Senate Committee Looks to Slash EDA Funding in FY11

The Economic Development Administration (EDA) would have $15 million less available for grants next fiscal year in the budget bill approved by the Senate Appropriations Committee last week. For comparison, the relevant House Appropriations subcommittee in June approved a total budget of $317.85 million for EDA — that is $24.85 million more than the FY10 budget and a whopping $37.67 million more than the Senate.

The Senate Appropriations Committee, on the other hand, reduces EDA funding for grants from $255 million in FY10 to only $240 million in FY 11. The Senate report that accompanied the bill expresses the committee's support for investing in regional innovation clusters and incubators, also recognizing "an effective federal economic development program must transcend the conventional conceptions of urban and rural development," at the same time it was reducing the total money available for the grants.

Also taking a hit from the Senate is NIST's Technology Innovation Program, which would not receive any funding for new grants. NIST's Manufacturing Extension Partnership would receive $130 million in both bills.

The full House Appropriations Committee has not acted on CJS yet and it is not clear whether the committee will mark up the bill prior to the August recess.

For more information, see the Senate Appropriation Committee's version of the 2011 Commerce, Justice, and Science Appropriations bill (S. 3639 and the accompanying Committee Report) at: http://thomas.loc.gov/home/approp/app11.html.