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
Office of Economic Adjustment, Department of Defense
Type(s) of Assistance Offered
B - Project Grants; L - Dissemination of Technical Information
Program Accomplishments
Not applicable.
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.
What is the process for applying and being award this assistance?
Pre-Application Procedure
Preapplication coordination is required. 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. For the specific Army Downsizing actions in 2015, potentially eligible applicants were contacted directly by OEA based upon the Army’s list of impacted installations. Additionally, OEA published a Federal Funding Opportunity in the Federal Register. OEA continues to work with the Military Departments to understand projected force structure actions and will inform potentially eligible entities in the event major force structure actions are announced. This will include possibly publishing a Federal Funding Opportunity notice in the Federal Register.
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.
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?
Performance Reports: Performance monitoring may be required. The frequency of the reports will be identified in the "Terms and Conditions" of the award.
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
Statutory formula is not applicable to this assistance listing.

Matching is voluntary. 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 assistance listing.
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. funds are disbursed as required.
Who do I contact about this opportunity?
Regional or Local Office
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
Karen E. Bass-McFadden
2231 Crystal Drive, Suite 520
Arlington, VA 22202-3711 US
Phone: (703) 697-2161
Fax: (703) 607-0170
Website Address
Financial Information
Account Identification
(Project Grants) FY 18$1,290,246.00; FY 19 est $0.00; FY 20 est $0.00; FY 17 Estimate Not Available FY 16 est $669,563.00; FY 15 est $1,500,000.00; - Grants are dependent upon force structure change and a determination of their impact. This information is classified until public announcement.
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 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 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 personnel.
Fiscal Year 2018 In July 2015, the U.S. Army announced the reduction of 774 uniformed personnel at an installation. The downsizing was part of federal budget driven cuts of as many as 30,000 soldiers throughout the U.S. Army. The primary goal of OEA assistance in this locale was to adequately understand the potential economic impacts associated with the announced reductions of personnel and design and implement plans/measures to minimize their severity.


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