[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4651 Introduced in House (IH)]

<DOC>






117th CONGRESS
  1st Session
                                H. R. 4651

  To require the Secretary of Commerce, acting through the Assistant 
  Secretary for Economic Development, to establish a RECOMPETE grant 
   program to provide flexible, 10-year block grants for purposes of 
  creating quality jobs, providing resources to help local residents 
access opportunities and attain and retain employment, increasing local 
   per capita income and employment rates, and supporting long-term, 
 sustained economic growth and opportunity in persistently distressed 
                     areas, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             July 22, 2021

Mr. Kilmer (for himself, Ms. Herrera Beutler, Ms. DelBene, Mr. LaMalfa, 
  Mr. Aguilar, Mr. Palazzo, Mr. Bera, Mr. Beyer, Mr. Blumenauer, Ms. 
Blunt Rochester, Mrs. Bustos, Mr. Carbajal, Mr. Cicilline, Mr. Cooper, 
 Ms. Craig, Mr. Crow, Ms. Davids of Kansas, Mrs. Demings, Mr. Deutch, 
  Mrs. Dingell, Mr. Foster, Mr. Harder of California, Mr. Himes, Mr. 
Horsford, Ms. Houlahan, Mr. Jeffries, Mr. Khanna, Mr. Kildee, Mr. Kind, 
 Mr. Larson of Connecticut, Mrs. Luria, Ms. Manning, Mrs. McBath, Mr. 
    Morelle, Mrs. Murphy of Florida, Mr. Norcross, Mr. Panetta, Mr. 
Perlmutter, Mr. Peters, Mr. Phillips, Miss Rice of New York, Mr. Ryan, 
   Mr. Schiff, Ms. Schrier, Ms. Sewell, Ms. Sherrill, Mr. Soto, Ms. 
   Strickland, Mr. Trone, Mr. Vela, and Mr. Yarmuth) introduced the 
 following bill; which was referred to the Committee on Transportation 
   and Infrastructure, and in addition to the Committee on Financial 
Services, for a period to be subsequently determined by the Speaker, in 
   each case for consideration of such provisions as fall within the 
                jurisdiction of the committee concerned

_______________________________________________________________________

                                 A BILL


 
  To require the Secretary of Commerce, acting through the Assistant 
  Secretary for Economic Development, to establish a RECOMPETE grant 
   program to provide flexible, 10-year block grants for purposes of 
  creating quality jobs, providing resources to help local residents 
access opportunities and attain and retain employment, increasing local 
   per capita income and employment rates, and supporting long-term, 
 sustained economic growth and opportunity in persistently distressed 
                     areas, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Rebuilding Economies and Creating 
Opportunities for More People Everywhere To Excel Act'' or the 
``RECOMPETE Act''.

SEC. 2. DEFINITIONS.

    In this Act:
            (1) Applicable area.--The term ``applicable area''--
                    (A) with respect to a local labor market, local 
                community, or partial local labor market--
                            (i) means--
                                    (I) the geographical area of the 
                                local labor market, local community, or 
                                partial local labor market; and
                                    (II) each corresponding unit of 
                                local government in the geographical 
                                area described in subclause (I); and
                            (ii) does not include any Tribal land in 
                        the geographical area described in clause 
                        (i)(I), unless the Tribal government with 
                        jurisdiction over the Tribal land elects to 
                        participate in an applicable cooperation 
                        agreement under section 3(b)(2)(B); and
                    (B) with respect to a Tribal government, means the 
                Tribal land subject to the jurisdiction of the Tribal 
                government.
            (2) Applicant.--The term ``applicant'' means--
                    (A) a unit of general local government, such as a 
                county or a county equivalent (including a borough in 
                the State of Alaska and a parish in the State of 
                Louisiana), city, town, village, or other general-
                purpose political subdivision of a State;
                    (B) the District of Columbia;
                    (C) a territory or possession of the United States;
                    (D) a Tribal government;
                    (E) a State-authorized political subdivision or 
                other entity, such as a special-purpose entity engaged 
                in economic development activities;
                    (F) a public or private nonprofit organization, 
                acting in cooperation with the officials of a political 
                subdivision or entity described in subparagraph (E);
                    (G) an economic development district (as defined in 
                section 3 of the Public Works and Economic Development 
                Act of 1965 (42 U.S.C. 3122)); and
                    (H) a consortium of units of general local 
                government within an applicable area.
            (3) Cooperation agreement.--The term ``cooperation 
        agreement'' means an agreement entered into under section 3(b) 
        relating to the implementation of a RECOMPETE plan for an 
        applicable area.
            (4) Eligible.--The term ``eligible'' means--
                    (A) with respect to a local labor market, local 
                community, partial local labor market, or Tribal 
                government, that the local labor market, local 
                community, partial local labor market, or Tribal 
                government meets the applicable distress eligibility 
                criteria described in section 3(a); and
                    (B) with respect to an applicant or lead entity, 
                that the applicant or lead entity has submitted an 
                application for a RECOMPETE grant under section 4(a)(2) 
                relating to a local labor market, local community, 
                partial local labor market, or Tribal government 
                described in subparagraph (A).
            (5) Lead entity.--The term ``lead entity'' means an 
        applicant designated to act as a lead entity pursuant to an 
        applicable cooperation agreement.
            (6) Local community.--
                    (A) In general.--The term ``local community'' means 
                the area served by an applicant described in paragraph 
                (2)(A) that--
                            (i)(I) is located within a local labor 
                        market or partial local labor market that is 
                        not eligible; or
                            (II) is not coexistent with a local labor 
                        market; and
