The conservative Club for Growth is urging support for a House amendment that would nix funding for the Economic Development Administration (EDA) and transfer the savings to deficit reduction.
The group said it will key-vote the Rep. Mike Pompeo (R-Kan.) amendment to the Commerce, Justice, science appropriations bill that would defund the agency.
The group said the agency, which provides financial help to economically distressed areas to stimulate economic growth, is "nothing more than a redistribution scheme allowing politicians and bureaucrats to fund their pet projects.”
"The EDA is corporate welfare," said Andy Roth, the group's vice president of government affairs.
"The free market, not the government, should be in charge of picking winners and losers in the private sector."
The House spending bill includes $247.5 million in funding for the EDA, about the same as the fiscal 2014 enacted level. The allocation includes $5 million in grant funding to help encourage companies to bring overseas jobs back to the United States.
"A better alternative to the EDA is to cut tax rates on individuals and businesses while at the same time eliminating special interest carve outs and regulations, thereby promoting economic growth without growing the government," Roth said.
There have been unsuccessful attempts in previous years to eliminate the agency.
A new assistant secretary, Jay Williams, was recently sworn in to head up the EDA.
The Club's announcement comes the same day that Williams and Commerce Secretary Penny PritzkerPenny PritzkerDeVos should ‘persist’ despite liberal opposition Indiana teachers hold sit-in to demand Young recuse himself from DeVos vote Overnight Tech: Trump team eyes FCC overhaul | AT&T chief says no plans to spin off CNN in merger | Commerce pick heads to hearing MORE announced 12 communities that have been named as manufacturing hubs and will receive federal grants to boost the sector's expansion.