Community Economic Adjustment Assistance for Reductions in Defense Spending


To provide assistance to State and local governments affected by qualifying Department of Defense actions.

General information about this opportunity
Last Known Status
Program Number
Federal Agency/Office
Agency: Department of Defense
Office: Office of Economic Adjustment
Type(s) of Assistance Offered
Cooperative Agreements; Dissemination of Technical Information; Project Grants
Program Accomplishments
Fiscal Year 2014: No program activity occurred. Fiscal Year 2015: Grantees are responding to publicly announced Army reductions in spending and resulting personnel reductions using grant funds for staff to help organize their communities and study areas of impact, including housing markets; local schools; central business districts and the regional economy. Fiscal Year 2016: No Current Data Available
10 U.S.C. 2391.
Who is eligible to apply/benefit from this assistance?
Applicant Eligibility
Applicants for this assistance are to contact the Office of Economic Adjustment and a Project Manager will be assigned to work with the applicant to determine eligibility for assistance under this program. States, counties, municipalities, other political subdivisions of a State, special purpose units of a State or local government, and tribal nations are eligible for this assistance if there are reductions in Defense spending resulting in a proposed or actual military and/or civilian personnel reduction resulting from a reduction in spending. Personnel reductions must result in the loss of not less than: 2,000 military, civilian, and contractor personnel in an urban labor market area, or 1,000 military, civilian, and contractor personnel in the case of a non-urban labor market area. The Director, Office of Economic Adjustment must also determine whether the loss results is a direct and significant adverse impact on a community and its residents. Where multiple jurisdictions may be affected by reduced spending and personnel reductions, one program of assistance will be available and the affected jurisdictions will need to combine their efforts into one responsive program.
Beneficiary Eligibility
States and communities, including workers, businesses, and other community interests that are affected by a qualifying Department of Defense action.
Applicants will be required to provide documentation consistent with the authority under which the assistance is being sought. 2 CFR 200, Subpart E - Cost Principles applies to this program.
What is the process for applying and being award this assistance?
Pre-Application Procedure
The applicant may be notified of funding availability in person, through letter, electronic mail, or a Federal Funding Opportunity Announcement (FFO), and will be advised on how to apply for the funding through this notification. The Office of Economic Adjustment will work closely with the affected State and/or community to craft a responsive program of technical assistance and, where eligible and necessary, issue project grants. Environmental impact information is not required for this program. Environmental impact information is not required for this program. This program is eligible for coverage under E.O. 12372, "Intergovernmental Review of Federal Programs." An applicant should consult the office or official designated as the single point of contact in his or her State for more information on the process the State requires to be followed in applying for assistance, if the State has selected the program for review.
Application Procedure
2 CFR 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards applies to this program. An application (SF 424, budget, program or project narrative and assurances) must be submitted that outlines the proposed project and expenditure of funds. Applicants will be invited to submit their applications and supporting documentation electronically to the Director, Office of Economic Adjustment, Department of Defense. In instances where, for whatever reason, an electronic application cannot be submitted, provisions may be made to accept a paper application addressed to: Director, Office of Economic Adjustment, Department of Defense, 2231 Crystal Drive, Suite 520, Arlington, VA 22202-3711.
Award Procedure
Applications are reviewed by Office of Economic Adjustment staff. The Office of Economic Adjustment may consult with other Federal agencies as necessary in consideration of an application. Any issues or concerns noted in the application may be negotiated with the applicant prior to the application being accepted as final by the Office of Economic Adjustment. Awards by the Director, Office of Economic Adjustment, will be made on the basis of an approved final application.
Not Applicable.
Approval/Disapproval Decision Time
To the extent practicable, the Office of Economic Adjustment will inform an applicant of approval within seven business days of the receipt of a final, completed application for planning assistance, and thirty business days of the receipt of a final, completed application for assistance to carry out community adjustments or economic diversification programs. The Office of Economic Adjustment will promptly inform an applicant of the rejection of any application once its due diligence has been completed.
Not Applicable.
Not Applicable.
How are proposals selected?
