03/17/2026 | Press release | Distributed by Public on 03/17/2026 08:04
Economic Development Administration (EDA), Department of Commerce (Department).
Final rule.
By this rule, EDA amends its regulations governing planning investments and comprehensive economic development strategies by removing certain redundant language. Specifically, this rule removes a section pertaining to eligible administrative expenses on the basis that it is redundant with the government-wide cost principles set forth elsewhere in the Code of Federal Regulations. This action is intended to streamline EDA's regulations by eliminating unnecessary regulatory text, and thereby promote administrative efficiency, without diminishing any substantive obligation or entitlement related to planning investments and comprehensive economic development strategies.
The rule is effective March 17, 2026.
Jeffrey Roberson, Chief Counsel, Economic Development Administration, at (202) 779-0563.
By this rule, the Department amends the regulations at 13 CFR part 303, which govern planning investments and comprehensive economic development strategies. Specifically, this rule removes § 303.5, which addresses eligible administrative expenses and states that, "[i]n accordance with applicable Federal cost principles, Planning Investments may be used to pay the direct and indirect costs incurred by a Planning Organization in the development, implementation, revision or replacement of a CEDS and for related short-term planning activities." 13 CFR 303.5. The eligibility of the expenses described in § 303.5, however, is already adequately established by the government-wide, uniform cost principles set forth in 2 CFR part 200. Section 303.5 is thus redundant and appropriate for removal. The Department has determined that the removal of § 303.5 will streamline part 303 without diminishing any substantive obligation or entitlement related to planning investments and comprehensive economic development strategies.
Pursuant to 5 U.S.C. 553(b)(B), the Department finds good cause to waive the prior notice and opportunity for public participation requirements of the Administrative Procedure Act for this final rule. The Department considers this rule to be uncontroversial, and has determined that prior notice and opportunity for public participation is unnecessary, because this rule only removes redundant regulatory language and does not affect any substantive obligation or entitlement. Indeed, because the section being removed by this rule is redundant and not required by statute, public participation could not justify its continued maintenance under the Department's broader deregulatory policies. For the same reasons, the Department has determined that delaying the effectiveness of these amendments would be contrary to the public interest. The section being removed by this rule adds unnecessary length and complexity to part 303; its removal will immediately streamline part 303, thereby promoting administrative efficiency and benefiting the public, at little to no cost. The Department therefore finds good cause to waive the public notice and comment period under 553(b)(B) and to waive the 30-day delay in effectiveness under 553(d).
The Office of Management and Budget has determined this rule is not significant pursuant to Executive Order ("E.O.") 12866. This rule is an E.O. 14192 deregulatory action. This rule does not contain policies having federalism implications as the term is defined in E.O. 13132.
Because a notice of proposed rulemaking and an opportunity for public participation are not required to be given for this rule by 5 U.S.C. 553(b)(B), the analytical requirements of the Regulatory Flexibility Act (5 U.S.C. 601 et seq. ) are not applicable. Accordingly, no regulatory flexibility analysis is required, and none has been prepared.
This rule will not impose additional reporting or recordkeeping requirements under the Paperwork Reduction Act of 1995, 44 U.S.C. 3501 et seq.
Planning, Award and application requirements, Comprehensive economic development strategy, State plans, Short-term planning investments.
For the reasons set forth in the preamble, EDA amends 13 CFR part 303 as follows:
1. The authority citation for part 303 continues to read as follows:
42 U.S.C. 3143; 42 U.S.C. 3162; 42 U.S.C. 3174; 42 U.S.C. 3211; Department of Commerce Organization Order 10-4.
2. Remove and reserve § 303.5.