherrill, Mr. Soto, Ms.
Strickland, Mr. Trone, Mr. Vela, and Mr. Yarmuth) introduced the
following bill; which was referred to the Committee on Transportation
and Infrastructure, and in addition to the Committee on Financial
Services, for a period to be subsequently determined by the Speaker, in
each case for consideration of such provisions as fall within the
jurisdiction of the committee concerned
_______________________________________________________________________
A BILL
To require the Secretary of Commerce, acting through the Assistant
Secretary for Economic Development, to establish a RECOMPETE grant
program to provide flexible, 10-year block grants for purposes of
creating quality jobs, providing resources to help local residents
access opportunities and attain and retain employment, increasing local
per capita income and employment rates, and supporting long-term,
sustained economic growth and opportunity in persistently distressed
areas, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Rebuilding Economies and Creating
Opportunities for More People Everywhere To Excel Act'' or the
``RECOMPETE Act''.
SEC. 2. DEFINITIONS.
In this Act:
(1) Applicable area.--The term ``applicable area''--
(A) with respect to a local labor market, local
community, or partial local labor market--
(i) means--
(I) the geographical area of the
local labor market, local community, or
partial local labor market; and
(II) each corresponding unit of
local government in the geographical
area described in subclause (I); and
(ii) does not include any Tribal land in
the geographical area described in clause
(i)(I), unless the Tribal government with
jurisdiction over the Tribal land elects to
participate in an applicable cooperation
agreement under section 3(b)(2)(B); and
(B) with respect to a Tribal government, means the
Tribal land subject to the jurisdiction of the Tribal
government.
(2) Applicant.--The term ``applicant'' means--
(A) a unit of general local government, such as a
county or a county equivalent (including a borough in
the State of Alaska and a parish in the State of
Louisiana), city, town, village, or other general-
purpose political subdivision of a State;
(B) the District of Columbia;
(C) a territory or possession of the United States;
(D) a Tribal government;
(E) a State-authorized political subdivision or
other entity, such as a special-purpose entity engaged
in economic development activities;
(F) a public or private nonprofit organization,
acting in cooperation with the officials of a political
subdivision or entity described in subparagraph (E);
(G) an economic development district (as defined in
section 3 of the Public Works and Economic Development
Act of 1965 (42 U.S.C. 3122)); and
(H) a consortium of units of general local
government within an applicable area.
(3) Cooperation agreement.--The term ``cooperation
agreement'' means an agreement entered into under section 3(b)
relating to the implementation of a RECOMPETE plan for an
applicable area.
(4) Eligible.--The term ``eligible'' means--
(A) with respect to a local labor market, local
community, partial local labor market, or Tribal
government, that the local labor market, local
community, partial local labor market, or Tribal
government meets the applicable distress eligibility
criteria described in section 3(a); and
(B) with respect to an applicant or lead entity,
that the applicant or lead entity has submitted an
application for a RECOMPETE grant under section 4(a)(2)
relating to a local labor market, local community,
partial local labor market, or Tribal government
described in subparagraph (A).
(5) Lead entity.--The term ``lead entity'' means an
applicant designated to act as a lead entity pursuant to an
applicable cooperation agreement.
(6) Local community.--
(A) In general.--The term ``local community'' means
the area served by an applicant described in paragraph
(2)(A) that--
(i)(I) is located within a local labor
market or partial local labor market that is
not eligible; or
(II) is not coexistent with a local labor
market; and
(ii) meets such additional criteria,
including a minimum population requirement, as
the Secretary may establish.
(B) Inclusions.--The term ``local community''
includes a consortium of 2 or more applicants described
in subparagraph (A)--
(i) all of which are located within the
same local labor market; or
(ii) each of which is directly adjacent to
an area described in subparagraph (A).
(7) Local labor market.--The term ``local labor market''
means any of the following areas that contains 1 or more
applicants described in subparagraphs (A) through (C) of
paragraph (2):
(A) A commuting zone, as defined by the Economic
Research Service of the Department of Agriculture.
(B) Subject to subparagraph (C), if 1 or more
discrete metropolitan statistical areas or micropolitan
statistical areas, as defined by the Office of
Management and Budget (collectively referred to as
``core-based statistical areas''), exist within a
commuting zone described in subparagraph (A), each such
core-based statistical area.
(C) If the remaining area of a commuting zone
described in subparagraph (A), excluding all core-based
statistical areas within the commuting zone described
in subparagraph (B), contains 1 or fewer counties and
has a population of 7,500 or fewer residents, that
remaining area combined with an adjacent core-based
statistical area within the commuting zone.
(8) Partial local labor market.--The term ``partial local
labor market'' means a geographical area that--
(A) is located within, but is not coextensive with,
a local labor market; and
(B) contains 1 or more applicants described in
subparagraphs (A) through (C) of paragraph (2).
(9) Prime-age.--The term ``prime-age'' means individuals
between the ages of 25 years and 54 years.
(10) Prime-age employment gap.--
(A) In general.--The term ``prime-age employment
gap'', with respect to an applicable area, means the
difference (expressed as a percentage), calculated in
accordance with subparagraph (B), between--
(i) the national 5-year average prime-age
employment rate; and
(ii) the 5-year average prime-age
employment rate of the applicable area.
(B) Calculation.--For purposes of calculating the
prime-age employment gap under subparagraph (A), an
applicant shall use data relating to the most recent 5-
year period for which data are available preceding the
first date of the application period established for
the applicant under section 4(a)(2)(B).
