Economic Adjustment Assistance for State Governments

To provide technical and financial assistance to a State, or an entity of State government, to enhance its capacities to assist communities, businesses, and workers affected by Defense program activity to plan and carry out community adjustment and economic diversification activities; support local adjustment
and diversification efforts; and stimulate cooperation between statewide and local adjustment and diversification efforts.
Related Programs12.600 Community Economic Adjustment ; 12.604 Community Economic Adjustment; 12.607 Community Economic Adjustment Assistance for Establishment, Expansion, Realignment, or Closure of a Military Installation; 12.610 Community Economic Adjustment Planning Assistance for Joint Land Use Studies; 12.611 Community Economic Adjustment Planning Assistance for Reductions in Defense Industry Employment; 12.614 Community Economic Adjustment Diversification Planning; 12.615 Research and Technical Assistance

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.

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

Phone: (916) 557-7365.
Website Address

Program Accomplishments

Not Applicable.

Uses and Use Restrictions

Enhance State capacities to assist communities, businesses, and workers adversely affected by:

the proposed or actual establishment, realignment, or closure of a military installation;

the cancellation or termination of a Department of Defense contract or the failure to proceed with an approved major weapon system program;

a publicly announced planned major reduction in Department of Defense;

the encroachment of a civilian community on a military installation; or

the closure or the significantly reduced operations of a defense facility as the result of a merger, acquisition, or consolidation of the defense contractor operating the defense facility.

Planning activities to support, respond to, and prepare for local adjustment and diversification initiatives.

Stimulate cooperation between statewide and local adjustment and diversification efforts.

Provide planning assistance to understand Defense worker, business, and community linkages and dependencies across regions.

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 in Defense-related restructuring plans, or 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.

Eligibility Requirements

Applicant Eligibility

States, entities of States, Indian Tribal Governments, the District of Columbia, U.S.

Territories and possessions.

Applicants are to contact the Office of Economic Adjustment and a Project Manager will be assigned to work with the applicant to determine eligibility.

Beneficiary Eligibility

States, Indian Tribal Governments, and communities, including workers, businesses, and other community interests affected by Defense budget reductions, base closures/realignments, and/or civilian encroachment that is likely to impair the continued operational utility of a military installation.


Applicants will be required to provide documentation consistent with the authority under which the assistance is being sought. OMB Circular No. A-87 applies to this program.

Aplication and Award Process

Preapplication Coordination

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

The applicant will be advised on 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

OMB Circular No. A-102 applies to this program. This program is excluded from coverage under OMB Circular No. A-110. 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 program and administrative staff. Any issues or concerns noted in the application will be negotiated with the applicant prior to the application being approved by the Director, Office of Economic Adjustment.


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. 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

Statutory formulas are not applicable to this program.
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 an award.

Performance monitoring is required.

The frequency of monitoring will be identified in the "Terms and Conditions" of an award.


In accordance with the provisions of OMB Circular No. A-133 (Revised, June 27, 2003), "Audits of States, Local Governments, and Non-Profit Organizations," nonfederal entities that expend financial assistance of $500,000 or more in Federal awards will have a single or a program-specific audit conducted for that year. Nonfederal entities that expend less than $500,000 a year in Federal awards are exempt from Federal audit requirements for that year, except as noted in Circular No. A-133. Standard Federal audit requirements apply, as appropriate to the type of recipient. These audits are due to the cognizant Federal agency, submitted through the Federal Audit Clearinghouse, not later than 9 months after the end of the Grantee s fiscal year.


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



(Salaries) FY 13 $0; FY 14 Estimate Not Available(Exp: Program has not started.); and FY 15 Estimate Not Available

Range and Average of Financial Assistance

No Data Available.

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 33 of title 32, Code of Federal Regulations (CFR), "Uniform Administrative Requirements for Grants and Cooperative Agreements to State and Local Governments;" Part 225 of title 2, CFR, "Cost Principles for State, Local, and Indian Tribal Governments;" Part 25 of title 32, CFR, OMB Circular A-133;" Audits of States, Local Governments and Non-Profit Organizations;" 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. Western Region Director, 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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