CHIPS Act economic-development program sees early success

On FedNewsNetwork’s Federal Drive with Tom Temin, Termin spoke with the Commerce Department’s acting director of the Economic Development Program’s Recompete Pilot Program, Rachael Sun. The recompete program, authorized by the CHIPS and Science Act, aims to revitalize economically distressed communities through investments that create jobs and address economic barriers such as workforce training, childcare, and transportation.

EDA has awarded $184 million in grants to six economically distressed communities through its Recompete Pilot Program. Sun explained that the program targets areas historically left behind, providing up to $40 million per community for projects aimed at fostering economic growth and workforce participation.

The program is now in its second phase, with the six finalists selected from 22 earlier candidates. Communities like Allentown, Pennsylvania, and Birmingham, Alabama, are receiving funds to support local initiatives. Allentown will focus on workforce training, childcare, and improving transportation access to manufacturing jobs. Birmingham is targeting neighborhoods affected by redlining, with employer commitments for over 4,000 jobs and funding for workforce training and entrepreneurship programs.