(11) Prime-age employment rate.--
(A) In general.--The term ``prime-age employment
rate'', with respect to an applicable area, means the
quotient (expressed as a percentage), calculated in
accordance with subparagraph (B), obtained by
dividing--
(i) the 5-year average quantity of the
prime-age population of the applicable area
that is employed; by
(ii) the total prime-age population of the
applicable area.
(B) Calculation.--For purposes of calculating the
prime-age employment rate under subparagraph (A), an
applicant shall use data relating to the most recent 5-
year period for which data are available preceding the
first date of the application period established for
the applicant under section 4(a)(2)(B).
(12) Recipient.--The term ``recipient'' means, as
applicable--
(A) an applicant to which a RECOMPETE grant is
provided; or
(B) a lead entity designated pursuant to a
cooperation agreement entered into under section 3(b)
for an applicable area for which a RECOMPETE grant is
provided.
(13) RECOMPETE grant.--The term ``RECOMPETE grant'' means a
grant provided to a recipient under section 4(a).
(14) RECOMPETE plan.--The term ``RECOMPETE plan'' means a
plan developed by an applicant under section 4(b).
(15) Secretary.--The term ``Secretary'' means the Secretary
of Commerce, acting through the Assistant Secretary for
Economic Development.
(16) Subrecipient.--The term ``subrecipient'' means an
applicant located within an applicable area that--
(A) is not a recipient; but
(B) receives funds provided under a RECOMPETE grant
in such manner and in such amounts as may be agreed to
in the RECOMPETE plan for the applicable area.
(17) Tribal government.--The term ``Tribal government''
means the recognized governing body of any Indian or Alaska
Native tribe, band, nation, pueblo, village, community,
component band, or component reservation, individually
identified (including parenthetically) in the list published by
the Bureau of Indian Affairs on January 29, 2021, pursuant to
section 104 of the Federally Recognized Indian Tribe List Act
of 1994 (25 U.S.C. 5131).
(18) Tribal land.--The term ``Tribal land'' means--
(A) any land located within the boundaries of an
Indian reservation, pueblo, or rancheria; or
(B) any land not located within the boundaries of
an Indian reservation, pueblo, or rancheria, the title
to which is held--
(i) in trust by the United States for the
benefit of an Indian Tribe or an individual
Indian;
(ii) by an Indian Tribe or an individual
Indian, subject to restriction against
alienation under laws of the United States; or
(iii) by a dependent Indian community.
SEC. 3. DISTRESS ELIGIBILITY CRITERIA AND COOPERATION AGREEMENTS.
(a) Distress Eligibility.--
(1) Criteria.--To be eligible for a RECOMPETE grant, a
local labor market, local community, partial local labor
market, or Tribal government shall meet the following criteria,
as applicable, as determined by the Secretary:
(A) Local labor markets.--A local labor market
shall have a prime-age employment gap equal to not less
than 2.5 percent.
(B) Local communities.--A local community shall--
(i) meet the applicable requirements
described in section 2(6); and
(ii) have--
(I) a median household income equal
to not more than $75,000; and
(II)(aa) a prime-age employment gap
of not less than 5 percent; or
(bb) as determined by the
Secretary, a special need arising
from--
(AA) a recent decrease in
the applicable prime-age
employment rate; or
(BB) another severe
economic disruption that is
likely to reduce the applicable
prime-age employment rate.
(C) Partial local labor markets.--A partial local
labor market shall--
(i) have a prime-age employment gap equal
to not less than 2.5 percent; and
(ii) receive a waiver under subsection
(b)(3)(A).
(D) Tribal governments.--
(i) In general.--A Tribal government shall
have a prime-age employment gap of not less
than 2.5 percent, as calculated under clause
(ii).
(ii) Calculation.--For purposes of clause
(i), the prime-age employment gap of a Tribal
government shall be calculated, with respect to
the most recent 5-year period for which data
are available, for all individuals residing on
the Tribal land of the Tribal government.
(2) Limitations.--
(A) Applicable areas.--A local labor market, local
community, partial local labor market, or Tribal
government shall not be eligible to receive more than 1
RECOMPETE grant.
(B) Applicants.--For purposes of the RECOMPETE
grant program, an applicant may not be considered to be
located in, or submit an application under section
4(a)(2) on behalf of, more than 1 eligible local labor
market, local community, partial local labor market, or
Tribal government.
(b) Cooperation Agreements.--
(1) Requirement.--
(A) In general.--Subject to paragraph (3), if an
applicable area contains 2 or more applicants described
in subparagraph (A), (B), or (C) of section 2(2), each
such applicant shall, as a condition of receiving a
RECOMPETE grant for the applicable area--
(i) enter into a legally binding
cooperation agreement for the applicable area
in accordance with subparagraph (C); and
(ii) designate 1 applicant as the lead
entity to act in a representative capacity for
purposes of assuming overall responsibility for
carrying out the programs and activities, and
achieving compliance with the applicable
requirements, under the RECOMPETE grant.
(B) Participation by other applicants.--An
applicant described in subparagraph (E), (F), or (G) of
section 2(2) that is located in an applicable area for
which a cooperation agreement is entered into under
subparagraph (A) may elect to join the cooperation
agreement, at the discretion of the applicant.
(C) Terms.--A cooperation agreement under this
subsection shall include--
(i) a written statement that--
(I) is executed by each applicant
that is a party to the cooperation
agreement; and
(II) establishes the consent of the
applicant to be bound by the terms of--
(aa) the cooperation
agreement; and
(bb) the RECOMPETE plan for
the applicable area; and
(ii) a process for redress of any action,
or failure to act, by the lead entity that is
detrimental to an applicant.
(D) Limitation.--An applicable area may be the
subject of only 1 cooperation agreement.
