The U.S. Economic Development Administration (EDA) has a long history of supporting disaster recovery activities. Most recently, the agency made $1.45 billion available through its 2025 Disaster Supplemental Grant Program (DSGP) to assist communities impacted by federally declared disasters in 2023 and 2024, including Tropical Storm Helene.
The 2025 DSGP offers three distinct grant opportunities, referred to as funding paths, designed to support communities in their disaster recovery efforts. These funding paths include:
- Readiness Path: Support for non-construction projects that build local capacity and prepare communities for future implementation projects. Funds may be used for a variety of projects, such as developing recovery strategies, hiring disaster recovery coordinators or other staff to support capacity building, or covering pre-development costs (e.g., permitting, preliminary engineering reports, environmental reviews, and impact assessments). Award range: $250,000 – $500,000.
- Implementation Path: Support for individual construction or non-construction projects that directly support disaster recovery and long-term economic growth. Funds may be used for a variety of purposes, including critical infrastructure construction or upgrades, workforce development programs, or activities that accelerate large-scale industry development. Award range: $2 million – $20 million for construction projects; $100,000 – $5 million for non-construction projects.
- Industry Transformation Path: Support for multi-project portfolios designed to accelerate the growth and expansion of new and existing industries that will help transform regional economies. The project portfolios may combine construction and non-construction projects. Award range: $20 million – $50 million.
May we apply for more than one funding path?
Yes. Eligible applicants may apply concurrently for separate and distinct projects under the Readiness, Implementation, and/or Industry Transformation Paths. For the Industry Transformation Path, each proposed component project must be submitted as its own application package in accordance with the NOFO requirements. Applicants may not submit the same project under multiple paths.
What else is important to know about the Industry Transformation Path?
While all three paths provide important disaster recovery funding, the Industry Transformation Path is unique in its scale and intent. As mentioned above, this path makes available flexible grants of up to $50 million to support coordinated regional investments in new and developing industries. These awards are designed promote regional collaboration between the public and private sectors with the goal being to accelerate post-disaster economic recovery through projects that promote job creation, business development, and innovation.
Applicants interested in applying for Industry Transformation funds should note the following:
- Project design: In general, each proposal must identify 3-to-5 large-scale coordinated component projects (construction or non-construction) that complement one another and are intended to produce stronger results than standalone efforts.
- Example: A regional food processing strategy might include the following four projects: (1) construction of a new food processing facility, (2) purchase of equipment for training programs, (3) expansion of transportation infrastructure, and (4) workforce development initiatives.
- Coalition requirement: Each proposal should be collaboratively developed and submitted by a coalition of regional partners who share the same vision for how the proposed projects will transform the regional economy. Coalitions must include at least one private-sector partner. Not all coalition members must be eligible applicants for the grant funding (see below for a list of eligible applicants), but the application must be submitted by an eligible entity.
- Project eligibility: Projects must be located in, primarily serve, or demonstrably benefit one or more communities that received a Major Disaster Declaration for events occurring in 2023 or 2024. Eligible projects should include construction and non-construction activities that:
- Mitigate or prevent impacts of future disasters,
- Replace, repair, or upgrade disaster-damaged public infrastructure, or
- Diversify the regional economy or accelerate growth in a strategic industry.
Who may apply for the 2025 DSGP grant funding?
For all three pathways, the eligible applicants that may apply for funding as a recipient or subrecipient include:
- States, counties, cities, and other political subdivisions
- Indian tribes
- District organizations
- Economic development organizations
- Institutions of higher education
- Public and private nonprofits working with local governments
- Public-private partnerships for public infrastructure
When are applications due?
- Readiness and Implementation Paths: Applications accepted on a rolling basis until funds are exhausted or the program is discontinued.
- Industry Transformation Path: Applications due March 3, 2026, at 5:00 p.m. The EDA encourages early submissions due to high demand.
Where can I find additional resources?
