Community Economic Adjustment Assistance for Reductions in Defense Industry Employment

Assist States and local governments to plan and carry out community adjustment and economic diversification activities in response to reductions in defense industry employment.

Related Programs

Examples of Funded Projects

Fiscal Year 2015: No Current Data Available Fiscal Year 2016: In response to a series of layoffs at multiple defense manufacturing companies, a collaboration of economic development and governmental organizations in the area is working to: align local economic development plans and update them with diversification strategies; promote the growth of new and existing businesses in defense sector industries through workforce and supply chain initiatives; map the regional defense industry supply chain; and, provide technical assistance to a company?s suppliers and affected workers.

Fiscal Year 2017: No Current Data Available

Agency - Department of Defense

The Department of Defense provides the military forces needed to deter war and protect the security of the United States through five major areas: peacekeeping and war-fighting efforts, Homeland Security, evacuation and humanitarian causes.

Office - See Regional Agency Offices.

Regional Director, Western Region Office of Economic Adjustment, Department of Defense, 1325 J Street, Suite 1500, Sacramento, CA 95814.

Phone: (916) 557-7365.
Website Address

Selected Recipients for this Program

RecipientAmount Start DateEnd Date
Wichita State University $ 2,466,536   2018-07-012019-12-31
Macomb St Clair Workforce Development Board $ 2,008,690   2017-08-012019-07-31
San Diego, City Of $ 1,699,999   2017-09-012019-06-30
Middle Georgia Regional Commission, The $ 1,705,836   2016-11-012018-06-30
Long Beach, City Of $ 1,342,406   2017-01-012017-12-31
Allen, County Of $ 3,013,590   2015-09-012017-08-31
Macomb St Clair Workforce Development Board $ 5,969,339   2015-08-012017-07-31
Long Beach, City Of $ 3,995,609   2015-06-012016-09-30
Regents Of The University Of Michigan $ 14,569,153   2012-01-012016-05-31
East Central Wisconsin Regional Planning Commission $ 2,052,179   2013-10-012015-12-31

Program Accomplishments

Fiscal Year 2015: Funding will be used for next steps related to a FY14 project and one new project in response to defense personnel reductions. Fiscal Year 2016: The program supported organizing and planning diversification initiatives, including supply chain analysis and technical assistance to small and medium size businesses, in one County, one City and one Regional (3-state) area. One of the projects is new, the other two received ongoing support for efforts begun the previous year. Fiscal Year 2017: No Current Data Available

Uses and Use Restrictions

Plan and carry out local economic adjustment programs, including, but not limited to: assessment of local economic strengths, weaknesses, opportunities and threats; staffing, operating and administrative costs for an organization to represent the affected community; review of local Defense prime and sub contracting activity; outreach to local small businesses, workers, and other community interests; and, facility evaluations.

Funds provided under this program may 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.

Eligibility Requirements

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 is: a publicly announced planned major reduction in Department of Defense (DoD) spending; the closure or significantly reduced operations of a defense facility as the result of the merger, acquisition, or consolidation of the defense contractor operating the defense facility; the cancellation or termination of a DoD contract; or the failure to proceed with an approved major weapon system program if these actions will have a direct and significant adverse impact on a community or its residents.

The local action must result in the loss of: 2,500 or more employee positions, in the case of a Metropolitan Statistical Area; 1,000 of more employee positions, in the case of a labor market area outside of a Metropolitan Statistical Area; or one percent of the total number of civilian jobs in that area to be considered for this assistance.

Beneficiary Eligibility

States and communities, including workers, businesses, and other community interests, that may be affected by Defense actions.


Applicants will be required to provide documentation consistent with the authority under which the assistance is being sought. Applicants must document: 1) the publicly announced Defense action that has occurred or will occur; and 2) the known or anticipated impacts on the applicant due to the closure, reduction, cancellation, termination, or failure to proceed. 2 CFR 200, Subpart E - Cost Principles applies to this program.

Aplication and Award Process

Preapplication Coordination

An applicant may be notified of funding availability in person, through letter, electronic mail, or a Federal Funding Opportunity Announcement (FFO), and 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 Procedures

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 Procedures

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.


10 U.S.C. 2391.

Range of Approval/Disapproval 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 other types of 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.

Assistance Considerations

Formula and Matching Requirements

This program has no statutory formula. 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.

Post Assistance Requirements


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 the award.

Performance monitoring is required.

The frequency of the monitoring will be identified in the 'Terms and Conditions' of the 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.


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.

Financial Information

Account Identification



(Project Grants) FY 15 Not Available; FY 16 est $10,028,299; and FY 17 Estimate Not Available

Range and Average of Financial Assistance

$250,000 - $1,500,000; $500,000.

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 Grant and Cooperative Agreement Implementation of 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.?

Information Contacts

Regional or Local Office

See Regional Agency Offices. Regional Director, Western Region 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

Criteria for Selecting Proposals

Not applicable. Awards are based on eligibility and availability of funds.

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