42 U.S.C. § 3161 — Eligibility of areas

Page 5864 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 3161 Supply Chain Site Development grant program’’ (referred to in this section as the ‘‘grant pro- gram’’) to carry out site development or expan- sion projects for the purpose of making the site ready for manufacturing projects. (b) Considerations In providing a grant to an eligible recipient under the grant program, the Secretary may consider whether— (1) the proposed improvements to the site will improve economic conditions for rural areas, Tribal communities, or areas that meet 1 or more of the criteria described in section 3161(a) of this title; (2) the project is consistent with regional economic development plans, which may in- clude a comprehensive economic development strategy; (3) the eligible recipient has initiatives to prioritize job training and workforce develop- ment; and (4) the project supports industries deter- mined by the Secretary to be of strategic im- portance to the national or economic security of the United States. (c) Priority In awarding grants to eligible recipients under the grant program, the Secretary shall give pri- ority to eligible recipients that propose to carry out a project that— (1) has State, local, private, or nonprofit funds being contributed to assist with site de- velopment efforts; and (2) if the site development or expansion project is carried out, will result in a dem- onstrated interest in the site by commercial entities or other entities. (d) Use of funds A grant provided under the grant program may be used for the following activities relating to the development or expansion of a site: (1) Investments in site utility readiness, in- cluding— (A) construction of on-site utility infra- structure; (B) construction of last-mile infrastruc- ture, including road infrastructure, water in- frastructure, power infrastructure, broadband infrastructure, and other physical last-mile infrastructure; (C) site grading; and (D) other activities to extend public utili- ties or services to a site, as determined ap- propriate by the Secretary. (2) Investments in site readiness, including— (A) land assembly; (B) environmental reviews; (C) zoning; (D) design; (E) engineering; and (F) permitting. (3) Investments in workforce development and sustainability programs, including job training and retraining programs. (4) Investments to ensure that disadvantaged communities have access to on-site jobs. (e) Prohibition (1) In general Subject to paragraph (2), in awarding grants under the grant program, the Secretary shall not require an eligible recipient to dem- onstrate that a private company or invest- ment has selected the site for development or expansion. (2) Safeguards In awarding grants under the grant program, the Secretary shall include necessary safe- guards to ensure that— (A) the site development is fully completed within a reasonable timeframe; and (B) the eligible recipient has sufficiently demonstrated private sector interest. (Pub. L. 89–136, title II, § 222, as added Pub. L. 118–272, div. B, title II, § 2224, Jan. 4, 2025, 138 Stat. 3189.) SUBCHAPTER III—ELIGIBILITY; COM- PREHENSIVE ECONOMIC DEVELOPMENT STRATEGIES § 3161. Eligibility of areas (a) In general For a project to be eligible for assistance under section 3141 or 3149 of this title, the project shall be located in an area that, on the date of submission of the application, meets 1 or more of the following criteria: (1) Low per capita income The area has a per capita income of 80 per- cent or less of the national average. (2) Unemployment rate above national average The area has an unemployment rate that is, for the most recent 24-month period for which data are available, at least 1 percent greater than the national average unemployment rate. (3) Unemployment, underemployment, or eco- nomic adjustment problems The area is an area that the Secretary deter- mines has experienced or is about to experi- ence a special need arising from actual or threatened severe unemployment, under- employment, or economic adjustment prob- lems resulting from severe short-term or long- term changes in economic conditions. (4) Low median household income The area has a median household income of 80 percent or less of the national average. (5) Workforce participation The area has— (A) a labor force participation rate of 90 percent or less of the national average; or (B) a prime-age employment gap of 5 per- cent or more. (6) Expected economic dislocation and distress from energy industry transitions The area is an area that is expected to expe- rience actual or threatened severe unemploy- ment or economic adjustment problems result- ing from severe short-term or long-term changes in economic conditions from energy industries that are experiencing accelerated contraction. (b) Political boundaries of areas An area that meets 1 or more of the criteria of subsection (a), including a small area of poverty Page 5865 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 3162 or high unemployment within a larger commu- nity in less economic distress, shall be eligible for assistance under section 3141 or 3149 of this title without regard to political or other sub- divisions or boundaries. (c) Documentation (1) In general A determination of eligibility under sub- section (a) shall be supported by the most re- cent Federal data available (including data available from the Bureau of Economic Anal- ysis, the Bureau of Labor Statistics, the Cen- sus Bureau, the Bureau of Indian Affairs, or any other Federal source determined by the Secretary to be appropriate), or, if no recent Federal data is available, by the most recent data available through the government of the State in which the area is located. (2) Acceptance by Secretary The documentation shall be accepted by the Secretary unless the Secretary determines that the documentation is inaccurate. (d) Prior designations Any designation of a redevelopment area made before the effective date of the Economic Devel- opment Administration Reform Act of 1998 shall not be effective after that effective date. (e) Transparency To the extent the Secretary includes neigh- boring counties and communities in an eco- nomic development district in accordance with subsection (a)(3), the Secretary shall submit to Congress, and make publicly available online, a notification describing the justification for such inclusion and detailing the economic indicators of such neighboring counties and communities. (Pub. L. 89–136, title III, § 301, as added Pub. L. 105–393, title I, § 102(a), Nov. 13, 1998, 112 Stat. 3607; amended Pub. L. 108–373, title III, § 301, Oct. 27, 2004, 118 Stat. 1767; Pub. L. 118–272, div. B, title II, § 2225, Jan. 4, 2025, 138 Stat. 3191.) Editorial Notes REFERENCES IN TEXT For the effective date of the Economic Development Administration Reform Act of 1998, referred to in sub- sec. (d), see section 105 of Pub. L. 105–393, set out as an Effective Date note under section 3121 of this title. PRIOR PROVISIONS A prior section 3161, Pub. L. 89–136, title IV, § 401, Aug. 26, 1965, 79 Stat. 560; Pub. L. 89–794, title XI, § 1102, Nov. 8, 1966, 80 Stat. 1477; Pub. L. 91–123, title III, § 304, Nov. 25, 1969, 83 Stat. 219; Pub. L. 92–65, title I, § 106, Aug. 5, 1971, 85 Stat. 167; Pub. L. 93–423, §§ 3(a), 6, Sept. 27, 1974, 88 Stat. 1158, 1161; Pub. L. 94–487, title I, §§ 113, 114, Oct. 12, 1976, 90 Stat. 2334, set forth criteria for determining eligible redevelopment areas, prior to repeal by Pub. L. 105–393, § 102(a). A prior section 301 of Pub. L. 89–136 was classified to section 3151 of this title prior to repeal by Pub. L. 105–393, § 102(a). AMENDMENTS 2025—Subsec. (a)(3) to (6). Pub. L. 118–272, § 2225(1), added pars. (3) to (6) and struck out former par. (3). Prior to amendment, text of par. (3) read as follows: ‘‘The area is an area that the Secretary determines has experienced or is about to experience a special need arising from actual or threatened severe unemploy- ment or economic adjustment problems resulting from severe short-term or long-term changes in economic conditions.’’ Subsec. (e). Pub. L. 118–272, § 2225(2), added subsec. (e). 2004—Subsec. (c)(1). Pub. L. 108–373 inserted ‘‘(includ- ing data available from the Bureau of Economic Anal- ysis, the Bureau of Labor Statistics, the Census Bu- reau, the Bureau of Indian Affairs, or any other Federal source determined by the Secretary to be appropriate)’’ after ‘‘most recent Federal data available’’. Statutory Notes and Related Subsidiaries EFFECTIVE DATE Section effective Feb. 11, 1999, see section 105 of Pub. L. 105–393, set out as a note under section 3121 of this title. § 3162. Comprehensive economic development strategies (a) In general The Secretary may provide assistance under section 3141 or 3149 of this title (except for plan- ning assistance under section 3149 of this title) to an eligible recipient for a project only if the eligible recipient submits to the Secretary, as part of an application for the assistance— (1) an identification of the economic devel- opment problems to be addressed using the as- sistance; (2) an identification of the past, present, and projected future economic development in- vestments in the area receiving the assistance and public and private participants and sources of funding for the investments; and (3)(A) a comprehensive economic develop- ment strategy for addressing the economic problems identified under paragraph (1) in a manner that promotes economic development and opportunity, fosters effective transpor- tation access, maximizes effective develop- ment and use of the workforce consistent with any applicable State or local workforce invest- ment strategy, promotes the use of technology in economic development (including access to high-speed telecommunications), enhances and protects the environment, including to miti- gate and adapt to the economic impacts of ex- treme weather, and balances resources through sound management of development; and (B) a description of how the strategy will solve the problems. (b) Approval of comprehensive economic devel- opment strategy The Secretary shall approve a comprehensive economic development strategy that meets the requirements of subsection (a) to the satisfac- tion of the Secretary. (c) Approval of other plan (1) In general The Secretary may accept as a comprehen- sive economic development strategy a satis- factory plan developed under another federally supported program. (2) Existing strategy To the maximum extent practicable, a plan submitted under this paragraph shall be con- sistent and coordinated with any existing