[Senate Hearing 118-773]
[From the U.S. Government Publishing Office]
S. Hrg. 118-773
HEARING ON AMERICA'S REGIONAL
COMMISSIONS: SHARING BEST PRACTICES IN
REGIONAL AND ECONOMIC DEVELOPMENT
=======================================================================
HEARING
before the
COMMITTEE ON
ENVIRONMENT AND PUBLIC WORKS
UNITED STATES SENATE
ONE HUNDRED EIGHTEENTH CONGRESS
SECOND SESSION
__________
SEPTEMBER 18, 2024
__________
Printed for the use of the Committee on Environment and Public Works
[GRAPHIC NOT AVAILABLE IN TIFF FORMAT]
Available via the World Wide Web: http://www.govinfo.gov
______
U.S. GOVERNMENT PUBLISHING OFFICE
63-013 WASHINGTON : 2026
COMMITTEE ON ENVIRONMENT AND PUBLIC WORKS
ONE HUNDRED EIGHTEENTH CONGRESS
SECOND SESSION
THOMAS R. CARPER, Delaware, Chairman
SHELLEY MOORE CAPITO, West Virginia, Ranking Member
BENJAMIN L. CARDIN, Maryland KEVIN CRAMER, North Dakota
BERNARD SANDERS, Vermont CYNTHIA M. LUMMIS, Wyoming
SHELDON WHITEHOUSE, Rhode Island MARKWAYNE MULLIN, Oklahoma
JEFF MERKLEY, Oregon PETE RICKETTS, Nebraska
EDWARD J. MARKEY, Massachusetts JOHN BOOZMAN, Arkansas
DEBBIE STABENOW, Michigan ROGER WICKER, Mississippi
MARK KELLY, Arizona DAN SULLIVAN, Alaska
ALEX PADILLA, California LINDSEY O. GRAHAM, South Carolina
JOHN FETTERMAN, Pennsylvania
Courtney Taylor, Democratic Staff Director
Adam Tomlinson, Republican Staff Director
C O N T E N T S
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Page
SEPTEMBER 18, 2024
OPENING STATEMENTS
Carper, Hon. Thomas R., U.S. Senator from the State of Delaware.. 1
Capito, Hon. Shelly Moore, U.S. Senator from the State of West
Virginia....................................................... 3
WITNESSES
Wiggins, Corey, Ph.D., Federal Co-Chair, Delta Regional Authority 6
Prepared statement........................................... 9
Responses to additional questions from Senator Carper........ 16
Clyburn Reed, Jennifer, Ed.D., Federal Co-Chair, Southeast
Crescent Regional Commission................................... 18
Prepared statement........................................... 20
Saunders, Chris, Federal Co-Chair, Northern Border Regional
Commission..................................................... 23
Prepared statement........................................... 25
Sanchez, Juan, Federal Co-Chair, Southwest Border Commission..... 28
Prepared statement........................................... 31
Fenton, Jocelyn, Interim Co-Chair, Denali Commission............. 37
Prepared statement........................................... 41
HEARING ON AMERICA'S REGIONAL
COMMISSIONS: SHARING BEST PRACTICES IN
REGIONAL AND ECONOMIC DEVELOPMENT
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WEDNESDAY, SEPTEMBER 18, 2024
U.S. Senate,
Committee on Environment and Public Works,
Washington, DC.
The committee met, pursuant to notice, at 10 a.m. in room
406, Dirksen Senate Office Building, Hon. Thomas R. Carper
(chairman of the committee) presiding.
Present: Senators Carper, Capito, Cardin, Whitehouse,
Stabenow, Kelly, Boozman, Sullivan.
OPENING STATEMENT OF HON. THOMAS R. CARPER,
U.S. SENATOR FROM THE STATE OF DELAWARE
Senator Carper. I would like to call today's hearing to
order. Welcome, one and all.
Today, we have gathered, as you know, to discuss our
Nation's regional commissions and the integral role that they
play in strengthening our communities, our work force, and our
infrastructure. We are going to hear testimony from our
bipartisan panel of witnesses representing five different
regional commissions: the Delta Regional Authority, the Denali
Commission, the Northern Border Regional Commission, the
Southeast Crescent Regional Commission, and the Southwest
Border Regional Commission.
To our witnesses, Dr. Wiggins, Dr. Clyburn Reed, Mr.
Saunders, you pronounce your name Saunders, don't you? We have
a fellow on our team here who pronounces his name Sanders, and
so we will try not to confuse them. Mr. Sanchez, Juan Sanchez,
and Ms. Fenton, right, thank you all for joining us today. Good
to see you.
For those who may not be familiar with our regional
commissions, let me start by discussing what our regional
commissions do and why their work, your work, is important.
Our Nation's Federal regional commissions are Federal-State
partnerships that Congress has created over a period of time,
starting in the 1960's to implement community and economic
development strategies in some of our most disadvantaged
communities. Our regional commissions work closely with the
Economic Development Administration, at the Federal Government
level, in order to build durable regional economies throughout
the United States of America.
One might ask, why is this mission important? To answer
that question, let's paraphrase President Abraham Lincoln, who
once said that the role of the Federal Government is to do for
the people what they cannot do for themselves. This is what the
regional commissions attempt to do every day when they provide
financial resources and partner with State governments to help
communities prosper. Working hand-in-glove with the Economic
Development Administration, our regional commissions are
reinvigorating some of America's most distressed regional
economies.
I know just how important this kind of work is for our
communities. Right after I came home from my third and final
tour in Southeast Asia during the Vietnam War as a Naval flight
officer, I moved to Delaware, where I earned my MBA, and I went
to work, coming out of graduate school, for the Delaware
Economic Development Authority. Although I worked there for
less than a year, this experience has helped influence almost
every part of my career since then, including my time as
Governor of the State of Delaware.
When I was privileged to serve as Governor of Delaware, a
job that Senator Capito's father once held, not in Delaware but
in West Virginia, more jobs were created in Delaware than any
other year, period, in the history of our State. In truth
through, I did not create a single one of those jobs as
Governor. Governors do not create jobs; Senators do not create
jobs. Regional commissions, if we are going to be honest, do
not create them, either. What we do together and what we need
to do is to create a nurturing environment for job creation and
job preservation throughout America.
The work of our regional commissions, from work force
development and infrastructure improvements to promoting access
to capital and broadband deployment, is necessary in order to
create that nurturing environment.
Today, we look forward to hearing what regional commissions
are doing well and what improvements might help these agencies
work even more effectively in order to enable disadvantaged
communities to recover and to thrive.
As members of this committee have oftentimes heard me say,
we need to find out what works and do more of that. Regional
commissions have used Bipartisan Infrastructure Law funding to
support more than 300 projects in 19 States. The commissions
have used their funding in diverse and innovative ways. For
example, last year, the Delta Regional Authority funded
infrastructure projects to support a $5.6 billion investment by
Ford in a new electric truck manufacturing plant in Tennessee.
In Alaska, the Denali Commission provided technical
assistance to the Alaska Native Tribal Consortium to help
secure over $90 million in Federal funding for broadband
infrastructure in remote communities. Earlier this year, the
Northern Border Regional Commission awarded a pre-development
grant to a Vermont community which, once completed, will enable
the private sector to create over 125 mixed income housing
units in an area facing a major housing crisis.
As our colleagues will recall, in March, the committee
unanimously passed legislation to reauthorize each of our
regional commissions that are represented before us here today,
as well as the Economic Development Administration. Enacting
this reauthorization bill into law is a crucial part of the
work we must do in order to ensure that our regional
commissions can continue to support economic growth in
communities of all sizes throughout our Country. In fact, this
legislation would also create two new regional commissions: the
Mid-Atlantic Coast Regional Commission and the Southern New
England Regional Commission.
In closing, let me just say that we look forward to hearing
more today from our witnesses about the impact that our
regional commissions are having in communities both large and
small. I look forward to working with our colleagues on this
committee to ensure that our regional commissions have the
tools and the resources that they need in order to support
economic development and enable communities across our Country
to succeed.
With that, Senator Capito, you are recognized. Please
proceed.
OPENING STATEMENT OF HON. SHELLEY MOORE CAPITO,
U.S. SENATOR FROM THE STATE OF WEST VIRGINIA
Senator Capito. Thank you, Chairman Carper, and thank you
all for being here today. Thanks for this hearing.
Again, I want to welcome our witnesses, the Federal co-
chairs from the Delta Regional Authority, Denali Commission,
Northern Border Regional Commission, Southeast Crescent
Regional Commission, and the Southwest Border Regional
Commission. Thank all of you for what we are going to hear.
The strength of our regional commissions lies in their
partnerships and coordination between the Federal Government
and the States that are in their region.
Often, the Governor of each State that is within the
geographic target of the regional commission serves on that
commission. Typically, a regional commission is co-chaired by a
Federal political appointee that is confirmed with the advice
and consent of the Senate and one Governor that is selected
from the States covered by the commission. These entities
utilize Federal funding to carry out State and local economic
development priorities, and the Chairman has lined out a few of
those for us today.
