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Economic Distress Criteria in PWEDA
Section 301(a) of the Public Works and Economic Development Act (PWEDA) of 1965 (42 U.S.C. §3161(a)) describes the economic distress criteria and thresholds that qualify areas as eligible for assistance through selected EDA programs and for other purposes. In PWEDA, economic distress is determined by one or more of the following calculations or thresholds:
Low per capita income—the area has a per capita income of 80% or less of the national average;
Unemployment rate above national average—the area has an unemployment rate that is, for the most recent 24-month period for which data are available, at least 1% greater than the national average unemployment rate; or
Special Need—an area that “has experienced or is about to experience a special need arising from actual or threatened severe unemployment or economic adjustment problems resulting from severe short-term or long-term changes in economic conditions (42 U.S.C. §3161(a)(3)).” Special needs have included substantial out-migration or population loss, military base closures, and negative effects of changing trade patterns. Please note: we are not including this criteria |
summary:
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Economic Distress Criteria in PWEDA
Section 301(a) of the Public Works and Economic Development Act (PWEDA) of 1965 (42 U.S.C. §3161(a)) describes the economic distress criteria and thresholds that qualify areas as eligible for assistance through selected EDA programs and for other purposes. In PWEDA, economic distress is determined by one or more of the following calculations or thresholds:
Low per capita income—the area has a per capita income of 80% or less of the national average;
Unemployment rate above national average—the area has an unemployment rate that is, for the most recent 24-month period for which data are available, at least 1% greater than the national average unemployment rate; or
Special Need—an area that “has experienced or is about to experience a special need arising from actual or threatened severe unemployment or economic adjustment problems resulting from severe short-term or long-term changes in economic conditions (42 U.S.C. §3161(a)(3)).” Special needs have included substantial out-migration or population loss, military base closures, and negative effects of changing trade patterns. Please note: we are not including this criteria |
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AED_2022 |
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