Sponsors (3)
The bill channels large federal grants to higher-education-led projects to drive local economic revitalization and build infrastructure and education partnerships, but concentrates benefits in a few large recipients and risks excluding smaller institutions and neighborhoods while creating long-term local costs and administrative burdens.
Institutions in designated distressed communities can receive large implementation grants ($25M–$50M over 5 years) to fund major local economic development projects, providing sizable capital to drive revitalization and job creation.
Grant funding can build community-benefiting infrastructure (affordable housing, research labs, libraries), municipal broadband, clinics, and apprenticeships, expanding local services, workforce training, and employment.
Local institutions can partner with K–12 districts and provide graduate teaching support and facility access, strengthening local education capacity and potentially improving K–12 outcomes.
The high minimum/typical award sizes (starting at ~$25M) concentrate federal dollars in relatively few institutions, excluding many small colleges and limiting the bill's reach across communities.
Large federal grants focused on construction and campus-linked projects risk displacing other local priorities and create long-term maintenance and operating costs that fall to local governments, institutions, or taxpayers.
Strict geographic and income eligibility rules tied to ZIP/county medians may exclude needy neighborhoods that don't meet threshold measurements, leaving some disadvantaged communities unable to access funds.
Based on analysis of 2 sections of legislative text.
Creates a DOE Distressed Communities Grant Program that designates eligible colleges in low‑income areas and provides planning grants (up to $100k/year) and later implementation grants.
Introduced October 21, 2025 by Jim Costa · Last progress October 21, 2025
Creates a Department of Education Distressed Communities Grant Program that identifies colleges and universities located in low‑income ZIP codes or counties and makes them eligible for planning and later implementation grants. The Secretary must publish a list of designated institutions using objective income‑based criteria tied to ZIP Code or county median family income compared with state and national medians and metro/micro area status. Designated institutions are notified and may request designation to receive planning and implementation grants. Planning grants can run up to two years with annual awards not to exceed $100,000; recipients must complete an approved implementation plan describing projects to support local economic and community revitalization before receiving implementation grants. The program applies only to institutions of higher education as defined in existing law.