                            (ii) meets such additional criteria, 
                        including a minimum population requirement, as 
                        the Secretary may establish.
                    (B) Inclusions.--The term ``local community'' 
                includes a consortium of 2 or more applicants described 
                in subparagraph (A)--
                            (i) all of which are located within the 
                        same local labor market; or
                            (ii) each of which is directly adjacent to 
                        an area described in subparagraph (A).
            (7) Local labor market.--The term ``local labor market'' 
        means any of the following areas that contains 1 or more 
        applicants described in subparagraphs (A) through (C) of 
        paragraph (2):
                    (A) A commuting zone, as defined by the Economic 
                Research Service of the Department of Agriculture.
                    (B) Subject to subparagraph (C), if 1 or more 
                discrete metropolitan statistical areas or micropolitan 
                statistical areas, as defined by the Office of 
                Management and Budget (collectively referred to as 
                ``core-based statistical areas''), exist within a 
                commuting zone described in subparagraph (A), each such 
                core-based statistical area.
                    (C) If the remaining area of a commuting zone 
                described in subparagraph (A), excluding all core-based 
                statistical areas within the commuting zone described 
                in subparagraph (B), contains 1 or fewer counties and 
                has a population of 7,500 or fewer residents, that 
                remaining area combined with an adjacent core-based 
                statistical area within the commuting zone.
            (8) Partial local labor market.--The term ``partial local 
        labor market'' means a geographical area that--
                    (A) is located within, but is not coextensive with, 
                a local labor market; and
                    (B) contains 1 or more applicants described in 
                subparagraphs (A) through (C) of paragraph (2).
            (9) Prime-age.--The term ``prime-age'' means individuals 
        between the ages of 25 years and 54 years.
            (10) Prime-age employment gap.--
                    (A) In general.--The term ``prime-age employment 
                gap'', with respect to an applicable area, means the 
                difference (expressed as a percentage), calculated in 
                accordance with subparagraph (B), between--
                            (i) the national 5-year average prime-age 
                        employment rate; and
                            (ii) the 5-year average prime-age 
                        employment rate of the applicable area.
                    (B) Calculation.--For purposes of calculating the 
                prime-age employment gap under subparagraph (A), an 
                applicant shall use data relating to the most recent 5-
                year period for which data are available preceding the 
                first date of the application period established for 
                the applicant under section 4(a)(2)(B).
            (11) Prime-age employment rate.--
                    (A) In general.--The term ``prime-age employment 
                rate'', with respect to an applicable area, means the 
                quotient (expressed as a percentage), calculated in 
                accordance with subparagraph (B), obtained by 
                dividing--
                            (i) the 5-year average quantity of the 
                        prime-age population of the applicable area 
                        that is employed; by
                            (ii) the total prime-age population of the 
                        applicable area.
                    (B) Calculation.--For purposes of calculating the 
                prime-age employment rate under subparagraph (A), an 
                applicant shall use data relating to the most recent 5-
                year period for which data are available preceding the 
                first date of the application period established for 
                the applicant under section 4(a)(2)(B).
            (12) Recipient.--The term ``recipient'' means, as 
        applicable--
                    (A) an applicant to which a RECOMPETE grant is 
                provided; or
                    (B) a lead entity designated pursuant to a 
                cooperation agreement entered into under section 3(b) 
                for an applicable area for which a RECOMPETE grant is 
                provided.
            (13) RECOMPETE grant.--The term ``RECOMPETE grant'' means a 
        grant provided to a recipient under section 4(a).
            (14) RECOMPETE plan.--The term ``RECOMPETE plan'' means a 
        plan developed by an applicant under section 4(b).
            (15) Secretary.--The term ``Secretary'' means the Secretary 
        of Commerce, acting through the Assistant Secretary for 
        Economic Development.
            (16) Subrecipient.--The term ``subrecipient'' means an 
        applicant located within an applicable area that--
                    (A) is not a recipient; but
                    (B) receives funds provided under a RECOMPETE grant 
                in such manner and in such amounts as may be agreed to 
                in the RECOMPETE plan for the applicable area.
            (17) Tribal government.--The term ``Tribal government'' 
        means the recognized governing body of any Indian or Alaska 
        Native tribe, band, nation, pueblo, village, community, 
        component band, or component reservation, individually 
        identified (including parenthetically) in the list published by 
        the Bureau of Indian Affairs on January 29, 2021, pursuant to 
        section 104 of the Federally Recognized Indian Tribe List Act 
        of 1994 (25 U.S.C. 5131).
            (18) Tribal land.--The term ``Tribal land'' means--
                    (A) any land located within the boundaries of an 
                Indian reservation, pueblo, or rancheria; or
                    (B) any land not located within the boundaries of 
                an Indian reservation, pueblo, or rancheria, the title 
                to which is held--
                            (i) in trust by the United States for the 
                        benefit of an Indian Tribe or an individual 
                        Indian;
                            (ii) by an Indian Tribe or an individual 
                        Indian, subject to restriction against 
                        alienation under laws of the United States; or
                            (iii) by a dependent Indian community.

