EDA Takes Small Hit in Budget Compromise
The recent compromise over funding the government for the remainder of fiscal 2011 includes a number of cuts to economic development programs, including a $9 million reduction in spending by the Economic Development Administration (EDA).
EDA will receive $246 million in FY 2011 this year, under the spending deal that included a record $40 billion in cuts to federal spending compared to the previous year. The funding level matches the president’s 2011 request for EDA, but after the House passed its spending proposal in February, communities that rely on the agency were hoping it would avoid any reduction.
The House’s initial budget called for cutting EDA spending by $80 million, before the chamber adopted an amendment that would have restored the agency’s funding to the 2010 level.
The Housing and Urban Development Department’s Community Development Block Grant program will experience a 16 percent funding cut in FY 2011, falling $647 million to $3.3 billion.
Other economic development programs receiving less funding in the current year include the Agriculture Department’s Rural Development program and the Labor Department’s Dislocated Worker Assistance program, reports the Times-Journal.