The regional commissions' intergovernmental coordination is
key to the success of the economic development efforts. Working
with the appropriate States, these entities often make
investments in various areas, such as basic infrastructure and
work force training, development, that are critical to ensuring
long-term economic growth and opportunity in their communities.
Further, regional commissions must work in tandem with the
EDA, the Economic Development Administration. Since EDA and the
regional commissions have similar missions, they must
strategically coordinate in order to avoid duplicative efforts
and investments.
We are here today to talk about best practices and success
stories from some of our regional commissions that will help us
to strike the balance and ensure our Federal investment is
implemented efficiently to achieve the maximum benefit for the
States and the communities that they serve. I look forward to
hearing the ways to strengthen your partnerships with your
States and your coordination with the EDA.
Working with the Appalachian Regional Commission in my home
State of West Virginia, I know how beneficial regional
commissions can be and the positive impacts that they can have
on communities. Our colleague's wife, Gayle Manchin, is the
Federal co-chair of the ARC, and I see Guy Land back there, who
I have worked with for many, many years on the ARC. They are
not on the panel today because the legislation that we have, we
have already reauthorized the ARC. How about that? How did that
happen?
[Laughter.]
Senator Capito. Today, we want to make sure that we give
you all the due attention.
Anyway, they have invested $62 million just last year from
Federal funding and then matched projects, 66 projects, just
across our State. These projects served over 3,000 households
and businesses, trained and educated over 2,000 students and
workers. I know each of the regional commission Federal co-
chairs before us is working in their areas to make the same
type of impactful investments.
To further these efforts back in March, Chairman Carper and
I brought forward out bipartisan Economic Development
Reauthorization Act before this committee, and the bill was
reported favorably to the Senate by unanimous voice vote. Title
II of the legislation reauthorizes a number of the regional
commissions from the Fiscal Years 2025 through 2029. The bill
will expand the type of activities that those regional
commissions can carry out and provides flexibility to tailor
those activities to the most pressing needs of their own
communities.
The bill also modernizes regional commissions'
administration requirements to ensure more efficient
operations. It is important that the Congress regularly
reauthorize the regional commissions and examine what works
best within their authorities and programs in order to ensure
that they can continue to carry out their missions effectively.
We look forward to working with our congressional
colleagues so that the EDA reauthorization bill can become law.
With that, Mr. Chairman, I yield back to you.
Senator Carper. Thank you, ma'am.
I have been summoned to go to another, not a hearing, but
actually a business meeting. We are marking up a number of
bills in the Committee on Homeland Security and Governmental
Affairs. I need to go there now.
Senator Capito has kindly agreed to preside while I am
away. I think the first order of business might be to, after
you have introduced the four of our witnesses, to recognize
Senator Sullivan to introduce our witness from the Denali
Commission. Thank you for doing this. I will be back as soon as
I can. Thank you.
Senator Capito. [Presiding.] I am pleased to welcome Dr.
Corey Wiggins, the Federal Co-Chair for the Delta Regional
Authority to our committee. Corey has worked across academia,
State government, nonprofits, and the private sector throughout
his career. He has served as the head of the Delta Regional
Authority since 2022.
We are also joined today by Dr. Jennifer Clyburn Reed, the
Federal Co-Chair of the Southeast Crescent Regional Commission.
Throughout her career, she has been a small business owner,
public servant, educator, and community advocate. She has
served as head of the Southeast Crescent Regional Commission
since 2021.
Third, I would like to welcome Chris Saunders, the Federal
Co-Chair of the Northern Border Regional Commission to our
committee. Chris is no stranger to the Senate, having spent
many years here as a member of Senator Leahy's staff. He has
served as the head of the Northern Border Regional Commission
since 2022.
Finally, I am pleased to welcome Juan Sanchez, the Federal
Co-Chair from the Southwest Border Regional Commission. He also
is no stranger to the U.S. Senate. Before joining the Southwest
Border Regional Commission, he worked for Senator Heinrich. He
has served as the head of the commission since 2022.
Senator Sullivan, I know you have an introduction of Ms.
Fenton.
Senator Sullivan. Thank you, Senator Capito, and the Chair.
Thank you for the opportunity to introduce Jocelyn Fenton, who
is the Interim Federal Co-Chair of the Denali Commission.
A little bit of background on the Denali Commission. This
was Senator Stevens' and Congressman Young's focus on bringing
national attention to the immense challenges and unique
situations that many of my constituents in rural Alaska face.
They designed the Denali Commission with Members of Congress in
the Senate and the House for a way in which to address these
unique challenges that often make life in Alaska much more
costly and complex than our friends in the lower 48, as we call
the rest of you guys, except Hawaii.
Let me give you a couple of examples. Most of our villages
cannot be accessed by roads, so you either have to fly there,
or if they are on a river, take a boat, or a snow machine
during the winter. That is 86 percent of Alaskan communities
that are not connected by roads. In the lower 48, people cannot
even conceive of that. Most of our State is that way.
We have over 30 communities in Alaska that have no running
water or flush toilets, so think about that. American citizens,
who use what we call honey buckets in Alaska. Thousands of
Alaskans use honey buckets. That is third-world sanitation.
That is just not right.
By the way, Madam Chair, some of the most patriotic
communities in the Country, my State has more veterans per
capita than any State in the Country, and Alaska Natives, where
most of these challenges are, their villages serve at higher
rates in the military than any other ethnic group in the
Country. Yet, they go to the bathroom with honey buckets.
Most of these communities are powered by diesel and are not
on any kind of grid system. I like to say Alaska is resource
rich, infrastructure poor. We have less road miles than
Connecticut, and yet we are 120 times bigger than Connecticut.
The Denali Commission has catalyzed much-needed
development, particularly with a focus on infrastructure, water
and sewer, power generation, transmission facilities, basic
clinics, and communication systems, much of which is just
expected if you live in the lower 48.
Through vital tribal, State, and Federal partnerships, the
commission has worked on a whole host of these kind of
infrastructure projects and work force development projects
that bring resiliency to over 300 communities, as I have said.
Due to its proven success, the Denali Commission has become an
invaluable asset for Alaska and our Nation on building out
infrastructure, which is what, I think, every member of the
Senate agrees is important for all Americans.
Just recently, the Department of Defense, recognizing the
commission's reach and strategic importance, identified it as a
key partner in implementing the national strategy for the
Department of Defense for the Arctic region, so an even broader
element of the Denali Commission's relevance.
With regard to Jocelyn, she has been doing a great job. She
serves in a number of capacities, including this co-chair
position on the Denali Commission, several boards involving our
military, involving our Native communities, and involving our
universities, involving Arctic leadership initiatives.
Jocelyn, I have no idea when you sleep when I was reading
your resume, but it is really impressive. Thanks for your great
work. Thanks for your dedication and commitment to the people
of Alaska.
Madam Chair, this is a commission that not a lot of people
know about, but it has really punched above its weight on
issues that matter to all Alaskans, and to all Americans, that
is basic infrastructure, which this committee is all about.
Thank you very much.
Senator Capito. Thank you, Senator.
Corey, before I ask you to proceed, I looked up and looked
out and saw my colleague over there from the House. We served
together for 14 years. Congressman Jim Clyburn is here from
South Carolina. Thank you for coming. Are you watching over--
yes.
[Laughter.]
Senator Capito. Welcome to you. Welcome to you, and thanks
for coming over.
Corey, you are up for 5 minutes.
STATEMENT OF COREY WIGGINS, PH.D., FEDERAL CO-CHAIR, DELTA
REGIONAL AUTHORITY
Mr. Wiggins. Mr. Chairman and members of the committee, my
name is Dr. Corey Wiggins, and I have the privilege of serving
as the Federal Co-Chairman of the Delta Regional Authority
(DRA).
Since its establishment in 2000, the agency's purpose has
remained unchanged: to promote and encourage economic
development in the DRA region. DRA's financial assistance
programs provide targeted investments in 252 counties and
parishes across our eight-State region, including parts of
Alabama, Arkansas, Illinois, Kentucky, Louisiana, Mississippi,
Missouri, and Tennessee.
Every 5 years, DRA, by statute, is responsible for creating
a regional development plan with public input that is approved
by our board of Governors. This plan serves as a guide to
ensure we are meeting the needs of the region and DRA's
mission.
In February 2023, the Authority approved and released
Navigating the Currents of Opportunity: Regional Development
Plan Forward. The strategic goals identified for DRA over the
next 5 years include expanding and investing in a resiliency of
the region's public infrastructure, improving networks of
agencies, organizations, businesses, and educational
institutions providing work force development opportunities,
strengthening and supporting the long-term growth of micro and
small businesses, expanding efforts to support community place-
making, and capacity building.
DRA has pursued its vision of a region as a place where
people and business have access to economic opportunities and
vibrant, sustainable, and resilient communities. We execute on
this vision through our programs that serve the region and
through investments that support basic public infrastructure
and transportation improvements, work force development
programming, and expanding opportunity for small business
development.
Some examples of DRA programs and their impacts include:
from 2017 to 2023, infrastructure work force development and
small business development investments made through DRA's
States Economic Development Assistance Program resulted in over
500,000 families positively impacted by infrastructure
projects; more than 160,000 individuals trained in work force
development programs; and over 36,000 jobs were either created
or retained in the region.
