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Economic Adjustment Assistance for State Governments

Program Information

Popular name

N/A

Program Number

12.617

Program objective

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.

Program expenditures, by FY (2023 - 2025)

This chart shows obligations for the program by fiscal year. All data for this chart was provided by the administering agency and sourced from SAM.gov, USASpending.gov, and Treasury.gov.

For more information on each of these data sources, please see the About the data page.

Additional program information

  1. 2015

    The program will support organizing and planning diversification initiatives, including supply chain analysis and technical assistance to small and medium size Defense businesses, in 11 additional States. The program supported organizing and planning diversification initiatives, including supply chain analysis and technical assistance to small and medium size Defense businesses, in 11 additional States.

  2. 2016

    The program provided financial and technical assistance to nine (9) states impacted by defense industry reductions and ongoing support to another eleven (11) states. The program enalbled those jurisdictions to: organize themselves to speak with one voice on behalf of affected workers, businesses, and communities; plan strategies to ease and/or offset local economic impacts; and carry out strategies through public-private ventures, with support from other Federal agencies as necessary.

  3. 2019

    As a result of a $1.5M OEA Industry Resilience Investment, the Commonwealth of Kentucky Aerospace Industry Consortium helped increase Kentucky aerospace exports from $8.7B to $11.7B which contributed to the resilience of the DoD supply chain. Kentucky manufacturers are a major element of the supply chain for the Virginia-class submarine, the Patriot Missile System, the Super Hercules C-130J and the Minuteman III Missile System.

  4. 2020

    $2.6 million in Industry Resilience enabled the University of Michigan, Purdue University and the Ohio State University, on behalf of their respective states, to strengthen the cybersecurity of 173 small- to medium-size defense suppliers, many in rural areas of their respective states. In surveys, 40% of the companies served stated they would not have completed their cybersecurity compliance project, or would have significantly delayed implementation, thus weakening a critical portion of the ground systems supply chain. In addition, the universities have educated over 2,500 companies and/or individuals in the defense supply chain about cybersecurity requirements for defense companies.

  5. 2021

    A $648k grant enabled the University of Alaska’s Center for Economic Development to undertake the first comprehensive, statewide effort to analyze the economic impacts of the military in Alaska, understand the defense supply chain in the state, and identify the vendor base in detail. This information was shared widely, and highlighted, among other issues, the importance of portability of occupational licenses for military spouses. In 2022, the State Legislature passed a new law simplifying the licensing process for military spouses. Another proposed law would establish an Alaska Military Affairs Council to focus on military liaison functions at a high level.

  6. 2022

    A $1.5M project enabled the Purdue University Manufacturing Extension Partnership to provide modernization assessments to improve the capabilities of at least 36 Indiana small Defense industrial base businesses; increase supply chain awareness; adapt to the requirements of government and industry prime contractors; and identify strategic growth opportunities. More than 80 Indiana companies have benefited from the grant program in areas such as increased productivity, workforce training, cybersecurity, and technology adoption. These activities ensure companies are prepared to support future Department of Defense capabilities. This project stimulates cooperation between statewide and local adjustment and diversification efforts.

  7. 2023

    A $1.5 million grant enabled the Purdue University Manufacturing Extension Partnership to provide technical assistance to improve the capabilities of 87 Indiana small defense industrial base businesses; increase supply chain awareness; adapt to the requirements of government and industry prime contractors; and identify strategic growth opportunities. This project stimulated cooperation between statewide and local adjustment and diversification efforts making the industrial base more resilient to fluctuations in defense spending.

  8. 2024

    A $1.5 million grant is enabling the Connecticut Department of Community and Economic Development to launch the Scaling Model-Based Definition project to develop tools to support the digital transformation of the defense supply chain across the state. This project will provide technical assistance and workforce development programs to scale technology integration efforts across more than 700 defense suppliers in the state’s industrial base. This project stimulates cooperation between statewide and local diversification efforts.

Single Audit Applies (2 CFR Part 200 Subpart F):

For additional information on single audit requirements for this program, review the current Compliance Supplement.

OMB is working with the U.S. Government Accountability Office (GAO) and agency offices of inspectors general to include links to relevant oversight reports. This section will be updated once this information is made available.

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: 2 CFR Part 25 (Universal Identifier and System for Award Management); 2 CFR Part 1100, et. seq. (Department of Defense); 2 CFR § 1125 (Nonprocurement Debarment and Suspension); 32 CFR Part 21 (DOD Grants and Agreements – General Matters); 32 CFR Part 22 (DOD Grants and Agreements – Award and Administration); 32 CFR Part 26 (Governmentwide Requirements for Drug-Free Workplace (Financial Assistance)); 32 CFR Part 28 (New Restrictions on Lobbying).

  1. 10 U.S.C. 2391.

Program details

Program types

Eligible beneficiaries

  • Federally Recognized Indian Tribal Governments
  • Interstate
  • Intrastate
  • Local
  • State
  • U.S. Territories

Additional resources