EDA Eliminates Supplementary Grant Regulation

Regs.gov: Economic Development Administration

Published July 2nd, 2025

Detected March 14th, 2026

Summary

The Economic Development Administration (EDA) is eliminating its regulation on supplementary investment assistance, citing confusion and redundancy with its enabling statute. This final rule removes 13 CFR 301.6, which provided guidance on supplementing grants from other federal programs. The elimination is effective July 2, 2025.

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What changed

The Economic Development Administration (EDA) has issued a final rule to eliminate the supplementary investment assistance regulation found at 13 CFR 301.6. The agency cited that this regulation is confusing and does not offer guidance beyond what is already established in Section 205 of the Public Works and Economic Development Act of 1965 (PWEDA). The EDA determined the regulation to be superfluous and burdensome, opting to remove it to prevent continued public confusion.

This rule is effective July 2, 2025. As the rule removes an existing regulation without altering the rights or responsibilities of any party, and does not impose new obligations or penalties, no specific compliance actions are required for regulated entities beyond noting the removal of this regulation. The EDA also waived the standard notice and comment period, as well as the 30-day delay in effectiveness, due to the deregulatory and non-substantive nature of this change.

Source document (simplified)

Content

ACTION:

Final rule.

SUMMARY:

Through this final rule, the Economic Development Administration (EDA), U.S. Department of Commerce, is eliminating the regulations
on supplementary investment assistance. The regulation is confusing and does not provide any guidance in addition to what
is already in section 205 of EDA's enabling statute, the Public Works, and Economic Development Act of 1965.

DATES:

This rule is effective July 2, 2025.

FOR FURTHER INFORMATION CONTACT:

Jeffrey Roberson, Chief Counsel, Office of the Chief Counsel, Economic Development Administration, U.S. Department of Commerce,
1401 Constitution Avenue NW, Suite 72023, Washington, DC 20230; telephone: (202) 482-1315; email: jroberson@eda.gov.

SUPPLEMENTARY INFORMATION:

Background

EDA's enabling statute is the Public Works and Economic Development Act of 1965 (PWEDA) and EDA's regulations are codified
at 13 CFR Chapter III. 13 CFR 301.6 is intended to implement Section 205 of PWEDA which provides that, pursuant to a request
by an eligible applicant, EDA may supplement a grant awarded by another “designated federal grant program,” provided the eligible
applicant qualifies for financial assistance under such program but is unable to supply the required matching share because
of its economic situation. However, this regulation has proved to be confusing to the public because it does not provide guidance
beyond what is in the law itself. Therefore, EDA is eliminating the superfluous regulation located at 13 CFR 301.6 as it is
unnecessary and burdensome to have the public try to ascertain the intent of the regulation, when in fact there is none.

Classification

Administrative Procedure Act and Regulatory Flexibility Act

Pursuant to 5 U.S.C. 553(b)(B), there is good cause to waive prior notice and an opportunity for public comment on this action,
as notice and comment are unnecessary. This rule removes a superfluous regulation that does not provide any additional guidance
beyond what is already in section 205 of PWEDA. Therefore, public comment would serve no purpose and is unnecessary. There
is also good cause under 5 U.S.C. 553(d)(3) to waive the 30-day delay in effectiveness as this rule does not alter the rights
or responsibilities of any party, and delaying implementation of this rule and keeping the superfluous regulation may continue
to cause confusion.

Because prior notice and an opportunity for public comment are not required pursuant to 5 U.S.C. 553, or any other law, the
analytical requirements of the Regulatory Flexibility Act (5 U.S.C. 601 et seq.) are inapplicable. Therefore, a regulatory flexibility analysis has not been prepared.

Executive Orders No. 12866, 13563, and 14192

This final rule was drafted in accordance with Executive Orders 12866, 13563, and 14192. OMB has determined that this rule
is not significant for purposes of Executive Orders 12866 and 13563. This final rule is deregulatory pursuant to Executive
Order 14192.

Congressional Review Act

This final rule is not major under the Congressional Review Act (5 U.S.C. 801 et seq.).

Executive Order No. 13132

This final rule does not contain policies that have federalism implications.

Paperwork Reduction Act

This final rule contains no information collection requirements under the Paperwork Reduction Act of 1995.

List of Subjects in 13 CFR Part 301.6

Community development, Grant programs-housing and community development.

For the reasons discussed above, EDA amends 13 CFR part 301 as follows:

PART 301—ELIGIBILITY, INVESTMENT RATE AND APPLICATION REQUIREMENTS

Regulatory Text 1. The authority citation for part 301 continues to read as follows:

Authority:

42 U.S.C. 3121; 42 U.S.C. 3141-3147; 42 U.S.C. 3149; 42 U.S.C. 3161; 42 U.S.C. 3175; 42 U.S.C. 3192; 42 U.S.C. 3194; 42 U.S.C.
3211; 42 U.S.C. 3233; Department of Commerce Delegation Order 10-4.

§ 301.6 [Removed and Reserved] Regulatory Text 2. Remove and reserve § 301.6.

Dated: June 27, 2025. Benjamin Page, Deputy Assistant Secretary and Chief Operating Officer. [FR Doc. 2025-12312 Filed 7-1-25; 8:45 am] BILLING CODE 3510-24-P