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RECOMPETE Act — S. 2464, 117th Congress, 1st Session (To require the Secretary of Commerce)

Summary

S. 2464, the Rebuilding Economies and Creating Opportunities for More People to Excel Act (the RECOMPETE Act), is a bill introduced in the Senate on July 22, 2021 by Mr. Coons. Its stated purpose is to require the Secretary of Commerce, acting through the Assistant Secretary for Economic Development, to establish a RECOMPETE grant program providing flexible, 10-year block grants for persistently distressed areas. The closing provision states that the Federal share determined for a recipient shall not be decreased by more than 10 percent compared to the preceding period or 30 percent in total, and shall be not less than 50 percent.

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“RECOMPETE Act — S. 2464, 117th Congress, 1st Session (To require the Secretary of Commerce).” Original at www.govinfo.gov. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/bills-bills-117s2464is-bills-117s2464is/, SHA-256 246b41a0eb389e1be8ac2a5efba055cc9472c19bbf9e91146646e97e5085d739.

Full text

                                                                                                                                                                          II




                                                                       117TH CONGRESS
                                                                          1ST SESSION
                                                                                                               S. 2464
                                                                       To require the Secretary of Commerce, acting through the Assistant Secretary
                                                                           for Economic Development, to establish a RECOMPETE grant program
                                                                           to provide flexible, 10-year block grants for purposes of creating quality
                                                                           jobs, providing resources to help local residents access opportunities
                                                                           and attain and retain employment, increasing local per capita income
                                                                           and employment rates, and supporting long-term, sustained economic
                                                                           growth and opportunity in persistently distressed areas, and for other
                                                                           purposes.




                                                                                   IN THE SENATE OF THE UNITED STATES
                                                                                                        JULY 22, 2021
                                                                       Mr. COONS (for himself, Mr. BENNET, Ms. KLOBUCHAR, and Ms. ROSEN) in-
                                                                           troduced the following bill; which was read twice and referred to the Com-
                                                                           mittee on Commerce, Science, and Transportation




                                                                                                                  A BILL
                                                                       To require the Secretary of Commerce, acting through the
                                                                          Assistant Secretary for Economic Development, to estab-
                                                                          lish a RECOMPETE grant program to provide flexible,
                                                                          10-year block grants for purposes of creating quality
                                                                          jobs, providing resources to help local residents access
                                                                          opportunities and attain and retain employment, increas-
                                                                          ing local per capita income and employment rates, and
                                                                          supporting long-term, sustained economic growth and op-
                                                                          portunity in persistently distressed areas, and for other




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                                                                          purposes.




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                                                                          1               Be it enacted by the Senate and House of Representa-
                                                                          2 tives of the United States of America in Congress assembled,
                                                                          3        SECTION 1. SHORT TITLE.

                                                                          4               This Act may be cited as the ‘‘Rebuilding Economies
                                                                          5 and Creating Opportunities for More People to Excel Act’’
                                                                          6 or the ‘‘RECOMPETE Act’’.
                                                                          7        SEC. 2. DEFINITIONS.

                                                                          8               In this Act:
                                                                          9                        (1) APPLICABLE AREA.—The term ‘‘applicable
                                                                       10                 area’’—
                                                                       11                                   (A) with respect to a local labor market,
                                                                       12                          local community, or partial local labor market—
                                                                       13                                           (i) means—
                                                                       14                                                    (I) the geographical area of the
                                                                       15                                           local labor market, local community,
                                                                       16                                           or partial local labor market; and
                                                                       17                                                    (II) each corresponding unit of
                                                                       18                                           local government in the geographical
                                                                       19                                           area described in subclause (I); and
                                                                       20                                           (ii) does not include any Tribal land
                                                                       21                                   in the geographical area described in
                                                                       22                                   clause (i)(I), unless the Tribal government
                                                                       23                                   with jurisdiction over the Tribal land elects
                                                                       24                                   to participate in an applicable cooperation



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                                                                       25                                   agreement under section 3(b)(2)(B); and


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                                                                          1                                (B) with respect to a Tribal government,
                                                                          2                       means the Tribal land subject to the jurisdic-
                                                                          3                       tion of the Tribal government.
                                                                          4                       (2)         APPLICANT.—The                           term           ‘‘applicant’’
                                                                          5              means—
                                                                          6                                (A) a unit of general local government,
                                                                          7                       such as a county or a county equivalent (includ-
                                                                          8                       ing a borough in the State of Alaska and a par-
                                                                          9                       ish in the State of Louisiana), city, town, vil-
                                                                       10                         lage, or other general-purpose political subdivi-
                                                                       11                         sion of a State;
                                                                       12                                  (B) the District of Columbia;
                                                                       13                                  (C) a territory or possession of the United
                                                                       14                         States;
                                                                       15                                  (D) a Tribal government;
                                                                       16                                  (E) a State-authorized political subdivision
                                                                       17                         or other entity, such as a special-purpose entity
                                                                       18                         engaged in economic development activities;
                                                                       19                                  (F) a public or private nonprofit organiza-
                                                                       20                         tion, acting in cooperation with the officials of
                                                                       21                         a political subdivision or entity described in
                                                                       22                         subparagraph (E);
                                                                       23                                  (G) an economic development district (as
                                                                       24                         defined in section 3 of the Public Works and



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                                                                          1                       Economic Development Act of 1965 (42 U.S.C.
                                                                          2                       3122)); and
                                                                          3                                (H) a consortium of units of general local
                                                                          4                       government within an applicable area.
                                                                          5                       (3) COOPERATION                         AGREEMENT.—The                  term
                                                                          6              ‘‘cooperation agreement’’ means an agreement en-
                                                                          7              tered into under section 3(b) relating to the imple-
                                                                          8              mentation of a RECOMPETE plan for an applicable
                                                                          9              area.
                                                                       10                         (4) ELIGIBLE.—The term ‘‘eligible’’ means—
                                                                       11                                  (A) with respect to a local labor market,
                                                                       12                         local community, partial local labor market, or
                                                                       13                         Tribal government, that the local labor market,
                                                                       14                         local community, partial local labor market, or
                                                                       15                         Tribal government meets the applicable distress
                                                                       16                         eligibility criteria described in section 3(a); and
                                                                       17                                  (B) with respect to an applicant or lead
                                                                       18                         entity, that the applicant or lead entity has sub-
                                                                       19                         mitted an application for a RECOMPETE
                                                                       20                         grant under section 4(a)(2) relating to a local
                                                                       21                         labor market, local community, partial local
                                                                       22                         labor market, or Tribal government described in
                                                                       23                         subparagraph (A).




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                                                                          1                       (5) LEAD              ENTITY.—The                   term ‘‘lead entity’’
                                                                          2              means an applicant designated to act as a lead enti-
                                                                          3              ty pursuant to an applicable cooperation agreement.
                                                                          4                       (6) LOCAL COMMUNITY.—
                                                                          5                                (A) IN GENERAL.—The term ‘‘local com-
                                                                          6                       munity’’ means the area served by an applicant
                                                                          7                       described in paragraph (2)(A) that—
                                                                          8                                        (i)(I) is located within a local labor
                                                                          9                                market or partial local labor market that is
                                                                       10                                  not eligible; or
                                                                       11                                          (II) is not coexistent with a local labor
                                                                       12                                  market; and
                                                                       13                                          (ii) meets such additional criteria, in-
                                                                       14                                  cluding a minimum population require-
                                                                       15                                  ment, as the Secretary may establish.
                                                                       16                                  (B) INCLUSIONS.—The term ‘‘local com-
                                                                       17                         munity’’ includes a consortium of 2 or more ap-
                                                                       18                         plicants described in subparagraph (A)—
                                                                       19                                          (i) all of which are located within the
                                                                       20                                  same local labor market; or
                                                                       21                                          (ii) each of which is directly adjacent
                                                                       22                                  to an area described in subparagraph (A).
                                                                       23                         (7) LOCAL LABOR MARKET.—The term ‘‘local
                                                                       24                labor market’’ means any of the following areas that



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                                                                          1              contains 1 or more applicants described in subpara-
                                                                          2              graphs (A) through (C) of paragraph (2):
                                                                          3                                (A) A commuting zone, as defined by the
                                                                          4                       Economic Research Service of the Department
                                                                          5                       of Agriculture.
                                                                          6                                (B) Subject to subparagraph (C), if 1 or
                                                                          7                       more discrete metropolitan statistical areas or
                                                                          8                       micropolitan statistical areas, as defined by the
                                                                          9                       Office of Management and Budget (collectively
                                                                       10                         referred to as ‘‘core-based statistical areas’’),
                                                                       11                         exist within a commuting zone described in sub-
                                                                       12                         paragraph (A), each such core-based statistical
                                                                       13                         area.
                                                                       14                                  (C) If the remaining area of a commuting
                                                                       15                         zone described in subparagraph (A), excluding
                                                                       16                         all core-based statistical areas within the com-
                                                                       17                         muting zone described in subparagraph (B),
                                                                       18                         contains 1 or fewer counties and has a popu-
                                                                       19                         lation of 7,500 or fewer residents, that remain-
                                                                       20                         ing area combined with an adjacent core-based
                                                                       21                         statistical area within the commuting zone.
                                                                       22                         (8) PARTIAL                     LOCAL         LABOR             MARKET.—The

                                                                       23                term ‘‘partial local labor market’’ means a geo-
                                                                       24                graphical area that—



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                                                                          1                                (A) is located within, but is not coextensive
                                                                          2                       with, a local labor market; and
                                                                          3                                (B) contains 1 or more applicants de-
                                                                          4                       scribed in subparagraphs (A) through (C) of
                                                                          5                       paragraph (2).
                                                                          6                       (9) PRIME-AGE.—The term ‘‘prime-age’’ means
                                                                          7              individuals between the ages of 25 years and 54
                                                                          8              years.
                                                                          9                       (10) PRIME-AGE EMPLOYMENT GAP.—
                                                                       10                                  (A) IN GENERAL.—The term ‘‘prime-age
                                                                       11                         employment gap’’, with respect to an applicable
                                                                       12                         area, means the difference (expressed as a per-
                                                                       13                         centage), calculated in accordance with sub-
                                                                       14                         paragraph (B), between—
                                                                       15                                          (i) the national 5-year average prime-
                                                                       16                                  age employment rate; and
                                                                       17                                          (ii) the 5-year average prime-age em-
                                                                       18                                  ployment rate of the applicable area.
                                                                       19                                  (B) CALCULATION.—For purposes of cal-
                                                                       20                         culating the prime-age employment gap under
                                                                       21                         subparagraph (A), an applicant shall use data
                                                                       22                         relating to the most recent 5-year period for
                                                                       23                         which data are available preceding the first date
                                                                       24                         of the application period established for the ap-



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                                                                       25                         plicant under section 4(a)(2)(B).


