[Congressional Record Volume 141, Number 33 (Wednesday, February 22, 1995)]
[Extensions of Remarks]
[Page E396]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]


                         EDI REFORM ACT OF 1995

                                 ______


                      HON. JAMES A. TRAFICANT, JR.

                                of ohio

                    in the house of representatives

                      Wednesday, February 22, 1995
  Mr. TRAFICANT. Mr. Speaker, in 1994 the U.S. Department of Housing 
and Urban Development [HUD] awarded over $319 million to depressed 
communities under the Economic Development Initiative [EDI] program. I 
urge my colleagues to support the EDI Reform Act of 1995 to ensure that 
this money does what it's supposed to do: Create jobs where they are 
most needed.
  My bill does the following: As local governments submit their 
applications to HUD in pursuit to a competitively awarded EDI grant, 
the Secretary will set aside applications that reflect a severe 
unemployment problem within the community. Should the applicants be 
otherwise qualified, they will be selected as funding levels permit. 
Should, before passage of this legislation, the EDI program be 
consolidated into a program that awards grant money based on a formula, 
as has been proposed by the administration, extent of unemployment must 
be taken into consideration.
  In either case, Mr. Speaker, severe unemployment--the root of 
hopelessness yet heretofore all but ignored--figures prominently in the 
process.
  The EDI is a wonderful program. Enacted in early 1994 as a way to 
enhance and strengthen section 108 loan guarantees, it has served to 
not only stimulate the $2 billion section 108 program, but to help 
secure repayment as well. A public entity, for example, may couple an 
EDI grant with a section 108 loan to create a large loan pool for 
businesses to tap into. Such an entity may also use the EDI grant to 
buy down its own interest rates--thus attracting businesses previously 
avoiding or fleeing depressed communities.
  Last year, cities as diverse as Indianapolis, Atlantic City and Selma 
have received anywhere between $300,000 and $450,000 to further their 
efforts to rejuvenate their proud communities and revitalize needy 
sections of town. Businesses are attracted to places like these, Mr. 
Speaker. More importantly, businesses choose to stay--thus creating 
jobs and restoring hope.
  The EDI Reform Act of 1995, therefore, will ensure that these jobs 
are created where they are most needed--in high unemployment areas. 
Now, cities such as Youngstown, OH, or Yuma, AZ, which suffer from 
unemployment rates double and triple that of the national average, will 
have a better chance at improving their communities.
  Despite the merits of the EDI Program, it now glosses over the extent 
of unemployment and, in pending proposals, all but ignores the problem. 
My bill will make this good program better.
  I urge my colleagues to support the EDI Reform Act of 1995.
  

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