(2) Election by local communities and tribal governments.--
(A) Local communities.--
(i) In general.--A local community may
enter into a cooperation agreement described in
paragraph (1) with any other local communities
located within the same local labor market,
subject to the condition that 1 or more of
those local communities shall be an eligible
local community.
(ii) Parties.--A cooperation agreement
under clause (i) may be executed between or
among--
(I) an eligible local community;
and
(II) 1 or more--
(aa) other eligible local
communities, or applicants
within an eligible local
community, located within the
same local labor market; or
(bb) applicants that are
not located within an eligible
local community, but are
located within the same local
labor market as an eligible
local community.
(iii) Additional amounts.--On execution of
a cooperation agreement under this subparagraph
involving 1 or more applicants described in
clause (ii)(II)(bb), the Secretary may award
additional amounts in accordance with
subsection (c)(6) of section 6, subject to the
applicable cost-sharing requirements of
subsection (e)(2) of that section.
(B) Tribal governments.--
(i) In general.--Regardless of whether the
Tribal government is eligible, subject to
clause (ii), a Tribal government may elect to
enter into a cooperation agreement described in
paragraph (1) with 1 or more applicants from an
eligible local labor market, local community,
or partial local labor market that is adjacent
to the Tribal land of the Tribal government.
(ii) Deadline.--An election by a Tribal
government under clause (i) shall be made by
not later than 45 days after the first date of
the application period established for the
Tribal government under section 4(a)(2)(B).
(iii) Treatment.--If a Tribal government
elects to enter into a cooperation agreement
under clause (i)--
(I) the Tribal land of the Tribal
government shall be--
(aa) considered to be
included in the applicable area
of the eligible local labor
market, local community, or
partial local labor market that
is the subject of the
cooperation agreement; and
(bb) subject to the
RECOMPETE plan for the
applicable area described in
item (aa); and
(II) the amount of the RECOMPETE
grant to which the Tribal government is
otherwise eligible to receive, if
applicable--
(aa) shall not be
decreased; and
(bb) shall be added to the
amount provided to the
applicable lead entity for use
in accordance with the
RECOMPETE plan.
(iv) Encouragement to collaborate.--To the
maximum extent practicable, the Secretary shall
encourage Tribal governments to enter into
cooperation agreements described in clause (i).
(v) Effect of subparagraph.--Nothing in
this subparagraph--
(I) requires a Tribal government to
enter into a cooperation agreement in
order to receive a RECOMPETE grant;
(II) penalizes a Tribal government
that does not elect to participate in a
cooperation agreement; or
(III) otherwise affects the amount
of a RECOMPETE grant to be provided to
any Tribal government.
(3) Waivers.--
(A) In general.--The Secretary may waive the
requirement under paragraph (1) with respect to an
applicant acting on behalf of a partial local labor
market that--
(i) meets the criterion described in
subsection (a)(1)(C)(i);
(ii) is located within an eligible local
labor market with respect to which a
cooperation agreement is unable to be executed
under paragraph (1), despite reasonable
efforts; and
(iii) submits to the Secretary a request
for a waiver under this paragraph demonstrating
the ability to carry out the programs and
activities, and achieve compliance with the
applicable requirements, under sections 4 and 5
in the applicable area.
(B) Effect.--On receipt of a waiver under
subparagraph (A), a partial local labor market--
(i) shall be eligible to receive a
RECOMPETE grant; and
(ii) may elect to carry out the programs
and activities, and achieve compliance with the
applicable requirements, in the applicable area
under the RECOMPETE grant--
(I) independently; or
(II) by designating from among
applicants located within the
applicable area a lead entity pursuant
to a cooperation agreement described in
paragraph (1), which shall submit to
the Secretary a written notice in
accordance with paragraph (4).
(4) Submission to secretary.--On execution of a cooperation
agreement under paragraph (1), (2), or (3)(B)(ii)(II), the lead
entity shall submit to the Secretary a written notice that--
(A) describes--
(i) the cooperation agreement;
(ii) the date of execution of the
cooperation agreement;
(iii) the authorization of the lead entity
under the cooperation agreement; and
(iv) the formation of a consortium
described in section 2(2)(H) under the
cooperation agreement, if applicable; and
(B) includes--
(i) a copy of each written statement under
paragraph (1)(C)(i) relating to the cooperation
agreement; and
(ii) any necessary certifications or other
documentation relating to the cooperation
agreement.
SEC. 4. RECOMPETE GRANT PROGRAM.
(a) Establishment.--
(1) In general.--The Secretary shall establish a formula
grant program under which the Secretary shall provide to
eligible applicants and lead entities block grants, to be known
as ``RECOMPETE grants'', to carry out programs and activities
in the applicable areas served by the applicants and lead
entities that--
(A) create quality jobs;
(B) provide resources to help local residents--
(i) access opportunities; and
(ii) attain and retain employment;
(C) increase local per capita income and prime-age
employment rates; and
(D) support long-term, sustained economic growth
and opportunity in persistently distressed areas.
(2) Applications.--
(A) In general.--To be considered for the provision
of a RECOMPETE grant, an eligible applicant or lead
entity shall submit to the Secretary an application--
(i) at such time, in such manner, and
containing such information as the Secretary
determines to be appropriate; and
(ii) that includes a RECOMPETE plan for the
applicable area served by the applicant or lead
entity, in accordance with subsection (b).
(B) Application windows.--In carrying out the
RECOMPETE grant program, the Secretary shall establish
the periods during which applications may be submitted
under subparagraph (A), subject to the conditions
that--
(i) the initial application period
established under this subparagraph shall be
not less than 3 years; and
(ii) for the second application period
under this subparagraph and each period
thereafter, the Secretary may, as the Secretary
determines to be appropriate--
(I) extend the period;
(II) accept late applications;
(III) initiate a new application
cycle; and
(IV) establish additional rules and
regulations under this subsection.