SEC. 3. DISTRESS ELIGIBILITY CRITERIA AND COOPERATION AGREEMENTS.

    (a) Distress Eligibility.--
            (1) Criteria.--To be eligible for a RECOMPETE grant, a 
        local labor market, local community, partial local labor 
        market, or Tribal government shall meet the following criteria, 
        as applicable, as determined by the Secretary:
                    (A) Local labor markets.--A local labor market 
                shall have a prime-age employment gap equal to not less 
                than 2.5 percent.
                    (B) Local communities.--A local community shall--
                            (i) meet the applicable requirements 
                        described in section 2(6); and
                            (ii) have--
                                    (I) a median household income equal 
                                to not more than $75,000; and
                                    (II)(aa) a prime-age employment gap 
                                of not less than 5 percent; or
                                    (bb) as determined by the 
                                Secretary, a special need arising 
                                from--
                                            (AA) a recent decrease in 
                                        the applicable prime-age 
                                        employment rate; or
                                            (BB) another severe 
                                        economic disruption that is 
                                        likely to reduce the applicable 
                                        prime-age employment rate.
                    (C) Partial local labor markets.--A partial local 
                labor market shall--
                            (i) have a prime-age employment gap equal 
                        to not less than 2.5 percent; and
                            (ii) receive a waiver under subsection 
                        (b)(3)(A).
                    (D) Tribal governments.--
                            (i) In general.--A Tribal government shall 
                        have a prime-age employment gap of not less 
                        than 2.5 percent, as calculated under clause 
                        (ii).
                            (ii) Calculation.--For purposes of clause 
                        (i), the prime-age employment gap of a Tribal 
                        government shall be calculated, with respect to 
                        the most recent 5-year period for which data 
                        are available, for all individuals residing on 
                        the Tribal land of the Tribal government.
            (2) Limitations.--
                    (A) Applicable areas.--A local labor market, local 
                community, partial local labor market, or Tribal 
                government shall not be eligible to receive more than 1 
                RECOMPETE grant.
                    (B) Applicants.--For purposes of the RECOMPETE 
                grant program, an applicant may not be considered to be 
                located in, or submit an application under section 
                4(a)(2) on behalf of, more than 1 eligible local labor 
                market, local community, partial local labor market, or 
                Tribal government.
    (b) Cooperation Agreements.--
            (1) Requirement.--
                    (A) In general.--Subject to paragraph (3), if an 
                applicable area contains 2 or more applicants described 
                in subparagraph (A), (B), or (C) of section 2(2), each 
                such applicant shall, as a condition of receiving a 
                RECOMPETE grant for the applicable area--
                            (i) enter into a legally binding 
                        cooperation agreement for the applicable area 
                        in accordance with subparagraph (C); and
                            (ii) designate 1 applicant as the lead 
                        entity to act in a representative capacity for 
                        purposes of assuming overall responsibility for 
                        carrying out the programs and activities, and 
                        achieving compliance with the applicable 
                        requirements, under the RECOMPETE grant.
                    (B) Participation by other applicants.--An 
                applicant described in subparagraph (E), (F), or (G) of 
                section 2(2) that is located in an applicable area for 
                which a cooperation agreement is entered into under 
                subparagraph (A) may elect to join the cooperation 
                agreement, at the discretion of the applicant.
                    (C) Terms.--A cooperation agreement under this 
                subsection shall include--
                            (i) a written statement that--
                                    (I) is executed by each applicant 
                                that is a party to the cooperation 
                                agreement; and
                                    (II) establishes the consent of the 
                                applicant to be bound by the terms of--
                                            (aa) the cooperation 
                                        agreement; and
                                            (bb) the RECOMPETE plan for 
                                        the applicable area; and
                            (ii) a process for redress of any action, 
                        or failure to act, by the lead entity that is 
                        detrimental to an applicant.
                    (D) Limitation.--An applicable area may be the 
                subject of only 1 cooperation agreement.
            (2) Election by local communities and tribal governments.--
                    (A) Local communities.--
                            (i) In general.--A local community may 
                        enter into a cooperation agreement described in 
                        paragraph (1) with any other local communities 
                        located within the same local labor market, 
                        subject to the condition that 1 or more of 
                        those local communities shall be an eligible 
                        local community.
                            (ii) Parties.--A cooperation agreement 
                        under clause (i) may be executed between or 
                        among--
                                    (I) an eligible local community; 
                                and
                                    (II) 1 or more--
                                            (aa) other eligible local 
                                        communities, or applicants 
                                        within an eligible local 
                                        community, located within the 
                                        same local labor market; or
                                            (bb) applicants that are 
                                        not located within an eligible 
                                        local community, but are 
                                        located within the same local 
                                        labor market as an eligible 
                                        local community.
                            (iii) Additional amounts.--On execution of 
                        a cooperation agreement under this subparagraph 
                        involving 1 or more applicants described in 
                        clause (ii)(II)(bb), the Secretary may award 
                        additional amounts in accordance with 
                        subsection (c)(6) of section 6, subject to the 
                        applicable cost-sharing requirements of 
                        subsection (e)(2) of that section.
                    (B) Tribal governments.--
                            (i) In general.--Regardless of whether the 
                        Tribal government is eligible, subject to 
                        clause (ii), a Tribal government may elect to 
                        enter into a cooperation agreement described in 
                        paragraph (1) with 1 or more applicants from an 
                        eligible local labor market, local community, 
                        or partial local labor market that is adjacent 
                        to the Tribal land of the Tribal government.
                            (ii) Deadline.--An election by a Tribal 
                        government under clause (i) shall be made by 
                        not later than 45 days after the first date of 
                        the application period established for the 
                        Tribal government under section 4(a)(2)(B).
                            (iii) Treatment.--If a Tribal government 
                        elects to enter into a cooperation agreement 
                        under clause (i)--
                                    (I) the Tribal land of the Tribal 
                                government shall be--
                                            (aa) considered to be 
                                        included in the applicable area 
                                        of the eligible local labor 
                                        market, local community, or 
                                        partial local labor market that 
                                        is the subject of the 
                                        cooperation agreement; and
                                            (bb) subject to the 
                                        RECOMPETE plan for the 
                                        applicable area described in 
                                        item (aa); and
                                    (II) the amount of the RECOMPETE 
                                grant to which the Tribal government is 
                                otherwise eligible to receive, if 
                                applicable--
                                            (aa) shall not be 
                                        decreased; and
                                            (bb) shall be added to the 
                                        amount provided to the 
                                        applicable lead entity for use 
                                        in accordance with the 
                                        RECOMPETE plan.
                            (iv) Encouragement to collaborate.--To the 
                        maximum extent practicable, the Secretary shall 
                        encourage Tribal governments to enter into 
                        cooperation agreements described in clause (i).
                            (v) Effect of subparagraph.--Nothing in 
                        this subparagraph--
                                    (I) requires a Tribal government to 
                                enter into a cooperation agreement in 
                                order to receive a RECOMPETE grant;
                                    (II) penalizes a Tribal government 
                                that does not elect to participate in a 
                                cooperation agreement; or
                                    (III) otherwise affects the amount 
                                of a RECOMPETE grant to be provided to 
                                any Tribal government.
            (3) Waivers.--
                    (A) In general.--The Secretary may waive the 
                requirement under paragraph (1) with respect to an 
                applicant acting on behalf of a partial local labor 
                market that--
                            (i) meets the criterion described in 
                        subsection (a)(1)(C)(i);
                            (ii) is located within an eligible local 
                        labor market with respect to which a 
                        cooperation agreement is unable to be executed 
                        under paragraph (1), despite reasonable 
                        efforts; and
                            (iii) submits to the Secretary a request 
                        for a waiver under this paragraph demonstrating 
                        the ability to carry out the programs and 
                        activities, and achieve compliance with the 
                        applicable requirements, under sections 4 and 5 
                        in the applicable area.
                    (B) Effect.--On receipt of a waiver under 
                subparagraph (A), a partial local labor market--
                            (i) shall be eligible to receive a 
                        RECOMPETE grant; and
                            (ii) may elect to carry out the programs 
                        and activities, and achieve compliance with the 
                        applicable requirements, in the applicable area 
                        under the RECOMPETE grant--
                                    (I) independently; or
                                    (II) by designating from among 
                                applicants located within the 
                                applicable area a lead entity pursuant 
                                to a cooperation agreement described in 
                                paragraph (1), which shall submit to 
                                the Secretary a written notice in 
                                accordance with paragraph (4).
            (4) Submission to secretary.--On execution of a cooperation 
        agreement under paragraph (1), (2), or (3)(B)(ii)(II), the lead 
        entity shall submit to the Secretary a written notice that--
                    (A) describes--
                            (i) the cooperation agreement;
                            (ii) the date of execution of the 
                        cooperation agreement;
                            (iii) the authorization of the lead entity 
                        under the cooperation agreement; and
                            (iv) the formation of a consortium 
                        described in section 2(2)(H) under the 
                        cooperation agreement, if applicable; and
                    (B) includes--
                            (i) a copy of each written statement under 
                        paragraph (1)(C)(i) relating to the cooperation 
                        agreement; and
                            (ii) any necessary certifications or other 
                        documentation relating to the cooperation 
                        agreement.

SEC. 4. RECOMPETE GRANT PROGRAM.