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                                                                          1                       (11) PRIME-AGE EMPLOYMENT RATE.—
                                                                          2                                (A) IN GENERAL.—The term ‘‘prime-age
                                                                          3                       employment rate’’, with respect to an applicable
                                                                          4                       area, means the quotient (expressed as a per-
                                                                          5                       centage), calculated in accordance with sub-
                                                                          6                       paragraph (B), obtained by dividing—
                                                                          7                                        (i) the 5-year average quantity of the
                                                                          8                                prime-age population of the applicable area
                                                                          9                                that is employed; by
                                                                       10                                          (ii) the total prime-age population of
                                                                       11                                  the applicable area.
                                                                       12                                  (B) CALCULATION.—For purposes of cal-
                                                                       13                         culating the prime-age employment rate under
                                                                       14                         subparagraph (A), an applicant shall use data
                                                                       15                         relating to the most recent 5-year period for
                                                                       16                         which data are available preceding the first date
                                                                       17                         of the application period established for the ap-
                                                                       18                         plicant under section 4(a)(2)(B).
                                                                       19                         (12) RECIPIENT.—The term ‘‘recipient’’ means,
                                                                       20                as applicable—
                                                                       21                                  (A) an applicant to which a RECOMPETE
                                                                       22                         grant is provided; or
                                                                       23                                  (B) a lead entity designated pursuant to a
                                                                       24                         cooperation agreement entered into under sec-



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                                                                          1                       tion 3(b) for an applicable area for which a RE-
                                                                          2                       COMPETE grant is provided.
                                                                          3                       (13) RECOMPETE GRANT.—The term ‘‘RE-
                                                                          4              COMPETE grant’’ means a grant provided to a re-
                                                                          5              cipient under section 4(a).
                                                                          6                       (14) RECOMPETE                              PLAN.—The               term ‘‘RE-
                                                                          7              COMPETE plan’’ means a plan developed by an ap-
                                                                          8              plicant under section 4(b).
                                                                          9                       (15)         SECRETARY.—The                          term          ‘‘Secretary’’
                                                                       10                means the Secretary of Commerce, acting through
                                                                       11                the Assistant Secretary for Economic Development.
                                                                       12                         (16) SUBRECIPIENT.—The term ‘‘subrecipient’’
                                                                       13                means an applicant located within an applicable area
                                                                       14                that—
                                                                       15                                  (A) is not a recipient; but
                                                                       16                                  (B) receives funds provided under a RE-
                                                                       17                         COMPETE grant in such manner and in such
                                                                       18                         amounts as may be agreed to in the RECOM-
                                                                       19                         PETE plan for the applicable area.
                                                                       20                         (17) TRIBAL GOVERNMENT.—The term ‘‘Tribal
                                                                       21                government’’ means the recognized governing body
                                                                       22                of any Indian or Alaska Native tribe, band, nation,
                                                                       23                pueblo, village, community, component band, or com-
                                                                       24                ponent reservation, individually identified (including



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                                                                       25                parenthetically) in the list published by the Bureau


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                                                                          1               of Indian Affairs on January 29, 2021, pursuant to
                                                                          2               section 104 of the Federally Recognized Indian
                                                                          3               Tribe List Act of 1994 (25 U.S.C. 5131).
                                                                          4                        (18) TRIBAL LAND.—The term ‘‘Tribal land’’
                                                                          5               means—
                                                                          6                                  (A) any land located within the boundaries
                                                                          7                        of an Indian reservation, pueblo, or rancheria;
                                                                          8                        and
                                                                          9                                  (B) any land not located within the bound-
                                                                       10                          aries of an Indian reservation, pueblo, or
                                                                       11                          rancheria, the title to which is held—
                                                                       12                                            (i) in trust by the United States for
                                                                       13                                    the benefit of an Indian Tribe or an indi-
                                                                       14                                    vidual Indian;
                                                                       15                                            (ii) by an Indian Tribe or an indi-
                                                                       16                                    vidual Indian, subject to restriction against
                                                                       17                                    alienation under Federal law; or
                                                                       18                                            (iii) by a dependent Indian commu-
                                                                       19                                    nity.
                                                                       20          SEC. 3. DISTRESS ELIGIBILITY CRITERIA AND COOPERA-

                                                                       21                                   TION AGREEMENTS.

                                                                       22                 (a) DISTRESS ELIGIBILITY.—
                                                                       23                          (1) CRITERIA.—To be eligible for a RECOM-
                                                                       24                 PETE grant, a local labor market, local community,



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                                                                       25                 partial local labor market, or Tribal government


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                                                                          1              shall meet the following criteria, as applicable, as de-
                                                                          2              termined by the Secretary:
                                                                          3                                (A) LOCAL                   LABOR          MARKETS.—A          local
                                                                          4                       labor market shall have a prime-age employ-
                                                                          5                       ment gap equal to not less than 2.5 percent.
                                                                          6                                (B) LOCAL COMMUNITIES.—A local com-
                                                                          7                       munity shall—
                                                                          8                                        (i) meet the applicable requirements
                                                                          9                                described in section 2(6); and
                                                                       10                                          (ii) have—
                                                                       11                                                   (I) a median household income
                                                                       12                                          equal to not more than $75,000; and
                                                                       13                                                   (II)(aa) a prime-age employment
                                                                       14                                          gap of not less than 5 percent; or
                                                                       15                                                   (bb) as determined by the Sec-
                                                                       16                                          retary, a special need arising from—
                                                                       17                                                              (AA) a recent decrease in
                                                                       18                                                   the applicable prime-age employ-
                                                                       19                                                   ment rate; or
                                                                       20                                                              (BB) another severe eco-
                                                                       21                                                   nomic disruption that is likely to
                                                                       22                                                   reduce the applicable prime-age
                                                                       23                                                   employment rate.
                                                                       24                                  (C) PARTIAL LOCAL LABOR MARKETS.—A



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                                                                       25                         partial local labor market shall—


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                                                                          1                                        (i) have a prime-age employment gap
                                                                          2                                equal to not less than 2.5 percent; and
                                                                          3                                        (ii) receive a waiver under subsection
                                                                          4                                (b)(3)(A).
                                                                          5                                (D) TRIBAL GOVERNMENTS.—
                                                                          6                                        (i) IN GENERAL.—A Tribal govern-
                                                                          7                                ment shall have a prime-age employment
                                                                          8                                gap of not less than 2.5 percent, as cal-
                                                                          9                                culated under clause (ii).
                                                                       10                                          (ii) CALCULATION.—For purposes of
                                                                       11                                  clause (i), the prime-age employment gap
                                                                       12                                  of a Tribal government shall be calculated,
                                                                       13                                  with respect to the most recent 5-year pe-
                                                                       14                                  riod for which data are available, for all in-
                                                                       15                                  dividuals residing on the Tribal land of the
                                                                       16                                  Tribal government.
                                                                       17                         (2) LIMITATIONS.—
                                                                       18                                  (A) APPLICABLE                      AREAS.—A               local labor
                                                                       19                         market, local community, partial local labor
                                                                       20                         market, or Tribal government shall not be eligi-
                                                                       21                         ble to receive more than 1 RECOMPETE
                                                                       22                         grant.
                                                                       23                                  (B) APPLICANTS.—For purposes of the
                                                                       24                         RECOMPETE grant program, an applicant



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                                                                       25                         may not be considered to be located in, or sub-


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                                                                          1                       mit an application under section 4(a)(2) on be-
                                                                          2                       half of, more than 1 eligible local labor market,
                                                                          3                       local community, partial local labor market, or
                                                                          4                       Tribal government.
                                                                          5              (b) COOPERATION AGREEMENTS.—
                                                                          6                       (1) REQUIREMENT.—
                                                                          7                                (A) IN GENERAL.—Subject to paragraph
                                                                          8                       (3), if an applicable area contains 2 or more ap-
                                                                          9                       plicants described in subparagraph (A), (B), or
                                                                       10                         (C) of section 2(2), each such applicant shall,
                                                                       11                         as a condition of receiving a RECOMPETE
                                                                       12                         grant for the applicable area—
                                                                       13                                          (i) enter into a legally binding co-
                                                                       14                                  operation agreement for the applicable
                                                                       15                                  area in accordance with subparagraph (C);
                                                                       16                                  and
                                                                       17                                          (ii) designate 1 applicant as the lead
                                                                       18                                  entity to act in a representative capacity
                                                                       19                                  for purposes of assuming overall responsi-
                                                                       20                                  bility for carrying out the programs and
                                                                       21                                  activities, and achieving compliance with
                                                                       22                                  the applicable requirements, under the RE-
                                                                       23                                  COMPETE grant.
                                                                       24                                  (B) PARTICIPATION                                              APPLI-




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                                                                                                                                                      BY          OTHER

