EDA Raises Grant Limits to 100% for Urgent Public Works Projects
Published Date: 11/19/2025
Rule
Summary
Starting November 19, 2025, the Economic Development Administration (EDA) is updating its grant rules to match new laws passed in 2024. Now, EDA can offer bigger federal grants—up to 60% base funding, with chances to boost that even higher for special cases. This change helps communities get more money for public works and economic projects, making it easier to build and grow.
Analyzed Economic Effects
3 provisions identified: 3 benefits, 0 costs, 0 mixed.
Higher Maximum Investment Rates for Distress Levels
For projects located in regions meeting specific distress metrics, EDA’s final rule sets maximum allowable federal investment rates as follows: 80% where the 24-month unemployment rate is at least 225% of the national average or per capita income is not more than 50% of national average; 70% where the 24-month unemployment rate is at least 200% or per capita income is not more than 60%; and 60% where the 24-month unemployment rate is at least one percentage point greater than the national average or per capita income is not more than 80%. The rule is effective November 19, 2025.
Discretionary Boosts: Up to 30% and 100%
From the 60% base federal grant rate, EDA may increase the federal share by up to an additional 30% based on relative needs, and in certain circumstances may provide up to 100% federal funding. The final rule reflects these statutory permissions and is effective November 19, 2025.
Base Federal Grant Rate Raised to 60%
If a project meets the Public Works and Economic Development Act eligibility requirements, EDA’s base federal grant rate was increased from 50% to 60%. This change takes effect November 19, 2025 and applies to grants governed by 13 CFR part 301.
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