Short title

This Act may be cited as the

Increasing our Nation’s Value through Economic Support and Tourism in Our Communities Act

of the INVEST in Our Communities Act.

Definition of eligible recipient

Section 3(4) of the Public Works and Economic Development Act of 1965 (42 U.S.C. 3122(4)) is amended by adding at the end the following:

(C)

Capacity building grants and HOST grants

In the case of grants under sections 208 and 219, the term eligible recipient also includes a Tribal organization and a Native Hawaiian organization (as those terms are defined in section 3 of the NATIVE Act (25 U.S.C. 4352)).

Increase in Federal share for Tribal organizations and Native Hawaiian organizations

Section 204(c)(1) of the Public Works and Economic Development Act of 1965 (42 U.S.C. 3144(c)(1)) is amended—(1)in the paragraph heading, by inserting

, Tribal organizations, or Native Hawaiian organizations

after

tribes

; and(2)by inserting , a tribal organization (as defined in section 3 of the NATIVE Act (25 U.S.C. 4352)), or a Native Hawaiian organization (as defined in that section) after Indian tribe.

Capacity building grant program

(a)

In general

Title II of the Public Works and Economic Development Act of 1965 (42 U.S.C. 3141 et seq.) is amended by inserting after section 207 the following:

208.

Capacity building grant program

(a)

Definition of predevelopment activity

In this section, the term predevelopment activity means an activity carried out before a project can proceed to the execution stage or the eligible recipient can secure financing and partners.(b)

Establishment

The Secretary shall establish a program to provide to eligible recipients assistance for predevelopment activities. (c)

Use of funds

An eligible recipient may use funds from a grant under this section—(1)to carry out certain predevelopment activities, including—(A)planning and community asset mapping;(B)training;(C)technical assistance and organizational development;(D)feasibility and market studies;(E)demonstration projects;(F)organizational capacity building;(G)organizing and facilitating convenings; and(H)other predevelopment activities, as determined appropriate by the Secretary; and(2)to hire and obtain qualified economic development professionals and services for a 3-year period to develop and carry out a comprehensive economic development strategy, an economic development strategic plan, or other predevelopment activities.(d)

Applications

To be eligible for a grant under this section, an eligible recipient shall submit to the Secretary an application at such time, in such manner, and containing such information as the Secretary may require, including a specific plan—(1)on how the eligible recipient will carry out predevelopment activities using grant funds; and(2)for the continuation of the position created or services obtained as a result of the grant after the end of the 3-year term, if applicable.(e)

Waiver of attorney's and consultant's fee prohibition

In the case of a project under this section that is carried out using grant funds by 1 or more eligible recipients with low organizational capacity, in the determination of the Secretary, the Secretary may waive the prohibition described in section 213.

(b)

Additional eligibility

(1)

Grants for public works and economic development

Section 201(a) of the Public Works and Economic Development Act of 1965 (42 U.S.C. 3141(a)) is amended—(A)in paragraph (1), by striking and at the end;(B)in paragraph (2), by striking the period at the end and inserting ; and; and(C)by adding at the end the following:

(3)predevelopment activities (as defined in section 208(a)).

(2)

Grants for economic adjustment

Section 209(a) of the Public Works and Economic Development Act of 1965 (42 U.S.C. 3149(a)) is amended by inserting predevelopment activities (as defined in section 208(a)), after training,.(3)

Conforming amendment

Section 302(a) of the Public Works and Economic Development Act of 1965 (42 U.S.C. 3162(a)) is amended, in the matter preceding paragraph (1), by inserting and predevelopment activities (as defined in section 208(a)) under section 201 or 209 after section 209.(c)

Increase in Federal share

Section 204(c)(3) of the Public Works and Economic Development Act of 1965 (42 U.S.C. 3144(c)(3)) is amended—(1)in the paragraph heading, by inserting

and capacity building

after

technical assistance

; and(2)by striking section 207 and inserting sections 207 and 208.(d)

