The Economic Development Administration (EDA) is continuously accepting applications for the Fiscal Years (FY) 2023, 2024, and 2025 Public Works and Economic Adjustment Assistance Notice of Funding Opportunity (FY 23/24/25 PWEAA NOFO).

This is a strategic opportunity; because proposals are reviewed on a continuous, rolling basis, applicants have the time needed to perfect their submissions without facing an immediate, hard deadline. This specific NOFO governs the investment selection process and supersedes the FY20 PWEAA NOFO.

Table of Contents

Why Federal EDA Grants Matter

The EDA is the only federal agency exclusively focused on economic development. This grant programme is designed to inject capital into communities, helping regions devise and implement long-term economic development efforts. The funding supports bottom-up strategies that harness regional assets to spur economic growth and resiliency.

Put simply, the EDA aims to fund ideas generated at the local level and help communities advance their economic stability and competitiveness. By partnering with the EDA, organisations commit to developing projects that align with federal performance goals, ensuring accountability and measurable impact.

The funding originates from the Economic Development Administration (EDA), an agency of the U.S. Department of Commerce (DOC). The EDA manages and reports on programme performance in compliance with the Government Performance and Results Act (GPRA). This federal oversight ensures transparency and demonstrates the efficacy of public investments.

The Funding Amount

Award amounts are subject to the availability of funds and specific EDA priorities at the time of award. These investments vary significantly based on the programme stream (Public Works or EAA).

Public Works Investment

Historically, the average award size for public works projects has been approximately $1.4 million. For FY2025, the EDA expects to make investments ranging from $600,000 to $5 million.

Economic Adjustment Assistance (EAA):

EAA investments, which often cover planning or strategy work, average around $650,000, with expected FY2025 investments ranging from $150,000 to $2.5 million.

Targeted Assistance:

Awards for specialised programmes, such as Assistance to Coal Communities (ACC), Nuclear Closure Communities (NCC), and Biomass Closure Communities (BCC), typically range from $500,000 to $3 million for implementation projects.

The Local Match Requirement

Cost sharing is a required component of nearly all federal grants. The baseline maximum EDA investment rate for projects is typically 60 per cent of the total cost. That said, the rate can increase depending on the severity of the region’s economic distress.

For instance, in areas with a 24-month unemployment rate at least 200% of the national average, the maximum federal share may rise to 70 percent. In extremely distressed regions (unemployment 225% of the national average or PCI 50% or less of the national average), the investment rate may reach 80 percent.

Crucially, Indian Tribes and states/political subdivisions that can document they have exhausted their taxing and borrowing capacity may qualify for an investment rate up to 100 per cent. However, having a local match, even when not legally required, demonstrates “skin in the game”, often boosting a proposal’s competitiveness.

Who Can Apply

Eligibility for EDA investment assistance is reserved for specific public and non-profit institutional applicants. Individuals and private for-profit companies are ineligible to apply.

Eligible applicants include:

A District Organisation.
An Indian tribe or a consortium of Indian tribes.
A state, county, city, or other political subdivision of a state.
An institution of higher education or a consortium thereof.

A public or private non-profit organisation or association acting in cooperation with officials of a political subdivision of a state. Non-profit organisations must secure a resolution or letter from the local governing authority to confirm this cooperation.

Establishing Economic Distress

To be eligible, the proposed project must be located in a region that meets EDA’s distress criteria. Applicants must use reliable, third-party data to prove their region is subject to one of the following criteria:

Unemployment Rate

The rate for the most recent 24-month period is at least one percentage point greater than the national average.

Per Capita Income (PCI)

The PCI is 80 per cent or less of the national average.

Special Need

The region is experiencing extraordinary economic adjustment needs. Economic injury due to COVID-19 constitutes a “special need”. Other special needs include the closure of a major employer, underemployment, impacts from natural disasters, or being located in a persistent poverty county. If your area meets additional distress criteria, it will boost your application’s competitiveness.

Projects They Support

All projects must be aligned with both local strategic planning and national investment priorities.

CEDS Alignment

Every project must be consistent with the region’s current Comprehensive Economic Development Strategy (CEDS), or an equivalent EDA-accepted regional strategy. This demonstrates that the project is part of a deliberate, regional approach to economic development. Strategy grants aimed at developing or refining a CEDS are the only exception to this rule.