Not applicable. Awards are based on eligibility and availability of funds.
How may assistance be used?
Technical and financial assistance to States and local governments to assess the impact of a Defense spending reduction, operate and maintain a community-based organization to represent an impacted area and its workers, businesses, and communities; prepare cost effective strategies and action plans for sustainable economic recovery; and/or carry out a community adjustment and economic diversification program; plan and carry out local economic adjustment programs, including, but not limited to: feasibility studies; organizational staffing, operating, and administrative expenses; redevelopment and economic development capacity-building; public outreach; and other activities necessary for a community to capably respond to the adverse impacts of Defense spending reductions on local schools, housing markets and central business districts, etc. Assistance may not be used to negate or contravene Department of Defense activities in carrying out a reduction in Defense spending.
What are the requirements after being awarded this opportunity?
Program reports are required. Cash reports are required. Progress reports are required. Expenditure reports are required. The frequency of these reports will be identified in the "Terms and Conditions" of the award. Performance monitoring may be required. The frequency of the reports will be identified in the "Terms and Conditions" of the award.
In accordance with the provisions of 2 CFR 200, Subpart F - Audit Requirements, non-Federal entities that expend financial assistance of $750,000 or more in Federal awards will have a single or a program-specific audit conducted for that year. Non-Federal entities that expend less than $750,000 a year in Federal awards are exempt from Federal audit requirements for that year, except as noted in 2 CFR 200.503. Standard Federal audit requirements apply, as appropriate to the type of recipient. These audits are due to the cognizant Federal agency, submitted through the Federal Audit Clearinghouse, not later than 9 months after the end of the Grantee’s fiscal year.
Grant records shall be retained for a period of 3 years from the day the recipient submits its final expenditure report. If any litigation, claim, negotiation, audit, or other action involving the records has been started before the expiration of the 3-year period, the records must be retained until completion of the action and resolution of all issues which arise from it, or until the end of the regular 3-year period, whichever is later. Grant records include financial and program/progress reports, support documents, statistical records, and other documents that support the activity and/or expenditure of the recipient or subrecipient under the award.
Other Assistance Considerations
Formula and Matching Requirements
This program has no statutory formula.
Matching Requirements: Matching requirements may apply to this program. A minimum of ten percent of the project's total proposed funding may be required and shall be comprised of non-Federal sources.
MOE requirements are not applicable to this program.
Length and Time Phasing of Assistance
Length of assistance may extend across more than one period and will be determined on the basis of project need and requirements. Project periods should not exceed one year. See the following for information on how assistance is awarded/released: funds are disbursed as required.
Who do I contact about this opportunity?
Regional or Local Office
See Regional Agency Offices. Regional Director, Western Region Office of Economic Adjustment, Department of Defense, 1325 J Street, Suite 1500, Sacramento, CA 95814, Telephone: (916) 557-7365.
Headquarters Office
Director 2231 Crystal Drive, Suite 520, Arlington, Virginia 22202-3711 Email: Phone: (703) 697-2130 Fax: (703) 607-0170
Website Address
Financial Information
Account Identification
(Project Grants) FY 14 $0; FY 15 est $1,500,000; and FY 16 Estimate Not Available
Range and Average of Financial Assistance
$300,000 - $400,000.
Regulations, Guidelines and Literature
The Recipient, and any subrecipient or consultant/contractor, operating under the terms of a grant or cooperative agreement shall comply with all Federal, State, and local laws including the following, where applicable: Part 1103 of Title 2, Code of Federal Regulations (CFR), Interim Grants and Cooperative Agreements Implementation of Guidance in 2 CFR 200, “Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards;” Part 28 of title 32, CFR, "New Restrictions on Lobbying;" Part 1125 of title 2, CFR, “Department of Defense Nonprocurement Debarment and Suspension,” Subpart B, “Requirements for Recipients Other Than Individuals,” of Part 26 of title 32, CFR, “Governmentwide Requirements for Drug-Free Workplace (Financial Assistance);” and Part 25 of title 2, CFR, “Universal Identifier and Central Contractor Registration.”
Examples of Funded Projects
Fiscal Year 2014: No projects funded. Fiscal Year 2015: A community adversely impacted by Army downsizing received grant funds to support operational costs and contractual efforts to understand how they are impacted by troop reductions, and to develop a regional response to reductions in pesonnel. Fiscal Year 2016: No Current Data Available


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