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Community Economic Adjustment Assistance For Establishment, Expansion, Realignment, Or Closure Of A Military Installation

Program Descriptions

Program Number



Community Economic Adjustment Assistance For Establishment, Expansion, Realignment, Or Closure Of A Military Installation


Federal Agency




Military Base Reuse Studies and Planning Assistance, 10 U.S.C Section 2391; Defense Base Clouser and Realignment Act of 1990, Section 2905 of Public Law 101-510, as amended.






Assistance for States and communities to: plan and carry out adjustment strategies; engage the private sector in order to plan and undertake community economic development and base redevelopment; and, partner with the Military Departments in response to the proposed or actual expansion, establishment, realignment or closure of a military installation by the Department of Defense (DoD).


Types of Assistance

Project Grants.


Uses and Use Restrictions

Assistance is structured through an assigned Project Manager working with an affected State and/or local government, and may be used to plan and carry out local economic adjustment programs, including, but not limited to: base redevelopment and business/financial plans; infrastructure assessments and feasibility studies; organizational staffing, operating, and administrative expenses; redevelopment and economic development capacity-building; architecture and engineering activities; land use plans; specialized environmental and legal services; public outreach; and, other activities necessary for a community to capably respond to Defense actions. Assistance may not be used to duplicate or supplant DoD activities in carrying out an expansion, establishment, realignment, or closure of a military installation.


Eligibility Requirements

Applicant Eligibility

Applicants for this assistance are to contact the Office of Economic Adjustment to have a Project Manager assigned who, in turn, will work with the applicant to determine eligibility for assistance under this program. States, cities, counties, other political subdivisions of a State, special purpose units of a State or local government, and tribal nations are eligible for this assistance if there is a proposed or actual establishment, realignment, or closure of a military installation. In the case of the establishment or expansion of a military installation, assistance may be made only if community impact assistance is not otherwise available.

Beneficiary Eligibility

States and communities, including workers, businesses, and other community interests that may be affected by Department of Defense activity.


Applicants must document: (1) an establishment, expansion, realignment, or closure of a military installation has occurred or will occur; and (2) any known or anticipated local impacts from the action on the beneficiary. The assigned OEA Project Manager will work with the Applicant to identify other necessary information.


Application and Award Process

Preapplication Coordination

Parties interested in obtaining assistance under this program should contact OEA at: Director, Office of Economic Adjustment, Department of Defense, 400 Army Navy Drive, Suite 200, Arlington, VA 22202-4704, (703)604-6020, or by E-mail at OEA, in turn, will assign a Project Manager to work closely with the affected State or community to craft a responsive program of technical and, where eligible, project grants. The Project Manager will provide necessary information to prepare and submit an application for financial assistance under this program. Additionally, E.O. 12372, "Intergovernmental Review of Federal Programs," applies to this program. An applicant should consult their respective office or official designated as the single point of contact for their State for more information on the process that the State may require to be followed in applying for assistance.

Application Procedure

Applications are necessary for the project grants available under this program and must be invited by the Office of Economic Adjustment through an assigned Project Manager. The standard application forms required by 32 CFR Part 33, Uniform Administrative Requirements for Grants and Cooperative Agreements to State and Local Governments will comprise an application for assistance once they are invited. Applications and supporting documentation should be submitted to the Director of the Office of Economic Adjustment, Department of Defense. Applicants will generally be invited to submit their requests for assistance electronically. In instances where, for whatever reason, an electronic application cannot be submitted, provisions will be made to accept a paper application addressed to: Director, Office of Economic Adjustment, Department of Defense, 400 Army Navy Drive, Suite 200, Arlington, VA 22202-4704.

Award Procedure




Range of Approval/Disapproval Time

To the extent practicable, OEA will inform an Applicant of approval within seven business days of the receipt of a final, completed application. OEA will promptly inform an applicant of the rejection of any application once its due diligence has been completed.





Assistance Considerations

Formula and Matching Requirements

This program has no statutory formula. Generally, not less than 10 percent of the project's total proposed funding is to be comprised of non-federal sources.

Length and Time Phasing of Assistance

A grant period is typically one year. Funds are disbursed on a quarterly basis, or as required.


Post Assistance Requirements




In accordance with the provisions of OMB Circular No. A-133, "Audits of States, Local Governments, and Nonprofit Organizations".




Financial Information

Account Identification



FY 07 $60,000,000; FY 08 est $45,000,000; and FY 09 est not reported.

Range and Average of Financial Assistance

$50,000 - $2,000,000; $500,000.


Program Accomplishments

Through the previous four rounds of base closures and realignments, more than $280 million has been provided to over 70 local adjustment efforts that, in turn, have converted former defense facilities to productive mixed civilian use, including residential, commercial, office, retail, and manufacturing. These efforts, beyond expanding the local tax base, have created over 135,000 jobs to more than offset the 130,000 jobs lost as a result of the Defense activity. Additionally, important public uses on over 48,000 acres have been facilitated, including public airports, educational facilities, parks and recreational facilities, public health and safety centers, ports, and correctional facilities.


Regulations, Guidelines and Literature

OMB Circular Nos. A-133 Audits of States, Local Governments, and Nonprofit Organizations and A-87 Cost Principles for State, Local, and Indian Tribal Governments. 32 CFR Part 25 - Government-wide Debarment and Suspension (Non-procurement); 32 CFR Part 26 - Drug-Free Workplace; 32 CFR Part 28 - New Restrictions on Lobbying; 32 CFR Part 33 - Uniform Administrative Requirements for Grants and Cooperative Agreements to State and Local Governments. These and related publications are available on the OEA Website at under eGrants, Other Federal Grant Links.


Information Contacts

Regional or Local Office

Western Region Director, Office of Economic Adjustment, Department of Defense, 1325 J Street, Suite 1500, Sacramento, CA 95814. Telephone: (916) 557-7365.

Headquarters Office

Director, Office of Economic Adjustment, Department of Defense, 400 Army Navy Drive, Suite 200, Arlington, VA 22202-4704. Telephone: (703) 604-6020. E-mail:

Web Site Address


Related Programs

11.307, Economic Adjustment Assistance
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
14.218, Community Development Block Grants/Entitlement Grants
14.219,Community Development Block Grants/Small Cities Program;
17.260, WIA Dislocated Workers
59.005, Internet-Based Technical Assistance;
59.012, 7(A) Loan Guarantees


Examples of Funded Projects

Assistance was provided to support the actions of a Local Redevelopment Authority to organize itself to speak with one voice on behalf of an impacted area; conduct outreach to identify local homeless and community economic development needs and to balance them in the form of an economically- and environmentally-sustainable local redevelopment plan; and undertake business planning analyses and engage in other economic development activity to redevelop former military installations. Communities anticipating mission growth were provided assistance to work across local political jurisdictions to gauge likely demands/need for hard (housing, roads, schools, water and sewer) and soft (health, child care, public safety) infrastructure, including business plans to identify sustainable public financing and opportunities to leverage private and third party investment. States have received assistance to coordinate various State programs of assistance to assist local adjustment efforts, including staff assistance and regional capacity-building.


Criteria for Selecting Proposals

Magnitude of impact, statutory compliance, immediacy of need, reasonableness of proposed work program and the proposed level of funding.


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