Washington, D.C. – U.S. Senators Michael Bennet (D-Colo.), Chris Coons (D-Del.), and Amy Klobuchar (D-Minn.) introduced the bipartisan Rebuilding Economies and Creating Opportunities for More People Everywhere to Excel Act (RECOMPETE Act). The RECOMPETE Act would establish a new federal grant program at the Economic Development Agency (EDA) that would empower persistently distressed communities to develop, implement, and carry out 10-year economic development strategies and create jobs.

Distressed communities, as identified by the W. E. Upjohn Institute for Employment Research, are home to almost one-sixth of the U.S. population and have an employment rate of workers ages 25 to 54 significantly below the national average. The Upjohn Institute’s analysis suggests that these communities have largely been left out of the investment, wealth, innovation, and opportunity that has instead been concentrated in a handful of major metro areas in recent decades. 

The RECOMPETE Act would provide eligible local labor markets, local communities, and Tribal governments with flexible 10-year RECOMPETE Grants from the EDA in an effort to meet a variety of local economic development needs. Grants could be used for infrastructure investments, brownfield redevelopment, workforce development, small business assistance, resources to connect residents to opportunities, and other investments to help communities rebuild.

“The COVID-19 crisis has only exacerbated existing economic inequities and opportunity gaps in our country,” said Bennet. “Our RECOMPETE Act will give communities that were already hurting prior to the pandemic – due to industry loss or other factors – access to flexible funds to recover, rebuild, and rectify long-standing inequities. Washington should empower local leaders to make decisions about how to invest in their communities because they know them best.”

“Time and again, economic crises in America have highlighted inequities across our communities. In order to successfully rebuild after the COVID-19 pandemic, we should address the root causes of economic distress in communities,” said Coons. “I’m proud to partner with Representative Kilmer in introducing this ambitious legislation that will target the most distressed communities with job opportunities, business investment, and resources for long-term economic growth. I look forward to working with my colleagues in the House and Senate to move this legislation forward, so that our recovery lifts up every American regardless of where they live.”

The RECOMPETE Act is endorsed by the National League of Cities, the Information Technology and Innovation Foundation, Third Way, the Progressive Policy Institute, and the Federal Issues Committee of the Washington State Association of Counties. 

“Through the Economic Development Agency, the RECOMPETE Act would give municipalities access to flexible grants to meet economic development needs, create good jobs, invest in their workforce, and connect residents to opportunities within persistently distressed communities,” said Clarence Anthony, CEO & Executive Director of the National League of Cities (NLC) in a letter supporting the RECOMPETE Act. “This bill recognizes the overall need to invest in America’s workforce and the differing needs within each community. By maintaining flexibility and local control, city leaders in persistently distressed communities can tailor workforce investments to properly prepare their residents to work in critical industries within the local economy. NLC is committed to realizing equitable solutions, and the RECOMPETE Act prioritizes investment where it is needed most.”

“Over the last 40 years, federal support to help lagging regions and communities rebound has been declining. Moreover, current efforts are often too little, too late to make a real difference for communities. The RECOMPETE Act would address these shortcomings by providing flexible long-term assistance to help persistently distressed labor markets, and the workers there, get back on their feet,” said Robert D. Atkinson, Ph. D., President of the Information Technology and Innovation Foundation. “The United States can no longer afford to write off whole communities. The RECOMPETE Act is an important step in reversing this trend.”

“As America builds back from COVID, we need a bold agenda that focuses on creating jobs in every zip code in the country. And we must make sure those jobs lead to prosperity and a good life,” said Gabe Horwitz, Senior Vice President for the Economic Program at Third Way. “Rep. Derek Kilmer’s leadership on these issues and his latest legislation should be applauded. His new federal block grant program would truly help persistently distressed communities—giving them flexible tools to invest in job growth, workers, and economic opportunity. We hope policymakers join his effort and this innovative idea becomes law.” 

“The Washington State Association of Counties’ Federal Issues Committee agreed unanimously to support this innovative legislation. The block grant approach would empower historically distressed communities to craft targeted solutions to address the unique economic challenges within their communities. This legislation would move past the usual one-sized-fits-all approach that doesn’t reflect the uniqueness of our respective economies,” said Robert Gelder, Kitsap County Commissioner and federal issues committee chair for the Washington State Association of Counties.