    (a) Establishment.--
            (1) In general.--The Secretary shall establish a formula 
        grant program under which the Secretary shall provide to 
        eligible applicants and lead entities block grants, to be known 
        as ``RECOMPETE grants'', to carry out programs and activities 
        in the applicable areas served by the applicants and lead 
        entities that--
                    (A) create quality jobs;
                    (B) provide resources to help local residents--
                            (i) access opportunities; and
                            (ii) attain and retain employment;
                    (C) increase local per capita income and prime-age 
                employment rates; and
                    (D) support long-term, sustained economic growth 
                and opportunity in persistently distressed areas.
            (2) Applications.--
                    (A) In general.--To be considered for the provision 
                of a RECOMPETE grant, an eligible applicant or lead 
                entity shall submit to the Secretary an application--
                            (i) at such time, in such manner, and 
                        containing such information as the Secretary 
                        determines to be appropriate; and
                            (ii) that includes a RECOMPETE plan for the 
                        applicable area served by the applicant or lead 
                        entity, in accordance with subsection (b).
                    (B) Application windows.--In carrying out the 
                RECOMPETE grant program, the Secretary shall establish 
                the periods during which applications may be submitted 
                under subparagraph (A), subject to the conditions 
                that--
                            (i) the initial application period 
                        established under this subparagraph shall be 
                        not less than 3 years; and
                            (ii) for the second application period 
                        under this subparagraph and each period 
                        thereafter, the Secretary may, as the Secretary 
                        determines to be appropriate--
                                    (I) extend the period;
                                    (II) accept late applications;
                                    (III) initiate a new application 
                                cycle; and
                                    (IV) establish additional rules and 
                                regulations under this subsection.
                    (C) Limitations.--
                            (i) In general.--Subject to clause (ii), 
                        the Secretary may establish a limitation on--
                                    (I) the number of applications to 
                                be accepted by the Secretary during 
                                each fiscal year from each type of 
                                applicant; and
                                    (II) the total amount of each 
                                RECOMPETE grant payment provided for 
                                each fiscal year.
                            (ii) Requirements.--In establishing any 
                        limitation under clause (i), the Secretary 
                        shall ensure that--
                                    (I) each applicant and lead entity 
                                that submits to the Secretary an 
                                application satisfactory to the 
                                Secretary for an application period 
                                established under subparagraph (B) 
                                shall be considered for receipt of a 
                                RECOMPETE grant during that application 
                                period; and
                                    (II) the Secretary is able--
                                            (aa) to review applications 
                                        and provide technical 
                                        assistance and expertise to 
                                        applicants in the development 
                                        and implementation of RECOMPETE 
                                        plans; and
                                            (bb) to conduct benchmark 
                                        evaluations and meet applicable 
                                        reporting requirements in 
                                        accordance with section 5.
                    (D) Priority.--In selecting recipients of RECOMPETE 
                grants, the Secretary shall give priority consideration 
                to severely distressed, eligible--
                            (i) local labor markets; and
                            (ii) Tribal governments.
                    (E) Approval.--The Secretary shall approve or 
                disapprove each application submitted under this 
                paragraph (including the RECOMPETE plan included in the 
                application) as soon as practicable after the date of 
                receipt of the application.
            (3) Term.--A RECOMPETE grant shall--
                    (A) have a term of 10 fiscal years; and
                    (B) be disbursed over that term in accordance with 
                section 6(d).
    (b) RECOMPETE Plans.--
            (1) In general.--As a condition of receipt of a RECOMPETE 
        grant, the application of an applicant or lead entity under 
        subsection (a)(2) shall include a RECOMPETE plan for the 
        applicable area served by the applicant or lead entity in 
        accordance with this subsection.
            (2) Requirements.--A RECOMPETE plan shall include the 
        following information with respect to the applicable area:
                    (A) An identification of--
                            (i) each economic development challenge 
                        proposed to be addressed using a RECOMPETE 
                        grant; and
                            (ii) any past, present, or projected future 
                        economic development investments in the 
                        applicable area, including, with respect to the 
                        investment--
                                    (I) each public and private 
                                participant; and
                                    (II) each source of funding.
                    (B) A comprehensive strategy, for the 10-year 
                period beginning on the proposed date of receipt of a 
                RECOMPETE grant, to address the economic challenges 
                identified under subparagraph (A)(i), in accordance 
                with subsection (d), in a manner that--
                            (i) promotes long-term, sustained economic 
                        growth, opportunity, job creation, employment, 
                        and increased per capita income;
                            (ii) reduces the prime-age employment gap 
                        of the applicable area;
                            (iii) creates jobs and connects local 
                        workers to employment and other economic 
                        opportunities;
                            (iv) maximizes the effective development 
                        and use of the local workforce; and
                            (v) provides accessible resources to 
                        support job attainment and retention.
                    (C) The total projected cost to carry out the 
                RECOMPETE plan.
                    (D) The total amount of the RECOMPETE grant 
                requested, and the justification for that amount.
                    (E) The roles and responsibilities of each 
                recipient and subrecipient carrying out an activity 
                under the RECOMPETE plan.
                    (F) The proposed allocation by the recipient to 
                subrecipients of any RECOMPETE grant amounts.
                    (G) An identification of certain benchmark criteria 
                for use in benchmark evaluations under section 5(a), 
                including reducing the prime-age employment gap of the 
                applicable area by certain percentages at periodic 
                intervals, with the goals of--
                            (i) reducing the prime-age employment gap 
                        by not less than 50 percent on completion of 
                        the term of the RECOMPETE grant provided to the 
                        recipient; and
                            (ii) achieving compliance with such other 
                        criteria as the Secretary may establish.
            (3) Optional inclusions.--A RECOMPETE plan may include 
        strategies--
                    (A) to address inequality in the applicable area, 
                such as inequality with respect to income, opportunity, 
                or employment on the basis of race, gender, religion, 
                or sexual orientation;
                    (B) to support business development and 
                entrepreneurship; and
                    (C) to support innovation and businesses, job 
                creation, and workforce development in industries 