In over 5 years, DRA's Community Infrastructure Fund, a
program focused on basic public infrastructure investments, has
resulted in nearly 311,000 families impacted by infrastructure
projects, with approximately 15,000 jobs created or retained in
the region.
In total, for Fiscal Year 2023, DRA invested over $74
million in funding throughout the region. The expected impact
of this funding for nearly 165 projects in the region includes
over 33,000 families affected via improved access to
infrastructure, approximately 9,000 jobs created or retained,
and over 31,000 individuals trained through work force program
training.
As we continue to assess our Fiscal Year 2024 projects and
impact data, some highlighted regional investments include:
awarding more than $10 million in investments to 23 projects in
the region through the Delta Workforce Grant Program, an
initiative designed to support work force training and
education programs. We have awarded over $1.8 million to
communities through the Strategic Planning Grant Program, DRA's
newest initiative to support capacity-building in the region.
DRA supports Title II of the Economic Development
Reauthorization Act of 2024, which would reauthorize and update
the programs of DRA and other regional commissions. Title II
would bolster the place-based impact of regional commissions by
further supporting economic development and improving
infrastructure in underserved and distressed communities across
the Nation.
We thank the committee for including key proposals for the
2025 budget in the bill, such as a user fee authority for DRA's
Delta Doctors Program, repeal of DRA's sunsetting provision,
and recognition of tribes as eligible recipients.
DRA and its sister commissions serve a distinguished
purpose and uniquely critical role within each of our regions.
DRA's impact in the region is not just limited to the
quantitative outputs from agency investments, but is also
connected to our reputation as a regional partner working
closely with local governments, local development districts,
and our member States to help find solutions to the challenges
experienced in the region.
It is critical that DRA remains a vital partner in the
region to foster inclusive communities, strengthen regional
collaboration, achieve sustained, long-term economic
development, and produce meaningful opportunities for all
people in the DRA region.
Thank you.
[The prepared statement of Mr. Wiggins follows:]
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
Senator Capito. Thank you. Next, we will hear from Dr.
Jennifer Clyburn Reed. Jennifer, please proceed with your
testimony.
Thank you.
STATEMENT OF HON. JENNIFER CLYBURN REED, ED.D., FEDERAL CO-
CHAIR, SOUTHEAST CRESCENT REGIONAL COMMISSION
Ms. Clyburn Reed. Good morning, Chairman Carper and Ranking
Member Capito, committee members, and staff. Thank you for the
opportunity to testify on behalf of the Southeast Crescent
Regional Commission (SCRC) and share the progress that we have
made since becoming active in early 2022.
I begin by expressing support for Title II of the Economic
Development Reauthorization Act.
Many thanks to the Members of Congress and SCRC Governors
who have supported the commission as we continue to assist its
51 million residents. The region spans over 210,000 square
miles across seven States, parts of Alabama, Mississippi, and
Georgia, North Carolina, South Carolina, Virginia, and the
whole State of Florida. Currently, SCRC covers the largest
region of all active regional commissions.
Historically, rural economies were sustained by agriculture
and manufacturing industries, but these sectors have
depreciated over the years. As a result, many rural areas are
strangled with job losses and economic stagnation, prompting
the need for regional commissions to spark economic innovation
and revitalization efforts. As a member agency of the Rural
Partners Network, SCRC has worked with USDA Rural Development
and other Federal agencies to leverage resources to rural
communities.
Almost 3 years ago, I sat before this committee as a
nominee. At the time, I identified three goals to pursue once
confirmed: assess the needs of each community, identify
regional challenges, and determine the path to move our
distressed counties from transitional to attainment status.
Data was compiled from a seven-State survey, virtual coffee
and conversations, and collaboration sessions to author the
Five-Year Strategic Plan. Participating States also created
Economic Development Plans that illuminated each Governor's
priorities, also aligning with SCRC's strategic plan and
statutory language.
During that same hearing, Senator Carper suggested that I
find what works and do more of that. Early data collected found
gaping holes in healthcare access. In response, SCRC
implemented the J1 Visa Waiver Program, already offered by
other regional commissions and proven highly successful. With
the help of the Department of State, SCRC processed its first
application in November 2022, and to date, has successfully
placed 183 doctors where healthcare access was insufficient or
absent.
SCRC also commissioned a comprehensive health assessment
for all 428 counties, which is now complete and will be
published, along with our first white paper next month.
Research shows a strong correlation between underemployment
and negative health outcomes. A living wage shapes
opportunities for childcare, education, food security, and
housing. A responsive healthcare system helps foster economic
growth. While these concepts are widely recognized in theory,
SCRC is collecting data and acting on it to show how healthcare
access contributes to achieving longstanding economic goals.
I also stated during that hearing the commission would fund
entities that make economic development a sustainable priority.
In preparing to launch the first grant cycle, SCRC executed
cooperative agreements with all participating States and 55
local development districts.
The launch of the inaugural $20 million Seed Grant Program
yielded 363 pre-applications requesting $119 million. The
competitive selection process narrowed that pool to 103 full
applications, and I am honored to report that the 56 projects
selected exceeded internal expectations and statutory
requirements.
Of the 129 counties impacted by the 56 projects, 103, or 80
percent, are in distressed counties. The authorizing statute
requires 50 percent of grant funds to be spent on projects in
distressed counties. SCRC exceeded that by spending 77 percent
of grant funds in distressed counties on 42 projects. Forty
projects, or 71 percent, are infrastructure projects, which
exceeds the 40 percent required. SCRC looks forward to
continuing partnerships with local, State, and Federal entities
that will assist in achieving the mission to alleviate the
effects of poverty and ensure a prosperous future for all who
call the Southeast Crescent home.
Chairman Carper, Ranking Member Capito, and members of the
committee, thank you, and I look forward to your questions.
[The prepared statement of Ms. Clyburn Reed follows:]
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
Senator Capito. Thank you.
Next, Chris Saunders.
STATEMENT OF HON. CHRIS SAUNDERS, FEDERAL CO-CHAIR, NORTHERN
BORDER REGIONAL COMMISSION
Mr. Saunders. Thank you, Chairman Carper, thank you,
Ranking Member Capito, members of the committee, for the
invitation to participate in this hearing and the opportunity
to talk a little bit about the Northern Border Regional
Commission (NBRC).
I think, as you have heard from my peers and some of your
own opening statements, there is something unique about the
Federal commissions. The collaboration that is required, the
elevation of local needs, the input from State partners, it is
unique among Federal agencies in terms of how we develop a
collaborative process.
I think there are few places across the Federal Government
where this model of collaboration is included, and likewise,
our almost singular focus on place-based economic development
is found not many other places within the Federal Government.
My hope today, in addition to complement the testimony of
my colleagues, is to highlight a couple characteristics of the
Northern Border Regional Commission that demonstrate how we try
and advance the well-being of the residents in our region.
Specifically, it has been touched on a little bit this morning,
our ability to effectively deliver resources to rural America,
our commission's ability to focus resources on a specific
regional need or an opportunity, and the non-monetary ways that
commissions can deliver assistance.
It has been my experience that the regional commissions are
one of the most impactful models for directing Federal public
investment to rural America. Thanks to the significant
flexibility Congress has granted commissions in the way we
design and administer our programs, we can really consider how
best to deliver assistance in a manner that reflects the needs
and really recognizes the capacity strengths of rural places.
At NBRC, we have intentionally designed pathways into our
programs that elevate first-time applicants in rural
communities, and we are able to match technical assistance to
small communities who have extremely modest municipal budgets
and often rely on part-time or volunteer staff.
Certainly, our focus on rural places is no accident. The
largest city in our service area has just over 65,000
residents. Even within this predominantly rural landscape, we
are focused on directing resources to economically distressed
areas that, too often, have been unable to harness Federal
funding to improve their economies.
To that point, nearly 60 percent of the grants we made in
the last two rounds of our catalyst program were made to
communities under 5,000 people. In short, we are getting help
to the places that would otherwise never be able to participate
in a Federal grant program.
Beyond the flexibility that commissions have in program
design, we can similarly pivot our focus to address key needs
as they emerge. In the NBRC territory, the forest products
industry is one such example. For generations, the wood
projects and paper industries were really significant drivers
of the economy in our region.
As these legacy industries have faltered, it has really
been a regional priority to find ways to develop new products
and markets. For the past 6 years, we have focused resources
through specific grant offerings to support innovation and
infrastructure within the forest products industry, and these
investments are having their intended impacts.
This ability to move toward emerging challenges is also
evident in our work to address major region-wide needs,
specifically, a lack of access to childcare and to housing. The
significant funds that Congress provided to NBRC through the
Bipartisan Infrastructure Law allowed NBRC to revise our
flagship grant program to prioritize these needs.
These changes are likewise having the intended impact. In
the past month, I have had the good fortune to travel to
openings and groundbreakings for new childcare facilities in
Ticonderoga, New York, Middlebury, Vermont, and Rangeley,
Maine. These investments will result in hundreds of families
receiving help so that they can work.
I am happy to report there is a comparable level of
activity in our infrastructure portfolio, with numerous awards
that are laying the groundwork for the development of hundreds
of units of housing.
