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EDA Announces $1.45 Billion in Disaster Recovery Grants for FY 2025

ByNews Editor

The US Economic Development Administration (EDA) has announced funding for the FY 2025 Disaster Supplemental Grant Program.  The program makes approximately $1.45 billion in disaster recovery funding available to communities that received major disaster declarations due to hurricanes, wildfires, severe storms and flooding, tornadoes, and other natural disasters occurring in calendar years 2023 and 2024.  

Activities eligible for disaster funding 

The FY 2025 Disaster Supplemental Notice of Funding Opportunity is not just about rebuilding—it’s about transforming local economies after disaster, with an emphasis on improving communities’ economic outcomes and resilience to future disasters. This funding opportunity encourages broad-based local engagement and places special emphasis on projects that involve private industry in disaster recovery and economic renewal to ensure the maximum impact for taxpayer funding to support these communities. 

Applicants can choose from three funding pathways based on their recovery stage, capacity, and long-term development vision.  

  • Readiness Path: Non-construction projects to build local capacity and prepare for future implementation projects. Readiness projects include funding for recovery strategies, disaster recovery coordinators or other capacity building activities, and pre-development expenses. Grant amounts are expected to range from $250,000 to $500,000. 
  • Implementation Path: Standalone construction and non-construction projects that help communities recover from major disasters and advance recovery and growth, improving economic outcomes. Grant amounts are expected to range from $2 million to $20 million for construction projects and $100,000 to $5 million for non-construction projects. 
  • Industry Transformation Path: Coalition-led, multi-project portfolios that transform regional economies through industry development. These grants can fund a mix of construction and non-construction projects. Grant amounts are expected to range from $20 million to $50 million.

Projects must be located in, primarily serve, or demonstrably benefit one or more communities in areas that received a major disaster designation occurring in calendar years 2023 and 2024. Check eligibility here

Deadlines vary

Readiness and Implementation grant applications will be accepted and reviewed on an ongoing (rolling) basis until funds are exhausted or the Notice of Funding Opportunity is canceled. Industry Transformation grant applications are due on Tuesday, March 3, 2026 at 5:00 pm Eastern Time. 

Eligible applicants include:

  • State, local, and Tribal governments 
  • Economic Development Districts 
  • Institutions of higher education 
  • Economic development organizations
  • Public and private non-profits working with local government 
  • Public-private partnerships for public infrastructure

To learn more about the program, including how to apply, visit the EDA FY2025 Disaster Supplemental Grant Program page. 

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