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Law360 (July 23, 2021, 5:29 PM EDT ) The U.S. Department of Commerce has launched a new $3 billion spending program funded by President Joe Biden's American Rescue Plan Act, with plans to focus on regions and communities hit hard by the COVID-19 pandemic and other economic challenges.
Commerce Secretary Gina Raimondo announced the Investing in America's Communities spending program Thursday, saying the department's Economic Development Administration will implement what is to be the largest investment initiative by Commerce in decades. Communities around the country will be able to apply for funding immediately, according to the secretary.
"President Biden's American Rescue Plan delivered direct relief to the American people and was the first step to energizing the American economy following the devastating impacts of the coronavirus pandemic," Raimondo said in a statement. "Now its medium-term investments will allow communities around the country not only to rebuild but reimagine their economy for the future."
The $3 billion community-led spending program will emphasize an "equitable" distribution of funds to communities "that have been denied full access to economic prosperity" and that have suffered the worst impact due to the coronavirus pandemic, Raimondo said.
Specifically, the Investing in America's Communities program targets six areas identified as economic trouble spots in need of funding opportunities. A total of $1 billion will be directed to regional aid, $500 million will go toward helping workers develop in-demand skills that lead to "good jobs," another $500 million will fund "economic adjustments" for areas looking to put people back to work, $100 million will target indigenous communities, $750 million will provide travel and tourism grants, and another $90 million in grant money will fund statewide planning and research.
As part of the six programs, Commerce and EDA say they will work with Biden's Interagency Working Group on Coal and Power Plant Communities as they spend $300 million in American Rescue Plan funds on regions that have depended economically on coal mining. The $300 million will help those regions recover from the pandemic and create new jobs, partly via the development of new industries, according to Commerce.
The department's Economic Development Administration agency announced a framework of investment priorities on April 14, which lays out the EDA's grants programs and includes investments to be made under the American Rescue Plan.
"We will work with local communities across the country on innovative new approaches to ensure that we can increase American competitiveness by strengthening our workforce, businesses, and communities and build back better in regions across the country," Raimondo said.
Raimondo's phrase "build back better" references a sweeping three-part agenda under the Biden administration to provide economic aid around the country. He signed the American Rescue Plan into law on March 11, and the American Jobs Plan and American Families Plan are making their way through Congress. The three plans emphasize equitable funding for Black and Latino Americans, Native Americans, immigrants and women.
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