While the financial resources that the commission awards
through grants are certainly the most prevalent ways that we
make assistance available in the region, it is important to
note that NBRC and its peers have other tools, as well. A
couple of years ago, we recognized the need to organize and
bolster the outdoor recreation industry within our region, and
we coordinated multiple symposiums, which have proven to be
catalyzing events for our States and informed NBRC's own work
in this space.
Outdoor rec speaks to a critical additional role of the
commission. We are able to put a focus on innovations that
expand emerging industries that have the potential to provide
meaningful, well-paying jobs in areas where legacy industries
have reduced growth and left residents with fewer economic
opportunities.
It is my hope that this brief overview offers some insight
into the role that commissions play in the economic development
ecosystem, and I am appreciative, again, of the opportunity to
testify. I look forward to your questions.
[The prepared statement of Mr. Saunders follows:]
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Senator Capito. Next, we will hear from Juan Sanchez. If
you want to proceed with your testimony?
STATEMENT OF HON. JUAN SANCHEZ, FEDERAL CO-CHAIR, SOUTHWEST
BORDER REGIONAL COMMISSION
Mr. Sanchez. Thank you. Good morning, Chairman Carper,
Ranking Member Capito, and members of the committee and staff.
Thank you for the opportunity to testify on behalf of the
Southwest Border Regional Commission. I am Juan Sanchez, the
first Federal co-chair of the commission, and I am honored to
share our progress and challenges as we aim to serve the
southwest.
The commission comprises 93 counties and 35 million people
throughout Arizona, New Mexico, California and Texas. Our aim
is to help foster economic development, help create jobs, and
empower our communities.
In January 2023, I was entrusted with the responsibility to
establish the commission and develop its operating
infrastructure from the ground up. My first task was to secure
the participation of our four Governors, whose ideology spans
the political spectrum. It speaks to the importance of the
commission that we were able to reach a consensus, and as of
June 2023, all four States were participating.
Together, we have reach agreements on the operating
procedures, funding allocations, administrative support, our
grants process, and a vision for the commission. I would like
to thank our first State co-chair, Governor Michelle Lujan
Grisham from New Mexico, our other Governors, Governor
alternatives, and staff who have dedicated their time,
financial resources, and efforts to ensure the success of the
commission.
Once convened, our next challenge was to assess our region.
We identified barriers to economic development and created our
strategic goals. We assessed the condition of each one of our
counties, utilizing their demographic data, including poverty
rate per capita income and unemployment rate. We ranked and
designated each one of our counties.
Of the SPRC's 93 counties, 37 were classified as
distressed, 41 as transitional, and 15 as attainment. Overall,
the commission's average poverty rate stands at 18 percent,
significantly higher than the national average of 12.6 percent,
and translated into 5 million people living in poverty.
We identified unique distressed communities, such as
colonias, which is the Spanish word for neighborhood. Colonias
are economically distressed communities located within 150
miles over the U.S.-Mexico border, often lacking a governing
structure and basic infrastructure. Families living in colonias
are without adequate housing or essential services, like
potable water, plumbing, sewage, paved roads, broadband.
Approximately 100,000 people lack adequate drinking water and
sanitation, with one-third of the folks living in colonias
having no access to water or wastewater facilities.
The commission also comprises 51 federally recognized
Tribes. Collectively, our tribes have a poverty rate of 44
percent and an unemployment rate of 12 percent. A drastic
comparison to the U.S. average is of 12 and 4.2, respectively.
Tribal communities also face severe infrastructure challenges
and lack adequate drinking water and sanitation facilities, as
well as other essential services, such as broadband.
The commission seeks to enhance tribal capacity and promote
self-governance and has set aside, at minimum, 5 percent of our
total funds to tribal communities.
We identified other interrelated challenges. The
commission's region suffers critical shortages of healthcare
professionals. Every county within the region is designated a
health professional shortage area by HHS in primary health,
mental health, and dental care.
We additionally conducted extensive outreach with hundreds
of community stakeholders across four States, including mayors,
economists, nonprofits, universities, chambers of commerce,
industry groups, and more to identify the most significant
barriers to economic development.
The most common barriers as addressed by our stakeholders
include capacity gaps. Capacity remains a significant barrier
in our distressed communities, which often lack technical,
managerial, and financial capacity. Distressed communities
often stated that their minimal staff is overburdened with
administrative duties.
The secondary barrier was matching requirements. The SBRC
serves some of the most poor communities in the Country, often
lacking a substantial tax base to generate revenue and secure
matching funds. Federal and State grant programs often require
a match, which is a significant barrier for our most
impoverished communities.
Third was data availability. The respondents indicated that
there was insufficient access to data and research on the
issues impacting their community, noting that much of the
research is conducted by entities outside of their community.
Finally, the communities felt that they were participating
and were disadvantaged when competing for competitive grants.
The lack of technical support, resources, and specialized staff
in these communities, such as grant writers and grant
administrators, puts them at a significant disadvantage in
competitive grant competitions.
To address some of these barriers, the commission, to help
advance equity, the commission will allocate 50 percent of its
total funds to distressed areas to build capacity. Our new
grant program allows for an increased use of administrative
funds for up to 30 percent, and we are also allowing local
development districts to apply on behalf of distressed
communities and serve as an administrative agent.
To reduce cost and try to eliminate the matching
requirements, the SBRC aims to co-invest with other Federal
agencies and has signed agreements with USDA Rural Development
and other Federal agencies to co-invest in distressed
communities.
Moving forward, the commission will host a series of open
houses in partnership with our local universities. We will
publish our 5-year plan in November, begin conducting grant
webinars in December, and we are on track to open our first
grant competition in 2025.
Finally, I want to wish a sincere appreciation to the
committee for their work on S. 3991. We are particularly
thankful for the provisions which waive the matching
requirements for Indian tribes and colonias, extend our
authorization through Fiscal Year 2029, and provide the
commission the ability to offer demonstration healthcare
projects.
We look forward to working with the Congress and are
pleased to answer any questions. Thank you.
[The prepared statement of Mr. Sanchez follows:]
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Senator Capito. Thank you.
Next, we will have Ms. Fenton. If you want to give us your
testimony?
STATEMENT OF JOCELYN FENTON, INTERIM FEDERAL
CO-CHAIR, DENALI COMMISSION
Ms. Fenton. Good morning, Mr. Chairman, Ranking Member
Capito, and honorable members of the committee and staff, thank
you for inviting me to testify and providing an opportunity to
present you with an update of the Denali Commission in concert
with the other regional commissions.
We thank you and the Members of Congress who have
recognized the achievements and value of the Denali Commission
over the last 25 years, whose purpose is to deliver services of
the Federal Government in the most cost-effective manner.
Alaska is home to 229 tribes and 160 municipalities,
ranging in size from about 20 to 300,000 residents. Eighty-six
percent of municipalities are not connected to the road system,
which means everything needs to be barged or flown in. It can
drive up costs and create logistical challenges, especially in
inclement weather.
Many of the smaller communities do not have much in the way
of a cash economy, and many who live there have a deep-rooted
cultural and subsistence lifestyle, which not only provides the
food they consume, but there are also techniques and traditions
that are valued and that should be preserved for future
generations.
For Fiscal Year 2024, the commission will be making awards
that total just over $32 million, of which 93 percent will go
to distressed areas. I like to say we were Justice 40 before
Justice 40 was cool.
The Denali Commission has been most successful by focusing
on preparing projects for larger funding programs, by providing
planning or design assistance, gap funding when projects
experience unexpected cost increases or delays, or by
contributing to a community's non-Federal match local
requirement.
In those areas where the infrastructure base is frequently
decades behind the rest of the Country, municipalities often do
not have tax authority, and there is not much to tax if they
did. We appreciate the consideration of lowering local match
requirements for distressed, tribal, and Alaska Native
villages.
The Denali Commission and other regional commissions have
the unique authorities and tools and are best positioned to
support disadvantaged rural populations. In the last 6 years,
the commission has expanded its program offerings, diversifying
back into its legacy programs, and adding new programs to
reflect critical needs, the public funding available at the
time, and to leverage partnership opportunities. Over the life
of the commission, we have modified programs to reflect the
needs and public funding available at the time.
There are three ways that we facilitate investments. One,
priority lists, such as the Rural Power System Upgrade Program,
the Bulk Fuel Upgrade Program, statewide threat assessment for
communities facing environmental threats, the Sanitation
Deficiency System, and in the early 2000's, a list for rural
primary care clinics. Two, annual competitive funding
opportunities; and three, individual discretionary funding
through justifications, partnerships, and transfers.
Allow me to share some of the highlights that reflect the
Administration's goals and describe some innovative
partnerships.
For energy, our program focuses on rural power system
upgrades while incorporating renewables. A recently completed
900 kilowatt wind turbine, in connection to the existing
electrical distribution system between Stebbins and St.
Michael, now provides fluctuation-resistant wind energy,
offsetting hundreds of gallons of diesel each year and
facilitating days of ``diesel-off'' operation in both
communities.
For bulk fuel, the Denali Commission is at the forefront of
addressing the urgent need to upgrade Alaska's aging bulk fuel
farms, which are vital for powering communities. Despite a $250
million investment over 25 years, less than 50 percent of the
need has been met, while climate change accelerates
infrastructure decay.
