H.R. 5796

119th CONGRESS 1st Session

To establish a grant program for certain institutions of higher education to plan and implement projects for economic and community development in economically distressed communities, and for other purposes.

IN THE HOUSE OF REPRESENTATIVES · October 21, 2025 · Sponsor: Mr. Costa

Table of contents

• H.R. 5796
  • SEC. 1. Short title
  • SEC. 2. Distressed communities grant program

SEC. 1. Short title

• This Act may be cited as the or the .

SEC. 2. Distressed communities grant program

• (a) Establishment
  • The Secretary shall establish a program to award grants to institutions of higher education designated under subsection (b) to plan and implement eligible projects for economic and community development in economically distressed communities.
• (b) Designation of institutions of higher education
  • (1) List of institutions of higher education
    • The Secretary shall develop a list of every institution of higher education that the Secretary determines is located in a distressed community, in accordance with the criteria described in paragraph (2).
  • (2) Distressed community criteria
    • The Secretary shall determine that an institution of higher education is located in a distressed community if one of the following circumstances applies to such institution:
      • In the case of an institution of higher education that is located in a metropolitan or a micropolitan statistical area, as defined by the Office of Management and Budget, and in a State in which the median family income is higher than the national median family income, the institution of higher education is located in a ZIP Code in which the median family income is at least 25 percent lower than the median family income for such State.
      • In the case of an institution of higher education that is located in a metropolitan or a micropolitan statistical area, as defined by the Office of Management and Budget, and in a State in which the median family income is lower than the national median family income, the institution of higher education is located in a Zip Code in which the median family income is at least 25 percent lower than the national median family income.
      • In the case of an institution of higher education that is not located in a metropolitan or micropolitan statistical area and is located in a State in which the median family income is higher than the national median family income, the institution of higher education is located in a county in which the median family income is at least 25 percent lower than the median family income for such State.
      • In the case of an institution of higher education that is not located in a metropolitan or micropolitan statistical area and is located in a State in which the median family income is lower than the national median family income, the institution of higher education is located in a county in which the median family income is at least 25 percent lower than the national median family income.
  • (3) Designation
    • (A) Notification to institutions of higher education
      • Upon development of the list of institutions of higher education located in a distressed community under paragraph (1), the Secretary shall notify each institution of higher education that is included in such list that such institution may be designated under this paragraph to receive a planning grant and an implementation grant under this section.
    • (B) Notification to Secretary
      • An institution of higher education that receives a notification from the Secretary under subparagraph (A) that intends to receive a planning grant and an implementation grant under this section shall submit to the Secretary a notification of such intent in such form and at such time as the Secretary determines appropriate.
    • (C) Grant eligibility
      • The Secretary shall designate each institution of higher education that submits a notification under subparagraph (B) as eligible to receive a planning grant and an implementation grant under this section.
• (c) Planning grants
  • (1) In general
    • The Secretary shall provide a grant to each institution of higher education designated under subsection (b) for such institution to develop an implementation plan describing—
      • the eligible projects that such institution intends to carry out with an implementation grant under subsection (d); and
      • how such projects will support economic and community revitalization in the community in which such institution is located.
  • (2) Implementation plan
    • (A) In general
      • A recipient of a planning grant under this subsection shall complete the implementation plan required under paragraph (1) not later than 2 years after the date on which the Secretary provides a planning grant to such recipient.
    • (B) Approval
      • Upon completion of an implementation plan with a planning grant provided under this subsection, the Secretary shall review such plan for approval.
  • (3) Grant amounts
    • (A) Grant term
      • The Secretary may distribute funds for a grant provided under this subsection for a period of not more than 2 years.
    • (B) Total grant amounts
      • Each grant awarded under this subsection shall be in an amount that does not exceed $100,000 for each year of the grant term.
    • (C) Additional amounts
      • (i) Not later than 1 year after grant funds are first awarded under subparagraph (A), a grant recipient may submit to the Secretary an application to receive additional funds to complete the implementation plan required under paragraph (1).
      • (ii) Not later than 90 days after a grant recipient submits an application for additional grant funds under clause (i), the Secretary shall determine whether to award additional grant funds to such recipient and shall distribute such additional grant funds to such recipient.
    • (D) Formula
      • The Secretary shall establish a formula by which the Secretary shall distribute funds for each grant under this subsection in accordance with this paragraph.
• (d) Implementation grants
  • (1) In general
    • Upon approval of an implementation plan under subsection (c)(2), the Secretary shall provide a grant to the institution of higher education to carry out eligible projects described in such plan.
  • (2) Grant term
    • The term of a grant provided under this subsection shall be 5 years.
  • (3) Grant amounts
    • The Secretary shall establish a formula by which the Secretary shall distribute funds for each grant under this subsection in accordance with the following requirements:
      • The Secretary shall provide each recipient of a grant under this subsection with a grant in an amount that is not less than $25,000,000 and not more than $50,000,000.
      • The Secretary shall distribute funds for each grant under this subsection at least once during each year of the grant term.
  • (4) Use of funds
    • A recipient of a grant under this subsection may only use such grant to carry out an eligible project in the distressed community in which such recipient is located, as determined by the Secretary under subsection (b)(2).
  • (5) Report required
    • At least once each year during the term of a grant provided under this subsection, a recipient of such grant shall submit to the Secretary a report describing the activities for which such grant was used during such year.
• (e) Definitions
  • In this section:
    • The term eligible project means a project that will spur economic development in the community in which such project is carried out, including a project to—
    • The term Secretary means the Secretary of Commerce, acting through the Assistant Secretary of Commerce for Economic Development.
    • The term service academy means the following: