Despite the widespread overlap, reported collaboration remained limited during the most recent fiscal period. Five of the 29 reviewed non-Economic Development Administration programs reported collaborating with the Economic Development Administration in fiscal year 2024. The Economic Development Administration does not verify the accuracy of applicant-reported funding from other federal agencies before awarding funding.

Statutory requirements mandate coordination among these entities. The Public Works and Economic Development Act of 1965, as amended, requires the Economic Development Administration to coordinate with other federal agencies carrying out economic development activities. Economic Development Administration officials stated that their current approaches meet the coordination requirement of the Public Works and Economic Development Act of 1965.

Why It Matters

The findings indicate potential inefficiencies in a sector involving approximately $60 billion in annual obligations. With 140 programs spread across 13 agencies, the lack of verified data on overlapping funding sources creates risks for duplicate awards. The U.S. Economic Development Administration is a singular United States federal government agency focused exclusively on economic development, yet it operates within a broader network where most other programs share similar goals or beneficiaries.

Legislative changes have recently updated the framework for these operations. The Economic Development Reauthorization Act of 2024 became law on January 4, 2025. This legal update occurs alongside ongoing assessments by the Government Accountability Office, which is a US federal government agency responsible for auditing and evaluating federal programs.

Timeline

In fiscal year 2024, five of the 29 reviewed non-Economic Development Administration programs reported collaborating with the Economic Development Administration. During that same period, 131 of the identified federal economic development programs reported total obligations of about $60 billion.

On January 4, 2025, the Economic Development Reauthorization Act of 2024 became law. This legislative action followed the fiscal year in which the collaboration and obligation data were recorded.

What's New

Additional context clarifies the institutional roles involved in this report. The Government Accountability Office is a US federal government agency. The U.S. Economic Development Administration is a singular United States federal government agency focused exclusively on economic development.

The legal landscape for these programs shifted recently when the Economic Development Reauthorization Act of 2024 became law on January 4, 2025. This development postdates the fiscal year 2024 data analyzed in the review.

How Sources Differ

Sources also differ on the specifics of the review process. The Government Accountability Office report Economic Development Administration: Additional Collaboration with Other Agencies Could Reduce Risks Associated with Overlap details that the Government Accountability Office reviewed four selected Economic Development Administration programs and 29 selected economic development programs administered by other federal agencies to assess overlap. Federalregister.gov provides no such detail, stating only that the Government Accountability Office is a US federal government agency.