                expected to continue or increase in force in the 
                applicable area.
            (4) Consent of parties to cooperation agreement.--If an 
        applicable area is subject to a cooperation agreement under 
        section 3(b), the RECOMPETE plan for the applicable area shall 
        be--
                    (A) developed in accordance with that cooperation 
                agreement; and
                    (B) consented to by each applicant that is a party 
                to the cooperation agreement.
            (5) Integration with comprehensive economic development 
        strategy.--If an applicable area is subject to a comprehensive 
        economic development strategy approved by the Secretary under 
        section 302 of the Public Works and Economic Development Act of 
        1965 (42 U.S.C. 3162), the RECOMPETE plan for the applicable 
        area--
                    (A) shall be integrated with that strategy, to the 
                maximum extent practicable; and
                    (B) may be developed and included as a supplemental 
                portion of that strategy, rather than as an independent 
                plan.
            (6) Approval by secretary.--The Secretary shall approve a 
        RECOMPETE plan that the Secretary determines meets the 
        applicable requirements of this subsection.
    (c) Planning and Technical Assistance.--
            (1) Planning assistance.--
                    (A) In general.--For purposes of assisting a 
                recipient in developing a RECOMPETE plan, the Secretary 
                may make an advance payment of a RECOMPETE grant in 
                accordance with subparagraph (B), if the Secretary 
                determines that--
                            (i) the recipient requires such an advance; 
                        and
                            (ii) the advance will be used--
                                    (I) effectively; and
                                    (II) for planning purposes.
                    (B) Maximum amount.--The amount of an advance 
                payment under subparagraph (A) shall be equal to not 
                more than the lesser of--
                            (i) an amount equal to 5 percent of the 
                        maximum RECOMPETE grant amount to be provided 
                        to the applicable recipient; and
                            (ii) $300,000.
                    (C) No cost share.--An advance payment made under 
                this paragraph shall not be subject to any cost-sharing 
                requirement.
            (2) Technical assistance.--The Secretary shall provide 
        technical assistance, if necessary, in each applicable area 
        relating to--
                    (A) the development of a RECOMPETE plan that meets 
                the applicable requirements of this subsection with 
                respect to the applicable area; and
                    (B) implementation of the programs and activities 
                included in the RECOMPETE plan for the applicable area.
    (d) Use of Funds.--
            (1) In general.--Subject to paragraphs (2) and (3), a 
        recipient or subrecipient may use a RECOMPETE grant to carry 
        out programs and activities in the applicable area, in 
        accordance with the RECOMPETE plan, including--
                    (A) the provision of business advice and assistance 
                to small and medium-sized local businesses and 
                entrepreneurs, including--
                            (i) manufacturing extension services;
                            (ii) small business development centers;
                            (iii) centers to help businesses bid for 
                        Federal procurement contracts;
                            (iv) entrepreneurial assistance programs 
                        that link entrepreneurs with available public 
                        and private resources;
                            (v) legal advice and resources; and
                            (vi) assistance in accessing capital;
                    (B) land and site development programs, such as 
                brownfield redevelopment, research and technology 
                parks, business incubators, business corridor 
                development, and Main Street redevelopment programs;
                    (C) infrastructure and housing activities that are 
                directly related to supporting job creation and 
                employment for residents, such as--
                            (i) improvements to transit, roads, and 
                        broadband access;
                            (ii) affordable housing development;
                            (iii) land-use and zoning reforms; and
                            (iv) transit-oriented development 
                        activities;
                    (D) job training oriented to local employer needs, 
                such as customized job training programs carried out by 
                local community colleges in partnership with local 
                businesses;
                    (E) workforce outreach programs, such as--
                            (i) programs located in, and targeted to, 
                        lower-income and underemployed neighborhoods; 
                        and
                            (ii) embedding job placement and training 
                        services in neighborhood institutions such as 
                        churches, housing projects, and community 
                        advocacy programs;
                    (F) job retention programs and activities, such as 
                the provision of--
                            (i) job coaches, including at locations of 
                        employment;
                            (ii) child care services, including 
                        subsidizing the construction, operation, 
                        maintenance, and labor costs of child care 
                        centers; and
                            (iii) transportation support, such as 
                        support for vehicle repairs to assist in the 
                        transit of workers to jobs; and
                    (G) such other programs and activities as the 
                Secretary determines to be appropriate, including any 
                proposed programs or activities that the recipient 
                demonstrates clearly and substantially, to the 
                satisfaction of the Secretary, will directly advance 
                the goals of the RECOMPETE grant program.
            (2) Method.--In carrying out programs and activities 
        described in paragraph (1), a recipient or subrecipient may--
                    (A) use amounts provided under a RECOMPETE grant to 
                carry out such a program or activity directly; or
                    (B) enter into a contract or other agreement with a 
                subcontractor or vendor (including nongovernmental, 
                nonprofit organizations and for-profit entities) to 
                carry out such a program or activity.
            (3) Outside programs and activities.--A recipient acting on 
        behalf of an eligible local community that enters into a 
        cooperation agreement under section 3(b)(2)(A)(ii)(II) with a 
        local community that is not eligible, but is located within the 
        same local labor market, may use amounts provided under a 
        RECOMPETE grant to carry out a program or activity described in 
        paragraph (1) in the ineligible local community, if the program 
        or activity would provide a benefit to residents of the 
        eligible local community.
    (e) Regional Commissions.--
            (1) Definition of regional commission.--In this subsection, 
        the term ``Regional Commission'' means--
                    (A) any of the Regional Commissions (as defined in 
                section 3 of the Public Works and Economic Development 
                Act of 1965 (42 U.S.C. 3122));
                    (B) the Northern Border Regional Commission;
                    (C) the Southeast Crescent Regional Commission;
                    (D) the Southwest Border Regional Commission; and
                    (E) any other regional commission established under 
                Federal law, subject to the approval of the Secretary.
            (2) Technical assistance and support.--If an applicant (or 
        any portion of the service area of an applicant) is located in 
        a region covered by a Regional Commission, the Regional 
        Commission is encouraged to provide technical assistance and 
        other support relating to applying for a RECOMPETE grant and 
        developing and carrying out a RECOMPETE plan to--
                    (A) the applicant;
                    (B) the lead entity, if applicable; and
                    (C) any other relevant entities.
            (3) Action by secretary.--The Secretary shall--
                    (A) encourage each recipient to coordinate the 
                implementation of a RECOMPETE plan with the activities 
                of each Regional Commission serving the region in which 
                the applicable area is located; and
                    (B) ensure that a copy of the RECOMPETE plan for 
                each applicable area is provided to each affected 
                Regional Commission.