The commission is exploring efficiencies and advocating for
urgent action to prevent an impending environmental crisis due
to deteriorating fuel storage infrastructure, some of which is
up to 75 years old. Many tanks have outlived their foundations
and are sitting on the ground, some without secondary
containment.
For transportation, in Fiscal Year 2022 and 2023, through
newfound partnerships and collaboration with the State of
Alaska and Federal Highways, the recently reinvigorated
transportation program awarded 59 surface and waterfront
improvement projects for a combined total of $33 million for
the direct benefit of 49 communities around the State.
For housing, notable projects to encourage housing
innovation and de-risk private development include affordable
housing assessments and strategy development, climate-specific
housing best practices, site-controlled platting, surveying,
given landownership, and complications on tribal lands, and
continually evaluating the housing life cycle, assessing timber
utilization, better sawmills to develop rural home kits,
locally produced trusses, and everything in between.
The commission is advancing materials science and additive
manufacturing in Alaska by developing the State's first 3D
concrete printed house and a rural-specific infrastructure
printing robot. Through partnerships with leading research
institutions and local organizations, the commission is paving
the way for utilizing local materials like gravel and biomass
to reduce supply chain costs, enhance automation, and tackle
work force challenges, all while driving innovation and
construction technology.
For water and sanitation, about 20 percent of Alaska Native
homes in rural Alaska lack access to water and sewer services.
Many solid waste systems in rural Alaska also lack protections
for human health and the environment. The sanitation program
benefits from the commission's unique transfer authority in
several ways. We have a partnership with Indian Health Service,
with a transfer from the commission to Indian Health Service,
and then we also have partnerships where EPA transfers funds to
the commission to consolidate and combine funding for the
progress of rural Alaska.
Recognizing the benefits that broadband brings to rural
areas, since 2019, utilizing just under $3 million, the
commission has initiated comprehensive outreach efforts to
assist and fund in-depth applications to achieve 187
independent 2.5 gigahertz FCC tribal licenses, in addition to
our recent leveraging of over $200 million in broadband
deployment since 2022.
For work force and economic development, we have found
timely success through reinvigorating the regional Alaska
development organizations, each with a $75,000 grant and a
simple instruction to double that funding to promote a pipeline
of projects within a year.
This led to a partnership leveraging a $49 million award
from the EDA's Build Back Better Regional Challenge. This award
is anticipated to grow the mariculture industry to a target of
$325 million per year, supporting 1,800 jobs across the State
from Ketchikan to Southeast to Unalaska, far out in the
Aleutian Chain, over the next 20 years.
Other innovative partnerships include promoting the
recreation economy, both through direct awards to recipients
and financially participating in EPA's Recreation Economy for
Rural Communities Program for at least two projects in Alaska.
Our Village Infrastructure Protection Program works with
tribal, local regional, State, and Federal partners to continue
to support the resilience of Alaskan communities by protecting
public investment in critical infrastructure. We fund the
planning, partnership, and construction efforts to move
communities to safer environments while also protecting
communities in place and assisting in a managed retreat.
For land and water resources, we are in the beginning
stages of setting up a forestry, soil, and water conservation
program, partnering with USDA Forest Service and Natural
Resource Conservation Service. This program will provide
technical assistance to soil and water conservation districts,
match funding when needed, and work with other agriculture
producers to promote food security, wood use innovations,
biomass energy, insulation and other building materials, fire
fuel mitigation, and stream habitat improvements.
Last, as the only Alaska-headquartered Federal agency, the
Denali Commission serves as a critical hub for White House-led
working groups and Arctic policy. As a principal member of the
Arctic Executive Steering Committee under the Executive Office
of the President and the Interagency Arctic Policy Committee,
the commission offers direct advocacy for pressing scientific
and policy needs.
This includes updating the statewide Threat Assessment for
IARPC's Risk Management and Hazard Mitigation priorities, asset
mapping for infrastructure prediction, and long-term data
management. The commission actively promotes Arctic security
through its involvement through the National Strategy for the
Arctic Region and other intergovernmental efforts, recognizing
that a resilient Arctic is essential for broader security.
The regional commissions were all created as a Federal-
State partnership to focus on the needs of rural communities,
and the Denali Commission prides itself in the successes seen
from working closely with the State of Alaska, Federal
partners, tribes, tribal consortia, and other non-Federal
entities to address these growing challenges.
After 25 years of service, and particularly in the last 6
year, I am quite proud of the progress we have made in
supporting Alaska's future.
Thank you.
[The prepared statement of Ms. Fenton follows:]
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Senator Capito. Thank you.
We will go to the question portion. I would go first, but I
am going to cede my time to Senator Boozman, as we have a busy
day, and he has a busy day, so Senator Boozman, and then I will
go to Senator Stabenow.
Senator Boozman. Thank you. I have to run to the floor in
just a minute.
I really wanted to hang around and just thank you all for
all the work that you do. Your budgets are not very great, but
those dollars that you have, being able to intervene and really
knowing the communities that you are serving makes a huge
difference.
Let me ask you, Dr. Wiggins. In recent years, Arkansas has
been devastated by natural disasters from tornadoes and wind,
historic flooding along the Arkansas River, the impacts of
which are still being dealt with. Once the dust has settled and
the rubble has been cleared, communities struggle to continue
growth and retain residents.
In what ways has DRA assisted in disaster recovery efforts,
and I know you have, in Arkansas and the rest of the Delta?
Mr. Wiggins. Yes, sir, thank you for that question. Many
communities, as you have mentioned, have been impacted by
disasters across our region. We have been working actually, in
Wynne, Arkansas. As a matter of fact, the mayor of Wynne,
Arkansas just recently completed our leadership institute that
we operate at DRA.
We are leaning in in disaster-impacted communities, meeting
with local officials, talking with them on how they best
support, and part of our grant-making program allows us to look
a little bit deeper, particularly in those areas impacted by
disasters. We are there; we are present, and that is an issue
that will continue to remain top of mind for us, as well.
Senator Boozman. Good, very good. Thank you.
I noticed, Mr. Sanchez, in your testimony, you talked about
grant writers, and how difficult it was to have the knowledge
and stuff. Chairwoman Stabenow is on our committee, and I have
the pleasure of working with her. This is something that we
hear constantly. I know that, Congressman Clyburn, the same
thing. It should not be that if you have a good education, that
you have to hire a $30,000 grant writer in a very, very small
community.
Can you all, maybe you can start, Ms. Reed, could you just
comment on that, the problem, if you are seeing the same thing
that we are hearing about in the ag community and the rest of
our committees about how difficult that is? I know we had a
lady and a mayor in Mountainburg, Arkansas that, as a result of
getting the project started and done, we were able to knock out
the biggest pocket that we had of people that were hauling
water and things.
The problems they had of figuring out the grant, trying to
get a grant writer, we were able to step in. Lots of people
stepped in to help out, people like you. Can you comment about
that, just a little bit, so we can get that on the record?
Ms. Clyburn Reed. Absolutely. Thank you for that question,
and it is an ongoing and broad problem. The approach that we
have taken at SCRC is a tiered approach. We have the commission
and we have entered into agreements with the States. We have
entered into agreements with the local development districts,
who are on the ground and work with these communities on a
daily basis and the community organizations.
The support that we have given, and we are giving, to the
local development districts is just that, so that they will be
able to help entities like described, who can not write those
grants, but the local development districts will be able to
support them in that way. We are building capacity all the way
up the pipeline so that we do not continue to have those
issues.
Senator Boozman. Very good. I hope that we can all work
together to, I know, again, the Chairwoman has been a great
leader on this, Congressman Clyburn also. There is no excuse
for making things so very, very difficult. That is one of the
things in government that does not cost any money. That is
something that will save our municipalities a great deal of
money.
Again, thank you all again for all that you do. We really
do appreciate your efforts. Thank you.
Thank you, Madam Chair.
Senator Carper. [Presiding.] Senator Capito, thank you for
presiding.
I think Senator Stabenow is next. Welcome, good to see you.
Senator Stabenow. Thank you very much, Mr. Chairman,
Ranking Member, and to my friend and Ranking Member in the Ag
Committee, I could not agree more. We know. We just pull our
hair out trying to cut the paperwork, and particularly get
small communities the help that they need.
I also want to join in saying thank you to all of you. You
are doing an incredible job encouraging economic development,
boosting community development, particularly in rural and
economically distressed areas, so thank you for that.
Ms. Clyburn Reed, on top of everything else, you have your
dad sitting here, so no pressure. It is good to see you,
Congressman.
It is so important. We would not have gotten where we are
without our Federal co-chairs. I have to say that I am
especially excited now because we have the creation of a new
regional commission. I appreciate so much the leadership of the
committee in helping us get the Great Lakes Authority, so we
are looking forward to that.
I was pleased to lead the bill in the Senate. My friend,
Congresswoman Marcy Kaptur really led and created this whole
push that has done a marvelous job in the House and moving
things forward.
