Strategic PartnershipsThe U.S. Economic Development Administration (EDA) is making $1.45 billion available in disaster aid as part of its fiscal year 2025 (FY25) Disaster Supplemental Grant Program. The funds are designed to aid communities affected by natural disasters in 2023 and 2024, and can be used for either construction or non-construction projects.
Created in 1965, the EDA delivers grants and funds to communities for projects that stimulate economic growth and prepare communities for future success. This federal effort includes investments in new developments as well as disaster recovery, infrastructure improvement and workforce development.
The current FY25 grant program from the EDA has issued a Notice of Funding Opportunity (NOFO) to aid communities heavily impacted by storms, wildfires, floods and other natural disasters. The funds are available to areas that have issued a major disaster declaration within calendar years 2024 and 2025.
Applicants can apply for funds through three pathways, depending on progress in recovery stages. These include a Readiness Path, Implementation Path and Industry Transformation Path.
The Readiness Path involves non-construction related projects. It covers activities such as developing recovery plans, hiring coordination staff, enhancing organizational capacity and covering preliminary project costs. Awards range up to $500,000 per recipient.
The Implementation Path covers both construction and non-construction initiatives. It supports both physical infrastructure work and other recovery initiatives that enhance community growth prospects. Funding levels vary, with construction projects receiving $2 million to $20 million and other initiatives ranging up to $5 million.
The Industry Transformation Path involves collaborative efforts. Multiple organizations work together to transform and grow regional economic efforts, both construction and non-construction related. Awards for these large-scale collaborative portfolios range from $20 million to $50 million.
Eligible applicants span various government entities including state, local and tribal authorities, as well as economic development districts. Educational institutions, economic development organizations and both public and private nonprofit groups that collaborate with local governments may also apply. Public-private partnerships (P3s) focused on infrastructure development are qualified to receive funding.
Readiness and Implementation Grants are being reviewed on an ongoing basis and will be awarded until funds run out or the NOFO is canceled. Industry Transformation Grants are accepting applications until March 3, 2026.
Since 2021, the EDA has directed almost $6 billion in investments across all states and territories. According to the agency, these investments have created or retained more than 554,700 jobs and generated over $67.7 billion in private investment.
Projects stemming from these funds include construction projects, creating thousands of jobs and modernizing infrastructure to be more resilient and supportive of long-term economic growth.
