Community Economic Adjustment Assistance for Advance Planning and Economic Diversification

Assist State and local governments to lessen an area's dependence on defense expenditures by preparing economic diversification strategies, and contingency strategies and schematic land use plans for the potential redevelopment of a military installa

Per statute, enables state and local governments to lessen an area's dependence on Department of War expenditures by preparing economic diversification strategies, and contingency strategies and schematic land use plans for the potential redevelopment of a military installation prior to closure or realignment decisions.

Applicants for this assistance 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 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 a substantial portion of the economic activity or population of the applicant's geographic area is dependent on defense expenditures. The Office of Local Defense Community Cooperation must determine, in consultation with the affected state or community, that a substantial portion of the economic activity or population of the geographic area subject to the planning under this program is dependent on Department of Defense (Defense) expenditures. For purposes of eligibility determination, an area is considered Defense-dependent if it can demonstrate: (1) Direct military and civilian employment totals at least one and a half times the national level of Defense employment as a percent of the total U.S. labor force or (2) Defense-related expenditures comprise at least one and a half times the Defense percent of gross domestic product. The National Defense Budget Estimates for FY2023 states that the 2021 Defense employment as a percent of total labor force is 1.4% and the 2021 Defense share of gross domestic product is 3.2%. One and half times the Defense employment as a percent of the total labor force is 2.1%, and one and half times the Defense percent of gross domestic product is 4.8%. Technical and financial assistance is structured through an assigned Project Manager working with a defense-dependent State and/or local government.

States and communities, including workers, businesses, and other community interests, that could be affected by Defense budget reductions and base closures/realignments.

Develop economic diversification studies to lessen local economic dependency on Department of Defense and/or military installation-related expenditures; prepare contingency plans for organizing a community in response to a possible base closure or realignment; and/or produce strategies and schematic plans for the potential civilian reuse of a military installation prior to closure or realignment decision. 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 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.

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.

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.

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

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 on 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 other types of 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.