Direct expenditure or redistribution by recipient

Section 217(a) of the Public Works and Economic Development Act of 1965 (42 U.S.C. 3154c(a)) is amended by striking or 207 and inserting 207, or 208.(e)

Powers of the Secretary

Section 601(a)(12) of the Public Works and Economic Development Act of 1965 (42 U.S.C. 3211(a)(12)) is amended by striking section 207 and inserting sections 207 and 208.(f)

Clerical amendment

The table of contents contained in section 1(b) of the Public Works and Economic Development Act of 1965 (79 Stat. 552; 112 Stat. 3597; 118 Stat. 1761) is amended by inserting after the item relating to section 207 the following:

Sec. 208. Capacity building grant program.

Grants for planning and grants for administrative expenses

(a)

Administrative expenses

Section 203 of the Public Works and Economic Development Act of 1965 (42 U.S.C. 3143) is amended by adding at the end the following:

(e)

Administrative expenses

Administrative expenses described in subsection (a) shall include expenses relating to—(1)carrying out the planning process described in subsection (b); and(2)hiring professional staff to assist communities or organizations in—(A)implementing projects and priorities included in—(i)a comprehensive economic development strategy; or(ii)an economic development planning grant;(B)identifying and using other Federal, State, and Tribal economic development programs;(C)leveraging private and philanthropic investment;(D)preparing disaster coordination and preparation plans;(E)collaborating with trade adjustment assistance centers, Hollings Manufacturing Extension Partnership Centers of the National Institute of Standards and Technology, Business Centers and Rural Business Centers of the Minority Business Development Agency, and other relevant Federal economic development technical assistance and service providers to promote domestic manufacturing; and(F)carrying out economic development activities in accordance with professional economic development best practices.

(b)

Increase in Federal share

Section 204(c) of the Public Works and Economic Development Act of 1965 (42 U.S.C. 3144(c)) is amended by adding at the end the following:

(4)

Grants for planning and grants for administrative expenses

In the case of a grant provided under section 203, the Secretary may increase the Federal share above the percentage specified in subsection (a) up to 80 percent of the cost of the project.

Hospitality and Outdoor-Recreation Supporting Tourism (HOST) grants

(a)

In general

Title II of the Public Works and Economic Development Act of 1965 (42 U.S.C. 3141 et seq.) is amended by adding at the end the following:

219.

Hospitality and Outdoor-Recreation Supporting Tourism (HOST) grants

(a)

Definitions

In this section:(1)

Outdoor recreation

The term outdoor recreation means all recreational activities, and the economic drivers of those activities, such as businesses and local economic efforts, undertaken for pleasure that—(A)generally involve some level of intentional physical exertion; and(B)occur in nature-based environments outdoors.(2)

Tourism, hospitality, or special event activity

The term tourism, hospitality, or special event activity means any economic activity that primarily serves to encourage recreational or business travel within the United States or from abroad, including tourist attractions, activities relating to arts and cultural affairs, business and recreational conventions, large entertainment events and venues, and promotion or organization of any such activity.(b)

Establishment

The Secretary shall establish a program to provide grants to eligible recipients to support outdoor recreation, travel, and tourism, hospitality, or special event activities to spur economic development.(c)

Goals

A project carried out with a grant under this section shall be carried out for the goal of— (1)in the case of an infrastructure project—(A)leading to long-term increases in tourist activity in a region, including in communities adjacent to National Park System units, National Forest System land, State parks, national marine sanctuaries, National Heritage Areas, Tribal parks, or other natural destinations;(B)using nature-based infrastructure projects and other projects intended to enhance public access to outdoor recreation opportunities; and(C)enhancing the visitor experience or economic value of the local tourism, hospitality, or special event industries; or(2)in the case of other projects as determined appropriate by the Secretary, supporting the outdoor recreation, travel, tourism, hospitality, or special event industries, in a manner consistent with the National Travel and Tourism Strategy or as recommended by the United States Travel and Tourism Advisory Board, if any.(d)