(C) Limitations.--
(i) In general.--Subject to clause (ii),
the Secretary may establish a limitation on--
(I) the number of applications to
be accepted by the Secretary during
each fiscal year from each type of
applicant; and
(II) the total amount of each
RECOMPETE grant payment provided for
each fiscal year.
(ii) Requirements.--In establishing any
limitation under clause (i), the Secretary
shall ensure that--
(I) each applicant and lead entity
that submits to the Secretary an
application satisfactory to the
Secretary for an application period
established under subparagraph (B)
shall be considered for receipt of a
RECOMPETE grant during that application
period; and
(II) the Secretary is able--
(aa) to review applications
and provide technical
assistance and expertise to
applicants in the development
and implementation of RECOMPETE
plans; and
(bb) to conduct benchmark
evaluations and meet applicable
reporting requirements in
accordance with section 5.
(D) Priority.--In selecting recipients of RECOMPETE
grants, the Secretary shall give priority consideration
to severely distressed, eligible--
(i) local labor markets; and
(ii) Tribal governments.
(E) Approval.--The Secretary shall approve or
disapprove each application submitted under this
paragraph (including the RECOMPETE plan included in the
application) as soon as practicable after the date of
receipt of the application.
(3) Term.--A RECOMPETE grant shall--
(A) have a term of 10 fiscal years; and
(B) be disbursed over that term in accordance with
section 6(d).
(b) RECOMPETE Plans.--
(1) In general.--As a condition of receipt of a RECOMPETE
grant, the application of an applicant or lead entity under
subsection (a)(2) shall include a RECOMPETE plan for the
applicable area served by the applicant or lead entity in
accordance with this subsection.
(2) Requirements.--A RECOMPETE plan shall include the
following information with respect to the applicable area:
(A) An identification of--
(i) each economic development challenge
proposed to be addressed using a RECOMPETE
grant; and
(ii) any past, present, or projected future
economic development investments in the
applicable area, including, with respect to the
investment--
(I) each public and private
participant; and
(II) each source of funding.
(B) A comprehensive strategy, for the 10-year
period beginning on the proposed date of receipt of a
RECOMPETE grant, to address the economic challenges
identified under subparagraph (A)(i), in accordance
with subsection (d), in a manner that--
(i) promotes long-term, sustained economic
growth, opportunity, job creation, employment,
and increased per capita income;
(ii) reduces the prime-age employment gap
of the applicable area;
(iii) creates jobs and connects local
workers to employment and other economic
opportunities;
(iv) maximizes the effective development
and use of the local workforce; and
(v) provides accessible resources to
support job attainment and retention.
(C) The total projected cost to carry out the
RECOMPETE plan.
(D) The total amount of the RECOMPETE grant
requested, and the justification for that amount.
(E) The roles and responsibilities of each
recipient and subrecipient carrying out an activity
under the RECOMPETE plan.
(F) The proposed allocation by the recipient to
subrecipients of any RECOMPETE grant amounts.
(G) An identification of certain benchmark criteria
for use in benchmark evaluations under section 5(a),
including reducing the prime-age employment gap of the
applicable area by certain percentages at periodic
intervals, with the goals of--
(i) reducing the prime-age employment gap
by not less than 50 percent on completion of
the term of the RECOMPETE grant provided to the
recipient; and
(ii) achieving compliance with such other
criteria as the Secretary may establish.
(3) Optional inclusions.--A RECOMPETE plan may include
strategies--
(A) to address inequality in the applicable area,
such as inequality with respect to income, opportunity,
or employment on the basis of race, gender, religion,
or sexual orientation;
(B) to support business development and
entrepreneurship; and
(C) to support innovation and businesses, job
creation, and workforce development in industries
expected to continue or increase in force in the
applicable area.
(4) Consent of parties to cooperation agreement.--If an
applicable area is subject to a cooperation agreement under
section 3(b), the RECOMPETE plan for the applicable area shall
be--
(A) developed in accordance with that cooperation
agreement; and
(B) consented to by each applicant that is a party
to the cooperation agreement.
(5) Integration with comprehensive economic development
strategy.--If an applicable area is subject to a comprehensive
economic development strategy approved by the Secretary under
section 302 of the Public Works and Economic Development Act of
1965 (42 U.S.C. 3162), the RECOMPETE plan for the applicable
area--
(A) shall be integrated with that strategy, to the
maximum extent practicable; and
(B) may be developed and included as a supplemental
portion of that strategy, rather than as an independent
plan.
(6) Approval by secretary.--The Secretary shall approve a
RECOMPETE plan that the Secretary determines meets the
applicable requirements of this subsection.
(c) Planning and Technical Assistance.--
(1) Planning assistance.--
(A) In general.--For purposes of assisting a
recipient in developing a RECOMPETE plan, the Secretary
may make an advance payment of a RECOMPETE grant in
accordance with subparagraph (B), if the Secretary
determines that--
(i) the recipient requires such an advance;
and
(ii) the advance will be used--
(I) effectively; and
(II) for planning purposes.
(B) Maximum amount.--The amount of an advance
payment under subparagraph (A) shall be equal to not
more than the lesser of--
(i) an amount equal to 5 percent of the
maximum RECOMPETE grant amount to be provided
to the applicable recipient; and
(ii) $300,000.
(C) No cost share.--An advance payment made under
this paragraph shall not be subject to any cost-sharing
requirement.
