EDA Closes Application Window for Agency's ARPA Funding

It’s akin to the old ticket window at a hugely popular rock concert or theatrical production with a “Sold Out” sign due to excessive demand. The Department of Commerce Economic Development Administration (EDA) recently announced that it has officially closed all of its American Rescue Plan Act (ARPA) (Pub. L. 117-2) programs for applications, and the $3 billion in program funding will be awarded on a rolling basis through Sept. 30, 2022.

“The demand and participation for these programs are impressive and reflect the tremendous interest in building upon other ARPA support, the Bipartisan Infrastructure Law, and further competitiveness legislation that is already benefiting every corner of the U.S.,” EDA explained. “Applications reflect hundreds of new participants in EDA programs, an emphasis on an inclusive, equitable recovery, and bolder regional collaborations that will increase America’s global economic competitiveness.”

As of mid-May, EDA had received some $15.8 billion in proposals for the $3 billion in grant funds available. The Build Back Better Regional Challenge received 529 total applications for the first phase of the competition, of which it selected 60 finalists to apply for Phase 2 funding. These finalists requested $4.3 billion in total implementation investments, or more than four times the available funding.

The Good Jobs Challenge received more than 509 applications requesting more than $6.5 billion in funding, or about 13 times more than the available funding. EDA’s other American Rescue Plan programs — Economic Adjustment Assistance; Travel, Tourism and Outdoor Recreation; and Indigenous Communities — were also more than four times oversubscribed and received nearly 1,500 applications requesting $3.7 billion.

Although EDA has closed the door on ARPA funding proposals, the agency encouraged prospective applicants to explore other EDA programs with available funding to support local economic development needs. Applications for EDA’s traditional, non-supplemental funding are accepted on an ongoing, rolling basis. However, the agency advised applicants that it is “significantly oversubscribed across the Economic Development Assistance Program (EDAP) for work under way in federal fiscal year 2022.” As of mid-May, EDA had received 266 proposals requesting more than $588 million of the $220.5 million in available EDAP funding.

The need for federal assistance is great. Unfortunately, there is only so much to go around.

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