Eligible uses

(1)

In general

A grant under this section may be used—(A)for short-term and long-term economic development planning and coordination of local or regional outdoor recreation, travel, tourism, hospitality, and special event industries;(B)to carry out technical assistance projects to assist local or regional economies in—(i)the recovery from, and response to, damage to the outdoor recreation, travel, tourism, hospitality, and special event industries as a result of a natural disaster or public health emergency; and(ii)future development of the outdoor recreation, travel, tourism, hospitality, or special event industries; (C)to pay costs associated with obtaining State, Tribal, county, city, community, or regional tourism, hospitality, or special event activity marketing and promotion campaigns, including through nonprofit or quasigovernmental Destination Marketing Organizations (DMOs);(D)to carry out construction activities that support local or regional outdoor recreation, travel, tourism, hospitality, or special events, including activities involving—(i)construction of new, or improvements to existing, outdoor recreation and trail infrastructure, including public access and safety enhancements to that infrastructure;(ii)nature-based infrastructure projects to improve access to outdoor recreation;(iii)improvement of cultural, arts, convention, special event, outdoor recreation, and tourism facilities, such as visitor or tourist information centers, including through— (I)general accessibility upgrades, such as increasing disability access; (II)improving ventilation, heating, and cooling systems;(III)increasing energy efficiency; and(IV)incorporating additional renewable energy generation associated with that infrastructure, including zero-emission vehicle fleets and charging infrastructure; (iv)construction of workforce training facilities in order to carry out capacity building programs;(v)water or wastewater and stormwater improvements;(vi)pier construction and improvements; and(vii)accessibility enhancements; (E)to pay costs associated with upgrades and retrofits, including filtration and sanitation and physical modifications to existing local or regional outdoor recreation, travel, tourism, hospitality, or special event infrastructure, such as convention centers, large event spaces, campsites, or associated community attractions, with precautions to provide for safe worker, traveler, or event environments to increase travel and tourism activities or to make the infrastructure more functional as a result of a natural disaster or a public health emergency;(F)to establish programs to provide assistance to businesses in local or regional outdoor recreation, travel, tourism, hospitality, or special events industries—(i)for development;(ii)to recover from the impacts of a major disaster or emergency declared under the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5121 et seq.) or a public health emergency declared under section 319 of the Public Health Service Act (42 U.S.C. 247d); or(iii)for expansion of programs;(G)to carry out workforce training, recruitment, and research programs that support the outdoor recreation, travel, tourism, hospitality, or special event industries to improve the skills of, and job opportunities for, workers in those industries, including through a program registered under the Act of August 16, 1937 (commonly known as the National Apprenticeship Act; 29 U.S.C. 50 et seq.), and other work and learn models; (H)to pay costs associated with providing information to visitors about the health and safety protections, guidance, or requirements of Federal, State, Tribal, or local governments and businesses in the wake of a natural disaster or a public health emergency; and(I)as applicable, and a result of a natural disaster or a public health emergency to pay the costs of salaries and expenses associated with the operations of the eligible recipient, other than salaries and expenses of the executives of the eligible recipient, if the applicant—(i)demonstrates the capacity to maintain the positions for which the funds are used; or (ii)demonstrates that the positions for which the funds are used are temporary or seasonal.(2)

Examples

Examples of activities that comply with the eligible uses described in subparagraphs (A) through (I) of paragraph (1) include activities that involve—(A)media and marketing;(B)installing or constructing visitor kiosks;(C)installing interpretive signage;(D)building improvements; and(E)support or technical assistance for small businesses, including activities that bring public awareness to those small businesses.(3)

Prohibition

Amounts provided under this section may not be used—(A)for recruitment efforts to bring in or host particular events, such as sporting competitions or other activities; or(B)to invest in facilities, events, or operations that are not open or broadly available to the general public.(e)

