PHX Reporter

While the U.S. Department of Commerce’s Economic Development Agency (EDA) has recently awarded $1.2 million in grants from federal CARES Act funding, some are critical of a perceived lack of oversight and government review in how those grants are being distributed.

Rep. John Kavanagh (R-Fountain Hills), who is running for reelection in Arizona’s 23rd District in November, said that grants need to be awarded based on the merit of the recipient, not just proof of monetary losses.

“I am concerned because these appear to be grants for projects to be chosen by the recipients without any government review or approval,” Kavanagh told the Phoenix Reporter. "It appears that the federal government is mailing out $400,000 checks with vague guidelines and no oversight.”

The most recent $1.2 million was awarded to three EDA Economic Development Districts (EDD): the Central Arizona Governments EDD in Apache Junction, the Northern Arizona Council of Governments EDD in Flagstaff and the Southeastern Arizona Governments Organization EDD in Bisbee, according to a release from the U.S. Department of Commerce. Each received $400,000.

The Central Arizona Governments grant is for “enhancing regional economic development strategies to strengthen economic resiliency; identifying potential resiliency, mitigation and economic recovery projects in Gila and Pinal counties; and providing technical assistance and capacity building to local businesses and stakeholders negatively impacted by the pandemic,” according to the release.

The Northern Arizona Council of Governments EDD grant is for “increasing the capacity of existing infrastructure for business retention and attraction through economic and workforce development partnerships,” according to the release.

The Southeastern Arizona Governments Organization EDD grant is for “developing inter-regional approaches to strengthen rural Arizona’s economic resiliency in Cochise, Graham, Greenlee and Santa Cruz counties; identifying potential resiliency, mitigation and economic recovery projects; and delivering technical assistance and capacity building to local businesses and stakeholders.”

“Grants should be competitive and awarded based upon the merits of proposals,” Kavanagh said. “Really good proposals could become model programs that other entities could get funds for without creating and proposing their own programs.”