One of the principal goals of my domestic policy has been to strengthen the
private sector economic base of our Nation's economically troubled urban
and rural areas. With Congress' cooperation, we have substantially expanded
the Federal government's economic development programs and provided new tax
incentives for private investment in urban and rural communities. These
programs have helped many communities to attract new private sector jobs
and investments and to retain the jobs and investments that already are in
place.
When I took office, the Federal government was spending less than $300
million annually on economic development programs, and only $60 million of
those funds in our Nation's urban areas. Since that time, we have created
the Urban Development Action Grant (UDAG) program and substantially
expanded the economic development programs in the Commerce Department. My
FY 1982 budget requests more than $1.5 billion for economic development
grants, loans and interest subsidies and almost $1.5 billion for loan
guarantees. Approximately 60 percent of these funds will be spent in our
Nation's urban areas. In addition, we have extended the 10 percent
investment credit to include rehabilitation of existing industrial
facilities as well as new construction.
I continue to believe that the development of private sector investment and
jobs is the key to revitalizing our Nation's economically depressed urban
and rural areas. To ensure that the necessary economic development goes
forward, the Congress must continue to provide strong support for the UDAG
program and the programs for the Economic Development Administration. Those
programs provide a foundation for the economic development of our Nation in
the 1980's.