On October 7, 2026, the Government Accountability Office found that the Economic Development Administration lacks a comprehensive framework for coordinating with regional commissions. The agency has not systematically validated key performance measure data since 2020.

The Economic Development Administration is statutorily required to coordinate activities related to the preparation and implementation of comprehensive economic development strategies with federal entities carrying out federal programs, including regional commissions. Despite this requirement, the agency's coordination arrangements with regional commissions vary from formal agreements and regular communication to little or no project-level coordination.

The Government Accountability Office analyzed Economic Development Administration and regional commission award data for fiscal years 2016 through 2024. During that period, the Economic Development Administration and five regional commissions awarded more than $12 billion in grants. The five regional commissions that awarded grants alongside the agency are the Appalachian Regional Commission, Delta Regional Authority, Denali Commission, Northern Border Regional Commission, and Southeast Crescent Regional Commission. The Southwest Border Regional Commission awarded its first grants in fiscal year 2025.

The Government Accountability Office interviewed agency officials and a nongeneralizable sample of grantees and local stakeholders about grant effects, performance, and coordination between the Economic Development Administration and the regional commissions. Grantees and local development officials described benefits including improved infrastructure and expanded job and business opportunities. The Government Accountability Office visited projects in Maryland, Vermont, and Louisiana as part of its review.

Why It Matters

Operational gaps exist in how federal economic development funds are coordinated and measured across multiple agencies. With more than $12 billion in grants awarded between fiscal years 2016 and 2024, the lack of a comprehensive coordination framework and systematic data validation affects the ability to determine the specific impact of these investments. The statutory requirement for coordination exists, but the variation in arrangements suggests inconsistent implementation across different regions and commissions.

The difficulty in attributing economic improvements to specific funding sources complicates efforts to evaluate program effectiveness. While grantees report tangible benefits such as improved infrastructure and job opportunities, the absence of standardized performance metrics at agencies like the Denali Commission limits the capacity to track outcomes objectively. This lack of uniform data collection and coordination may hinder future policy decisions regarding the allocation and management of federal economic development resources.

Timeline

On October 7, 2026, the Government Accountability Office stated that changes in economic conditions in regional commission areas were difficult to attribute to Economic Development Administration or regional commission funding. The office found that economic conditions, such as poverty and unemployment rates, generally improved in regional commission areas. The Government Accountability Office found that the Economic Development Administration's coordination arrangements with regional commissions vary from formal agreements and regular communication to little or no project-level coordination. Additionally, the Denali Commission lacks guidance and procedures for collecting standardized, objective, and measurable performance information across its grants.