New disaster recovery grants now open to support county economic development

Key Takeaways

The U.S. Economic Development Administration (EDA) has launched the Fiscal Year (FY) 2025 Disaster Supplemental Grant Program, making $1.45 billion available to help communities recover from natural disasters and build long-term economic resilience. Counties affected by major disaster declarations in 2023 or 2024 are eligible to apply for funding to rebuild infrastructure, strengthen local economies and prepare for future disruptions. This program goes beyond immediate recovery, aiming to transform local economies and foster sustainable, long-term economic growth.

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Disaster Supplemental Grant Program

The EDA FY 2025 Disaster Supplemental Grant Program offers three distinct funding pathways based on the applicant’s recovery capacity and plans. These Notice of Funding Opportunities (NOFOs) are designed to not only address immediate recovery needs, but to help transform local economies and support long-term growth. The three grant pathways are:

1. Readiness Pathway
   • Funding range: $250,000–$500,000
   • Supports early-stage, non-construction efforts like recovery planning, hiring recovery coordinators and conducting pre-development activities.
   • Designed for communities building capacity to implement longer-term recovery initiatives.
   • Applications are rolling until are exhausted or the NOFO is cancelled.
2. Implementation Pathway
   • Funding range: $100,000–$5 million (non-construction); $2 million–$20 million (construction)
   • Supports recovery projects that directly advance local economic recovery, including infrastructure improvements, workforce development and economic revitalization efforts.
   • Applications are rolling until are exhausted or the NOFO is cancelled.
3. Industry Transformation Pathway
   • Funding range: $20 million–$50 million
   • Supports coalitions implementing regional strategies to transform local economies through industry development.
   • Ideal for counties working in partnership to achieve large-scale economic shifts post-disaster.
   • Applications due by March 3, 2026 at 5 p.m. ET.

Application deadline

Counties are eligible to apply under any of the three pathways. Projects must be located in, serve, or directly benefit areas that received a major disaster declaration in 2023 or 2024.

EDA will generally fund up to 80 percent of total project costs, with the potential to cover up to 100 percent for Tribal governments or severely distressed communities.

Applications for all pathways must be submitted through EDA’s EDGE portal. Readiness and Implementation applications are accepted and reviewed on a rolling basis until funds are exhausted. The Industry Transformation pathway has a firm deadline of Tuesday, March 3, 2026, at 5:00 p.m. ET.

For more details or help with the application process, please contact your state’s EDA Economic Development Representative.