                                                                       25                         CANTS.—An                 applicant described in subpara-


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                                                                          1                       graph (E), (F), or (G) of section 2(2) that is
                                                                          2                       located in an applicable area for which a co-
                                                                          3                       operation agreement is entered into under sub-
                                                                          4                       paragraph (A) may elect to join the cooperation
                                                                          5                       agreement, at the discretion of the applicant.
                                                                          6                                (C) TERMS.—A cooperation agreement
                                                                          7                       under this subsection shall include—
                                                                          8                                        (i) a written statement that—
                                                                          9                                                 (I) is executed by each applicant
                                                                       10                                          that is a party to the cooperation
                                                                       11                                          agreement; and
                                                                       12                                                   (II) establishes the consent of the
                                                                       13                                          applicant to be bound by the terms
                                                                       14                                          of—
                                                                       15                                                              (aa) the cooperation agree-
                                                                       16                                                   ment; and
                                                                       17                                                              (bb) the RECOMPETE plan
                                                                       18                                                   for the applicable area; and
                                                                       19                                          (ii) a process for redress of any ac-
                                                                       20                                  tion, or failure to act, by the lead entity
                                                                       21                                  that is detrimental to an applicant.
                                                                       22                                  (D) LIMITATION.—An applicable area may
                                                                       23                         be the subject of only 1 cooperation agreement.
                                                                       24                         (2) ELECTION BY LOCAL COMMUNITIES AND



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                                                                       25                TRIBAL GOVERNMENTS.—



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                                                                          1                                (A) LOCAL COMMUNITIES.—
                                                                          2                                        (i) IN GENERAL.—A local community
                                                                          3                                may enter into a cooperation agreement
                                                                          4                                described in paragraph (1) with any other
                                                                          5                                local communities located within the same
                                                                          6                                local labor market, subject to the condition
                                                                          7                                that 1 or more of those local communities
                                                                          8                                shall be an eligible local community.
                                                                          9                                        (ii) PARTIES.—A cooperation agree-
                                                                       10                                  ment under clause (i) may be executed be-
                                                                       11                                  tween or among—
                                                                       12                                                   (I) an eligible local community;
                                                                       13                                          and
                                                                       14                                                   (II) 1 or more—
                                                                       15                                                              (aa) other eligible local com-
                                                                       16                                                   munities, or applicants within an
                                                                       17                                                   eligible local community, located
                                                                       18                                                   within the same local labor mar-
                                                                       19                                                   ket; or
                                                                       20                                                              (bb) applicants that are not
                                                                       21                                                   located within an eligible local
                                                                       22                                                   community, but are located with-
                                                                       23                                                   in the same local labor market as
                                                                       24                                                   an eligible local community.



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                                                                          1                                        (iii) ADDITIONAL AMOUNTS.—On exe-
                                                                          2                                cution of a cooperation agreement under
                                                                          3                                this subparagraph involving 1 or more ap-
                                                                          4                                plicants described in clause (ii)(II)(bb), the
                                                                          5                                Secretary may award additional amounts
                                                                          6                                in accordance with subsection (c)(6) of sec-
                                                                          7                                tion 6, subject to the applicable cost-shar-
                                                                          8                                ing requirements of subsection (e)(2) of
                                                                          9                                that section.
                                                                       10                                  (B) TRIBAL GOVERNMENTS.—
                                                                       11                                          (i)       IN        GENERAL.—Regardless                of
                                                                       12                                  whether the Tribal government is eligible,
                                                                       13                                  subject to clause (ii), a Tribal government
                                                                       14                                  may elect to enter into a cooperation
                                                                       15                                  agreement described in paragraph (1) with
                                                                       16                                  1 or more applicants from an eligible local
                                                                       17                                  labor market, local community, or partial
                                                                       18                                  local labor market that is adjacent to the
                                                                       19                                  Tribal land of the Tribal government.
                                                                       20                                          (ii) DEADLINE.—An election by a
                                                                       21                                  Tribal government under clause (i) shall be
                                                                       22                                  made by not later than 45 days after the
                                                                       23                                  first date of the application period estab-
                                                                       24                                  lished for the Tribal government under



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                                                                       25                                  section 4(a)(2)(B).


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                                                                          1                                        (iii) TREATMENT.—If a Tribal gov-
                                                                          2                                ernment elects to enter into a cooperation
                                                                          3                                agreement under clause (i)—
                                                                          4                                                 (I) the Tribal land of the Tribal
                                                                          5                                        government shall be—
                                                                          6                                                            (aa) considered to be in-
                                                                          7                                                 cluded in the applicable area of
                                                                          8                                                 the eligible local labor market,
                                                                          9                                                 local community, or partial local
                                                                       10                                                   labor market that is the subject
                                                                       11                                                   of the cooperation agreement;
                                                                       12                                                   and
                                                                       13                                                              (bb) subject to the RECOM-
                                                                       14                                                   PETE plan for the applicable
                                                                       15                                                   area described in item (aa); and
                                                                       16                                                   (II) the amount of the RECOM-
                                                                       17                                          PETE grant to which the Tribal gov-
                                                                       18                                          ernment is otherwise eligible to re-
                                                                       19                                          ceive, if applicable—
                                                                       20                                                              (aa) shall not be decreased;
                                                                       21                                                   and
                                                                       22                                                              (bb) shall be added to the
                                                                       23                                                   amount provided to the applica-
                                                                       24                                                   ble lead entity for use in accord-



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                                                                          1                                                 ance with the RECOMPETE
                                                                          2                                                 plan.
                                                                          3                                        (iv) ENCOURAGEMENT TO COLLABO-
                                                                          4                                RATE.—To                the maximum extent prac-
                                                                          5                                ticable, the Secretary shall encourage Trib-
                                                                          6                                al governments to enter into cooperation
                                                                          7                                agreements described in clause (i).
                                                                          8                                        (v) EFFECT                   OF       SUBPARAGRAPH.—

                                                                          9                                Nothing in this subparagraph—
                                                                       10                                                   (I) requires a Tribal government
                                                                       11                                          to enter into a cooperation agreement
                                                                       12                                          in order to receive a RECOMPETE
                                                                       13                                          grant;
                                                                       14                                                   (II) penalizes a Tribal govern-
                                                                       15                                          ment that does not elect to participate
                                                                       16                                          in a cooperation agreement; or
                                                                       17                                                   (III)             otherwise             affects   the
                                                                       18                                          amount of a RECOMPETE grant to
                                                                       19                                          be provided to any Tribal government.
                                                                       20                         (3) WAIVERS.—
                                                                       21                                  (A) IN           GENERAL.—The                          Secretary may
                                                                       22                         waive the requirement under paragraph (1)
                                                                       23                         with respect to an applicant acting on behalf of
                                                                       24                         a partial local labor market that—



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                                                                          1                                        (i) meets the criterion described in
                                                                          2                                subsection (a)(1)(C)(i);
                                                                          3                                        (ii) is located within an eligible local
                                                                          4                                labor market with respect to which a co-
                                                                          5                                operation agreement is unable to be exe-
                                                                          6                                cuted under paragraph (1), despite reason-
                                                                          7                                able efforts; and
                                                                          8                                        (iii) submits to the Secretary a re-
                                                                          9                                quest for a waiver under this paragraph
                                                                       10                                  demonstrating the ability to carry out the
                                                                       11                                  programs and activities, and achieve com-
                                                                       12                                  pliance with the applicable requirements,
                                                                       13                                  under sections 4 and 5 in the applicable
                                                                       14                                  area.
                                                                       15                                  (B) EFFECT.—On receipt of a waiver
                                                                       16                         under subparagraph (A), a partial local labor
                                                                       17                         market—
                                                                       18                                          (i) shall be eligible to receive a RE-
                                                                       19                                  COMPETE grant; and
                                                                       20                                          (ii) may elect to carry out the pro-
                                                                       21                                  grams and activities, and achieve compli-
                                                                       22                                  ance with the applicable requirements, in
                                                                       23                                  the applicable area under the RECOM-
                                                                       24                                  PETE grant—



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                                                                       25                                                   (I) independently; or


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                                                                          1                                                 (II) by designating from among
                                                                          2                                        applicants located within the applica-
                                                                          3                                        ble area a lead entity pursuant to a
                                                                          4                                        cooperation agreement described in
                                                                          5                                        paragraph (1), which shall submit to
                                                                          6                                        the Secretary a written notice in ac-
                                                                          7                                        cordance with paragraph (4).
                                                                          8                       (4) SUBMISSION TO SECRETARY.—On execution
                                                                          9              of a cooperation agreement under paragraph (1),
                                                                       10                (2), or (3)(B)(ii)(II), the lead entity shall submit to
                                                                       11                the Secretary a written notice that—
                                                                       12                                  (A) describes—
                                                                       13                                          (i) the cooperation agreement;
                                                                       14                                          (ii) the date of execution of the co-
                                                                       15                                  operation agreement;
                                                                       16                                          (iii) the authorization of the lead enti-
                                                                       17                                  ty under the cooperation agreement; and
                                                                       18                                          (iv) the formation of a consortium de-
                                                                       19                                  scribed in section 2(2)(H) under the co-
                                                                       20                                  operation agreement, if applicable; and
                                                                       21                                  (B) includes—
                                                                       22                                          (i) a copy of each written statement
                                                                       23                                  under paragraph (1)(C)(i) relating to the
                                                                       24                                  cooperation agreement; and



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                                                                          1                                        (ii) any necessary certifications or
                                                                          2                                other documentation relating to the co-
                                                                          3                                operation agreement.
                                                                          4        SEC. 4. RECOMPETE GRANT PROGRAM.