We have the first round of funding for that program, and we
know that combining Federal money with State resources, as all
of you have done, that this new Great Lakes Authority is going
to serve as a really important new economic development agency
for the Great Lakes region. The partnership is going to give
us, as you have all talked about, the tools to create jobs,
boost the economy, transform communities.
I am really excited about President Biden's nomination of
Matt Kaplan to serve as one of your colleagues, as the first
Federal co-chair of the Great Lakes Commission. In order for
them to move ahead, obviously, they have to have that
leadership.
I look forward with the committee to be approving his
nomination and confirming him. He is well-qualified for the
position, having two decades of experience working on Great
Lakes issues, which we like to say, the ocean without the salt.
Ninety-five percent of the freshwater in our Country surrounds
us. We consider that a real duty to protect that water.
I am hopeful that we can join together on a bipartisan
basis to confirm this important position, because the sooner
the Great Lakes can begin its important work, the sooner
Michiganders and residents of all the Great Lakes are going to
feel the benefits as they are feeling in your regions.
A question, Mr. Saunders. In your testimony, you stated
that regional commissions are one of the most impactful models
for directing Federal investment, public investment, to rural
communities. I could not agree more. Can you elaborate a bit
more on how the Northern Border Regional Commission has been
effective with rural communities?
Mr. Saunders. Absolutely. Thank you, Senator. I appreciate
the question, and I think there are some themes that Senator
Boozman raised as well.
In my time as a staffer on Capitol Hill, I recall a time
where it took an act of Congress for another agency to rewrite
one of its grant programs, where the application was 80 pages
long, and no community where there is a volunteer select board
member working hard at night was going to be able to complete
that process. That agency revised it to eight pages.
You all have given us great flexibility in designing our
programs, so we can regularly revise our applications and think
about what the capacity of those communities we are trying to
serve really is, and we can also match technical assistance.
Dr. Clyburn Reed spoke to that.
We have resources that we distribute through our State
members that help organizations fill out applications and even,
really, get ideas from a concept to an application. We find
that that is one of the biggest struggles for really rural
places is that folks may sit around the coffee shop and say, I
wish this would happen in my town. It takes an effort to turn
that idea into something that folks can rally around and then
turn into a grant application.
We provide assistance to communities to move ideas from a
concept phase to a project phase and have targeted resources in
a couple of different ways to do that.
Senator Stabenow. You also talked in your comments about
non-monetary contributions to the region, which you have talked
about. Could you expand a little bit more about what that looks
like?
Mr. Saunders. Right, so we see both convenings, the ability
to get folks together to focus on a specific topic. I
referenced outdoor recreation. The northeast is known for lots
of outdoor recreation, but we were not seeing much coordination
among that industry, and not a connection between folks working
to promote outdoor recreation and businesses that sold goods.
We held this symposium to try and strengthen those
connections. We saw each of our States create offices of
outdoor recreation. We saw State legislatures look at the work
we had done and create their own grant programs. We see this
convening power, really, as a way that we are not spending,
making a grant, but that we are bringing people together around
a topic.
Dr. Clyburn Reed also spoke about the J1 Visa Program. In
our region, that program does not cost a healthcare facility
anything to apply to get a doctor to come work in a rural
distressed place, and we can contribute to better health
outcomes through that program.
Senator Stabenow. Terrific. Thanks so much.
Thank you, Mr. Chairman.
Senator Carper. We thank you. Senator Capito?
Senator Capito. Thank you, Mr. Chairman. Thank all of you
for being here. Just curious, just to start really quickly, a
quick question. Ms. Fenton mentioned, obviously, the Denali
Commission is just one State.
Where is your commission located? Just go through really
quickly, and then I will ask a deeper question here.
Mr. Wiggins. Our Delta Regional Authority's headquarter
office is in Clarksville, Mississippi.
Senator Capito. Thanks.
Ms. Clyburn Reed. SCRC is headquartered in Columbia, South
Carolina.
Senator Capito. OK.
Mr. Saunders. Concord, New Hampshire, but our team is
entirely remote.
Senator Capito. OK.
Mr. Sanchez. Las Cruces, New Mexico.
Senator Capito. Great, good. Thank you.
In my initial statement, I talked about coordination with
EDA. Ms. Fenton mentioned a large grant that she had procured,
an EDA grant, but I did not hear much about the EDA from the
four of you.
Could you briefly speak about your coordination effort with
EDA and how you think we could make these work better together,
if they are not, well, you can always do better, so why do not
you tell me about what kind of coordination, and we will just
go down the row, here.
Mr. Wiggins. We work wonderfully with EDA. As a matter of
fact, just last month, we announced a little bit over $4
million of leveraged EDA funding throughout the DRA region. One
particular project was in Pine Bluff, Arkansas for about $1.3
million.
What was unique about it was the opportunity to leverage
EDA funding. We had investments from the Walton Family
Foundation as well, bringing in some philanthropic funding as
well, but we work hand in hand with EDA on these projects.
Senator Capito. What kind of project was that?
Mr. Wiggins. It was a small business and retail incubator
in downtown Pine Bluff, Arkansas where they were revitalizing
the downtown area, old buildings, putting it back into use. It
had great community support and was able to leverage funding
through EDA and support for the Walton Family Foundation, as
well.
Senator Capito. Perfect, thank you. Next?
Ms. Clyburn Reed. At SCRC, we are just beginning to build
those partnerships with Federal agencies. The descriptor that
was just given by Dr. Wiggins sounds very much like something
that we can replicate throughout our region. There are several
buildings that are waiting for use, they are sitting empty. It
would be great if we could have those partnerships, and we are
working on leveraging that at SCRC.
Senator Capito. Great, thank you. Mr. Saunders?
Mr. Saunders. We utilize a lot of the same local partners
Senator Carper talked about, none of us really being job
creators. EDA utilizes economic development districts. We often
utilize those same organizations for our local development
districts and invest in them to take the plans they produce for
EDA to put into action.
We similarly have some projects where we co-invest in a
rural place with 5,000 people. If there is a $10 million, $20
million project, the organizers of that project are not going
to be able to use one source to get it done. They may talk to
EDA, they may talk to us. We are really cognizant of what that
agency can and cannot do.
Things that may not figure out, pencil out well when a
project comes together, say, a housing development, that is not
going to score well in an EDA application, but it is a really
dire need in many rural places. We look for the spots that they
cannot fund and try to move into those as well.
Senator Capito. Good. Mr. Sanchez?
Mr. Sanchez. We are incorporating the EDA CEDS plan into
our 5-year plans, so that we can co-invest in projects.
Additionally, the local economic development districts are
eligible to apply on behalf of distressed communities. They are
the ones who administer and follow EDA CEDS plans, so we
anticipate we will have a lot of co-investment.
Senator Capito. OK. Ms. Fenton, you mentioned one project
you are working. Do you have one EDA representative in Alaska
for your State solely?
Ms. Fenton. We are happy to work closely with our one EDA
representative in Alaska, along with our Alaska regional
development organizations, and pairing that EDA opportunity to
Denali Commission, and how can we leverage those opportunities,
either through technical assistance, or working closely with
the various applicants to really put together a fundable
project that makes sense for Alaska's economy.
Senator Capito. I know the emphasis on infrastructure,
these are expensive projects. No one funding source, unless you
are very lucky, can actually cover all this. That is the
coordination.
I will note that I heard in almost everybody's statement
that you do quite a bit of coordination with USDA Rural
Development. Then with this broadband money coming into the
States, that is going to be a really critical piece for all
your commissions. It certainly is in our State.
You have mentioned a couple of best practices. It seems
like you all kind of have compared and talked a little bit,
sometimes you do not have to reinvent the wheel, you can just
use good ideas from other commissions.
Dr. Clyburn Reed mentioned the J1, and you mentioned it
again, Mr. Saunders. Do you have any other best practices that
you would want to share right here that maybe works
particularly well for your commission? Dr. Wiggins?
Mr. Wiggins. Sure. I think one of the areas, and we have
all talked about regional capacity building. Many of our
communities we are serving in that are small, rural, part-time
mayors, part-time alder folks are leading. We have really
leaned in a lot to capacity building by working with
established partners like community development financial
institutions, university partners, other philanthropic
organizations, trying to leverage our resources, their
resources, in a way to think about while we can not write
grants, there are institutions who can work with them and
support them along the way.
Capacity building has been one of those things at the top
of the line, making sure that rural communities are not left
out of the amounts of historic Federal funding that is
available for infrastructure.
Senator Capito. Anything else anybody would like to add?
Yes, go ahead.
Ms. Clyburn Reed. One thing I wanted to add was to look at
our universities and colleges in our region. One thing that
SCRC is approaching is an HBCU convening. Thirty-eight of the
103 HBCUs in the Country are in the Southeast Crescent region.
It just makes sense for us to form that partnership and convene
them, so that we can talk about ways to benefit from SCRC.
We have had no applicants from the HBCU in our first round,
and it is just the first round. We have no applicants. We want
to make sure that is not a resource that we are leaving out.
Senator Capito. That is good. Mr. Saunders?
Mr. Saunders. These are some of the external ways we
coordinate, as you noted, very much on an internal basis. We
share ideas about grant programs and contracting. Senator
Stabenow mentioned the nominee for the Great Lakes Authority.
