EDA FY25 Disaster Supplemental

The U.S. Economic Development Administration (EDA), under the U.S. Department of Commerce, has released the FY 2025 EDA Disaster Supplemental Notice of Funding Opportunity (NOFO) to support communities impacted by major natural disasters in 2023 and 2024. With an appropriation of approximately $1.447 billion through the Economic Adjustment Assistance (EAA) program, the grant initiative is designed to fund both construction and non-construction projects that aid in long-term economic recovery. Funding is aimed at regions affected by hurricanes, wildfires, severe storms, floods, tornadoes, and other disasters declared under the Robert T. Stafford Disaster Relief and Emergency Assistance Act. EDA offers three distinct funding paths under this NOFO: the Readiness Path, which funds capacity-building and predevelopment activities; the Implementation Path, for standalone projects aimed at recovering and improving regional economies; and the Industry Transformation Path, designed for large-scale portfolios led by coalitions that seek to fundamentally transform the economic landscape of a region. Each path has specific expectations for project type, scale, and desired outcomes. Readiness projects typically receive between $250,000 and $500,000; Implementation projects range from $100,000 to $20 million depending on whether they are construction or non-construction; and Industry Transformation portfolios can receive between $20 million and $50 million in total across multiple projects. Eligible applicants include district organizations of EDA-designated Economic Development Districts, Indian tribes, state and local government units, institutions of higher education, nonprofit organizations in cooperation with local governments, economic development organizations, and public-private partnerships focused on public infrastructure. For-profit entities and individuals are not eligible to apply. Projects must serve areas designated as major disaster areas by FEMA in 2023 or 2024, and most construction work must occur in these eligible areas unless exceptional justification is provided. Application packages are to be submitted through the Economic Development Grants Experience (EDGE) portal. Required components include narrative descriptions specific to each funding path, budget justifications, FEMA disaster declarations, and forms such as SF-424, SF-424A/C, SF-424D, and various ED-900 supplements depending on the project type. Matching funds are generally expected to cover at least 20% of project costs, although EDA may increase the federal share up to 100% under specific economic hardship conditions or for tribal projects. The grant operates on a rolling basis for the Readiness and Implementation paths, meaning there is no deadline until the NOFO is replaced or funds are exhausted. However, the Industry Transformation Path has a firm deadline of March 3, 2026, at 5:00 PM Eastern Time. Evaluation involves technical review and an Investment Review Committee, with final decisions made by the Selecting Official. The selection process evaluates disaster recovery need, project strategy, feasibility, and performance goals, with weighting varying by path. For the Industry Transformation Path, coalition governance and alignment with regional economic strategies are also crucial. Applicants can expect award performance periods ranging from 12 to 48 months depending on project complexity. EDA emphasizes robust community engagement, alignment with Comprehensive Economic Development Strategies (CEDS), and the potential for long-term regional transformation. Additional information, including webinar recordings and contacts for EDA Economic Development Representatives, can be found on the EDA’s website (www.eda.gov).

Engage EDA representative early; align project with CEDS; prioritize community engagement and document commitments thoroughly.