Coordination with BIA

In carrying out this section, the Secretary shall coordinate with, as appropriate, the Tribal Tourism Grant Program of the Office of Indian Economic Development of the Bureau of Indian Affairs to support Tribal communities when funding provided under that grant program is helpful in developing or expanding the outdoor recreation, travel, tourism, hospitality, and special event economies of those Tribal communities.(f)

Priority

The Secretary shall give priority to eligible recipients that seek to carry out an activity that—(1)is based on long-term, regionally oriented, coordinated, and collaborative economic development or redevelopment strategies that foster economic growth and resilience; (2)will promote workforce development; or(3)will involve a minority-owned, rural, Native American, or otherwise underserved small business concern.(g)

Consideration relating to Indian tribes, tribal organizations, and Native Hawaiian organizations

In providing a grant under this section to an eligible recipient that is an Indian tribe, a tribal organization (as defined in section 3 of the NATIVE Act (25 U.S.C. 4352)), or a Native Hawaiian organization (as defined in that section), the Secretary—(1)may consider whether the Indian tribe, tribal organization (as so defined), or Native Hawaiian organization (as so defined), as applicable, has matching funds from other sources to carry out an activity; and(2)shall not require the Indian tribe, tribal organization (as so defined), or Native Hawaiian organization (as so defined), as applicable, to provide matching funds from other sources to receive a grant under this section.(h)

Regional distribution

(1)

In general

In providing grants under this section, the Secretary shall distribute the funds to eligible recipients in each region served by the Economic Development Administration in accordance with the distribution parameters described in paragraph (2)(A).(2)

Distribution of awards

(A)

In general

The distribution parameters referred to in paragraph (1) shall include consideration of each of the following:(i)Using the most recent data from the Quarterly Census of Employment and Wages and the Current Employment Statistics, employment in the leisure and hospitality sectors (other than food service businesses) as a percentage of total employment in States in the region, using a 5-year average.(ii)Using the most recent data from the Arts and Cultural Production and Outdoor Recreation Satellite Account, employment in arts and cultural production and outdoor recreation as a percentage of total employment in States in the region, using a 5-year average.(iii)The number of international and domestic visitors in States in the region, using data from the Department or another source as the Secretary determines to be appropriate.(iv)The impacts of natural or economic disasters, or public health emergencies, on the outdoor recreation, travel, tourism, hospitality, or special event industries in States in the region.(v)Any other data that the Secretary determines reliably measures the impact of outdoor recreation, travel, tourism, hospitality, or special events to the economy of a State.(B)

Out of date, discontinued, or inaccurate data sources

If the Secretary determines that a data source described in clause (i) or (ii) of subparagraph (A) is out of date, discontinued, or otherwise inaccurate, the Secretary may substitute other data sources to obtain the employment statistics described in those clauses, subject to the condition that the Secretary provides to Congress a report describing the new data source used by the Secretary.(i)

Outdoor recreation set-Aside

Of the amounts made available for each fiscal year to carry out this section, the Secretary shall ensure that not less than 40 percent is used to provide assistance to eligible recipients for activities that benefit the local outdoor recreation sector. (j)

Rural set-Aside

(1)

In general

Of the amounts made available for each fiscal year to carry out this section, the Secretary shall ensure that not less than 20 percent is used to provide assistance to eligible recipients located in, or that serve, a rural area (as defined in section 343(a) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1991(a))), with a particular focus on rural areas that are located in distressed or underserved communities. (2)

Waiver

If there are not sufficient qualified eligible recipients located in, or that serve, a rural area (as so defined), to carry out paragraph (1), the Secretary may waive the requirement under that paragraph.(k)

Native American set-Aside

(1)

In general

Of the amounts made available for each fiscal year to carry out this section, the Secretary shall ensure that not less than 5 percent is used to provide assistance to eligible recipients that are Indian tribes, Tribal organizations (as defined in section 3 of the NATIVE Act (25 U.S.C. 4352)), and Native Hawaiian organizations (as defined in that section).(2)