SEC. 5. ADMINISTRATION, REPORTING, AND OVERSIGHT.

    (a) Benchmark Evaluations.--
            (1) In general.--The Secretary shall establish a process 
        under which the Secretary shall conduct periodic benchmark 
        evaluations of each recipient to ensure that the recipient 
        successfully carries out the programs and activities described 
        in the RECOMPETE plan of the recipient.
            (2) Timing.--The Secretary shall conduct a benchmark 
        evaluation of a recipient under this subsection--
                    (A) for a recipient of a RECOMPETE grant provided 
                during the initial application period under section 
                4(a)(2)(B)(i), by not later than 3 years after the date 
                of the initial award of the RECOMPETE grant; and
                    (B) not less frequently than once every 2 years 
                thereafter during the term of the RECOMPETE grant 
                provided to the recipient.
            (3) Criteria.--In conducting a benchmark evaluation of a 
        recipient under this subsection, the Secretary shall determine 
        whether the recipient has--
                    (A) adhered to the timelines and requirements of 
                the programs and activities identified in the RECOMPETE 
                plan of the recipient;
                    (B) made sufficient progress toward achieving the 
                benchmarks and objectives described in that RECOMPETE 
                plan;
                    (C) increased the overall employment rate, the 
                prime-age employment rate, median household income, and 
                per capita income in the applicable area; and
                    (D) achieved compliance with such other criteria as 
                the Secretary determines to be relevant.
    (b) Modification of Plans.--
            (1) Requirement for recipients.--A recipient shall modify 
        the RECOMPETE plan of the recipient, or any program or activity 
        conducted under that RECOMPETE plan, if the Secretary--
                    (A) determines that--
                            (i) such a program or activity is 
                        ineffective or underperforming; or
                            (ii) with respect to the RECOMPETE plan, 
                        program, or activity--
                                    (I) an applicable performance 
                                metric or criterion has not been met; 
                                or
                                    (II) funds have been misused; and
                    (B) directs the recipient to modify the RECOMPETE 
                plan, program, or activity.
            (2) Authority of secretary.--
                    (A) Adjustments and increases in funding.--The 
                Secretary may increase the amount of the RECOMPETE 
                grant provided to the recipient as the Secretary 
                determines to be appropriate, taking into consideration 
                any modifications made to the RECOMPETE plan under 
                paragraph (1), in an amount equal to not more than the 
                maximum amount available on the date of approval of the 
                RECOMPETE grant application for the applicable area and 
                subject to the availability of funds, if the Secretary 
                determines that--
                            (i) events or other factors beyond the 
                        control of the recipient significantly--
                                    (I) altered applicable project 
                                circumstances; or
                                    (II) prevented the recipient from 
                                meeting the objectives and benchmarks 
                                of the RECOMPETE plan; or
                            (ii) a labor market, economic, business, or 
                        technology shift, or any other major factor, 
                        warrants such a modification and increase in 
                        funding.
                    (B) Withholding and terminating funding.--The 
                Secretary may temporarily withhold or terminate any 
                amount scheduled to be provided under a RECOMPETE grant 
                if the Secretary determines that--
                            (i) after a reasonable effort, an agreement 
                        cannot be reached with respect to a 
                        modification to a RECOMPETE plan recommended or 
                        required by the Secretary under this 
                        subsection; or
                            (ii)(I) a gross, intentional misuse of 
                        RECOMPETE grant funds (including any activity 
                        subject to a penalty under section 605 of the 
                        Public Works and Economic Development Act of 
                        1965 (42 U.S.C. 3215)) has occurred; and
                            (II) the individual or entity responsible 
                        for the misuse is not removed from all programs 
                        and activities carried out under the RECOMPETE 
                        plan.
    (c) Recipient Reporting Requirements.--Each recipient shall be 
subject to--
            (1) the grant reporting requirements under part 200 of 
        title 2, Code of Federal Regulations (or successor 
        regulations); and
            (2) such additional, clear, annual reporting requirements 
        as the Secretary may establish to gather any information 
        necessary to conduct the benchmark and final evaluations under 
        this section.
    (d) Final Evaluation.--
            (1) In general.--Not later than 1 year after the final 
        disbursement of a RECOMPETE grant is provided to each 
        recipient, the Secretary, in cooperation with the recipient and 
        each applicable subrecipient, shall conduct a final evaluation 
        of the success of the programs and activities carried out under 
        the RECOMPETE plan of the recipient.
            (2) Criteria.--The Secretary shall establish criteria for 
        use in conducting final evaluations under this subsection--
                    (A) in addition to the criteria established under 
                subsection (a)(3); and
                    (B) taking into consideration the goal of reducing 
                the prime-age employment gap of each applicable area by 
                50 percent.
            (3) Requirements for recipients.--Each recipient and 
        subrecipient shall--
                    (A) cooperate with the Secretary in conducting a 
                final evaluation under this subsection; and
                    (B) provide to the Secretary any information 
                necessary for that evaluation.
    (e) Report to Congress.--The Secretary shall submit to Congress 
comprehensive and detailed annual reports describing the implementation 
of this Act, including, with respect to the period covered by the 
report--
            (1)(A) a summary assessment of the overall progress of the 
        RECOMPETE grant program; and
            (B) as data become available, an analysis of the 
        effectiveness of that program;
            (2) labor market and economic metrics to describe the 
        impact of the RECOMPETE grant program, including any progress 
        made toward--
                    (A) decreasing prime-age employment gaps; or
                    (B) increasing local per capita income;
            (3) detailed demographic analyses of--
                    (A) the populations served by recipients; and
                    (B) relevant labor market statistics;
            (4) a summary of the benchmark evaluations conducted under 
        subsection (a), as available;
            (5) an identification of, and reasons for rejecting or 
        deferring, as applicable, each application submitted under 
        section 4(a)(2), including the applicable annual RECOMPETE 
        grant amount limitation established by the Secretary under 
        subparagraph (C)(i)(II) of that section, if any; and
            (6) such other details as the Secretary determines to be 
        appropriate.
    (f) Applicability of PWEDA.--
            (1) In general.--The following sections of the Public Works 
        and Economic Development Act of 1965 shall apply to this Act 
        (including the RECOMPETE grant program):
                    (A) Section 211 (42 U.S.C. 3151).
                    (B) Section 503 (42 U.S.C. 3193).
                    (C) Section 504 (42 U.S.C. 3194).
                    (D) Section 602 (42 U.S.C. 3212).
                    (E) Section 604 (42 U.S.C. 3214).
                    (F) Section 605 (42 U.S.C. 3215).
                    (G) Section 608 (42 U.S.C. 3218).
                    (H) Section 610 (42 U.S.C. 3220).
            (2) Authorities and duties of secretary.--The Secretary 
        shall have the authorities and duties provided by the sections 
        of the Public Works and Economic Development Act of 1965 (42 
        U.S.C. 3121 et seq.) referred to in paragraph (1) in 
        administering and enforcing this Act (including the RECOMPETE 
        grant program).

SEC. 6. FUNDING.

