$20M Federal Grant Awarded to Birmingham for Investments in Four Communities

The economically distressed communities of North Birmingham, Northside, Smithfield, and Pratt City will benefit significantly from the recent $20 million grant awarded to Birmingham City by the U.S. Department of Commerce’s Economic Development Administration (EDA).

The Distressed Area Recompete Pilot Program

The grant awarded comes from the Distressed Area Recompete Pilot Program. This federal program was designed to revitalize economically distressed areas and stimulate economic opportunity. The program, authorized for $1 billion in the Chips and Science Act, focuses on areas suffering from lower than average employment rates among their prime working age populace. A record 565 applications were submitted, but Birmingham was one of only six communities selected.

A Much-Needed Investment

With this $20 million grant, Birmingham intends to implement an intentional, place-based strategy, aimed at redefining labor force participation and access to social support systems in the four community areas. This grant supplements the $50 million CHOICE Neighborhood investment awarded to Smithfield community in 2023.

As stated by Mayor Randall L. Woodfin, “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.”

Program Components

The strategic Reinvest Birmingham program will directly boost job opportunities in these areas through five key initiatives:

• Establishment of a workforce training center in a central location within the community
• Expansion of micro-transit options to ensure access to training, employment, and other crucial services
• Creation of a Child Care Center of Excellence for comprehensive early learning programming and childcare worker support
• Development of a Birmingham Black Business Entrepreneurship Center to promote and scale up black-owned businesses
• Formulation of an enduring governance model to ensure the continued success of the Reinvest Birmingham initiative

Coreata’ R. Houser, the Interim Recompete Plan Coordinator and Deputy Director of the Department of Innovation and Economic Opportunity, emphasized the significant potential for change, saying, “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!”

The Coalition of Community Partners

The successful application for the grant was made possible due to the cooperation and efforts of a multitude 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, and The Black Business Initiative.

In addition to these local organizations, more than 30 regional employers were instrumental in determining the workforce demands for the present and future.

The federal grant and the Reinvest Birmingham initiative together promise a bright new future for the four economically challenged communities through strategic investments in people, infrastructure, training, and business enterprises.