                                                                          5              (a) ESTABLISHMENT.—
                                                                          6                       (1) IN GENERAL.—The Secretary shall establish
                                                                          7              a formula grant program under which the Secretary
                                                                          8              shall provide to eligible applicants and lead entities
                                                                          9              block grants, to be known as ‘‘RECOMPETE
                                                                       10                grants’’, to carry out programs and activities in the
                                                                       11                applicable areas served by the applicants and lead
                                                                       12                entities that—
                                                                       13                                  (A) create quality jobs;
                                                                       14                                  (B) provide resources to help local resi-
                                                                       15                         dents—
                                                                       16                                          (i) access opportunities; and
                                                                       17                                          (ii) attain and retain employment;
                                                                       18                                  (C) increase local per capita income and
                                                                       19                         prime-age employment rates; and
                                                                       20                                  (D) support long-term, sustained economic
                                                                       21                         growth and opportunity in persistently dis-
                                                                       22                         tressed areas.
                                                                       23                         (2) APPLICATIONS.—
                                                                       24                                  (A) IN GENERAL.—To be considered for



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                                                                          1                       gible applicant or lead entity shall submit to the
                                                                          2                       Secretary an application—
                                                                          3                                        (i) at such time, in such manner, and
                                                                          4                                containing such information as the Sec-
                                                                          5                                retary determines to be appropriate; and
                                                                          6                                        (ii) that includes a RECOMPETE
                                                                          7                                plan for the applicable area served by the
                                                                          8                                applicant or lead entity, in accordance with
                                                                          9                                subsection (b).
                                                                       10                                  (B) APPLICATION WINDOWS.—In carrying
                                                                       11                         out the RECOMPETE grant program, the Sec-
                                                                       12                         retary shall establish the periods during which
                                                                       13                         applications may be submitted under subpara-
                                                                       14                         graph (A), subject to the conditions that—
                                                                       15                                          (i) the initial application period estab-
                                                                       16                                  lished under this subparagraph shall be not
                                                                       17                                  less than 3 years; and
                                                                       18                                          (ii) for the second application period
                                                                       19                                  under this subparagraph and each period
                                                                       20                                  thereafter, the Secretary may, as the Sec-
                                                                       21                                  retary determines to be appropriate—
                                                                       22                                                   (I) extend the period;
                                                                       23                                                   (II) accept late applications;
                                                                       24                                                   (III) initiate a new application



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                                                                       25                                          cycle; and


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                                                                          1                                                 (IV) establish additional rules
                                                                          2                                        and regulations under this subsection.
                                                                          3                                (C) LIMITATIONS.—
                                                                          4                                        (i) IN GENERAL.—Subject to clause
                                                                          5                                (ii), the Secretary may establish a limita-
                                                                          6                                tion on—
                                                                          7                                                 (I) the number of applications to
                                                                          8                                        be accepted by the Secretary during
                                                                          9                                        each fiscal year from each type of ap-
                                                                       10                                          plicant; and
                                                                       11                                                   (II) the total amount of each
                                                                       12                                          RECOMPETE grant payment pro-
                                                                       13                                          vided for each fiscal year.
                                                                       14                                          (ii) REQUIREMENTS.—In establishing
                                                                       15                                  any limitation under clause (i), the Sec-
                                                                       16                                  retary shall ensure that—
                                                                       17                                                   (I) each applicant and lead entity
                                                                       18                                          that submits to the Secretary an ap-
                                                                       19                                          plication satisfactory to the Secretary
                                                                       20                                          for an application period established
                                                                       21                                          under subparagraph (B) shall be con-
                                                                       22                                          sidered for receipt of a RECOMPETE
                                                                       23                                          grant during that application period;
                                                                       24                                          and



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                                                                       25                                                   (II) the Secretary is able—


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                                                                          1                                                            (aa) to review applications
                                                                          2                                                 and provide technical assistance
                                                                          3                                                 and expertise to applicants in the
                                                                          4                                                 development and implementation
                                                                          5                                                 of RECOMPETE plans; and
                                                                          6                                                            (bb) to conduct benchmark
                                                                          7                                                 evaluations and meet applicable
                                                                          8                                                 reporting requirements in accord-
                                                                          9                                                 ance with section 5.
                                                                       10                                  (D) PRIORITY.—In selecting recipients of
                                                                       11                         RECOMPETE grants, the Secretary shall give
                                                                       12                         priority consideration to severely distressed, eli-
                                                                       13                         gible—
                                                                       14                                          (i) local labor markets; and
                                                                       15                                          (ii) Tribal governments.
                                                                       16                                  (E) APPROVAL.—The Secretary shall ap-
                                                                       17                         prove or disapprove each application submitted
                                                                       18                         under this paragraph (including the RECOM-
                                                                       19                         PETE plan included in the application) as soon
                                                                       20                         as practicable after the date of receipt of the
                                                                       21                         application.
                                                                       22                         (3) TERM.—A RECOMPETE grant shall—
                                                                       23                                  (A) have a term of 10 fiscal years; and
                                                                       24                                  (B) be disbursed over that term in accord-



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                                                                          1              (b) RECOMPETE PLANS.—
                                                                          2                       (1) IN GENERAL.—As a condition of receipt of
                                                                          3              a RECOMPETE grant, the application of an appli-
                                                                          4              cant or lead entity under subsection (a)(2) shall in-
                                                                          5              clude a RECOMPETE plan for the applicable area
                                                                          6              served by the applicant or lead entity in accordance
                                                                          7              with this subsection.
                                                                          8                       (2) REQUIREMENTS.—A RECOMPETE plan
                                                                          9              shall include the following information with respect
                                                                       10                to the applicable area:
                                                                       11                                  (A) An identification of—
                                                                       12                                          (i) each economic development chal-
                                                                       13                                  lenge proposed to be addressed using a
                                                                       14                                  RECOMPETE grant; and
                                                                       15                                          (ii) any past, present, or projected fu-
                                                                       16                                  ture economic development investments in
                                                                       17                                  the applicable area, including, with respect
                                                                       18                                  to the investment—
                                                                       19                                                   (I) each public and private par-
                                                                       20                                          ticipant; and
                                                                       21                                                   (II) each source of funding.
                                                                       22                                  (B) A comprehensive strategy, for the 10-
                                                                       23                         year period beginning on the proposed date of
                                                                       24                         receipt of a RECOMPETE grant, to address



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                                                                       25                         the economic challenges identified under sub-


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                                                                          1                       paragraph (A)(i), in accordance with subsection
                                                                          2                       (d), in a manner that—
                                                                          3                                        (i) promotes long-term, sustained eco-
                                                                          4                                nomic growth, opportunity, job creation,
                                                                          5                                employment, and increased per capita in-
                                                                          6                                come;
                                                                          7                                        (ii) reduces the prime-age employment
                                                                          8                                gap of the applicable area;
                                                                          9                                        (iii) creates jobs and connects local
                                                                       10                                  workers to employment and other economic
                                                                       11                                  opportunities;
                                                                       12                                          (iv) maximizes the effective develop-
                                                                       13                                  ment and use of the local workforce; and
                                                                       14                                          (v) provides accessible resources to
                                                                       15                                  support job attainment and retention.
                                                                       16                                  (C) The total projected cost to carry out
                                                                       17                         the RECOMPETE plan.
                                                                       18                                  (D) The total amount of the RECOM-
                                                                       19                         PETE grant requested, and the justification for
                                                                       20                         that amount.
                                                                       21                                  (E) The roles and responsibilities of each
                                                                       22                         recipient and subrecipient carrying out an activ-
                                                                       23                         ity under the RECOMPETE plan.




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                                                                          1                                (F) The proposed allocation by the recipi-
                                                                          2                       ent to subrecipients of any RECOMPETE
                                                                          3                       grant amounts.
                                                                          4                                (G) An identification of certain benchmark
                                                                          5                       criteria for use in benchmark evaluations under
                                                                          6                       section 5(a), including reducing the prime-age
                                                                          7                       employment gap of the applicable area by cer-
                                                                          8                       tain percentages at periodic intervals, with the
                                                                          9                       goals of—
                                                                       10                                          (i) reducing the prime-age employ-
                                                                       11                                  ment gap by not less than 50 percent on
                                                                       12                                  completion of the term of the RECOM-
                                                                       13                                  PETE grant provided to the recipient; and
                                                                       14                                          (ii) achieving compliance with such
                                                                       15                                  other criteria as the Secretary may estab-
                                                                       16                                  lish.
                                                                       17                         (3) OPTIONAL INCLUSIONS.—A RECOMPETE
                                                                       18                plan may include strategies—
                                                                       19                                  (A) to address inequality in the applicable
                                                                       20                         area, such as inequality with respect to income,
                                                                       21                         opportunity, or employment on the basis of
                                                                       22                         race, gender, religion, or sexual orientation;
                                                                       23                                  (B) to support business development and
                                                                       24                         entrepreneurship; and



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                                                                          1                                (C) to support innovation and businesses,
                                                                          2                       job creation, and workforce development in in-
                                                                          3                       dustries expected to continue or increase in
                                                                          4                       force in the applicable area.
                                                                          5                       (4) CONSENT OF PARTIES TO COOPERATION
                                                                          6              AGREEMENT.—If an applicable area is subject to a

                                                                          7              cooperation agreement under section 3(b), the RE-
                                                                          8              COMPETE plan for the applicable area shall be—
                                                                          9                                (A) developed in accordance with that co-
                                                                       10                         operation agreement; and
                                                                       11                                  (B) consented to by each applicant that is
                                                                       12                         a party to the cooperation agreement.
                                                                       13                         (5) INTEGRATION WITH COMPREHENSIVE ECO-
                                                                       14                NOMIC DEVELOPMENT STRATEGY.—If an applicable

                                                                       15                area is subject to a comprehensive economic develop-
                                                                       16                ment strategy approved by the Secretary under sec-
                                                                       17                tion 302 of the Public Works and Economic Devel-
                                                                       18                opment Act of 1965 (42 U.S.C. 3162), the RECOM-
                                                                       19                PETE plan for the applicable area—
                                                                       20                                  (A) shall be integrated with that strategy,
                                                                       21                         to the maximum extent practicable; and
                                                                       22                                  (B) may be developed and included as a
                                                                       23                         supplemental portion of that strategy, rather
                                                                       24                         than as an independent plan.