We have already engaged with him to talk about developing a
vision.
There is both this external work that happens as well as
internal best practices that we can share to be effective.
Senator Capito. Mr. Sanchez, did you have something?
Mr. Sanchez. I appreciate the support from the other
regional commissions who have given us a guiding light. Our
commission tries to use our authority, our flexibility, to fill
in the gaps what other agencies are not funding. An example is,
residents often bear the cost of laying down service pipes from
the main line. That is something that many Federal agencies do
not cover.
Another example is the pre-development studies. We can fund
engineering studies, archeological studies, and those happen to
be barriers for distressed communities. We are trying to fill
in in the gaps and co-invest.
Senator Capito. Thank you. Thank you, Mr. Chairman.
Senator Carper. Thank you.
Before we turn to Senator Whitehouse, I am going to come
back to you, Mr. Saunders. Who would you say is the most famous
country and western singer ever born in Pine Bluff, Arkansas?
Would you believe Johnny Cash? He is a native of Pine
Bluff, Arkansas. I was sitting here thinking, what famous
person is from there, and it is Johnny Cash. His biggest hit
song ever written by his wife, June, was ``I Fell Into a
Burning Ring of Fire.'' We want to make sure that folks across
the Country do not fall into a burning ring of fire, and if
they do that, we can pull them out.
With that, Sheldon, you are recognized. I am going to leave
for just a second but I will be back right away.
Senator Whitehouse. Mr. Chairman, you are a fountain of
rock and roll trivia.
[Laughter.]
Senator Carper. My wife says it is worthless information,
but I promoted my first concert when I was a student at Ohio
State, and I love this. I have been doing this much of my life.
If I could do anything in my life, I would play third base for
the Detroit Tigers and promote concerts. Maybe I will have a
chance to try that in about 2 months.
[Laughter.]
Senator Whitehouse. The only one who is worse than the
Chairman is Leader Schumer.
Senator Carper. Oh, yes, he is good.
Senator Whitehouse. His mind is an absolute closet of old
song lyrics. When I consider how much he has to think about
every day, the idea that he has the space for all those lyrics
is----
Senator Carper. Well, he has his priorities in the right
place.
[Laughter.]
Senator Whitehouse. Anyway, thank you for this hearing.
Commissioner Clyburn Reed, I am particularly glad you are here,
because you have attracted a legendary legislator who is here
in his role as proud papa. I too have a daughter, so I know how
wonderful the role of proud papa is. Thank you for that.
I want to thank the Ranking Member and the Chairman,
because our recent EDA reauthorization included our Southern
New England Regional Commission. Mr. Clyburn will remember well
how hard my colleague, David Cicilline, worked to try to get
this Southern New England Regional Commission across the line.
He actually once even got it into the House NDAA bill, which is
usually a sign that it is headed for passage.
One thing or another always prevented it. Now it is in the
EDA reauthorization, along with the Mid-Atlantic one, and we
are looking forward to finally getting that accomplished.
I am particularly interested in what each of your advice
would be to a Senator who has--knock wood--a brand-new regional
commission to work with. What is the best piece of advice you
could give me? What is the worst thing we should steer away
from?
Mr. Wiggins, let me start with you and just go right across
the table.
Mr. Wiggins. Senator, thank you for that question. I think
the best piece of advice is the work you are already doing now
about being present in your State and your region. I think the
most important thing for that regional commission is being able
to listen to stakeholders, whether it is Federal or local
elected officials that we are serving. Being able to provide
your thoughts and opinions over where resources need to go or
should be top of mind for whoever is leading the commission.
I think that would be my best piece of advice.
Senator Whitehouse. Thank you. Commissioner?
Ms. Clyburn Reed. Thank you for the question, Senator.
Since I have just gone through this exercise to buildup a
commission, the best advice is to get to know who it is that
you will serve. You cannot do anything for anybody without
talking to them first. We have all sat around enough meetings
and tables to come up with ideas of how to make things better
for people without talking to the actual people.
That is my advice, to ensure that you are communicating
with those communities directly, so that they are part of the
process and they feel heard.
Senator Whitehouse. Commissioner?
Mr. Saunders. Our commission was founded with the northern
forest in mind, and as I mentioned, kind of faltering forestry
industry as a call to action. If I am not mistaken, there is a
similar concern about the historic boat building industries in
southern New England and some other common themes that drove
the economy there.
We were able to unite States around an idea, either to help
reinvigorate this industry or to think about other paths
forward for the communities where that was no longer a viable
opportunity. Outdoor recreation proved to be one of those
calling cards for communities where forestry had passed them by
and was not going to be the future.
I think finding some of those common themes that ties the
region together and are easy rallying cries. Governors do not
know before a commission is set up what these organizations are
supposed to do. Finding common themes that bring them to the
table, particularly if they are going to be committing State
resources to their operation, is pretty important.
Senator Whitehouse. Ours are pretty straightforward. It is
blue economy stuff and the risks to coastal economies of sea
level rise, storm risk, insurance difficulty, all the things
that come that, frankly, we are seeing worst case scenarios
beginning to play out in Florida right now as property
insurance becomes unaffordable or unavailable.
Commissioner?
Mr. Sanchez. Thank you, Senator. My advice would be to form
partnerships. As I have been establishing this commission, I am
surprised at how excited people are in the region. I think it
is because the commission offers a lot of flexibilities and
capabilities that other Federal agencies do not, and can help
solve problems that have existed for generations. Those
partnerships will be critical, and will open up co-investment
opportunities.
Senator Whitehouse. Got it. Ms. Fenton?
Ms. Fenton. I would echo the partnerships, determine the
gaps of other programs, possibly ineligible costs. That leaves
room for innovations for our programmatic flexibility. I would
say institute technical assistance or a capacity building
programs to stand up your local development districts, lean on
the development organizations of your region.
Last, have priority lists. Put together some data. Find
priority lists to avoid grant applications. You are
streamlining administrative efficiencies and putting the
funding and the projects in the areas that need it most.
Senator Whitehouse. OK. That is all very helpful. I hope
that is advice we get to put to practical use soon when we have
our own commission. I will say that I was pleased to hear
Senator Sullivan's compliments to you and the commission,
because he and I do a lot of work in areas like ocean plastics
and international fisheries protection. He is very good to work
with on those issues.
Thank you very much.
Ms. Felton. Let's talk about the blue economy and have them
give me a call.
Senator Whitehouse. OK. Thanks, Chairman.
Senator Carper. Sheldon, thank you very much.
Maybe a question for Ms. Fenton and Ms. Clyburn Reed. The
question I would have for both of you would be----
Senator Whitehouse. Chairman, can I interrupt on an
unrelated point?
Senator Carper. Yes.
Senator Whitehouse. The curtains are open today. The room
has daylight in it. Thank you for that. I like that.
[Laughter.]
Senator Carper. I remember saying here 1 day, let there be
light. The next thing you know----
[Laughter.]
Senator Carper. All right. Ms. Fenton, Ms. Clyburn Reed,
take it away. One benefit of the regional approach is that the
assistance that you provide for communities can be tailored to
the unique challenges in each of your regions, including
challenges that are presented by various extreme weather
events. Question for both of you. Ms. Fenton, as you well know,
Alaska, like many of our States, is susceptible to any number
of natural disasters like earthquakes, tidal waves, and more.
Would you share with us how your commission helps
communities of all sizes recover from the impact of extreme
weather and other natural disasters?
Ms. Fenton. Absolutely. We attempt to address risk
mitigation through a number of processes. One is putting
together essentially a priority list, where are the communities
most impacted. That is called the statewide Threat Assessment,
and that is a partnership through the Corps of Engineers, the
University of Alaska Fairbanks, and other organizations to
characterize the risk of flooding, permafrost thaw, and
erosion, and where are the areas we need to look at first.
Then we pair that assessment with a technical assistance
arm, the Center for Environmentally Threaten Communities, that
proactively reaches out to these communities, works with them
to determine what challenges they are experiencing, and how to
create a project to address that concern, whether it is
protection in place or a managed retreat away from the threat
or a full relocation in very few circumstances.
Then we partner with our other colleagues, Federal, State
and tribal, to look at what other types of projects we can do
to help protect our communities and protect the public
investment into this infrastructure.
Senator Carper. Thanks very much.
Let's turn to Ms. Clyburn Reed. The southeast region, like
most regions of our Country, is also vulnerable to extreme
weather, including nor'easters, including hurricanes. Same
question. Would you tell us how your commission helps
communities of all sizes recover from the impacts of extreme
weather and other natural disasters?
Ms. Clyburn Reed. Thank you very much for the question.
Every State in the Southeast Crescent Region is along the
Atlantic coast. That is unique to us. We are focusing on
finding sustainable economic opportunities, reducing poverty,
fortifying the infrastructure that will eliminate
vulnerabilities to natural disasters.
We have not yet received any grants to do those things.
However, through our outreach efforts, that is what we are
going to encourage along the coastlines, those communities and
counties along the coast, to do.
We have not had the opportunity to do that just yet, but we
are definitely looking to do that, and it is in our strategic
plan to do so.
Senator Carper. All right, thanks so much.
