State Grants

The Defense Department is giving Michigan, Ohio and Indiana a helping hand in the wake of reduced military spending in those states.

According to a statement issued this morning, "community economic adjustment" grants from the Office of Economic Adjustment (OEA) have been awarded to a consortium of universities representing those states "to provide on-call technical assistance to communities and small- and medium-size companies impacted by the current defense procurement drawdown." The statement continues:

The University of Michigan's Institute for Research on Labor, Employment, and the Economy, in partnership with Ohio State University and Purdue University, was awarded a $2,479,069 grant for a regional Defense Manufacturing Assistance Program. These federal funds are part of a larger $2,777,257 project that will, among other activities, assist impacted companies across Michigan, Indiana, and Ohio to find new markets, support business stabilization, and implement diversification strategies. This project builds off of a proven model developed during the Great Recession to assist communities and businesses impacted by layoffs across the auto industry and its supply chain. Since 2012, defense manufacturers in these three states have announced over 3,900 layoffs.

The grant is awarded under OEA's Defense Industry Adjustment Program to assist states and communities that have been significantly impacted by reductions or cancellations in DoD spending. States and communities can request OEA assistance to: organize themselves to respond on behalf of affected communities, workers, and businesses; plan local community and economic adjustment activities to lessen local economic impacts; and, carry-out plans to replace lost economic activity. OEA project managers work with impacted areas to coordinate a broader program of assistance from across the federal government when necessary. Strategic regional initiatives will leverage cutting edge skills and technology to attract new investments, helping to preserve industrial base capacity even as defense spending declines. Proposals are considered for funding on a rolling basis and are subject to the availability of appropriations.