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                                                                          1                       (6) APPROVAL BY SECRETARY.—The Secretary
                                                                          2              shall approve a RECOMPETE plan that the Sec-
                                                                          3              retary determines meets the applicable requirements
                                                                          4              of this subsection.
                                                                          5              (c) PLANNING AND TECHNICAL ASSISTANCE.—
                                                                          6                       (1) PLANNING ASSISTANCE.—
                                                                          7                                (A) IN GENERAL.—For purposes of assist-
                                                                          8                       ing a recipient in developing a RECOMPETE
                                                                          9                       plan, the Secretary may make an advance pay-
                                                                       10                         ment of a RECOMPETE grant in accordance
                                                                       11                         with subparagraph (B), if the Secretary deter-
                                                                       12                         mines that—
                                                                       13                                          (i) the recipient requires such an ad-
                                                                       14                                  vance; and
                                                                       15                                          (ii) the advance will be used—
                                                                       16                                                   (I) effectively; and
                                                                       17                                                   (II) for planning purposes.
                                                                       18                                  (B) MAXIMUM AMOUNT.—The amount of
                                                                       19                         an advance payment under subparagraph (A)
                                                                       20                         shall be equal to not more than the lesser of—
                                                                       21                                          (i) an amount equal to 5 percent of
                                                                       22                                  the         maximum                  RECOMPETE                 grant
                                                                       23                                  amount to be provided to the applicable re-
                                                                       24                                  cipient; and



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                                                                       25                                          (ii) $300,000.


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                                                                          1                                (C) NO COST SHARE.—An advance pay-
                                                                          2                       ment made under this paragraph shall not be
                                                                          3                       subject to any cost-sharing requirement.
                                                                          4                       (2) TECHNICAL                     ASSISTANCE.—The                       Secretary
                                                                          5              shall provide technical assistance, if necessary, in
                                                                          6              each applicable area relating to—
                                                                          7                                (A) the development of a RECOMPETE
                                                                          8                       plan that meets the applicable requirements of
                                                                          9                       this subsection with respect to the applicable
                                                                       10                         area; and
                                                                       11                                  (B) implementation of the programs and
                                                                       12                         activities included in the RECOMPETE plan
                                                                       13                         for the applicable area.
                                                                       14                (d) USE OF FUNDS.—
                                                                       15                         (1) IN GENERAL.—Subject to paragraphs (2)
                                                                       16                and (3), a recipient or subrecipient may use a RE-
                                                                       17                COMPETE grant to carry out programs and activi-
                                                                       18                ties in the applicable area, in accordance with the
                                                                       19                RECOMPETE plan, including—
                                                                       20                                  (A) the provision of business advice and
                                                                       21                         assistance to small and medium-sized local busi-
                                                                       22                         nesses and entrepreneurs, including—
                                                                       23                                          (i) manufacturing extension services;
                                                                       24                                          (ii) small business development cen-



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                                                                       25                                  ters;


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                                                                          1                                        (iii) centers to help businesses bid for
                                                                          2                                Federal procurement contracts;
                                                                          3                                        (iv) entrepreneurial assistance pro-
                                                                          4                                grams that link entrepreneurs with avail-
                                                                          5                                able public and private resources;
                                                                          6                                        (v) legal advice and resources; and
                                                                          7                                        (vi) assistance in accessing capital;
                                                                          8                                (B) land and site development programs,
                                                                          9                       such as brownfield redevelopment, research and
                                                                       10                         technology parks, business incubators, business
                                                                       11                         corridor development, and Main Street redevel-
                                                                       12                         opment programs;
                                                                       13                                  (C) infrastructure and housing activities
                                                                       14                         that are directly related to supporting job cre-
                                                                       15                         ation and employment for residents, such as—
                                                                       16                                          (i) improvements to transit, roads,
                                                                       17                                  and broadband access;
                                                                       18                                          (ii) affordable housing development;
                                                                       19                                          (iii) land-use and zoning reforms; and
                                                                       20                                          (iv) transit-oriented development ac-
                                                                       21                                  tivities;
                                                                       22                                  (D) job training oriented to local employer
                                                                       23                         needs, such as customized job training pro-
                                                                       24                         grams carried out by local community colleges



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                                                                       25                         in partnership with local businesses;


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                                                                          1                                (E) workforce outreach programs, such
                                                                          2                       as—
                                                                          3                                        (i) programs located in, and targeted
                                                                          4                                to, lower-income and underemployed neigh-
                                                                          5                                borhoods; and
                                                                          6                                        (ii) embedding job placement and
                                                                          7                                training services in neighborhood institu-
                                                                          8                                tions such as churches, housing projects,
                                                                          9                                and community advocacy programs;
                                                                       10                                  (F) job retention programs and activities,
                                                                       11                         such as the provision of—
                                                                       12                                          (i) job coaches, including at locations
                                                                       13                                  of employment;
                                                                       14                                          (ii) child care services, including sub-
                                                                       15                                  sidizing the construction, operation, main-
                                                                       16                                  tenance, and labor costs of child care cen-
                                                                       17                                  ters; and
                                                                       18                                          (iii) transportation support, such as
                                                                       19                                  support for vehicle repairs to assist in the
                                                                       20                                  transit of workers to jobs; and
                                                                       21                                  (G) such other programs and activities as
                                                                       22                         the Secretary determines to be appropriate, in-
                                                                       23                         cluding any proposed programs or activities
                                                                       24                         that the recipient demonstrates clearly and sub-



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                                                                       25                         stantially, to the satisfaction of the Secretary,


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                                                                          1                       will directly advance the goals of the RECOM-
                                                                          2                       PETE grant program.
                                                                          3                       (2) METHOD.—In carrying out programs and
                                                                          4              activities described in paragraph (1), a recipient or
                                                                          5              subrecipient may—
                                                                          6                                (A) use amounts provided under a RE-
                                                                          7                       COMPETE grant to carry out such a program
                                                                          8                       or activity directly; or
                                                                          9                                (B) enter into a contract or other agree-
                                                                       10                         ment with a subcontractor or vendor (including
                                                                       11                         nongovernmental, nonprofit organizations and
                                                                       12                         for-profit entities) to carry out such a program
                                                                       13                         or activity.
                                                                       14                         (3) OUTSIDE PROGRAMS AND ACTIVITIES.—A
                                                                       15                recipient acting on behalf of an eligible local commu-
                                                                       16                nity that enters into a cooperation agreement under
                                                                       17                section 3(b)(2)(A)(ii)(II) with a local community
                                                                       18                that is not eligible, but is located within the same
                                                                       19                local labor market, may use amounts provided under
                                                                       20                a RECOMPETE grant to carry out a program or
                                                                       21                activity described in paragraph (1) in the ineligible
                                                                       22                local community, if the program or activity would
                                                                       23                provide a benefit to residents of the eligible local
                                                                       24                community.



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                                                                       25                (e) REGIONAL COMMISSIONS.—


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                                                                          1                       (1) DEFINITION OF REGIONAL COMMISSION.—
                                                                          2              In this subsection, the term ‘‘Regional Commission’’
                                                                          3              means—
                                                                          4                                (A) any of the Regional Commissions (as
                                                                          5                       defined in section 3 of the Public Works and
                                                                          6                       Economic Development Act of 1965 (42 U.S.C.
                                                                          7                       3122));
                                                                          8                                (B) the Northern Border Regional Com-
                                                                          9                       mission;
                                                                       10                                  (C) the Southeast Crescent Regional Com-
                                                                       11                         mission;
                                                                       12                                  (D) the Southwest Border Regional Com-
                                                                       13                         mission; and
                                                                       14                                  (E) any other regional commission estab-
                                                                       15                         lished under Federal law, subject to the ap-
                                                                       16                         proval of the Secretary.
                                                                       17                         (2) TECHNICAL ASSISTANCE AND SUPPORT.—If
                                                                       18                an applicant (or any portion of the service area of
                                                                       19                an applicant) is located in a region covered by a Re-
                                                                       20                gional Commission, the Regional Commission is en-
                                                                       21                couraged to provide technical assistance and other
                                                                       22                support relating to applying for a RECOMPETE
                                                                       23                grant and developing and carrying out a RECOM-
                                                                       24                PETE plan to—



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                                                                       25                                  (A) the applicant;


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                                                                          1                                 (B) the lead entity, if applicable; and
                                                                          2                                 (C) any other relevant entities.
                                                                          3                        (3) ACTION                BY SECRETARY.—The                             Secretary
                                                                          4               shall—
                                                                          5                                 (A) encourage each recipient to coordinate
                                                                          6                        the implementation of a RECOMPETE plan
                                                                          7                        with the activities of each Regional Commission
                                                                          8                        serving the region in which the applicable area
                                                                          9                        is located; and
                                                                       10                                   (B) ensure that a copy of the RECOM-
                                                                       11                          PETE plan for each applicable area is provided
                                                                       12                          to each affected Regional Commission.
                                                                       13          SEC. 5. ADMINISTRATION, REPORTING, AND OVERSIGHT.

