Economic Adjustment Assistance for State Governments

CFDA 12.617 Active Grant
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Program Funding

Annual program obligations reported to SAM.gov.

Latest annual funding (estimated)
$3M FY2026
$4.6M
FY24
$5.4M
FY25
$3M
FY26*
* estimated

Funded Projects

Examples of what this program has supported.

FY2025 A $585k federal award enables the State of Maryland, through the Maryland Department of Commerce, to strengthen the readiness of businesses located in defense dependent regions by scaling a Technology Transfer program. This project has assisted over 45 businesses in partnering with Department of War and other related Federal labs on dual-use technology innovation. This project stimulates cooperation between statewide and local adjustment and diversification efforts.

Program Objective

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.

Eligibility

Eligible Applicants

  • State

States, entities of States, the District of Columbia, U.S. Territories and possessions. Applicants are to contact the Office of Local Defense Community Cooperation and a Project Manager will be assigned to work with the applicant to determine eligibility.

How to Apply

Award Procedure

Applications are reviewed by Office of Local Defense Community Cooperation staff. The Office of Local Defense Community Cooperation 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 Local Defense Community Cooperation. Awards by the Director, Office of Local Defense Community Cooperation, will be made of the basis of an approved final application.

To the extent practicable, the Office of Local Defense Community Cooperation 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 Local Defense Community Cooperation will promptly inform an applicant of the rejection of any application once its due diligence has been completed.

Program details & compliance

Description

Per statute, enables States, or entities of State government, to enhance their capacities to assist communities, businesses, and workers affected by Department of War program activities 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.

Mission Categories

Primary: Civil Defense

Use of Funds

Allowed Uses

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.

Required Documentation

Applicants will be required to provide documentation consistent with the authority under which the assistance is being sought.

Matching Requirements

A minimum of ten percent of the project's total proposed funding is to be comprised of non-Federal sources.

Reporting & Compliance

Audit Required
Yes — Determined at Time of Award
Records Retention
3 years

Applicable 2 CFR 200 Subparts

  • Subpart B — General Provisions
  • Subpart C — Pre-Federal Award Requirements
  • Subpart D — Post-Federal Award Requirements
  • Subpart E — Cost Principles
  • Subpart F — Audit Requirements

Contacts

Karen E. Bass-McFadden
(703) 697-2161
2231 Crystal Drive, Suite 520, Arlington, VA 22202-3711
Data from SAM.gov Federal Assistance Listings. Source published: 2026-01-30. Spec v2.0. Last synced: 2026-05-29 05:38:47.