Investment Priorities

The project must align with at least one of EDA’s current Investment Priorities: Critical Infrastructure, Workforce, Innovation and Entrepreneurship, Economic Recovery Resilience, and Manufacturing. It’s worth noting that projects addressing multiple priorities are generally considered more competitive.

Programme-Specific Examples

Public Works is primarily construction-orientated. This funding supports the construction, rehabilitation, or improvement of public works and development facilities, such as water/sewer system improvements, business incubators, or facilities for workforce development.

Economic Adjustment Assistance (EAA) is broader, funding both construction and non-construction activities. EAA supports regions facing adverse economic changes. This includes strategy grants, technical assistance (like hiring disaster coordinators), or capitalisation of Revolving Loan Funds (RLFs).

Requirements for Your Project

Submitting a complete application is the minimum requirement for consideration. Applications must be submitted through the Economic Development Grants Experience (EDGE) system. Core required forms include:

Form SF-424 (Application for Federal Assistance).
Form ED-900 (General Application for EDA Programs).

Budget Narrative: This must clearly identify and justify how both the Federal Share and matching Non-Federal Share funds will support the proposed project.

Match Commitment Documentation: You must provide letters or equivalent documentation signed by authorised representatives of the source, demonstrating that the funds are unencumbered, unrestricted, committed, and available when needed at the time of award. Many applicants overlook this specific language requirement.

Form CD-511 (Certification Regarding Lobbying).

Workforce Projects: For workforce proposals to be competitive, the ED-900 must detail compliance with specific requirements. This includes demonstrating industry-driven strategies, planning to scale registered apprenticeships, and establishing metrics to measure employment and earnings outcomes.

Construction/Design Projects: These applications require substantial due diligence. They must include a Preliminary Engineering Report (PER) and adequate environmental information, including an environmental narrative and a certification clause. Construction projects must also comply with the Build America, Buy America (BABA) Act for all iron, steel, manufactured products, and construction materials.

Stepwise Application Process

The federal application process requires careful administrative preparation before the writing even begins:

Registration Readiness: Applicants must register and maintain an active status in the System for Award Management (SAM.gov) and obtain a valid Unique Entity Identifier (UEI). Since registration can take time, it’s best to start immediately.

Submission: The application must be completed and submitted electronically by the authorised representative through the EDGE system (sfgrants.eda.gov).

Verification: You should always save and print written proof of submission, including the time- and date-stamped email confirmation from EDGE.

Important Compliance Notes

Recipients of an EDA award are bound by the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), set forth in 2 C.F.R. part 200.

Pre-Award Costs

In general, EDA does not reimburse costs incurred before the award date. Applicants should note that they incur any pre-award costs at their own risk.

Audit Requirements

Non-federal entities that expend federal awards of $750,000 or more in the fiscal year must conduct a single or programme-specific audit. It’s worth noting that the audit threshold is set to increase to $1,000,000 effective October 1, 2024, per the revised Uniform Guidance.

In-Kind Contributions

If used as a match, in-kind contributions (like services, equipment, or space) must be directly related to the project and must meet federal cost principles. For construction projects, cash match is often preferred over in-kind contributions.

Federal Funds as Match

Funds from other federal financial assistance awards may only be considered a matching share if authorised by statute, a determination made by EDA’s reasonable interpretation. For instance, certain non-entitlement funds from HUD’s CDBG programme may be permissible.

Grant Timeline

Submission Deadline

There are no application deadlines under this NOFO. Applications are accepted on a rolling basis until the NOFO is modified or funds are expended.

Review Period

EDA intends to review complete applications expeditiously. However, the process for complex or large construction projects can be lengthy; as one developer reported, the approval process can take a year or more.

Project Duration

Non-construction projects typically run 12 to 24 months. Construction projects are expected to range from 12 to 48 months, with completion required within five years of the award date.

Proposal Evaluation

The review process involves two primary stages: the Competitiveness Review (CR) and the Investment Review Committee (IRC).

1. Competitiveness Review (CR) (Pass/Fail)

This initial stage, conducted by at least two EDA staff members, determines if the project is competitive. Criteria include responsiveness to the NOFO, alignment with investment priorities, the committed nature of matching funds, and alignment with the regional CEDS. Projects that fail any criterion are deemed “Not Competitive” and go no further.