Waiver

If there are not sufficient qualified eligible recipients that are Indian tribes, Tribal organizations (as so defined), or Native Hawaiian organizations (as so defined) to carry out paragraph (1), the Secretary may waive the requirement under that paragraph.(l)

Federal share

Section 204(c) of the Public Works and Economic Development Act of 1965 (42 U.S.C. 3144(c)) (as amended by section 6(b)) is amended—(1)in paragraph (1), by striking In the case and inserting Except as provided in paragraph (5), in the case; and(2)by adding at the end the following:

(5)

HOST grant to Indian Tribes, tribal organizations, or Native Hawaiian organizations

In the case of a grant to an Indian tribe, a tribal organization (as defined in section 3 of the NATIVE Act (25 U.S.C. 4352)), or a Native Hawaiian organization (as defined in that section) for a project under section 219, the Federal share of the cost of the project shall be 100 percent.

(b)

Clerical amendment

The table of contents contained in section 1(b) of the Public Works and Economic Development Act of 1965 (79 Stat. 552; 112 Stat. 3597; 118 Stat. 1767) is amended by inserting after the item relating to section 218 the following:

Sec. 219. Hospitality and Outdoor-Recreation Supporting Tourism (HOST) grants.

Tourism marketing

(a)

Declaration

Section 2(b) of the Public Works and Economic Development Act of 1965 (42 U.S.C. 3121(b)) is amended—(1)in paragraph (3), by striking and at the end;(2)in paragraph (4), by striking the period at the end and inserting ; and; and(3)by adding at the end the following:

(5)tourism marketing is an economic development tool used by communities for economic development and should be considered an eligible use of economic development funding awarded by the Federal Government through the Economic Development Administration.

(b)

Grants for economic adjustment

Section 209(a) of the Public Works and Economic Development Act of 1965 (42 U.S.C. 3149(a)) (as amended by section 5(b)(2)) is amended by inserting travel promotion (including funding for tourism marketing, marketing research, purchasing advertisements, and attracting business meetings or convention travel), after 208(a)),.

Funding for HOST grants

(a)

In general

Title VII of the Public Works and Economic Development Act of 1965 (42 U.S.C. 3231 et seq.) is amended by adding at the end the following:

705.

Funding for HOST grants

Of the amounts made available under section 701(a) for each of fiscal years 2023 through 2027, $100,000,000 shall be used to carry out section 219, of which 3 percent shall be used for the administrative costs of carrying out that section, including for maintaining the distribution parameters described in subsection (f)(2) of that section.

(b)

Clerical amendment

The table of contents contained in section 1(b) of the Public Works and Economic Development Act of 1965 (79 Stat. 552; 112 Stat. 3597; 118 Stat. 1772) is amended by inserting after the item relating to section 704 the following:

Sec. 705. Funding for HOST grants.

Cost sharing

Section 204 of the Public Works and Economic Development Act of 1965 (42 U.S.C. 3144) is amended—(1)in subsection (a)—(A)in the matter preceding paragraph (1), by striking subsection (c) and inserting this section; and(B)in paragraph (2)(A), by striking 30 percent and inserting 40 percent; and(2)by adding at the end the following:

(e)

Communities affected by disasters

In the case of a grant under section 209(c)(2), the Federal share of the cost of a project carried out with the grant shall be 100 percent. (f)

COVID-Era funding

(1)

In general

In the case of a project carried out with a grant under this Act made on or after the date of enactment of the INVEST in Our Communities Act from amounts made available during the period during which the public health emergency declared by the Secretary of Health and Human Services under section 319 of the Public Health Service Act (42 U.S.C. 247d) on January 31, 2020, with respect to COVID–19 is in effect, the Federal share of the cost of the project shall be not less than 90 percent.(2)

Certain areas

The Secretary shall consider increasing the Federal share set by the Secretary under paragraph (1) to be 100 percent of the cost of the project if the project is to be carried out in an area that is experiencing, in the determination of the Secretary, lasting economic impacts as a result of the COVID–19 pandemic.