    (a) Authorization of Appropriations.--There is authorized to be 
appropriated to the Secretary to carry out this Act $175,000,000,000 
for fiscal year 2022, to remain available until expended.
    (b) Allocation.--
            (1) In general.--Subject to paragraph (2), of the amounts 
        made available under subsection (a), the Secretary shall 
        allocate--
                    (A) not less than 70 percent to recipients acting 
                on behalf of local labor markets or partial local labor 
                markets;
                    (B) not more than 20 percent to recipients acting 
                on behalf of local communities; and
                    (C) not less than 10 percent to eligible Tribal 
                governments.
            (2) Treatment of certain amounts.--The amounts allocated 
        pursuant to paragraphs (5) and (6)(B) of subsection (c) shall 
        not be taken into consideration for purposes of calculations 
        under paragraph (1).
            (3) Administrative costs and personnel.--
                    (A) In general.--Of any amounts made available to 
                carry out this Act, the Secretary shall transfer not 
                less than 1 percent to the Salary and Expenses Account 
                of the Secretary for the costs of administration and 
                oversight of this Act.
                    (B) Personnel.--The Secretary may--
                            (i) appoint and fix the compensation of 
                        such temporary personnel as may be necessary to 
                        carry out this Act; and
                            (ii) effective beginning on the date on 
                        which an individual appointed under clause (i) 
                        has served continuously in that appointment for 
                        2 years, appoint the individual to a position 
                        in the Economic Development Administration in 
                        the same manner in which competitive service 
                        employees with competitive status are 
                        considered for transfer, reassignment, or 
                        promotion to such a position, at which time the 
                        individual shall become a career-conditional 
                        employee, unless the individual has completed 
                        the service requirements for career tenure.
    (c) Grant Formulas.--
            (1) In general.--Subject to subsection (e), based on the 
        information relating to projected costs contained in applicable 
        RECOMPETE plans under subparagraph (C) of section 4(b)(2), and 
        the justifications described in subparagraph (D) of that 
        section, the amount of a RECOMPETE grant provided to a 
        recipient shall be determined in accordance with this 
        subsection.
            (2) Local labor markets.--An eligible local labor market 
        may receive not more than the amount equal to the product 
        obtained by multiplying--
                    (A) the prime-age employment gap of the local labor 
                market;
                    (B) the prime-age population of the local labor 
                market; and
                    (C) $70,585.
            (3) Local communities.--Subject to paragraph (6), an 
        eligible local community may receive not more than the amount 
        equal to the product obtained by multiplying--
                    (A) the prime-age employment gap of the local 
                community;
                    (B) the prime-age population of the local 
                community; and
                    (C) $53,600.
            (4) Partial local labor markets.--An eligible partial local 
        labor market may receive not more than the amount equal to the 
        product obtained by multiplying--
                    (A) the population of the partial local labor 
                market;
                    (B) the lesser of--
                            (i) the prime-age employment gap of the 
                        local labor market within which the partial 
                        local labor market is located; and
                            (ii) the prime-age employment gap of the 
                        partial local labor market; and
                    (C) $70,585.
            (5) Tribal governments.--
                    (A) In general.--An eligible Tribal government may 
                receive not more than the amount equal to the product 
                obtained by multiplying, subject to subparagraph (B)--
                            (i) the prime-age employment gap of the 
                        Tribal government;
                            (ii) the prime-age population of the Tribal 
                        government; and
                            (iii) $70,585.
                    (B) Calculation of population.--
                            (i) In general.--Subject to clause (ii), 
                        for purposes of subparagraph (A), the 
                        population of a Tribal government shall be 
                        equal to the sum obtained by adding--
                                    (I) the product obtained by 
                                multiplying--
                                            (aa) the total number of 
                                        individuals residing on the 
                                        Tribal land of the Tribal 
                                        government; and
                                            (bb) 0.65; and
                                    (II) the product obtained by 
                                multiplying--
                                            (aa) the total number of 
                                        individuals included on the 
                                        membership roll of the Tribal 
                                        government; and
                                            (bb) 0.35.
                            (ii) Use of data.--Each calculation under 
                        clause (i) shall be determined based on data 
                        provided by the applicable Tribal government to 
                        the Department of the Treasury under the 
                        Coronavirus State and Local Fiscal Recovery 
                        Fund programs under title VI of the Social 
                        Security Act (42 U.S.C. 801 et seq.) (as 
                        amended by subtitle M of title IX of the 
                        American Rescue Plan Act of 2021 (Public Law 
                        117-2; 135 Stat. 4)).
            (6) Local communities with cooperation agreements.--If an 
        eligible local community elects to enter into a cooperation 
        agreement under section 3(b)(2)(A) with 1 or more local 
        communities that are not eligible--
                    (A) each eligible local community that is a party 
                to the cooperation agreement may receive the maximum 
                amount available to the eligible local community, as 
                determined under paragraph (3); and
                    (B) the Secretary may award to the lead entity an 
                additional amount equal to not more than 10 percent of 
                the total amount provided under subparagraph (A), for 
                distribution by the lead entity to any local community 
                or other applicant that is a party to the cooperation 
                agreement, regardless of whether the local community or 
                other applicant is eligible, for use in accordance with 
                the applicable RECOMPETE plan.
    (d) Obligation and Disbursement of Funds.--
            (1) In general.--On approval by the Secretary of an 
        application under section 4(a)(2)(E), the Secretary shall--
                    (A) obligate the entire amount of the RECOMPETE 
                grant for the applicable recipient; and
                    (B) disburse that amount to the recipient annually 
                for each of the 10 fiscal years beginning after the 
                date of obligation, in accordance with this subsection.
            (2) Proposals.--To receive an annual disbursement under 
        paragraph (1), a recipient shall submit to the Secretary a 
        proposal describing the intended use by the recipient of the 
        disbursement during the applicable fiscal year (including the 
        programs and activities proposed to be carried out and any 
        subcontractor or vendor proposed to be used for those 
        purposes), in accordance with the RECOMPETE plan of the 
        recipient.
            (3) Provision of funding.--On approval by the Secretary of 
        a proposal submitted by a recipient under paragraph (2), the 
        Secretary shall disburse to the recipient the amount of the 
        RECOMPETE grant due to the recipient for the fiscal year, for 
        use in accordance with--
                    (A) the proposal; and
                    (B) the RECOMPETE plan of the recipient.
    (e) Cost Sharing.--
            (1) Federal share.--
                    (A) In general.--The Federal share of the cost of 
                each program and activity carried out using a RECOMPETE 
                grant shall be the cost share described in subparagraph 
                (B) for the applicable recipient, subject to 
                subparagraph (C) and paragraphs (2) through (4).
                    (B) Descriptions of cost shares.--
                            (i) Local labor markets.--For an eligible 
                        local labor market, the cost share referred to 
                        in subparagraph (A) shall be--
                                    (I) 50 percent for an eligible 
                                local labor market with a prime-age 
                                employment gap equal to--
                                            (aa) not less than 2.5 
                                        percent; but
                                            (bb) less than 3 percent; 
                                        and
                                    (II) an additional 6.25 percent for 
                                each prime-age employment gap 
                                percentage point of 3 percent or more, 
                                as determined in accordance with the 
                                following table:


