BLOG: EDA Support for the Administration's AI Action Plan

By Ben Page, Deputy Assistant Secretary for Economic Development and Chief Operating Officer

Since the Economic Development Administration (EDA) was established in 1965, we have helped American communities respond to evolving industrial and economic conditions and build the foundations for sustained economic growth. Through our flexible portfolio of grant programs, EDA has invested in thousands of locally identified projects that meet the needs of communities across the United States.

As communities’ needs have evolved over time with changes in circumstances, technologies and industries, so too must EDA evolve. That is why we are shifting funds from lower-priority programs to help communities, businesses, and workers reap the rewards as Artificial Intelligence (AI) begins to permeate more and more facets of our lives and jobs.

AI is a transformative technology that has the potential to propel innovation and reshape the global economy. That’s why the Trump Administration released the Artificial Intelligence Action Plan, which is a blueprint for ensuring that America wins the global AI race. Winning this race will require a well-trained workforce proficient in using AI tools. EDA is excited to be doing its part to transition American communities towards this new vision by setting aside $25 million in grant funding for workforce initiatives in support of the AI action plan. That plan recognizes the need for industry-driven training programs that address workforce needs tied to AI infrastructure investments. Further, the plan encourages the Department of Commerce to integrate models for upskilling incumbent workers into priority occupations. Consistent with this direction, EDA will leverage its successful model of sectoral partnerships to support workforce development and provide roadmaps for industry and communities around the country to ensure that workers across America’s sectors can participate and thrive in this new industrial and information revolution.

To support this new program, EDA discontinued funding for the University Center (UC), Trade Adjustment Assistance for Firms (TAAF), and STEM Talent Partnership programs. These programs were outdated, costly to administer, and not designed to address recent developments in the economy or have had their authorizations lapse. The shift away from these three programs to support new priorities such as AI demonstrates our willingness to make tough choices and reprioritize limited resources to address emerging opportunities. In doing so, we are able to bolster the economic health of American communities and deliver the best services to U.S. taxpayers.