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Public Works and Economic Development Act of 1965

The Public Works and Economic Development Act of 1965 is a federal bill that was signed into law in 1965 by President Lyndon B. Johnson with a means of revamping many dilapidated local economies in the mid-twentieth century. After a congressional finding identified "areas of the United States experiencing chronic high unemployment, underemployment, outmigration, and low per capita incomes," the Act was created to ameliorate this economic adversity through many federal and local actions. This Act includes a provision establishing the Economic Development Administration, which " is the only federal agency focused exclusively on economic development and plays a critical role in fostering regional economic development efforts in communities across the nation." Other provisions of this Act include the establishment of economic development partnerships between government agencies, expansion of the use of grants for economic development purposes, expansion of the use of grants for training and research in order to sustain future economic development, and the identification of the specific criteria an area must exhibit to receive economic development assistance from the federal government. The Act has led to improvements in the economies of many U.S. cities including Denver, Colorado; Boston, Massachusetts; Chattanooga, Tennessee; and Grand Rapids, Michigan.

Background

The United States government wanted to implement economic development legislation because there were many U.S. cities "facing sudden and severe economic dislocations," including urban riots and natural disasters. An example of these issues were major urban riots such as the Harlem Riots of 1964, which "resulted in the death of one resident, over one hundred injuries, and more than 450 arrests," and caused further damage to private business and other local economic institutions. Furthermore, the Watts Riots of 1965 "resulted in more than forty million dollars worth of property damage" in which "for several days, rioters overturned and burned automobiles and looted and damaged grocery stores, liquor stores, department stores, and pawnshops." Both of these incidents played a role in compelling the need for economic amelioration of urban areas in the United States. Concurrent with the Public Works and Economic Development Act of 1965 also includes other pieces of legislation that demonstrate President Johnson's quest "to open the gates of opportunity for the very poor people of this country." This was part of Johnson's idea of a "Great Society," which was his 1964 campaign promise in which "[Johnson] challenged Americans to build a 'Great Society' that eliminated the troubles of the poor." This legislation includes "the Civil Rights Act of 1964, the Economic Opportunity Act of 1964, the Food Stamp Act of 1964, the Elementary and Secondary Education Act of 1965, and the Social Security Amendments of 1965." The idea behind the Public Works and Economic Development Act of 1965 was that it would stimulate economic prosperity in U.S. cities to benefit the urban poor. This fit with the "slum clearance" processes of the 1950s, which facilitated the displacement of thousands of lower class groups from their urban dwellings.

Provisions

Economic Development Administration

One provision of this Act establishes the Economic Development Administration (EDA). The EDA, "which replaced the 1961 Area Redevelopment Administration, was directed to 'provide works and development facilities, other financial assistance and co-ordination needed to alleviate conditions of...economically distressed areas and regions.'" The EDA, which still exists today, is a part of the U.S. Department of Commerce and is led by Greg Brown, who is the EDA's Chief Financial Officer and Chief Administrative Officer. Currently, the EDA's "investment policy is designed to establish a foundation for sustainable job growth and the building of durable regional economies throughout the United States," and it achieves this by focusing on innovation and collaboration with these regional economies. The EDA involves itself in the economic development of contemporary cities, and it runs a variety of programs including public works, economic adjustment, planning, regional innovation strategies, trade adjustment assistance for firms, research and national technical assistance, local technical assistance, and economic development integration.

Local Partnerships with Federal Agencies

Another provision of this Act includes the "establishment of economic partnerships" between federal, state, and local entities. The Act states that " in providing assistance under this title, the Secretary [of the EDA] shall cooperate with States and other entities to ensure that, consistent with national objectives, Federal programs are compatible with and further the objectives of State, regional, and local economic development plans and comprehensive economic development strategies." This means that not only must federal entities interact and communicate with lower government entities, but they must also readily provide (1) technical assistance to state and local governments entities and (2) the opportunity for state and local government entities to review all economic projects the federal government is working with them on. Moreover, the Act maintains that "while economic development is an inherently local process, the Federal Government should work in partnership with public and private State, regional, tribal, and local organizations to maximize the impact of existing resources and enable regions, communities, and citizens to participate more fully in the American dream and national prosperity." This indicates that the Public Works and Economic Development Act of 1965 took strides to ensure that the effects of the Act would be locally focused.

Impact

The Public Works and Economic Development Act of 1965 is largely known to be successful in achieving its aim. Specifically, jobs are being created and public economic development organizations are being established in numerous localities. The areas that "have...been enjoying quite vigorous population and economic growth" are those that could be "[characterized] as 'backward' or 'distressed'" before the 1965 Act. Regions that have been particularly successful include "many parts of the South, Appalachia, the Ozarks, northern New England and the Upper Great Lakes regions," which "have since about 1970 reversed long-standing positions of population loss and economic decline." After the help of the EDA, economic development has been improving in a number of cities with formerly struggling economies. These cities include Denver, Colorado; Boston, Massachusetts; Chattanooga, Tennessee, and Grand Rapids, Michigan. The EDA also helps cities and regions devastated by natural disasters, including Puerto Rico after Hurricane Irma and Hurricane Maria, Southeast Texas after Hurricane Harvey, and Bloomsburg, Pennsylvania after Tropical Storm Lee.