------------------------------------------------------------------------
                                                               Federal
        Local labor market prime-age employment gap             share
------------------------------------------------------------------------
3 percent to less than 4 percent...........................        56.25
                                                                 percent
4 percent to less than 5 percent...........................         62.5
                                                                 percent
5 percent to less than 6 percent...........................        68.75
                                                                 percent
6 percent to less than 7 percent...........................   75 percent
7 percent to less than 8 percent...........................        81.25
                                                                 percent
8 percent to less than 9 percent...........................         87.5
                                                                 percent
9 percent to less than 10 percent..........................        93.75
                                                                 percent
10 percent or greater......................................          100
                                                                percent.
------------------------------------------------------------------------

                            (ii) Local communities.--For an eligible 
                        local community, the cost share referred to in 
                        subparagraph (A) shall be--
                                    (I) 68.75 percent for an eligible 
                                local community with a prime-age 
                                employment gap equal to--
                                            (aa) not less than 5 
                                        percent; but
                                            (bb) less than 6 percent; 
                                        and
                                    (II) an additional 6.25 percent for 
                                each prime-age employment gap 
                                percentage point of 6 percent or more, 
                                up to 100 percent, as determined in 
                                accordance with the following table:


------------------------------------------------------------------------
                                                               Federal
          Local community prime-age employment gap              share
------------------------------------------------------------------------
6 percent to less than 7 percent...........................   75 percent
7 percent to less than 8 percent...........................        81.25
                                                                 percent
8 percent to less than 9 percent...........................         87.5
                                                                 percent
9 percent to less than 10 percent..........................        93.75
                                                                 percent
10 percent or greater......................................          100
                                                                percent.
------------------------------------------------------------------------

                            (iii) Partial local labor markets.--
                                    (I) In general.--Subject to 
                                subclause (II), for an eligible partial 
                                local labor market, the cost share 
                                referred to in subparagraph (A) shall 
                                be--
                                            (aa) 50 percent for an 
                                        eligible partial local labor 
                                        market with a prime-age 
                                        employment gap equal to--

                                                    (AA) not less than 
                                                2.5 percent; but

                                                    (BB) less than 3 
                                                percent; and

                                            (bb) an additional 6.25 
                                        percent for each prime-age 
                                        employment gap percentage point 
                                        of 3 percent or more, as 
                                        determined in accordance with 
                                        the following table:


------------------------------------------------------------------------
   Lesser of partial local labor market, and local labor       Federal
             market, prime-age employment gaps                  share
------------------------------------------------------------------------
3 percent to less than 4 percent...........................        56.25
                                                                 percent
4 percent to less than 5 percent...........................         62.5
                                                                 percent
5 percent to less than 6 percent...........................        68.75
                                                                 percent
6 percent to less than 7 percent...........................   75 percent
7 percent to less than 8 percent...........................        81.25
                                                                 percent
8 percent to less than 9 percent...........................         87.5
                                                                 percent
9 percent to less than 10 percent..........................        93.75
                                                                 percent
10 percent or greater......................................          100
                                                                percent.
------------------------------------------------------------------------

                                    (II) Certain local labor markets.--
                                If an eligible partial local labor 
                                market is located within a local labor 
                                market with a prime-age employment gap 
                                that is less than the prime-age 
                                employment gap of the partial local 
                                labor market, the prime-age employment 
                                gap of the local labor market shall be 
                                used for purposes of calculating the 
                                Federal share of the partial local 
                                labor market under subclause (I).
                            (iv) Tribal governments.--For an eligible 
                        Tribal government, the cost share referred to 
                        in subparagraph (A) shall be 100 percent.
                    (C) Available increases.--
                            (i) Relative need.--The Federal share 
                        determined for a recipient under clause (i), 
                        (ii), or (iii) of subparagraph (B) may be 
                        increased, based on the relative need of each 
                        applicable area and recipient and in accordance 
                        with such regulations as the Secretary may 
                        promulgate, to not more than 80 percent of the 
                        total estimated cost of the programs and 
                        activities included in the RECOMPETE Plan for 
                        the applicable area.
                            (ii) Severe economic need.--The Federal 
                        share determined for a recipient under 
                        subparagraph (B) may be increased to not more 
                        than 100 percent of the total estimated cost of 
                        the programs and activities included in the 
                        RECOMPETE Plan for the applicable area in any 
                        case in which the Secretary determines that the 
                        recipient or a subrecipient has--
                                    (I) exhausted all other reasonable 
                                financing and funding options; and
                                    (II) demonstrated severe economic 
                                need.
            (2) Special rule.--
                    (A) In general.--Except as provided in subparagraph 
                (B), the Federal share calculated for an eligible local 
                community under paragraph (1) shall not be reduced due 
                to an election by the eligible local community to enter 
                into a cooperation agreement under section 3(b)(2)(A).
                    (B) Exception.--If additional amounts are provided 
                for an eligible local community for distribution to 
                subrecipients under section 3(b)(2)(A)(iii), the 
                Federal share calculated under paragraph (1) for the 
                eligible local community shall be not more than 50 
                percent, subject to any increase in accordance with 
                clause (i) or (ii) of paragraph (1)(C), as applicable.
            (3) Non-federal contributions.--In calculating the non-
        Federal share of the cost of a program or activity carried out 
        under a RECOMPETE plan, the Secretary may provide a credit 
        toward the non-Federal share for any non-Federal contribution 
        to the program or activity--
                    (A) in cash or in-kind;
                    (B) fairly evaluated; and
                    (C) including any contribution of space, equipment, 
                assumption of debt, or service.
            (4) Reassessment.--
                    (A) In general.--The Federal share and non-Federal 
                share determined for a recipient under paragraphs (1) 
                and (2) shall apply during the period beginning on the 
                date of enactment of this Act and ending on the date on 
                which the initial benchmark evaluation relating to the 
                recipient is conducted under section 5(a).
                    (B) Periodic reevaluation.--As soon as practicable 
                after the date on which each benchmark evaluation 
                relating to a recipient is conducted under section 
                5(a), the Secretary shall--
                            (i) reevaluate the Federal share and non-
                        Federal share determined for the recipient 
                        under this subsection; and
                            (ii) determine whether such a cost share 
                        should be adjusted, subject to subparagraph 
                        (C).
                    (C) Limitation on federal share.--The Federal share 
                determined for a recipient under this subsection--
                            (i) shall not be decreased by more than--
                                    (I) 10 percent, as compared to the 
                                Federal share determined for the 
                                recipient under this subsection for the 
                                preceding period; or
                                    (II) 30 percent, in total; and
                            (ii) shall be not less than 50 percent.
                                 <all>