Economic Adjustment Assistance for State Governments


To provide technical and financial assistance to a State, or an entity of State government, to enhance its capacities to assist communities, businesses, and workers affected by Defense program activity to plan and carry out community adjustment and economic diversification activities; support local adjustment and diversification efforts; and stimulate cooperation between statewide and local adjustment and diversification efforts.

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
Project Grants
Program Accomplishments
Fiscal Year 2014: The program supported organizing and planning diversification initiatives, including supply chain analysis and technical assistance to small and medium size Defense businesses, in 10 States. Fiscal Year 2015: The program will support organizing and planning diversification initiatives, including supply chain analysis and technical assistance to small and medium size Defense businesses, in 11 additional States. Fiscal Year 2016: No Current Data Available
10 U.S.C. 2391.
Who is eligible to apply/benefit from this assistance?
Applicant Eligibility
States, entities of States, Indian Tribal Governments, the District of Columbia, U.S. Territories and possessions. Applicants are to contact the Office of Economic Adjustment and a Project Manager will be assigned to work with the applicant to determine eligibility.
Beneficiary Eligibility
States, Indian Tribal Governments, and communities, including workers, businesses, and other community interests affected by Defense budget reductions, base closures/realignments, and/or civilian encroachment that is likely to impair the continued operational utility of a military installation.
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
An applicant may be notified of funding availability in person, through letter, electronic mail, or a Federal Funding Opportunity Announcement (FFO), and on how to apply for the funding through this notification. 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 of 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?
Enhance State capacities to assist communities, businesses, and workers adversely affected by:
1.the proposed or actual establishment, realignment, or closure of a military installation;
2.the cancellation or termination of a Department of Defense contract or the failure to proceed with an approved major weapon system program;
3.a publicly announced planned major reduction in Department of Defense;
4.the encroachment of a civilian community on a military installation; or
5.the closure or the significantly reduced operations of a defense facility as the result of a merger, acquisition, or consolidation of the defense contractor operating the defense facility.

Planning activities to support, respond to, and prepare for local adjustment and diversification initiatives. Stimulate cooperation between statewide and local adjustment and diversification efforts. Provide planning assistance to understand Defense worker, business, and community linkages and dependencies across regions. Funds provided under this program shall not be used to directly identify or assist a business, including a business expansion, in the relocation of a plant, facility, or operation from one Labor Market Area (LMA) to another if the relocation is likely to result in the loss of jobs in the LMA from which the relocation occurs. Funds shall not be used to directly or indirectly inform and/or influence deliberations in Defense-related restructuring plans, or under Public Law 101-510, as amended, or subsequent Base Closure and Realignment laws, of the Department of Defense (including any of its components). In considering military installations for closure or realignment, the Secretary of Defense may not take into account for any purpose any advance planning undertaken by an affected community with respect to the anticipated closure or realignment of a military installation.
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 an award. Performance monitoring is also required, and the frequency of monitoring will be identified in the "Terms and Conditions" of an 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
Statutory formulas are not applicable to this program.
Matching Requirements: A minimum of ten percent of the project's total proposed funding is to be comprised of non-Federal sources.
This program does not have MOE requirements.
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 quarterly or as required.
Who do I contact about this opportunity?
Regional or Local Office
See Regional Agency Offices. Western Region Director, Office of Economic Adjustment, Department of Defense, 1325 J Street, Suite 1500, Sacramento, CA 95814. Phone: (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 $32,362,152; FY 15 est $38,953,711; and FY 16 Estimate Not Available
Range and Average of Financial Assistance
$1,000,000 – $7,200,000, $1,900,000.
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 Part 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: Provided financial assistance to states to identify exposure to Department of Defense procurement changes by engaging in defense industry supply-chain mapping. Enabled states to conduct Strengths, Weaknesses, Opportunity and Threat (SWOT) analyses based on data resulting from supply chain maps. Also empowered states to conduct asset inventories of programs and organizations which can be used to respond locally within these defense-dependent regions in the event of reduced Defense procurement. Fiscal Year 2015: States and local governments intend to use financial assistance for defense industry supply chain mapping, export training for defense-oriented manufacturing firms, and business process reengineering services. Also intend to support States in providing technical assistance to existing small and medium-size defense-oriented businesses seeking to diversify their customer base. Fiscal Year 2016: No Current Data Available