(2) Technical assistance.--The Secretary shall provide
technical assistance, if necessary, in each applicable area
relating to--
(A) the development of a RECOMPETE plan that meets
the applicable requirements of this subsection with
respect to the applicable area; and
(B) implementation of the programs and activities
included in the RECOMPETE plan for the applicable area.
(d) Use of Funds.--
(1) In general.--Subject to paragraphs (2) and (3), a
recipient or subrecipient may use a RECOMPETE grant to carry
out programs and activities in the applicable area, in
accordance with the RECOMPETE plan, including--
(A) the provision of business advice and assistance
to small and medium-sized local businesses and
entrepreneurs, including--
(i) manufacturing extension services;
(ii) small business development centers;
(iii) centers to help businesses bid for
Federal procurement contracts;
(iv) entrepreneurial assistance programs
that link entrepreneurs with available public
and private resources;
(v) legal advice and resources; and
(vi) assistance in accessing capital;
(B) land and site development programs, such as
brownfield redevelopment, research and technology
parks, business incubators, business corridor
development, and Main Street redevelopment programs;
(C) infrastructure and housing activities that are
directly related to supporting job creation and
employment for residents, such as--
(i) improvements to transit, roads, and
broadband access;
(ii) affordable housing development;
(iii) land-use and zoning reforms; and
(iv) transit-oriented development
activities;
(D) job training oriented to local employer needs,
such as customized job training programs carried out by
local community colleges in partnership with local
businesses;
(E) workforce outreach programs, such as--
(i) programs located in, and targeted to,
lower-income and underemployed neighborhoods;
and
(ii) embedding job placement and training
services in neighborhood institutions such as
churches, housing projects, and community
advocacy programs;
(F) job retention programs and activities, such as
the provision of--
(i) job coaches, including at locations of
employment;
(ii) child care services, including
subsidizing the construction, operation,
maintenance, and labor costs of child care
centers; and
(iii) transportation support, such as
support for vehicle repairs to assist in the
transit of workers to jobs; and
(G) such other programs and activities as the
Secretary determines to be appropriate, including any
proposed programs or activities that the recipient
demonstrates clearly and substantially, to the
satisfaction of the Secretary, will directly advance
the goals of the RECOMPETE grant program.
(2) Method.--In carrying out programs and activities
described in paragraph (1), a recipient or subrecipient may--
(A) use amounts provided under a RECOMPETE grant to
carry out such a program or activity directly; or
(B) enter into a contract or other agreement with a
subcontractor or vendor (including nongovernmental,
nonprofit organizations and for-profit entities) to
carry out such a program or activity.
(3) Outside programs and activities.--A recipient acting on
behalf of an eligible local community that enters into a
cooperation agreement under section 3(b)(2)(A)(ii)(II) with a
local community that is not eligible, but is located within the
same local labor market, may use amounts provided under a
RECOMPETE grant to carry out a program or activity described in
paragraph (1) in the ineligible local community, if the program
or activity would provide a benefit to residents of the
eligible local community.
(e) Regional Commissions.--
(1) Definition of regional commission.--In this subsection,
the term ``Regional Commission'' means--
(A) any of the Regional Commissions (as defined in
section 3 of the Public Works and Economic Development
Act of 1965 (42 U.S.C. 3122));
(B) the Northern Border Regional Commission;
(C) the Southeast Crescent Regional Commission;
(D) the Southwest Border Regional Commission; and
(E) any other regional commission established under
Federal law, subject to the approval of the Secretary.
(2) Technical assistance and support.--If an applicant (or
any portion of the service area of an applicant) is located in
a region covered by a Regional Commission, the Regional
Commission is encouraged to provide technical assistance and
other support relating to applying for a RECOMPETE grant and
developing and carrying out a RECOMPETE plan to--
(A) the applicant;
(B) the lead entity, if applicable; and
(C) any other relevant entities.
(3) Action by secretary.--The Secretary shall--
(A) encourage each recipient to coordinate the
implementation of a RECOMPETE plan with the activities
of each Regional Commission serving the region in which
the applicable area is located; and
(B) ensure that a copy of the RECOMPETE plan for
each applicable area is provided to each affected
Regional Commission.
SEC. 5. ADMINISTRATION, REPORTING, AND OVERSIGHT.
(a) Benchmark Evaluations.--
(1) In general.--The Secretary shall establish a process
under which the Secretary shall conduct periodic benchmark
evaluations of each recipient to ensure that the recipient
successfully carries out the programs and activities described
in the RECOMPETE plan of the recipient.
(2) Timing.--The Secretary shall conduct a benchmark
evaluation of a recipient under this subsection--
(A) for a recipient of a RECOMPETE grant provided
during the initial application period under section
4(a)(2)(B)(i), by not later than 3 years after the date
of the initial award of the RECOMPETE grant; and
(B) not less frequently than once every 2 years
thereafter during the term of the RECOMPETE grant
provided to the recipient.
(3) Criteria.--In conducting a benchmark evaluation of a
recipient under this subsection, the Secretary shall determine
whether the recipient has--
(A) adhered to the timelines and requirements of
the programs and activities identified in the RECOMPETE
plan of the recipient;
(B) made sufficient progress toward achieving the
benchmarks and objectives described in that RECOMPETE
plan;
(C) increased the overall employment rate, the
prime-age employment rate, median household income, and
per capita income in the applicable area; and
(D) achieved compliance with such other criteria as
the Secretary determines to be relevant.
(b) Modification of Plans.--
(1) Requirement for recipients.--A recipient shall modify
the RECOMPETE plan of the recipient, or any program or activity
conducted under that RECOMPETE plan, if the Secretary--
(A) determines that--
(i) such a program or activity is
ineffective or underperforming; or
(ii) with respect to the RECOMPETE plan,
program, or activity--
(I) an applicable performance
metric or criterion has not been met;
or
(II) funds have been misused; and
(B) directs the recipient to modify the RECOMPETE
plan, program, or activity.
