Economic Development Administration: Better Coordination with Regional Commissions and Performance Management Needed

From 2016-24, the Economic Development Administration and 5 regional commissions awarded more than $12 billion in grants to support economic development projects in distressed and underserved communities. We found that economic conditions like unemployment rates in regional commission areas have generally improved, but it's unclear if the improvements were due to the grants.

While the Economic Development Administration collects data from grantees, it doesn't review the data to verify progress toward goals. Doing so may increase the reliability of reported project results.

Our recommendations address this and other issues.

A sign for a business park in rural Maryland supported by an Economic Development Administration-funded wastewater treatment facility

A business park sign made of brick and wood with 10 placards for business names in a snowy field.

The Economic Development Administration (EDA) and five regional commissions—the Appalachian Regional Commission, Delta Regional Authority, Denali Commission, Northern Border Regional Commission, and Southeast Crescent Regional Commission—awarded more than $12 billion in grants during fiscal years 2016 through 2024 (Southwest Border Regional Commission awarded its first grants in fiscal year 2025). GAO found that economic conditions, such as poverty and unemployment rates, generally improved in regional commission areas, although these changes were difficult to attribute to EDA or regional commission funding. Grantees and local development officials GAO selected for interviews described benefits, including improved infrastructure and expanded job and business opportunities.

Total Dollar Amount of EDA and Regional Commission Grants Awarded and Appropriations, Fiscal Years 2016–2024