“It’s called the Build Back Better Regional Challenge. It’s centered around a vision that, as our economy recovers and modernizes, as science and technologies accelerate and change the nature of how we manufacture, we want workers and small businesses leading this transition . instead of fearing that the transition will leave them behind.”
President Joe Biden
In September 2022, the Economic Development Administration (EDA) awarded under the Build Back Better Regional Challenge (BBBRC) (PDF) a total of approximately $1 billion to 21 regional coalitions across the United States. Created through the American Rescue Plan Act of 2021, the BBBRC made historic investments in regions that will transform local economies through complementary and integrated projects.
Two years into the five-year implementation period, this transformational funding is proving the extent to which targeted federal investments can fundamentally transform local economies. As of September 2024, these 21 regions have, as a result of the BBBRC, received $2.2 billion in private investment, leveraged $967 million in additional government and nonprofit funding, engaged over 11,000 businesses, helped nearly 6,500 program participants, created over 1,300 new well-paying jobs, and helped create 275 new businesses.
The novel two-phased approach utilized by the competition proved remarkably successful not only in identifying highly capable grantees, but also in opening pathways to federal funding for entities that have traditionally been intimidated by or capacity-constrained in seeking such large sums of money. The $500,000 award granted to all 60 BBBRC Phase 1 finalists provided grantees the opportunity to significantly refine their proposals and to continue programmatic work related to coalition building regardless of Phase 2 awardee status.
This process was subsequently replicated across EDA, as well as at other federal agencies, many of whom found similarly compelling federal investment opportunities in BBBRC grantees. The National Science Foundation through its Regional Innovation Engines program, for example, granted four of its ten Type 2 awards to BBBRC Phase 2 winners, an acknowledgement of the success of the model program’s processes as well as of the applicants’ abilities themselves.
This model is proving itself a best practice among economic development practitioners. EDA’s Tech Hubs and Recompete programs similarly utilized a two-phased approach and have identified strong candidates among BBBRC finalists and winners.
The BBBRC portfolio represents the diversity of the United States and the belief that, with the right resources and opportunities, all communities can compete in the economy of the future.
Unique among federal place-based economic development initiatives, the BBBRC allowed coalitions to define their own visions of revitalization so long as they centered equity, strengthened regional economic resilience, and addressed the vulnerabilities exposed by the COVID-19 pandemic.
The 21 coalitions span as many states across the country and include investments in biotechnology, advanced mobility solutions, agriculture automation, natural resource management, next-generation manufacturing, clean energy, and Indigenous finance.
Notably, each of these coalitions has embedded equity and inclusivity into all aspects of their implementation strategies, as EDA has identified these aspects of economic development as the most important factors in all of its investments. Grantees are taking serious and calculated steps to ensuring that the populations in their regions that have traditionally been excluded from economic advancement not only have opportunities to benefit from this historical funding but also have seats at the table to determine how such funding is directed.
EDA is investing in the success of all 60 finalists through the Building Better Regions Community of Practice, led by RTI International and SSTI. Through targeted and intensive working sessions, the Community of Practice is assisting the entire BBBRC portfolio in spurring innovation, accelerating equitable economic growth, and providing new avenues through which geographically distant regions can learn from one another.
Finally, to ensure that this historic investment is maximally benefitting Americans and communities across the board, EDA also provided funding for several monitoring and evaluation projects.
By ensuring that impacts of the BBBRC are well documented, analyzed, and understood, EDA is paving the way for future economic-development initiatives to build off shared successes and learn from common challenges.
See our programs resources page for historical information regarding the Build Back Better Regional Challenge.