(2) Authority of secretary.--
(A) Adjustments and increases in funding.--The
Secretary may increase the amount of the RECOMPETE
grant provided to the recipient as the Secretary
determines to be appropriate, taking into consideration
any modifications made to the RECOMPETE plan under
paragraph (1), in an amount equal to not more than the
maximum amount available on the date of approval of the
RECOMPETE grant application for the applicable area and
subject to the availability of funds, if the Secretary
determines that--
(i) events or other factors beyond the
control of the recipient significantly--
(I) altered applicable project
circumstances; or
(II) prevented the recipient from
meeting the objectives and benchmarks
of the RECOMPETE plan; or
(ii) a labor market, economic, business, or
technology shift, or any other major factor,
warrants such a modification and increase in
funding.
(B) Withholding and terminating funding.--The
Secretary may temporarily withhold or terminate any
amount scheduled to be provided under a RECOMPETE grant
if the Secretary determines that--
(i) after a reasonable effort, an agreement
cannot be reached with respect to a
modification to a RECOMPETE plan recommended or
required by the Secretary under this
subsection; or
(ii)(I) a gross, intentional misuse of
RECOMPETE grant funds (including any activity
subject to a penalty under section 605 of the
Public Works and Economic Development Act of
1965 (42 U.S.C. 3215)) has occurred; and
(II) the individual or entity responsible
for the misuse is not removed from all programs
and activities carried out under the RECOMPETE
plan.
(c) Recipient Reporting Requirements.--Each recipient shall be
subject to--
(1) the grant reporting requirements under part 200 of
title 2, Code of Federal Regulations (or successor
regulations); and
(2) such additional, clear, annual reporting requirements
as the Secretary may establish to gather any information
necessary to conduct the benchmark and final evaluations under
this section.
(d) Final Evaluation.--
(1) In general.--Not later than 1 year after the final
disbursement of a RECOMPETE grant is provided to each
recipient, the Secretary, in cooperation with the recipient and
each applicable subrecipient, shall conduct a final evaluation
of the success of the programs and activities carried out under
the RECOMPETE plan of the recipient.
(2) Criteria.--The Secretary shall establish criteria for
use in conducting final evaluations under this subsection--
(A) in addition to the criteria established under
subsection (a)(3); and
(B) taking into consideration the goal of reducing
the prime-age employment gap of each applicable area by
50 percent.
(3) Requirements for recipients.--Each recipient and
subrecipient shall--
(A) cooperate with the Secretary in conducting a
final evaluation under this subsection; and
(B) provide to the Secretary any information
necessary for that evaluation.
(e) Report to Congress.--The Secretary shall submit to Congress
comprehensive and detailed annual reports describing the implementation
of this Act, including, with respect to the period covered by the
report--
(1)(A) a summary assessment of the overall progress of the
RECOMPETE grant program; and
(B) as data become available, an analysis of the
effectiveness of that program;
(2) labor market and economic metrics to describe the
impact of the RECOMPETE grant program, including any progress
made toward--
(A) decreasing prime-age employment gaps; or
(B) increasing local per capita income;
(3) detailed demographic analyses of--
(A) the populations served by recipients; and
(B) relevant labor market statistics;
(4) a summary of the benchmark evaluations conducted under
subsection (a), as available;
(5) an identification of, and reasons for rejecting or
deferring, as applicable, each application submitted under
section 4(a)(2), including the applicable annual RECOMPETE
grant amount limitation established by the Secretary under
subparagraph (C)(i)(II) of that section, if any; and
(6) such other details as the Secretary determines to be
appropriate.
(f) Applicability of PWEDA.--
(1) In general.--The following sections of the Public Works
and Economic Development Act of 1965 shall apply to this Act
(including the RECOMPETE grant program):
(A) Section 211 (42 U.S.C. 3151).
(B) Section 503 (42 U.S.C. 3193).
(C) Section 504 (42 U.S.C. 3194).
(D) Section 602 (42 U.S.C. 3212).
(E) Section 604 (42 U.S.C. 3214).
(F) Section 605 (42 U.S.C. 3215).
(G) Section 608 (42 U.S.C. 3218).
(H) Section 610 (42 U.S.C. 3220).
(2) Authorities and duties of secretary.--The Secretary
shall have the authorities and duties provided by the sections
of the Public Works and Economic Development Act of 1965 (42
U.S.C. 3121 et seq.) referred to in paragraph (1) in
administering and enforcing this Act (including the RECOMPETE
grant program).
SEC. 6. FUNDING.
(a) Authorization of Appropriations.--There is authorized to be
appropriated to the Secretary to carry out this Act $175,000,000,000
for fiscal year 2022, to remain available until expended.
(b) Allocation.--
(1) In general.--Subject to paragraph (2), of the amounts
made available under subsection (a), the Secretary shall
allocate--
(A) not less than 70 percent to recipients acting
on behalf of local labor markets or partial local labor
markets;
(B) not more than 20 percent to recipients acting
on behalf of local communities; and
(C) not less than 10 percent to eligible Tribal
governments.
(2) Treatment of certain amounts.--The amounts allocated
pursuant to paragraphs (5) and (6)(B) of subsection (c) shall
not be taken into consideration for purposes of calculations
under paragraph (1).
(3) Administrative costs and personnel.--
(A) In general.--Of any amounts made available to
carry out this Act, the Secretary shall transfer not
less than 1 percent to the Salary and Expenses Account
of the Secretary for the costs of administration and
oversight of this Act.
