Press Release

U.S. Department of Commerce Invests $3 Million in American Rescue Plan Funds to Boost Manufacturing Sector in Henderson, Kentucky

Award is Part of the Department of Commerce’s $300 million Coal Communities Commitment

WASHINGTON – Today, U.S. Secretary of Commerce Gina M. Raimondo announced the Department’s Economic Development Administration (EDA) is awarding a $3 million grant to the city of Henderson, Kentucky, for construction of a high-pressure natural gas line needed to support manufacturing growth. This grant is funded by the American Rescue Plan and EDA’s $300 million Coal Communities Commitment.

This grant will provide service to a new advanced technology paper mill, promoting job creation in a region that has been impacted by the declining use of coal. The EDA investment will be matched with $2.8 million in local funds and is expected to create 320 jobs and generate $400 million in private investment, according to grantee estimates.

“President Biden’s American Rescue Plan offers direct relief to American communities as they work to build a better America for the future,” said Secretary of Commerce Gina M. Raimondo. “This EDA investment will help Henderson build a stronger, more robust regional economy and boost U.S. competitiveness.”

“The Economic Development Administration is dedicated to working with communities to support their locally-driven strategies to recover and rebuild from the pandemic,” said Assistant Secretary of Commerce for Economic Development Alejandra Y. Castillo. “The project will provide critical infrastructure upgrades needed to support the region’s manufacturing industry and spur private investment in Kentucky.”

“This federal EDA grant will bring much-needed improvements to the City of Henderson’s utility service,” said Governor Andy Beshear. “Beyond the increased reliability and safety this new high-pressure natural gas line will bring, building modern infrastructure will support the dramatic investment in jobs in the region and attract further economic development in this community. I want to thank Secretary Raimondo and her team for prioritizing Kentucky’s needs in providing this crucial funding.”

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. 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.

This project was made possible by the regional planning efforts led by the Green River Area Development District (GRADD). EDA funds GRADD 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.

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.