ABSTRACT
The Economic Development Administration (EDA) is empowered to carry out the provisions of the Public Works and Economic Development Act of 1965. This act created a variety of grants, loans, and loan guarantees designed to stimulate business activity and thus reduce substantial and persistent unemployment in economically distressed areas. EDA program typically supports such projects as railroad sidings, access roads to industrial parks, tourist facilities, and water or sewer systems, and is designed to encourage commercial and industrial development. This program provides low-interest loans to depressed areas for purposes similar to the development grants program. The EDA programs have in general been targeted effectively toward economically depressed areas. The EDA grant programs have been sharply cut back for fiscal year 1982. However, the administration is once again requesting the elimination of all EDA programs in fiscal year 1983, arguing that its general economic plan will be more effective in creating jobs than categorical grant programs.