(B) Personnel.--The Secretary may--
(i) appoint and fix the compensation of
such temporary personnel as may be necessary to
carry out this Act; and
(ii) effective beginning on the date on
which an individual appointed under clause (i)
has served continuously in that appointment for
2 years, appoint the individual to a position
in the Economic Development Administration in
the same manner in which competitive service
employees with competitive status are
considered for transfer, reassignment, or
promotion to such a position, at which time the
individual shall become a career-conditional
employee, unless the individual has completed
the service requirements for career tenure.
(c) Grant Formulas.--
(1) In general.--Subject to subsection (e), based on the
information relating to projected costs contained in applicable
RECOMPETE plans under subparagraph (C) of section 4(b)(2), and
the justifications described in subparagraph (D) of that
section, the amount of a RECOMPETE grant provided to a
recipient shall be determined in accordance with this
subsection.
(2) Local labor markets.--An eligible local labor market
may receive not more than the amount equal to the product
obtained by multiplying--
(A) the prime-age employment gap of the local labor
market;
(B) the prime-age population of the local labor
market; and
(C) $70,585.
(3) Local communities.--Subject to paragraph (6), an
eligible local community may receive not more than the amount
equal to the product obtained by multiplying--
(A) the prime-age employment gap of the local
community;
(B) the prime-age population of the local
community; and
(C) $53,600.
(4) Partial local labor markets.--An eligible partial local
labor market may receive not more than the amount equal to the
product obtained by multiplying--
(A) the population of the partial local labor
market;
(B) the lesser of--
(i) the prime-age employment gap of the
local labor market within which the partial
local labor market is located; and
(ii) the prime-age employment gap of the
partial local labor market; and
(C) $70,585.
(5) Tribal governments.--
(A) In general.--An eligible Tribal government may
receive not more than the amount equal to the product
obtained by multiplying, subject to subparagraph (B)--
(i) the prime-age employment gap of the
Tribal government;
(ii) the prime-age population of the Tribal
government; and
(iii) $70,585.
(B) Calculation of population.--
(i) In general.--Subject to clause (ii),
for purposes of subparagraph (A), the
population of a Tribal government shall be
equal to the sum obtained by adding--
(I) the product obtained by
multiplying--
(aa) the total number of
individuals residing on the
Tribal land of the Tribal
government; and
(bb) 0.65; and
(II) the product obtained by
multiplying--
(aa) the total number of
individuals included on the
membership roll of the Tribal
government; and
(bb) 0.35.
(ii) Use of data.--Each calculation under
clause (i) shall be determined based on data
provided by the applicable Tribal government to
the Department of the Treasury under the
Coronavirus State and Local Fiscal Recovery
Fund programs under title VI of the Social
Security Act (42 U.S.C. 801 et seq.) (as
amended by subtitle M of title IX of the
American Rescue Plan Act of 2021 (Public Law
117-2; 135 Stat. 4)).
(6) Local communities with cooperation agreements.--If an
eligible local community elects to enter into a cooperation
agreement under section 3(b)(2)(A) with 1 or more local
communities that are not eligible--
(A) each eligible local community that is a party
to the cooperation agreement may receive the maximum
amount available to the eligible local community, as
determined under paragraph (3); and
(B) the Secretary may award to the lead entity an
additional amount equal to not more than 10 percent of
the total amount provided under subparagraph (A), for
distribution by the lead entity to any local community
or other applicant that is a party to the cooperation
agreement, regardless of whether the local community or
other applicant is eligible, for use in accordance with
the applicable RECOMPETE plan.
(d) Obligation and Disbursement of Funds.--
(1) In general.--On approval by the Secretary of an
application under section 4(a)(2)(E), the Secretary shall--
(A) obligate the entire amount of the RECOMPETE
grant for the applicable recipient; and
(B) disburse that amount to the recipient annually
for each of the 10 fiscal years beginning after the
date of obligation, in accordance with this subsection.
(2) Proposals.--To receive an annual disbursement under
paragraph (1), a recipient shall submit to the Secretary a
proposal describing the intended use by the recipient of the
disbursement during the applicable fiscal year (including the
programs and activities proposed to be carried out and any
subcontractor or vendor proposed to be used for those
purposes), in accordance with the RECOMPETE plan of the
recipient.
(3) Provision of funding.--On approval by the Secretary of
a proposal submitted by a recipient under paragraph (2), the
Secretary shall disburse to the recipient the amount of the
RECOMPETE grant due to the recipient for the fiscal year, for
use in accordance with--
(A) the proposal; and
(B) the RECOMPETE plan of the recipient.
(e) Cost Sharing.--
(1) Federal share.--
(A) In general.--The Federal share of the cost of
each program and activity carried out using a RECOMPETE
grant shall be the cost share described in subparagraph
(B) for the applicable recipient, subject to
subparagraph (C) and paragraphs (2) through (4).
(B) Descriptions of cost shares.--
(i) Local labor markets.--For an eligible
local labor market, the cost share referred to
in subparagraph (A) shall be--
(I) 50 percent for an eligible
local labor market with a prime-age
employment gap equal to--
(aa) not less than 2.5
percent; but
(bb) less than 3 percent;
and
(II) an additional 6.25 percent for
each prime-age employment gap
percentage point of 3 percent or more,
as determined in accordance with the
following table:
------------------------------------------------------------------------
Federal
Local labor market prime-age employment gap share
------------------------------------------------------------------------
3 percent to less than 4 percent........................... 56.25
percent
4 percent to less than 5 percent........................... 62.5
percent
5 percent to less than 6 percent........................... 68.75
percent
6 percent to less than 7 percent........................... 75 percent
7 percent to less than 8 percent........................... 81.25
percent
8 percent to less than 9 percent........................... 87.5
percent
9 percent to less than 10 percent.......................... 93.75
percent
10 percent or greater...................................... 100
percent.
------------------------------------------------------------------------
(ii) Local communities.--For an eligible
local community, the cost share referred to in
subparagraph (A) shall be--
(I) 68.75 percent for an eligible
local community with a prime-age
employment gap equal to--
(aa) not less than 5
percent; but
(bb) less than 6 percent;
and
(II) an additional 6.25 percent for
each prime-age employment gap
percentage point of 6 percent or more,
up to 100 percent, as determined in
accordance with the following table:
------------------------------------------------------------------------
Federal
Local community prime-age employment gap share
------------------------------------------------------------------------
6 percent to less than 7 percent........................... 75 percent
7 percent to less than 8 percent........................... 81.25
percent
8 percent to less than 9 percent........................... 87.5
percent
9 percent to less than 10 percent.......................... 93.75
percent
10 percent or greater...................................... 100
percent.
------------------------------------------------------------------------
(iii) Partial local labor markets.--
(I) In general.--Subject to
subclause (II), for an eligible partial
local labor market, the cost share
referred to in subparagraph (A) shall
be--
(aa) 50 percent for an
eligible partial local labor
market with a prime-age
employment gap equal to--
(AA) not less than
2.5 percent; but
(BB) less than 3
percent; and
(bb) an additional 6.25
percent for each prime-age
employment gap percentage point
of 3 percent or more, as
determined in accordance with
the following table:
------------------------------------------------------------------------
Lesser of partial local labor market, and local labor Federal
market, prime-age employment gaps share
------------------------------------------------------------------------
3 percent to less than 4 percent........................... 56.25
percent
4 percent to less than 5 percent........................... 62.5
percent
5 percent to less than 6 percent........................... 68.75
percent
6 percent to less than 7 percent........................... 75 percent
7 percent to less than 8 percent........................... 81.25
percent
8 percent to less than 9 percent........................... 87.5
percent
9 percent to less than 10 percent.......................... 93.75
percent
10 percent or greater...................................... 100
percent.
------------------------------------------------------------------------
(II) Certain local labor markets.--
If an eligible partial local labor
market is located within a local labor
market with a prime-age employment gap
that is less than the prime-age
employment gap of the partial local
labor market, the prime-age employment
gap of the local labor market shall be
used for purposes of calculating the
Federal share of the partial local
labor market under subclause (I).
(iv) Tribal governments.--For an eligible
Tribal government, the cost share referred to
in subparagraph (A) shall be 100 percent.
(C) Available increases.--
(i) Relative need.--The Federal share
determined for a recipient under clause (i),
(ii), or (iii) of subparagraph (B) may be
increased, based on the relative need of each
applicable area and recipient and in accordance
with such regulations as the Secretary may
promulgate, to not more than 80 percent of the
total estimated cost of the programs and
activities included in the RECOMPETE Plan for
the applicable area.
(ii) Severe economic need.--The Federal
share determined for a recipient under
subparagraph (B) may be increased to not more
than 100 percent of the total estimated cost of
the programs and activities included in the
RECOMPETE Plan for the applicable area in any
case in which the Secretary determines that the
recipient or a subrecipient has--
(I) exhausted all other reasonable
financing and funding options; and
(II) demonstrated severe economic
need.
(2) Special rule.--
(A) In general.--Except as provided in subparagraph
(B), the Federal share calculated for an eligible local
community under paragraph (1) shall not be reduced due
to an election by the eligible local community to enter
into a cooperation agreement under section 3(b)(2)(A).
(B) Exception.--If additional amounts are provided
for an eligible local community for distribution to
subrecipients under section 3(b)(2)(A)(iii), the
Federal share calculated under paragraph (1) for the
eligible local community shall be not more than 50
percent, subject to any increase in accordance with
clause (i) or (ii) of paragraph (1)(C), as applicable.
(3) Non-federal contributions.--In calculating the non-
Federal share of the cost of a program or activity carried out
under a RECOMPETE plan, the Secretary may provide a credit
toward the non-Federal share for any non-Federal contribution
to the program or activity--
(A) in cash or in-kind;
(B) fairly evaluated; and
(C) including any contribution of space, equipment,
assumption of debt, or service.
(4) Reassessment.--
(A) In general.--The Federal share and non-Federal
share determined for a recipient under paragraphs (1)
and (2) shall apply during the period beginning on the
date of enactment of this Act and ending on the date on
which the initial benchmark evaluation relating to the
recipient is conducted under section 5(a).
(B) Periodic reevaluation.--As soon as practicable
after the date on which each benchmark evaluation
relating to a recipient is conducted under section
5(a), the Secretary shall--
(i) reevaluate the Federal share and non-
Federal share determined for the recipient
under this subsection; and
(ii) determine whether such a cost share
should be adjusted, subject to subparagraph
(C).
(C) Limitation on federal share.--The Federal share
determined for a recipient under this subsection--
(i) shall not be decreased by more than--
(I) 10 percent, as compared to the
Federal share determined for the
recipient under this subsection for the
preceding period; or
(II) 30 percent, in total; and
(ii) shall be not less than 50 percent.
<all>
Introduced in House
Introduced in House
Referred to the Committee on Transportation and Infrastructure, and in addition to the Committee on Financial Services, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Committee on Transportation and Infrastructure, and in addition to the Committee on Financial Services, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Subcommittee on Economic Development, Public Buildings, and Emergency Management.
Referred to the Subcommittee on Highways and Transit.
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