On June 4, the U.S. Economic Development Administration (EDA) announced the Notice of Funding Opportunity (NOFO) for their Fiscal Year (FY) 2025 Disaster Supplemental Grant Program. With approximately $1.45 billion in available funding, the program is designed to support a wide range of economic recovery efforts in disaster-affected areas, helping localities not only recover but also transform their economies for long-term resilience. 

This supplemental funding is available through three flexible program pathways, allowing communities to tailor their approach based on their specific recovery stage and goals.  

• The Readiness Path is geared toward communities that are laying the groundwork for future economic development, such as those engaging in strategic planning or capacity-building initiatives.  

• The Implementation Path supports both construction and non-construction projects that directly contribute to recovery and growth, including infrastructure upgrades and economic diversification efforts.  

• Lastly, the Industry Transformation Path provides support for coalition-led, multi-project initiatives aimed at shifting or strengthening key industries in the region. 

Funds may be used for a variety of recovery-focused activities, including restoring or enhancing infrastructure, developing and implementing economic recovery strategies, improving workforce development, and investing in key regional industries. These investments are intended to build long-term resilience by ensuring that communities are better prepared for future disruptions. 

Eligible applicants include a broad range of public and nonprofit entities such as tribal governments, economic development districts, nonprofits, colleges and universities, and state and local government units. The program is intentionally inclusive to ensure the most affected and vulnerable communities can access resources to catalyze recovery and future development.  

The application process differs slightly by pathway. For the Readiness and Implementation grants, applications are being accepted on a rolling basis, giving applicants flexibility to apply as they finalize their project ideas. In contrast, applications for the Industry Transformation Path are due by March 3, 2026, at 5:00 p.m. Eastern Time. 

Interested applicants can apply through Grants.gov or the EDA’s SF-424 application system. Full program guidelines, eligibility requirements and helpful resources are available on the EDA’s Disaster Recovery Supplemental 2025 webpage. To view the fact sheet, click here.