CAPCOG urges communities to prepare for EDA rescue funds

The CAPCOG Community and Economic Development Division began working with communities to develop potential project ideas for applications for the Economic Development Administration’s (EDA) American Rescue Plan funding opportunity ahead of its anticipated May notification of funding. It also is urging other jurisdictions to evaluate projects that address COVID-19 economic recovery and prepare them to possibly apply.

EDA will receive about $3 billion in economic recovery funding from the American Rescue Plan, and a portion of those monies will be allocated to the Southwest five-state region that includes Texas. CAPCOG staff believes the Southwest regions will be similar in proportion to the EDA’s CARES Act funding which was announced last year. The EDA received $1.5 billion for its CARES Act recovery program and allocated about $236 million to the five-state area. Twelve jurisdictions in the CAPCOG region applied for the CARES Act funding opportunity and two were awarded. Pflugerville received $2.3 million for infrastructure improvements along its Pecan Street corridor, and Giddings also received $1.8 million for road, water, and broadband improvements. Both projects further developed portions of the cities to enhance economic growth opportunities.

The previous round was extremely competitive as EDA’s CARES Act funding was fully committed in about six months. CAPCOG will continue to provide technical assistance for new EDA applications as it did in the last round of competition. It is working with previous applicants to consider reapplying as well as with other communities to determine what economic recovery projects can be tailored to the EDA’s criteria. CAPCOG also is coordinating meetings with EDA representatives to discuss potential project eligibility.

Contact Rachel Ellis, CAPCOG grant specialist, for more information.
Read about the Community and Economic Development Division.