U.S. Department of Commerce Invests $8.5 Million to Support Economic Diversification Efforts in Northwest Colorado Coal Country

WASHINGTON – Today, U.S. Secretary of Commerce Gina Raimondo announced the Department’s Economic Development Administration (EDA) is awarding $8.5 million in grants to support economic diversification efforts in coal communities in Northwest Colorado.

The EDA investments announced today are:

• Craig, Colorado, will receive a $3.3 million grant to construct a multi-use park and river access corridor along the Yampa River to boost tourism and outdoor recreation. This EDA investment will be matched by $1.4 million in state and local funds and is expected to create 129 jobs and generate $16.3 million in private investment, according to grantee estimates.

• Hayden, Colorado, will receive a $5.2 million grant for roadway and water infrastructure to support development of an industrial park that will bring new businesses to the region. This EDA investment will be matched by $712,341 in state and local funds and is expected to create 79 jobs and generate $12 million in private investment, according to grantee estimates.

“President Biden is committed to ensuring that our coal communities are provided with the resources they need to diversify and grow their economies,” said Secretary of Commerce Gina Raimondo. “Through the American Rescue Plan Coal Communities Commitment and the Assistance to Coal Communities program, these EDA investments will create new opportunities for economic and industry diversification in Northwest Colorado.”

“The Economic Development Administration is pleased to support locally-driven strategies to boost business recovery efforts in Colorado,” said Assistant Secretary of Commerce for Economic Development Alejandra Y. Castillo. “These projects will support Craig and Hayden as they transition away from coal-centric economies, creating new businesses and jobs for their local economies.”

“These federal grants will help create over 200 new good-paying jobs in Craig and Hayden and boost Colorado’s strong economy, and we appreciate Secretary Raimondo for supporting Colorado communities,” said Governor Jared Polis. “We recently made it nearly free to start a business, and these federal grants build on our work supporting hardworking Coloradans and expanding economic growth across our state.”

“When I’ve visited communities in Northwest Colorado over the years, I’ve heard concerns about what coal mine and power plant closures will mean for their main streets, schools, and way of life,” said Senator Michael Bennet. “These federal grants will help coal communities like Craig and Hayden attract new businesses, create new jobs, and diversify their local economies so they can thrive.”

“When we visited Craig and Hayden this spring, we heard how important it is to diversify rural economies and create new jobs. Our Northwest Colorado communities are full of entrepreneurs and this EDA funding will help build even more resilience and create new opportunities in the region,” said Senator John Hickenlooper.

These projects were made possible by the regional planning efforts led by the Associated Governments of Northwest Colorado (AGNC). EDA funds AGNC to bring together the public and private sectors to create an economic development roadmap to strengthen the regional economy, support private capital investment and create jobs.

The Craig project is funded under EDA’s Assistance to Coal Communities (ACC) initiative, through which funds are awarded on a competitive basis to assist communities severely impacted by the declining use of coal. ACC projects support economic diversification, job creation, capital investment, workforce development, and re-employment opportunities.

The Hayden project is funded under EDA’s American Rescue Plan Economic Adjustment Assistance program, which makes $500 million in Economic Adjustment Assistance grants available to American communities. The Economic Adjustment Assistance program is EDA’s most flexible program, and grants made under this program will help hundreds of communities across the nation plan, build, innovate, and put people back to work through construction or non-construction projects designed to meet local needs.

EDA’s Coal Communities Commitment allocates $300 million of EDA’s $3 billion American Rescue Plan appropriation to support coal communities as they recover from the pandemic and to help them create new jobs and opportunities, including through the creation or expansion of a new industry sector. Specifically, EDA has dedicated $100 million of its Build Back Better Regional Challenge funds and $200 million of its Economic Adjustment Assistance funds to directly support coal communities. Effective May 26, 2022, EDA has officially closed all of its American Rescue Plan programs for applications. The $3 billion program funding will be awarded on a rolling basis through September 30, 2022.

About the U.S. Economic Development Administration (www.eda.gov)
The mission of the U.S. Economic Development Administration (EDA) is to lead the federal economic development agenda by promoting competitiveness and preparing the nation’s regions for growth and success in the worldwide economy. An agency within the U.S. Department of Commerce, EDA invests in communities and supports regional collaboration in order to create jobs for U.S. workers, promote American innovation, and accelerate long-term sustainable economic growth.