BUILD Act
- Bill Number
- H.R. 5796
- Origin Chamber
- House
- Congress
- 119th Congress, Session 1
- Policy Area
- Commerce
- Status
- Introduced
- Latest Action
- 2025-12-01: Referred to the Subcommittee on Economic Development, Public Buildings, and Emergency Management.
- Last Updated
- 2026-02-18T09:05:48Z
AI-Generated Summary
Purpose
The BUILD Act (H.R. 5796) aims to create a federal grant program administered by the Department of Commerce to support institutions of higher education in economically distressed communities. These grants would fund planning and implementation of projects that promote economic growth and community revitalization in low-income areas, addressing challenges like poverty and underdevelopment.
Key Provisions
- Establishment of the Program: The Secretary of Commerce, through the Economic Development Administration (EDA), will develop and manage a grant program for eligible higher education institutions located in "distressed communities." These communities are defined using median family income data: ZIP codes or counties where income is at least 25% below the state or national median, depending on location (metropolitan/micropolitan areas or rural) and state income relative to the national average.
- Designation of Eligible Institutions:
- The Secretary compiles a list of qualifying institutions based on location criteria.
- Eligible institutions are notified and can opt in by submitting a notice of intent.
- "Institution of higher education" includes public or nonprofit colleges/universities (as defined under the Higher Education Act), especially those established under the Morrill Act of 1890 (historically Black colleges and universities), but excludes:
- High-research-activity institutions (per Carnegie Classification).
- Land-grant universities under the Morrill Act of 1862.
- Military service academies (e.g., West Point, Naval Academy).
- Notably, the definition emphasizes inclusion of institutions offering over 50% of courses by correspondence (distance learning) and enrolling over 50% in such courses, though this aligns with broader federal definitions.
- Planning Grants:
- Awarded to designated institutions to create a detailed "implementation plan" outlining proposed projects and their benefits for local economic and community revitalization.
- Plan must be completed within 2 years; Secretary reviews and approves it.
- Grant term: Up to 2 years, with annual amounts up to $100,000 (total up to $200,000).
- Recipients can apply for additional funds after 1 year if needed, with decisions within 90 days.
- Funds distributed via a formula set by the Secretary.
- Implementation Grants:
- Provided after plan approval to execute outlined projects.
- Grant term: 5 years, with funds distributed at least annually.
- Amount: $25 million to $50 million per recipient, based on a Secretary-determined formula.
- Funds must be used solely for "eligible projects" in the distressed community, with annual progress reports required.
- Eligible Projects:
- Initiatives to boost local economy, such as:
- Renovating or building community-accessible facilities (e.g., commercial spaces on campus, housing, museums, labs, libraries).
- Seed funding programs for startups and small businesses.
- Apprenticeships in local industries to reduce unemployment.
- Broadband infrastructure for the campus and community.
- Public health clinics and training programs for healthcare workers.
- Partnerships with local schools for teaching support, administrative aid, and facility access.
- Campus research addressing community economic needs.
Significant Changes to Existing Law
This bill introduces a new grant program under the Department of Commerce, which does not appear to amend specific existing statutes directly. It builds on frameworks like the Higher Education Act (for institution definitions) and EDA authorities but creates a standalone mechanism for targeted economic development funding. No explicit repeals or modifications to prior laws are mentioned, making this primarily additive legislation to support underserved educational institutions.
Potential Impacts
- Government Agencies: The Department of Commerce (via EDA) will handle program administration, including list development, grant distribution, plan reviews, and oversight, potentially increasing workload and requiring new formulas for fund allocation. This could strain resources if funding levels are not specified in appropriations.
- Citizens: Residents of distressed communities may benefit from job creation, improved infrastructure (e.g., broadband, health clinics), educational opportunities (e.g., apprenticeships, school partnerships), and economic revitalization, potentially reducing poverty and unemployment in low-income ZIP codes or counties.
- International Relations: No direct impacts; the bill focuses on domestic economic development with no provisions involving foreign entities or trade.
Main Stakeholders Affected
- Institutions of Higher Education: Primarily smaller, non-elite colleges in low-income areas (e.g., community colleges, historically Black institutions) that opt in; they gain access to significant funding but must commit to planning and reporting.
- Local Communities and Residents: People in economically distressed areas, who stand to gain from project outcomes like better housing, jobs, and services.
- Local Governments and Businesses: School districts, small businesses, and municipal entities partnering on projects (e.g., broadband, apprenticeships).
- Federal Government: Department of Commerce/EDA as administrator; Congress for funding appropriations.
Notable Legal, Constitutional, or Political Implications
- Legal: Establishes clear eligibility criteria and reporting requirements, promoting accountability in federal spending. Potential for legal challenges if income-based designations are seen as discriminatory, though they align with established economic distress metrics (e.g., similar to Opportunity Zones). Funds are restricted to U.S. communities, ensuring compliance with federal grant rules.
- Constitutional: Relies on Congress's spending power and commerce clause authority to promote economic welfare, with no apparent conflicts (e.g., no state sovereignty issues). Exclusions for certain institutions (e.g., research universities) may raise equal protection questions but are justified by the bill's focus on community-oriented, non-elite schools.
- Political: Targets economic inequality by empowering education in underserved areas, potentially appealing across party lines for rural/urban development. Could influence future appropriations debates on education and commerce funding, emphasizing place-based investments over broad national programs.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Cosponsors (2)
Rep. Westerman, Bruce [R-AR-4], Rep. McClain Delaney, April [D-MD-6]
Recent Actions
- 2025-12-01: Referred to the Subcommittee on Economic Development, Public Buildings, and Emergency Management.
- 2025-10-21: Referred to the Committee on Transportation and Infrastructure, and in addition to the Committee on Financial Services, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
- 2025-10-21: Referred to the Committee on Transportation and Infrastructure, and in addition to the Committee on Financial Services, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
- 2025-10-21: Introduced in House
- 2025-10-21: Introduced in House
Bill Versions
- Boosting University Investments in Low-Income Districts Act — issued 2025-10-21 — PDF (12 pages)