March 28, 2022

Biden Requests Federal Funding for Kilmer’s Bipartisan Plan to Spur Economic Growth & Create Jobs

Pilot Program of Kilmer’s RECOMPETE Act Would Establish New Grant Program to Invest in Communities That Have Faced Long-Term Economic Challenges

Washington, DC – Today, President Joe Biden requested federal funding in his Fiscal Year 2023 budget for a pilot program of the Rebuilding Economies and Creating Opportunities for More People Everywhere to Excel Act (RECOMPETE Act) – bipartisan legislation that was introduced last year by U.S. Representative Derek Kilmer (WA-06). The president’s budget request is the first step in process of funding the federal government for the next fiscal year.

The RECOMPETE Act, which Rep. Kilmer introduced with Rep. Jaime Herrera Beutler (WA-03), U.S. Senator Chris Coons (D-DE), and over 50 bipartisan Members of Congress, would establish a new federal grant program at the Economic Development Administration (EDA) that would empower persistently distressed communities to develop, implement, and carry out 10-year economic development strategies and create jobs. The President requested $50 million in initial funding to establish this critical economic development program. A pilot version of the RECOMPETE Act passed the House in November 2021 as part of the Build Back Better Act and in January 2022 as part of the America COMPETES Act of 2022.

Distressed communities, as identified by the W. E. Upjohn Institute for Employment Research, are home to over one-sixth of the U.S. population where workers ages 25 to 54 experience significantly higher unemployment rates than 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 Pilot Program will provide distressed local labor markets, local communities, and Tribal governments with flexible 10-year Recompete Grants to invest in a variety of local economic development needs and increase employment rates. 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.

“I grew up in Port Angeles and was in high school right around the time the timber industry took it on the chin. I saw a lot of my friends’ parents lose their jobs. It had a big impact on me - and I’ve spent most of my adult life trying to figure out how to make sure we are doing a better job of protecting workers and communities so that no one gets left behind in our society and economy,” said Rep. Kilmer. “That’s why I’m proud that the President has put forward a new request to provide federal funding of a pilot version of the bipartisan RECOMPETE Act. The RECOMPETE Act is a bold proposal to provide flexible, long-term grant assistance to create jobs and lay the foundation for long-term economic growth and opportunity. It’s about ensuring people have economic opportunity – regardless of what zip code they live in.”

“I am thrilled to see NDC Chair Emeritus Kilmer’s Recompete pilot program included in the President's budget proposal. This funding will create good opportunities for all Americans and unlock untapped potential by empowering persistently distressed communities to invest in their long-term economic success,” said NDC Chair Suzan DelBene (WA-01). “New Dems have long championed the Recompete program and look forward to seeing the widespread economic growth this creates and how this legislation allows communities to compete in the 21st century economy."

The RECOMPETE Act is endorsed by the National League of Cities, the National Association of Counties, the New Democrat Coalition, the Information Technology and Innovation Foundation, the Progressive Policy Institute, Third Way, and the Economic Innovation Group

“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.”

“Providing local communities and governments with the flexible economic tools they need to succeed is a key component to building back better after this pandemic. Our leaders who are working on-the-ground in economically distressed communities know best when it comes to supporting job growth and investing in their local economy, which is why the RECOMPETE Act is such an important bill. The Progressive Policy Institute applauds Representatives Kilmer and Herrera and Senator Coons on this commonsense, bipartisan legislation, and encourages its swift passage through Congress. Our communities need this funding now,” said Will Marshall, President of the Progressive Policy Institute.

“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.

The legislation introduced by Rep. Kilmer is co-sponsored by 52 bipartisan members of the U.S. House of Representatives, including: Jaime Herrera Beutler, Suzan K. DelBene, Doug LaMalfa, Colin Allred, Steve Palazzo, Pete Aguilar, Ami Bera, Donald S. Beyer Jr., Earl Blumenauer, Lisa Blunt Rochester, Cheri Bustos, Salud Carbajal, David N. Cicilline, Jim Cooper, Angie Craig, Jason Crow, Sharice Davids, Val Demings, Ted Deutch, Debbie Dingell, Bill Foster, Josh Harder, Jim Himes, Steven Horsford, Chrissy Houlahan, Hakeem Jeffries, Ro Khanna, Dan Kildee, Ron Kind, John B. Larson, Elaine G. Luria, Kathy Manning, Lucy McBath, Joe Morelle, Stephanie Murphy, Donald Norcross, Jimmy Panetta, Ed Perlmutter, Scott Peters, Dean Phillips, Mike Quigley Kathleen Rice, Tim Ryan, Adam Schiff, Kim Schrier, M.D., Terri A. Sewell, Mikie Sherrill, Darren Soto, Marilyn Strickland, David Trone, Filemon Vela, and John Yarmuth.

The companion legislation introduced by Senator Coons is co-sponsored U.S. Senators Michael Bennet, Amy Klobuchar, and Jacky Rosen.