The Economic Development Administration (EDA) Public Works program provides grants to communities and regions for infrastructure projects that support business growth and job creation. While EDA grants typically go to government entities and nonprofits rather than directly to businesses, the infrastructure improvements they fund directly benefit Texas businesses by reducing costs, improving site access, and making locations viable for business investment. Understanding how EDA Public Works grants work helps Texas businesses advocate for projects that support their operations and partner with communities on competitive applications.
How EDA Public Works Grants Work
Eligible Recipients
EDA Public Works grants are awarded to local governments, state agencies, tribal governments, institutions of higher education, and nonprofit organizations. Individual businesses cannot apply directly, but they are the intended beneficiaries of the infrastructure investments.
Grant Amounts
Public Works grants typically range from $500,000 to $5 million. EDA requires local matching funds, usually 20% to 50% of the total project cost. Federal cost share can reach 80% for highly distressed communities.
Investment Priorities
EDA evaluates projects based on job creation potential, private investment leverage, community economic need, and alignment with regional economic development strategies.
Eligible Projects in Texas
- Water and sewer infrastructure: Systems serving industrial parks, commercial districts, and business locations.
- Road and transportation improvements: Access roads, bridges, and transportation infrastructure supporting business operations.
- Broadband infrastructure: High-speed internet connections for business districts and industrial areas.
- Industrial site development: Preparation of sites for business use including grading, utilities, and environmental remediation.
- Technology and business incubators: Facilities that support business creation and growth.
- Port and intermodal facilities: Infrastructure supporting trade and logistics operations.
How Texas Businesses Benefit
Direct Benefits
Businesses located in or near EDA-funded projects benefit from improved infrastructure, reduced utility costs, better transportation access, and increased broadband capacity. These improvements can reduce operating costs and enable growth that would otherwise require private capital investment.
Site Selection Advantage
EDA investments make Texas communities more competitive for business location decisions. Businesses considering expansion should ask local economic development offices about current and pending EDA projects.
How to Advocate for EDA Projects
Texas businesses can support EDA applications by providing letters of support documenting how proposed infrastructure improvements will benefit their operations, creating commitments to job creation and capital investment, and partnering with local economic development organizations on application development.
EDA Regional Offices Serving Texas
The EDA Austin Regional Office serves the state of Texas. Regional staff work with local communities on project development and application preparation. Economic development organizations, councils of government, and universities in your region may already be developing EDA applications that could benefit your business.
Find Programs That May Fit Your Business
EDA grants are one of many infrastructure and incentive programs available to Texas businesses. Our free screening report identifies direct and indirect programs matching your business profile. Start your free screening →