We are joined by the only other retired Navy captain
serving in the U.S. Senate. Thank you for stopping by, and
thanks for being such a faithful member of this committee. I
understand Senator Kelly does not have a question he wants to
ask at this time, but thank you for making the time to join us
today.
Mr. Sanchez, the Southwest Border Regional Commission is, I
think, the newest commission represented here today. Is that
correct?
Mr. Sanchez. That is correct, Senator.
Senator Carper. We know that you are currently working to
establish all the processes, all the procedures necessary to
make grant awards. When do you expect to complete that process
and what challenges did you face or have you faced, you and
your team, in developing these policies?
The second half of the question is, are there changes that
Congress should consider to the grant-making process for
regional commissions that would make this process more user-
friendly or more accessible to outside stakeholders?
Mr. Sanchez. Thank you for the question, Senator. We have
been developing the processes throughout this journey since
2003. We have reached agreement on funding allocations, how we
administer our grant program, how much State administrative
fund each State has to provide. Those States have provided
funding for the commission.
We are finalizing our 5-year plan and will publish it in
November.
Senator Carper. How long have you been working on it?
Mr. Sanchez. Since we started, since June 2023. Each State
is tasked with creating their own plan. The commission as well
unifies those plans and conducts public outreach to ensure that
we are aligned with the communities' needs.
Senator Carper. OK, thank you.
Mr. Sanchez. Moving forward, we will open up our webinar in
December for our first grant competition, and we anticipate
having the competition in the first quarter of 2025. Through
this process, I think some of the challenges have been, since
the commission is new, we have to get registered into every
Federal system, whether that be grants.gov, SAM.gov, the
Treasury Department. Those systems often do not recognize the
commission because they do not have the--it takes a
conversation with those agencies to ensure them that we are a
Federal agency, that we are authorized to do this work.
In terms of grants, I think just facilitating the reporting
requirement for grantees. We have tried to do that as we
created our grant program. We have a simplified application. We
have a three-page pre-application where we screen applicants to
ensure that they qualify and meet the basic requirements, so
that we do not have folks filling out 20 pages and then being
denied. We are trying to be very straightforward with our
applicants.
Senator Carper. Thank you.
I have a question, I think maybe for the entire panel. I
would like to hear from each of you on this. Each of you were
once newly confirmed Federal co-chairs, and apparently you
probably learned a lot through your experiences in running a
commission.
What is maybe one thing that you know now in that regard
that you wish you had known on day one when you started? What
is the one thing that you know now that you wish you had known
on day one when you started? Mr. Wiggins?
Mr. Wiggins. I think one of the things coming into the door
at Delta Regional Authority, 25 years will be our anniversary
next year, coming into the door, we have had to do a lot of
internal modernization work within the agency. That was one of
the things I would point out in terms of learning and knowing.
The reason or rationale for doing this work remains the
same. Our purpose is to serve the people in our region, and to
make it easier for people to get the resources they need to
have thriving communities. While I have learned that process
and modernization in a government sense, the purpose and our
mission remains the same regardless of the work you have to do
internally. We have to deliver externally for the communities
in which we are serving.
Senator Carper. OK, thank you. Ms. Clyburn Reed?
Ms. Clyburn Reed. Being so new to the beginning, this is a
very difficult question. There are about seven things going
through my head.
Senator Carper. Pick the top six.
[Laughter.]
Ms. Clyburn Reed. What I have learned in traveling the
region and learning and doing the research about the region is
the decades of despair that I have seen. Prioritizing the wants
and needs throughout the region is difficult with 51 million
people, not wanting to let anyone down or tell anyone no,
particularly the lady who has to hold her parasol over the
stove in order to cook dinner.
As you were asking the question, I thought back to her and
the conversation that I had with her. The flexibility that we
are given does allow for some moneys to get out earlier than if
they were to apply somewhere else. However, there is still some
paperwork that is quite treacherous to get through in order to
get the money.
That is what I wish I would have known from the beginning,
is how long it would take to meet the needs of those people who
are desperately in need of help.
Senator Carper. Mr. Saunders?
Mr. Saunders. I would echo some of those sentiments. I
think we are all appointed to these positions and have a
limited amount of time to serve. There is an eagerness to move
very quickly, but a need to balance that with the speed that
government should take to make sure that it can adequately
account for all the needs of all the communities you are trying
to serve.
We have really great models with peer commissions like the
Appalachian Regional Commission that have been doing this work
for decades, and many of us I think have a hope that we can
embody the best components of that commission.
The three of us in the middle here have been authorized for
15 years and are at varying degrees of maturity. To try and
activate at a level that ARC is while still being a newer
commission requires a balance of desire to move with speed, but
also at a pace where everybody can participate.
Senator Carper. Thank you. Mr. Sanchez?
Mr. Sanchez. I would agree with my colleagues. I think what
I wish I knew was the timeline it takes to implement some of
these programs, and even to purchase a grant management
software system that is FedRAMPed and cybersecurity compliant
and will meet the needs of your customers and will be easy to
use, and will be under budget.
The process of acquiring those things takes time, more time
than I anticipated it would. Then trying not to pass on that
bureaucracy to our applicants, trying to somehow simplify our
application process I think are the challenges that I wish I
knew about a bit earlier.
Senator Carper. OK, thank you. Ms. Fenton?
Ms. Fenton. I think the commission as a whole, and myself,
we understand the challenges. We know the difficult logistics.
We know the long timeframes and schedules, the needs for
partnerships and relationships.
I guess the part that has been educational for me, and I
look forward to supporting our next Federal co-chair that comes
on board with some of the understanding of the coordination and
importance of success stories here in D.C., and the EOP-OMB
approval process and some of that official process that we are
not as familiar with on the east coast, at least myself. We
know our colleagues in Alaska, it is really some of that
outside coordination that can be mitigated, I suppose, a little
easier next time.
Senator Carper. OK, good, thank you all for responding to
that.
Earlier today, I was privileged to speak over breakfast
with a number of my colleagues. Every week or two, usually on a
Wednesday morning in the Capitol, there is a breakfast hosted
by the Senate Chaplain. It is a chance for members to share
just a bit about themselves and in some cases what their values
are, where they learned them and how do they use those values
to guide their service to our Country.
I talked today about my own parents, they were big
believers in the Golden Rule, treat other people the way you
want to be treated. My dad was a big environmentalist, a big
hunter and fisher, and my mom was usually interested in
protecting this planet, God's gift to all of us. A bunch of my
uncles and dad all served in World War II and Korea. One of my
uncles was killed in a kamikaze attack on his aircraft carrier.
My sister and I were basically instilled at a very early
age with the requirement to serve, the expectation to serve our
Country, which in some ways led me to come here. Those are a
few things I shared with my colleagues this morning over
breakfast, which I was pleased to do and I think they fell on
fertile soil. We will see.
I have a question for you, Ms. Clyburn Reed. It is not
every day that one of our witnesses actually brings along a mom
or dad out in the audience to listen in, to tune into the
hearing. I have known your dad for a long time. I served with
him in the House. He will not admit it, but it is true. Maybe
you can mention for us a lesson or two from your parents that
actually helps guide you in the work you do on the commission.
Ms. Clyburn Reed. Thank you for that question. I am honored
to have the support of the Congressman, father-Congressman,
here today and every day. I am also honored to have had a
mother who supported everything that we did, whether she agreed
with it or not. Tomorrow morning at 9:01 a.m. will be the fifth
anniversary of her death. I will be having coffee with her.
The advice that both of them have instilled in me, I think
you spoke about it already, is to do unto others as you would
have them do unto you. As I travel the 210,000-square miles of
SCRC, that is exactly what is in my head: how would I want
someone to treat me if I were in that situation? That is how I
approach the tenacity in which I try to get money out of the
door. It is difficult to do with the pace that we are held to.
That is what is in my mind. We should not be still
suffering from the 2015 historic flood. I am seeing that as I
travel. That is what is in my heart, what is in my mind, what
is in my soul. That is the way I approach this job. I thank you
for it.
Senator Carper. Well, your mom is looking down and I am
sure she is saying, that is my girl. That is great.
My mom once told my sister and me, she said, the Golden
Rule, treat other people the way you want to be treated, is in
every major religion in the world, whether you are Protestant,
Catholic, Jew, Buddhist, Hindu, it is in every one. It is
something that is in every sacred scripture, maybe something we
should pay attention to. I am pleased to hear that you reminded
us of that today.
In closing, I want to thank our witnesses for your time. We
want to thank you for your testimony today and for the
leadership that you provide. The work of our regional
commissions is so important for helping disadvantaged
communities throughout our Nation, as you have reminded us
today.
This hearing has motivated me, and I think it has motivated
members of our staff, and Senator Capito and others, to keep
working to reauthorize regional commissions and the Economic
Development Administration.
For some final housekeeping, Senators will be allowed to
submit questions for the record through the close of business
on October 2d. We are going to compile those questions. We are
going to send them out to each of our witnesses. We are going
to ask you to reply to us by October 16th.
Anything else, folks? All right.
With that, this has been a good hearing. This hearing is
adjourned. Thank you so much. God bless.
[Whereupon, at 11:34 a.m., the hearing was adjourned.]
[all]