$20M federal grant awarded to Birmingham for investments in four communities

Huge news for Birmingham! The City of Birmingham has received a $20M “Distressed Area Recompete Pilot Program” grant from the U.S. Department of Commerce’s Economic Development Administration (EDA).

Read on to learn more about the grant + how it will be invested in the Birmingham communities of North Birmingham, Northside, Smithfield and Pratt City.

“The most competitive grant program in agency history”

Last December, the City of Birmingham was selected as a finalist for the Distressed Area Recompete Pilot Program—a federal program that aims to create renewed economic opportunity in communities in need. Authorized for $1 billion in the Chips and Science Act, the program is designed to invest in economically distressed communities and targets areas where prime-age employment (25-54 years) is significantly lower than the national average.

Of the 565 applications to the Recompete Program, only 22 applicants were selected as finalists.

Of those 22 finalists, only six communities were chosen:

• Allentown, Pennsylvania
• Washington State’s Callum County
• Puerto Rico’s Platform for Social Impact
• Shaping Our Appalachian Region in southeastern Kentucky
• Wind River Development Fund on the Wind River Indian Reservation and Fremont County, Wyoming
• Birmingham, Alabama

According to a City of Birmingham press release, the EDA has called the process, “the most competitive grant program in agency history.”

Reinvesting in four “persistently distressed” communities

With $20M in funding from the Distressed Area Recompete Pilot Program, the City of Birmingham will deploy an intentional place-based strategy focused on increasing labor force participation and access to social support systems in four communities of Birmingham:

• North Birmingham
• Northside (which includes Norwood, Druid Hills, Fountain Heights, Evergreen and Central City)
• Smithfield
• Pratt City

The City will also leverage the $50M CHOICE Neighborhood grant investment that was awarded to the Smithfield community in 2023.

“I was born in the Northside community, at the once thriving Carraway Hospital.

It has long since been a dream to see intentional reinvestment into this community that is home to men, women and children who deserve an opportunity to fully participate in Birmingham’s prosperous and promising economy.”

Mayor Randall L. Woodfin

The Reinvest Birmingham program will create and connect people to good jobs through five strategic components:

1. Development of a workforce training center, centrally located within the community.
2. Expansion of micro-transit options to ensure residents have affordable means of transportation so that they can access training, employment and other essential services.
3. Establishment of a Child Care Center of Excellence that not only provides full-day, early learning programming for children and families but increases support for childcare workers and providers.
4. Creation of a Birmingham Black Business Entrepreneurship Center to help Black businesses launch and scale operations.
5. Development of a governance model that ensures long-term sustainability for Reinvest Birmingham programming.

“Reinvest Birmingham is an intentional intersection of people and economic mobility. North Birmingham has faced economic injustice for years and this investment will chart generational change. Our plan centers residents and will have responsive solutions that give them an opportunity to not only survive, but thrive in Birmingham!”

Coreata’ R. Houser, Interim Recompete Plan Coordinator and Deputy Director, Department of Innovation and Economic Opportunity

Made possible by a coalition of partners

The City of Birmingham’s successful application was made possible by a coalition of community partners, including:

• Lawson State Community College
• AIDT
• Central Six AlabamaWorks!
• The Birmingham Jefferson County Transit Authority
• The YMCA of Greater Birmingham
• Childcare Resources
• Prosper
• Regions Bank
• The Black Business Initiative

In addition, more than 30 regional employers helped inform workforce demand for now and the future.

Excited to see North Birmingham receive federal support? Tag us @bhamnow to let us know your thoughts!