2. Investment Review Committee (IRC) (Merit Review)

Competitive projects advance to the IRC, composed of regional office staff, who evaluate the merits based on several equally weighted criteria. These criteria include:

Project feasibility and likelihood of achieving projected outcomes.
Demonstrated support from and involvement with regional stakeholders.
The extent to which the project builds resiliency to future economic shocks.
The degree of economic distress in the region.
Demonstrated ability to foster job creation and retention.
Workforce Project Weighting
For workforce projects, the extent to which the proposal incorporates the detailed workforce requirements (such as job placements and employer commitments) receives a weighting equal to the combined weight of the other eight IRC criteria.

Tips for a Winning Proposal

Securing federal funding is rigorous, but successful applications share common traits rooted in planning, commitment, and precision.

Define Clear, Measurable Objectives

Funders expect organisations to articulate goals in a concise and measurable way. Objectives should be SMART (Specific, Measurable, Achievable, Realistic, and Timely). Go beyond vague aspirations; for example, specify: “We will increase reading proficiency by 30% among participants within one year.”

Forge Relationships Early

It’s essential to involve your EDA representative early and often in project development. Economic developers often tell us that a strong “relationship with the Regional Office” is a critical factor in a successful application.

Justify the Budget

A robust and detailed breakdown of costs is fundamental. You must explain clearly how each expense contributes to the project objectives. A weak or incomplete budget justification raises immediate red flags, leading reviewers to question feasibility.

Demonstrate Capacity and Partnership

Funders prefer projects that involve collaboration with other organisations or stakeholders, indicating a broader support network and shared resources. You should detail each partner’s specific role and contributions.

Focus on Lasting Impact and Sustainability

Outline strategies for how the project’s benefits will endure beyond the funding period. Sustainability can involve community involvement or partnerships with local organisations.

Maintain Professionalism and Adherence

The quality of writing and organisation significantly influences success. Ignoring application guidelines regarding format, length, or required documents is one of the most detrimental mistakes, often leading to automatic rejection. Spelling errors or inconsistent formatting can instantly detract from the proposal’s professionalism. Creating a checklist based on the funder’s requirements is highly advisable.

Summary of Past Awards

EDA funding supports a broad range of activities aimed at creating or retaining jobs and attracting private investment. Examples of purposes funded include the construction of facilities (like entrepreneur centres), infrastructure improvements (road, rail, water, sewer), capitalisation of Revolving Loan Funds (RLFs), and strategic planning grants.

Many organisations report receiving grants for non-construction awards, such as hiring disaster recovery coordinators to build community capacity. These investments are valued for fostering long-term outcomes, including growth in earnings and employment.

Apply Directly on the Official Page

The application must be submitted electronically through the Economic Development Grants Experience (EDGE) system. Check out the EDGE Submission Portal: sfgrants.eda.gov. Grants.gov Funding Opportunity Number: PWEAA2023.

Get in Touch

For questions concerning this NOFO, you should contact the appropriate EDA representative for your state. This contact information is available directly on the EDA’s website. For enquiries specific to the Assistance to Indigenous Communities (AIC) Addendum, you can also reach out to EDA at indigenous@eda.gov.

Commonly Asked Questions

Q: Are matching funds always required?

A: With limited exceptions, cost share is required. The maximum EDA share is generally 60% of total project costs, but it can be higher based on the region’s economic distress.

Q: Can I use federal funds as a match?

A: Federal funds can only be used as a matching share if authorised by statute, a determination EDA makes through reasonable interpretation. For instance, certain non-entitlement HUD CDBG funds may be permissible.

Q: Are pre-award costs reimbursable?

A: Generally, no. Pre-award costs are incurred at the applicant’s own risk and are considered for reimbursement only if the applicant receives an award and the costs are approved in writing by EDA.

Q: What happens if my project doesn’t meet L/M Income Benefit criteria?

A: While L/M Income Benefit is the primary objective, an activity may qualify if it addresses the prevention or elimination of slums or blight or meets an urgent community need.

Q: How long should I expect the application review to take?

A: While EDA reviews applications expeditiously, the process, especially for complex construction awards, can take a year or more from submission to final approval.

Key Takeaway

The Federal EDA Grant, referred to as the EDA PWEAA NOFO is a vital programme providing transformative capital for distressed regions. Given the rolling deadline, the opportunity is always available, but the competition is high. You shouldn’t rush the process. A successful strategy requires establishing a clearly defined scope of work, securing the non-federal match with the specific required legal language, and maintaining close communication with your EDA Regional Office staff. If you ensure those non-negotiable elements are perfect, you significantly increase your project’s chance of entering into this crucial federal partnership.