                                                                       14                 (a) BENCHMARK EVALUATIONS.—
                                                                       15                          (1) IN GENERAL.—The Secretary shall establish
                                                                       16                 a process under which the Secretary shall conduct
                                                                       17                 periodic benchmark evaluations of each recipient to
                                                                       18                 ensure that the recipient successfully carries out the
                                                                       19                 programs and activities described in the RECOM-
                                                                       20                 PETE plan of the recipient.
                                                                       21                          (2) TIMING.—The Secretary shall conduct a
                                                                       22                 benchmark evaluation of a recipient under this sub-
                                                                       23                 section—
                                                                       24                                   (A) for a recipient of a RECOMPETE



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                                                                       25                          grant provided during the initial application pe-


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                                                                          1                       riod under section 4(a)(2)(B)(i), by not later
                                                                          2                       than 3 years after the date of the initial award
                                                                          3                       of the RECOMPETE grant; and
                                                                          4                                (B) not less frequently than once every 2
                                                                          5                       years thereafter during the term of the RE-
                                                                          6                       COMPETE grant provided to the recipient.
                                                                          7                       (3) CRITERIA.—In conducting a benchmark
                                                                          8              evaluation of a recipient under this subsection, the
                                                                          9              Secretary shall determine whether the recipient
                                                                       10                has—
                                                                       11                                  (A) adhered to the timelines and require-
                                                                       12                         ments of the programs and activities identified
                                                                       13                         in the RECOMPETE plan of the recipient;
                                                                       14                                  (B)         made            sufficient          progress       toward
                                                                       15                         achieving the benchmarks and objectives de-
                                                                       16                         scribed in that RECOMPETE plan;
                                                                       17                                  (C) increased the overall employment rate,
                                                                       18                         the prime-age employment rate, median house-
                                                                       19                         hold income, and per capita income in the ap-
                                                                       20                         plicable area; and
                                                                       21                                  (D) achieved compliance with such other
                                                                       22                         criteria as the Secretary determines to be rel-
                                                                       23                         evant.
                                                                       24                (b) MODIFICATION OF PLANS.—



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                                                                          1                       (1) REQUIREMENT FOR RECIPIENTS.—A recipi-
                                                                          2              ent shall modify the RECOMPETE plan of the re-
                                                                          3              cipient, or any program or activity conducted under
                                                                          4              that RECOMPETE plan, if the Secretary—
                                                                          5                                (A) determines that—
                                                                          6                                        (i) such a program or activity is inef-
                                                                          7                                fective or underperforming; or
                                                                          8                                        (ii) with respect to the RECOMPETE
                                                                          9                                plan, program, or activity—
                                                                       10                                                   (I) an applicable performance
                                                                       11                                          metric or criterion has not been met;
                                                                       12                                          or
                                                                       13                                                   (II) funds have been misused;
                                                                       14                                          and
                                                                       15                                  (B) directs the recipient to modify the RE-
                                                                       16                         COMPETE plan, program, or activity.
                                                                       17                         (2) AUTHORITY OF SECRETARY.—
                                                                       18                                  (A) ADJUSTMENTS                          AND           INCREASES   IN

                                                                       19                         FUNDING.—The                     Secretary may increase the
                                                                       20                         amount of the RECOMPETE grant provided to
                                                                       21                         the recipient as the Secretary determines to be
                                                                       22                         appropriate, taking into consideration any
                                                                       23                         modifications made to the RECOMPETE plan
                                                                       24                         under paragraph (1), in an amount equal to not



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                                                                       25                         more than the maximum amount available on


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                                                                          1                       the date of approval of the RECOMPETE
                                                                          2                       grant application for the applicable area and
                                                                          3                       subject to the availability of funds, if the Sec-
                                                                          4                       retary determines that—
                                                                          5                                        (i) events or other factors beyond the
                                                                          6                                control of the recipient significantly—
                                                                          7                                                 (I) altered applicable project cir-
                                                                          8                                        cumstances; or
                                                                          9                                                 (II) prevented the recipient from
                                                                       10                                          meeting the objectives and bench-
                                                                       11                                          marks of the RECOMPETE plan; or
                                                                       12                                          (ii) a labor market, economic, busi-
                                                                       13                                  ness, or technology shift, or any other
                                                                       14                                  major factor, warrants such a modification
                                                                       15                                  and increase in funding.
                                                                       16                                  (B) WITHHOLDING                            AND         TERMINATING

                                                                       17                         FUNDING.—The                      Secretary             may         temporarily
                                                                       18                         withhold or terminate any amount scheduled to
                                                                       19                         be provided under a RECOMPETE grant if the
                                                                       20                         Secretary determines that—
                                                                       21                                          (i) after a reasonable effort, an agree-
                                                                       22                                  ment cannot be reached with respect to a
                                                                       23                                  modification to a RECOMPETE plan rec-
                                                                       24                                  ommended or required by the Secretary



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                                                                       25                                  under this subsection; or


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                                                                          1                                        (ii)(I) a gross, intentional misuse of
                                                                          2                                RECOMPETE grant funds (including any
                                                                          3                                activity subject to a penalty under section
                                                                          4                                605 of the Public Works and Economic
                                                                          5                                Development Act of 1965 (42 U.S.C.
                                                                          6                                3215)) has occurred; and
                                                                          7                                        (II) the individual or entity respon-
                                                                          8                                sible for the misuse is not removed from all
                                                                          9                                programs and activities carried out under
                                                                       10                                  the RECOMPETE plan.
                                                                       11                (c) RECIPIENT REPORTING REQUIREMENTS.—Each
                                                                       12 recipient shall be subject to—
                                                                       13                         (1) the grant reporting requirements under part
                                                                       14                200 of title 2, Code of Federal Regulations (or suc-
                                                                       15                cessor regulations); and
                                                                       16                         (2) such additional, clear, annual reporting re-
                                                                       17                quirements as the Secretary may establish to gather
                                                                       18                any information necessary to conduct the benchmark
                                                                       19                and final evaluations under this section.
                                                                       20                (d) FINAL EVALUATION.—
                                                                       21                         (1) IN GENERAL.—Not later than 1 year after
                                                                       22                the final disbursement of a RECOMPETE grant is
                                                                       23                provided to each recipient, the Secretary, in coopera-
                                                                       24                tion with the recipient and each applicable sub-



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                                                                       25                recipient, shall conduct a final evaluation of the suc-


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                                                                          1              cess of the programs and activities carried out under
                                                                          2              the RECOMPETE plan of the recipient.
                                                                          3                       (2) CRITERIA.—The Secretary shall establish
                                                                          4              criteria for use in conducting final evaluations under
                                                                          5              this subsection—
                                                                          6                                (A) in addition to the criteria established
                                                                          7                       under subsection (a)(3); and
                                                                          8                                (B) taking into consideration the goal of
                                                                          9                       reducing the prime-age employment gap of each
                                                                       10                         applicable area by 50 percent.
                                                                       11                         (3) REQUIREMENTS                            FOR RECIPIENTS.—Each

                                                                       12                recipient and subrecipient shall—
                                                                       13                                  (A) cooperate with the Secretary in con-
                                                                       14                         ducting a final evaluation under this subsection;
                                                                       15                         and
                                                                       16                                  (B) provide to the Secretary any informa-
                                                                       17                         tion necessary for that evaluation.
                                                                       18                (e) REPORT TO CONGRESS.—The Secretary shall
                                                                       19 submit to Congress comprehensive and detailed annual re-
                                                                       20 ports describing the implementation of this Act, including,
                                                                       21 with respect to the period covered by the report—
                                                                       22                         (1)(A) a summary assessment of the overall
                                                                       23                progress of the RECOMPETE grant program; and
                                                                       24                         (B) as data become available, an analysis of the



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                                                                       25                effectiveness of that program;


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                                                                          1                       (2) labor market and economic metrics to de-
                                                                          2              scribe the impact of the RECOMPETE grant pro-
                                                                          3              gram, including any progress made toward—
                                                                          4                                (A)         decreasing              prime-age             employment
                                                                          5                       gaps; or
                                                                          6                                (B) increasing local per capita income;
                                                                          7                       (3) detailed demographic analyses of—
                                                                          8                                (A) the populations served by recipients;
                                                                          9                       and
                                                                       10                                  (B) relevant labor market statistics;
                                                                       11                         (4) a summary of the benchmark evaluations
                                                                       12                conducted under subsection (a), as available;
                                                                       13                         (5) an identification of, and reasons for reject-
                                                                       14                ing or deferring, as applicable, each application sub-
                                                                       15                mitted under section 4(a)(2), including the applica-
                                                                       16                ble annual RECOMPETE grant amount limitation
                                                                       17                established by the Secretary under subparagraph
                                                                       18                (C)(i)(II) of that section, if any; and
                                                                       19                         (6) such other details as the Secretary deter-
                                                                       20                mines to be appropriate.
                                                                       21                (f) APPLICABILITY OF PWEDA.—
                                                                       22                         (1) IN GENERAL.—The following sections of the
                                                                       23                Public Works and Economic Development Act of
                                                                       24                1965 shall apply to this Act (including the RECOM-



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                                                                       25                PETE grant program):


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                                                                          1                                 (A) Section 211 (42 U.S.C. 3151).
                                                                          2                                 (B) Section 503 (42 U.S.C. 3193).
                                                                          3                                 (C) Section 504 (42 U.S.C. 3194).
                                                                          4                                 (D) Section 602 (42 U.S.C. 3212).
                                                                          5                                 (E) Section 604 (42 U.S.C. 3214).
                                                                          6                                 (F) Section 605 (42 U.S.C. 3215).
                                                                          7                                 (G) Section 608 (42 U.S.C. 3218).
                                                                          8                                 (H) Section 610 (42 U.S.C. 3220).
                                                                          9                        (2)       AUTHORITIES                   AND          DUTIES             OF   SEC-

                                                                       10                 RETARY.—The Secretary shall have the authorities

                                                                       11                 and duties provided by the sections of the Public
                                                                       12                 Works and Economic Development Act of 1965 (42
                                                                       13                 U.S.C. 3121 et seq.) referred to in paragraph (1) in
                                                                       14                 administering and enforcing this Act (including the
                                                                       15                 RECOMPETE grant program).
                                                                       16          SEC. 6. FUNDING.

