August 24, 2022 - FRESNO, Calif. – Congressman Jim Costa (CA-16) has introduced H.R. 8688 – Boosting University Investments in Low-Income Districts (BUILD) Act, bipartisan legislation that would establish a designation for regional public universities located in distressed communities, making those universities eligible for federal grants to spur economic and community development projects to build stronger, more resilient communities.

Congressman Jim Costa (CA-16)

“Regional Public Universities like Fresno State spur economic and community development in distressed communities along the Central Valley,” said Costa. “For far too long, these institutions have been left behind from receiving critical funding. As an alumnus and former Fresno State Bulldog, I am proud to introduce this groundbreaking legislation that could provide significant investments to bolster our regional economy and build new opportunities for Valley residents to thrive.” 

“I am proud to co-sponsor Congressman Costa’s BUILD Act to foster the economic success of low income communities by investing in Regional Public Universities that otherwise would not have access to the grants available to large, land grant universities. Regional universities are instrumental in community wide development and raising the standard of living across the board. By providing specialized grant opportunities with guard rails to ensure responsible utilization, Fourth District institutions such as Henderson State University, Southern Arkansas University Main Campus, the University of Arkansas at Monticello, and the University of Arkansas at Pine Bluff will be empowered to better serve their communities. I’m also proud to work across the aisle with my friend Jim Costa on an issue that transcends partisanship and does good for hard-working folks in rural America.”said Congressman Bruce Westerman (AK-01) who is the co-sponsor of the bill.

Regional Public Universities (RPU) promote economic and community development for distressed communities by supporting the workforce and leading to faster employment growth, along with a higher per capita income. The United States provides a significant amount of federal funding for large universities, both public and private, such as R1s and land-grant institutions that are in distressed communities. For example, R1 research universities receive robust federal funding through so-called “indirect costs,” which are the portion of federal research funding that goes to cover general university overhead. (Brookings, 2021) 

This bill would close the federal funding gap between large, public research universities and regional public universities, like Fresno State, by creating a special designation that sets aside funding for RPUs. The universities that would be eligible for this funding must be four-year colleges, rely on in-state enrollment, and not research universities (R1) or land grant universities.

The BUILD Act would establish a grant program for designated “Regional Public Universities” that would provide federal grants between $25-50 million over five years for the following: 

• Address Regional Public Health Challenges: Build and maintain health clinics accessible to the public on or near the campus of the institution of higher education. It would also provide opportunities to educate, recruit, and train members of the community to become healthcare professionals.

• Early-Stage Business Seed Money: Support local entrepreneurs with opportunities to apply for federal grants that can help start or grow a business and support small business development.   

• Modernize the Broadband Network: Build and maintain municipal broadband networks and related infrastructure for eligible and designated higher education institutions.

• Revitalize Critical Infrastructure: Renovate, construct, or maintain buildings that benefit the community, including libraries, laboratories, housing for students, museums, theaters, and art centers.

• Strengthen the Workforce: Partner with industries and higher education institutions to create jobs, which would help decrease the unemployment rate in the community.

This legislation would grant up to $1.7 billion per year for five years for this program and could benefit up to 174 public four-year universities including FOUR California State University institutions in California: Fresno State, Cal State Los Angeles, San Diego State, and Cal Poly Pomona.

"This legislation would help close federal funding gaps that have historically existed between regional public universities and larger public research universities.  Fresno State is perfectly positioned to literally transform the face of our region, through the social sciences, through the arts and humanities, through education. With additional federal resources, we can show the nation how a university that is focused on applied research, with an emphasis on local or regional needs, can effectively promote and lift up the communities it serves."said Dr. Saúl Jiménez-Sandoval, Ph.D., President of California State University, Fresno.  

"Regional public universities like Fresno State are underutilized as major economic drivers in their communities.  With additional federal support, Fresno State, with its focus on applied research emphasizing local and regional needs, could play a decisive role in providing the type of small business incubation that could dramatically fuel job growth and economic development in our community." said Dr. Mark Keppler, Executive Director of the Kenneth L. Maddy Institute

A one-pager of the bill is available here.

The full text of the bill is available here.

The original proposal put forth by the Brookings Institute can be found here.
Source: Congressman Jim Costa