U.S. Department of Commerce Invests $3.5 Million in American Rescue Plan Funds for Water Utility Improvements at Industrial Park in Gallup, New Mexico

WASHINGTON – Today, U.S. Secretary of Commerce Gina Raimondo announced that the Department’s Economic Development Administration (EDA) is awarding a $3.5 million grant to the city of Gallup, New Mexico, for water utility infrastructure at the McKinley County Industrial Park within the Gallup Energy Logistics Park. This grant is funded by the American Rescue Plan and EDA’s $300 million Coal Communities Commitment.

This project will extend watermain utilities and well features into new groundwater wells to service the industrial park and support health care product manufacturing business growth in a region impacted by the declining use of coal. The EDA investment is expected to create 440 jobs and generate $80 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. “This EDA investment will provide critical infrastructure to support manufacturing business growth leading to a diverse, robust regional economy.”

“The Economic Development Administration plays an important role in supporting locally-developed strategies designed to stimulate American manufacturing,” said Assistant Secretary of Commerce for Economic Development Alejandra Y. Castillo. “This project will strengthen Gallup’s economy, supporting manufacturing job creation and spurring private investment in the community.”

“To grow new jobs, we need reliable water infrastructure for businesses,” said Senator Martin Heinrich. “That’s why I’m proud to welcome these federal investments that will address additional water needs in Gallup and present new economic development opportunities for the community.”

“It is critical to invest in New Mexico water infrastructure,” said Senator Ben Ray Luján. “I’m proud to support $3.5 million for the McKinley County Industrial Park. This funding will improve water utilities and create good-paying jobs in the Gallup community. This project is another step toward a sustainable future in New Mexico.”

“I am grateful for this grant that will improve the water utility infrastructure for the city of Gallup, support manufacturing business growth, and generate jobs for our tribal and indigenous communities,” said Congresswoman Teresa Leger Fernández (NM-03). “We are committed to creating a diverse and robust regional economy for our communities. For us, Nuevo Mexicanos, Agua es Vida.”

This project was made possible by the regional planning efforts led by the Northwest New Mexico Council of Governments (NWNMCOG). EDA funds NWNMCOG 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. 

This 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.

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.