                                                                       17                 (a) AUTHORIZATION OF APPROPRIATIONS.—There is
                                                                       18 authorized to be appropriated to the Secretary to carry
                                                                       19 out this Act $175,000,000,000 for fiscal year 2022, to re-
                                                                       20 main available until expended.
                                                                       21                 (b) ALLOCATION.—
                                                                       22                          (1) IN GENERAL.—Subject to paragraph (2), of
                                                                       23                 the amounts made available under subsection (a),
                                                                       24                 the Secretary shall allocate—



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                                                                          1                                (A) not less than 70 percent to recipients
                                                                          2                       acting on behalf of local labor markets or par-
                                                                          3                       tial local labor markets;
                                                                          4                                (B) not more than 20 percent to recipients
                                                                          5                       acting on behalf of local communities; and
                                                                          6                                (C) not less than 10 percent to eligible
                                                                          7                       Tribal governments.
                                                                          8                       (2) TREATMENT OF CERTAIN AMOUNTS.—The
                                                                          9              amounts allocated pursuant to paragraphs (5) and
                                                                       10                (6)(B) of subsection (c) shall not be taken into con-
                                                                       11                sideration for purposes of calculations under para-
                                                                       12                graph (1).
                                                                       13                         (3)         ADMINISTRATIVE                        COSTS            AND   PER-

                                                                       14                SONNEL.—

                                                                       15                                  (A) IN GENERAL.—Of any amounts made
                                                                       16                         available to carry out this Act, the Secretary
                                                                       17                         shall transfer not less than 1 percent to the
                                                                       18                         Salary and Expenses Account of the Secretary
                                                                       19                         for the costs of administration and oversight of
                                                                       20                         this Act.
                                                                       21                                  (B) PERSONNEL.—The Secretary may—
                                                                       22                                          (i) appoint and fix the compensation
                                                                       23                                  of such temporary personnel as may be
                                                                       24                                  necessary to carry out this Act; and



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                                                                          1                                        (ii) effective beginning on the date on
                                                                          2                                which an individual appointed under clause
                                                                          3                                (i) has served continuously in that appoint-
                                                                          4                                ment for 2 years, appoint the individual to
                                                                          5                                a position in the Economic Development
                                                                          6                                Administration in the same manner in
                                                                          7                                which competitive service employees with
                                                                          8                                competitive status are considered for trans-
                                                                          9                                fer, reassignment, or promotion to such a
                                                                       10                                  position, at which time the individual shall
                                                                       11                                  become a career-conditional employee, un-
                                                                       12                                  less the individual has completed the serv-
                                                                       13                                  ice requirements for career tenure.
                                                                       14                (c) GRANT FORMULAS.—
                                                                       15                         (1) IN GENERAL.—Subject to subsection (e),
                                                                       16                based on the information relating to projected costs
                                                                       17                contained in applicable RECOMPETE plans under
                                                                       18                subparagraph (C) of section 4(b)(2), and the jus-
                                                                       19                tifications described in subparagraph (D) of that
                                                                       20                section, the amount of a RECOMPETE grant pro-
                                                                       21                vided to a recipient shall be determined in accord-
                                                                       22                ance with this subsection.
                                                                       23                         (2) LOCAL LABOR MARKETS.—An eligible local
                                                                       24                labor market may receive not more than the amount



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                                                                       25                equal to the product obtained by multiplying—


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                                                                          1                                (A) the prime-age employment gap of the
                                                                          2                       local labor market;
                                                                          3                                (B) the prime-age population of the local
                                                                          4                       labor market; and
                                                                          5                                (C) $70,585.
                                                                          6                       (3) LOCAL               COMMUNITIES.—Subject                            to para-
                                                                          7              graph (6), an eligible local community may receive
                                                                          8              not more than the amount equal to the product ob-
                                                                          9              tained by multiplying—
                                                                       10                                  (A) the prime-age employment gap of the
                                                                       11                         local community;
                                                                       12                                  (B) the prime-age population of the local
                                                                       13                         community; and
                                                                       14                                  (C) $53,600.
                                                                       15                         (4) PARTIAL LOCAL LABOR MARKETS.—An eli-
                                                                       16                gible partial local labor market may receive not more
                                                                       17                than the amount equal to the product obtained by
                                                                       18                multiplying—
                                                                       19                                  (A) the population of the partial local labor
                                                                       20                         market;
                                                                       21                                  (B) the lesser of—
                                                                       22                                          (i) the prime-age employment gap of
                                                                       23                                  the local labor market within which the
                                                                       24                                  partial local labor market is located; and



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                                                                          1                                        (ii) the prime-age employment gap of
                                                                          2                                the partial local labor market; and
                                                                          3                                (C) $70,585.
                                                                          4                       (5) TRIBAL GOVERNMENTS.—
                                                                          5                                (A) IN GENERAL.—An eligible Tribal gov-
                                                                          6                       ernment may receive not more than the amount
                                                                          7                       equal to the product obtained by multiplying,
                                                                          8                       subject to subparagraph (B)—
                                                                          9                                        (i) the prime-age employment gap of
                                                                       10                                  the Tribal government;
                                                                       11                                          (ii) the prime-age population of the
                                                                       12                                  Tribal government; and
                                                                       13                                          (iii) $70,585.
                                                                       14                                  (B) CALCULATION OF POPULATION.—
                                                                       15                                          (i) IN GENERAL.—Subject to clause
                                                                       16                                  (ii), for purposes of subparagraph (A), the
                                                                       17                                  population of a Tribal government shall be
                                                                       18                                  equal to the sum obtained by adding—
                                                                       19                                                   (I) the product obtained by mul-
                                                                       20                                          tiplying—
                                                                       21                                                              (aa) the total number of in-
                                                                       22                                                   dividuals residing on the Tribal
                                                                       23                                                   land of the Tribal government;
                                                                       24                                                   and



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                                                                       25                                                              (bb) 0.65; and


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                                                                          1                                                 (II) the product obtained by mul-
                                                                          2                                        tiplying—
                                                                          3                                                            (aa) the total number of in-
                                                                          4                                                 dividuals included on the mem-
                                                                          5                                                 bership roll of the Tribal govern-
                                                                          6                                                 ment; and
                                                                          7                                                            (bb) 0.35.
                                                                          8                                        (ii) USE OF DATA.—Each calculation
                                                                          9                                under clause (i) shall be determined based
                                                                       10                                  on data provided by the applicable Tribal
                                                                       11                                  government to the Department of the
                                                                       12                                  Treasury under the Coronavirus State and
                                                                       13                                  Local Fiscal Recovery Fund programs
                                                                       14                                  under title VI of the Social Security Act
                                                                       15                                  (42 U.S.C. 801 et seq.) (as amended by
                                                                       16                                  subtitle M of title IX of the American Res-
                                                                       17                                  cue Plan Act of 2021 (Public Law 117–2;
                                                                       18                                  135 Stat. 4)).
                                                                       19                         (6) LOCAL COMMUNITIES WITH COOPERATION
                                                                       20                AGREEMENTS.—If an eligible local community elects

                                                                       21                to enter into a cooperation agreement under section
                                                                       22                3(b)(2)(A) with 1 or more local communities that
                                                                       23                are not eligible—
                                                                       24                                  (A) each eligible local community that is a



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                                                                       25                         party to the cooperation agreement may receive


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                                                                          1                       the maximum amount available to the eligible
                                                                          2                       local community, as determined under para-
                                                                          3                       graph (3); and
                                                                          4                                (B) the Secretary may award to the lead
                                                                          5                       entity an additional amount equal to not more
                                                                          6                       than 10 percent of the total amount provided
                                                                          7                       under subparagraph (A), for distribution by the
                                                                          8                       lead entity to any local community or other ap-
                                                                          9                       plicant that is a party to the cooperation agree-
                                                                       10                         ment, regardless of whether the local commu-
                                                                       11                         nity or other applicant is eligible, for use in ac-
                                                                       12                         cordance with the applicable RECOMPETE
                                                                       13                         plan.
                                                                       14                (d) OBLIGATION AND DISBURSEMENT OF FUNDS.—
                                                                       15                         (1) IN GENERAL.—On approval by the Sec-
                                                                       16                retary of an application under section 4(a)(2)(E),
                                                                       17                the Secretary shall—
                                                                       18                                  (A) obligate the entire amount of the RE-
                                                                       19                         COMPETE grant for the applicable recipient;
                                                                       20                         and
                                                                       21                                  (B) disburse that amount to the recipient
                                                                       22                         annually for each of the 10 fiscal years begin-
                                                                       23                         ning after the date of obligation, in accordance
                                                                       24                         with this subsection.



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                                                                          1                       (2) PROPOSALS.—To receive an annual dis-
                                                                          2              bursement under paragraph (1), a recipient shall
                                                                          3              submit to the Secretary a proposal describing the in-
                                                                          4              tended use by the recipient of the disbursement dur-
                                                                          5              ing the applicable fiscal year (including the pro-
                                                                          6              grams and activities proposed to be carried out and
                                                                          7              any subcontractor or vendor proposed to be used for
                                                                          8              those purposes), in accordance with the RECOM-
                                                                          9              PETE plan of the recipient.
                                                                       10                         (3) PROVISION OF FUNDING.—On approval by
                                                                       11                the Secretary of a proposal submitted by a recipient
                                                                       12                under paragraph (2), the Secretary shall disburse to
                                                                       13                the recipient the amount of the RECOMPETE
                                                                       14                grant due to the recipient for the fiscal year, for use
                                                                       15                in accordance with—
                                                                       16                                  (A) the proposal; and
                                                                       17                                  (B) the RECOMPETE plan of the recipi-
                                                                       18                         ent.
                                                                       19                (e) COST SHARING.—
                                                                       20                         (1) FEDERAL SHARE.—
                                                                       21                                  (A) IN GENERAL.—The Federal share of
                                                                       22                         the cost of each program and activity carried
                                                                       23                         out using a RECOMPETE grant shall be the
                                                                       24                         cost share described in subparagraph (B) for



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                                                                          1                          the applicable recipient, subject to subpara-
                                                                          2                          graph (C) and paragraphs (2) through (4).
                                                                          3                                    (B) DESCRIPTIONS OF COST SHARES.—
                                                                          4                                             (i) LOCAL LABOR MARKETS.—For an
                                                                          5                                    eligible local labor market, the cost share
                                                                          6                                    referred to in subparagraph (A) shall be—
                                                                          7                                                       (I) 50 percent for an eligible
                                                                          8                                             local labor market with a prime-age
                                                                          9                                             employment gap equal to—
                                                                       10                                                                  (aa) not less than 2.5 per-
                                                                       11                                                         cent; but
                                                                       12                                                                  (bb) less than 3 percent; and
                                                                       13                                                         (II) an additional 6.25 percent
                                                                       14                                               for each prime-age employment gap
                                                                       15                                               percentage point of 3 percent or more,
                                                                       16                                               as determined in accordance with the
                                                                       17                                               following table:

                                                                                                                                                                                    Federal
                                                                                                  Local labor market prime-age employment gap                                        share

                                                                                   3 percent to less than 4 percent .....................................................               56.25
                                                                                                                                                                                      percent
                                                                                   4 percent to less than 5 percent .....................................................                62.5
                                                                                                                                                                                      percent
                                                                                   5 percent to less than 6 percent .....................................................               68.75
                                                                                                                                                                                      percent
                                                                                   6 percent to less than 7 percent .....................................................          75 percent
                                                                                   7 percent to less than 8 percent .....................................................               81.25
                                                                                                                                                                                      percent
                                                                                   8 percent to less than 9 percent .....................................................                87.5




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                                                                                                                                                                                      percent
                                                                                   9 percent to less than 10 percent ...................................................                93.75
                                                                                                                                                                                      percent
                                                                                   10 percent or greater ......................................................................   100 percent.

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                                                                                                                                      51
                                                                          1                                             (ii) LOCAL COMMUNITIES.—For an el-
                                                                          2                                    igible local community, the cost share re-
                                                                          3                                    ferred to in subparagraph (A) shall be—
                                                                          4                                                       (I) 68.75 percent for an eligible
                                                                          5                                             local community with a prime-age em-
                                                                          6                                             ployment gap equal to—
                                                                          7                                                                (aa) not less than 5 percent;
                                                                          8                                                       but
                                                                          9                                                                (bb) less than 6 percent; and
                                                                       10                                                         (II) an additional 6.25 percent
                                                                       11                                               for each prime-age employment gap
                                                                       12                                               percentage point of 6 percent or more,
                                                                       13                                               up to 100 percent, as determined in
                                                                       14                                               accordance with the following table:

                                                                                                                                                                                    Federal
                                                                                                  Local community prime-age employment gap                                           share

                                                                                   6 percent to less than 7 percent .....................................................          75 percent
                                                                                   7 percent to less than 8 percent .....................................................               81.25
                                                                                                                                                                                      percent
                                                                                   8 percent to less than 9 percent .....................................................                87.5
                                                                                                                                                                                      percent
                                                                                   9 percent to less than 10 percent ...................................................                93.75
                                                                                                                                                                                      percent
                                                                                   10 percent or greater ......................................................................   100 percent.


                                                                       15                                               (iii) PARTIAL                   LOCAL            LABOR         MAR-

                                                                       16                                      KETS.—

                                                                       17                                                         (I) IN             GENERAL.—Subject                      to




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                                                                       18                                               subclause (II), for an eligible partial
                                                                       19                                               local labor market, the cost share re-

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                                                                                                                                      52
                                                                          1                                             ferred to in subparagraph (A) shall
                                                                          2                                             be—
                                                                          3                                                                (aa) 50 percent for an eligi-
                                                                          4                                                       ble partial local labor market
                                                                          5                                                       with a prime-age employment
                                                                          6                                                       gap equal to—
                                                                          7                                                                         (AA) not less than 2.5
                                                                          8                                                                percent; but
                                                                          9                                                                         (BB) less than 3 per-
                                                                       10                                                                  cent; and
                                                                       11                                                                  (bb) an additional 6.25 per-
                                                                       12                                                         cent for each prime-age employ-
                                                                       13                                                         ment gap percentage point of 3
                                                                       14                                                         percent or more, as determined
                                                                       15                                                         in accordance with the following
                                                                       16                                                         table:

                                                                                       Lesser of partial local labor market, and local labor market,                                Federal
                                                                                                       prime-age employment gaps                                                     share

                                                                                   3 percent to less than 4 percent .....................................................               56.25
                                                                                                                                                                                      percent
                                                                                   4 percent to less than 5 percent .....................................................                62.5
                                                                                                                                                                                      percent
                                                                                   5 percent to less than 6 percent .....................................................               68.75
                                                                                                                                                                                      percent
                                                                                   6 percent to less than 7 percent .....................................................          75 percent
                                                                                   7 percent to less than 8 percent .....................................................               81.25
                                                                                                                                                                                      percent
                                                                                   8 percent to less than 9 percent .....................................................                87.5
                                                                                                                                                                                      percent
                                                                                   9 percent to less than 10 percent ...................................................                93.75




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                                                                                                                                                                                      percent
                                                                                   10 percent or greater ......................................................................   100 percent.




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                                                                                                                                  53
                                                                          1                                                 (II) CERTAIN LOCAL LABOR MAR-
                                                                          2                                        KETS.—If               an eligible partial local
                                                                          3                                        labor market is located within a local
                                                                          4                                        labor market with a prime-age em-
                                                                          5                                        ployment gap that is less than the
                                                                          6                                        prime-age employment gap of the par-
                                                                          7                                        tial local labor market, the prime-age
                                                                          8                                        employment gap of the local labor
                                                                          9                                        market shall be used for purposes of
                                                                       10                                          calculating the Federal share of the
                                                                       11                                          partial local labor market under sub-
                                                                       12                                          clause (I).
                                                                       13                                          (iv) TRIBAL GOVERNMENTS.—For an
                                                                       14                                  eligible Tribal government, the cost share
                                                                       15                                  referred to in subparagraph (A) shall be
                                                                       16                                  100 percent.
                                                                       17                                  (C) AVAILABLE INCREASES.—
                                                                       18                                          (i) RELATIVE                    NEED.—The              Federal
                                                                       19                                  share determined for a recipient under
                                                                       20                                  clause (i), (ii), or (iii) of subparagraph (B)
                                                                       21                                  may be increased, based on the relative
                                                                       22                                  need of each applicable area and recipient
                                                                       23                                  and in accordance with such regulations as
                                                                       24                                  the Secretary may promulgate, to not more



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                                                                       25                                  than 80 percent of the total estimated cost


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                                                                                                                                  54
                                                                          1                                of the programs and activities included in
                                                                          2                                the RECOMPETE Plan for the applicable
                                                                          3                                area.
                                                                          4                                        (ii) SEVERE ECONOMIC NEED.—The
                                                                          5                                Federal share determined for a recipient
                                                                          6                                under subparagraph (B) may be increased
                                                                          7                                to not more than 100 percent of the total
                                                                          8                                estimated cost of the programs and activi-
                                                                          9                                ties included in the RECOMPETE Plan
                                                                       10                                  for the applicable area in any case in
                                                                       11                                  which the Secretary determines that the
                                                                       12                                  recipient or a subrecipient has—
                                                                       13                                                   (I) exhausted all other reasonable
                                                                       14                                          financing and funding options; and
                                                                       15                                                   (II) demonstrated severe eco-
                                                                       16                                          nomic need.
                                                                       17                         (2) SPECIAL RULE.—
                                                                       18                                  (A) IN GENERAL.—Except as provided in
                                                                       19                         subparagraph (B), the Federal share calculated
                                                                       20                         for an eligible local community under paragraph
                                                                       21                         (1) shall not be reduced due to an election by
                                                                       22                         the eligible local community to enter into a co-
                                                                       23                         operation agreement under section 3(b)(2)(A).
                                                                       24                                  (B) EXCEPTION.—If additional amounts



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                                                                       25                         are provided for an eligible local community for


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                                                                                                                                  55
                                                                          1                       distribution to subrecipients under section
                                                                          2                       3(b)(2)(A)(iii), the Federal share calculated
                                                                          3                       under paragraph (1) for the eligible local com-
                                                                          4                       munity shall be not more than 50 percent, sub-
                                                                          5                       ject to any increase in accordance with clause
                                                                          6                       (i) or (ii) of paragraph (1)(C), as applicable.
                                                                          7                       (3) NON-FEDERAL CONTRIBUTIONS.—In calcu-
                                                                          8              lating the non-Federal share of the cost of a pro-
                                                                          9              gram or activity carried out under a RECOMPETE
                                                                       10                plan, the Secretary may provide a credit toward the
                                                                       11                non-Federal share for any non-Federal contribution
                                                                       12                to the program or activity—
                                                                       13                                  (A) in cash or in-kind;
                                                                       14                                  (B) fairly evaluated; and
                                                                       15                                  (C) including any contribution of space,
                                                                       16                         equipment, assumption of debt, or service.
                                                                       17                         (4) REASSESSMENT.—
                                                                       18                                  (A) IN GENERAL.—The Federal share and
                                                                       19                         non-Federal share determined for a recipient
                                                                       20                         under paragraphs (1) and (2) shall apply dur-
                                                                       21                         ing the period beginning on the date of enact-
                                                                       22                         ment of this Act and ending on the date on
                                                                       23                         which the initial benchmark evaluation relating
                                                                       24                         to the recipient is conducted under section 5(a).



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                                                                          1                                (B) PERIODIC REEVALUATION.—As soon
                                                                          2                       as practicable after the date on which each
                                                                          3                       benchmark evaluation relating to a recipient is
                                                                          4                       conducted under section 5(a), the Secretary
                                                                          5                       shall—
                                                                          6                                        (i) reevaluate the Federal share and
                                                                          7                                non-Federal share determined for the re-
                                                                          8                                cipient under this subsection; and
                                                                          9                                        (ii) determine whether such a cost
                                                                       10                                  share should be adjusted, subject to sub-
                                                                       11                                  paragraph (C).
                                                                       12                                  (C) LIMITATION ON FEDERAL SHARE.—
                                                                       13                         The Federal share determined for a recipient
                                                                       14                         under this subsection—
                                                                       15                                          (i) shall not be decreased by more
                                                                       16                                  than—
                                                                       17                                                   (I) 10 percent, as compared to
                                                                       18                                          the Federal share determined for the
                                                                       19                                          recipient under this subsection for the
                                                                       20                                          preceding period; or
                                                                       21                                                   (II) 30 percent, in total; and
                                                                       22                                          (ii) shall be not less than 50 percent.
                                                                                                                                  Æ




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