ALLENTOWN, Pa. — A $20 million federal grant that officials say could revitalize some of Allentown’s poorest neighborhoods now is in the city’s coffers.
City Council members on Wednesday night unanimously passed a measure to formally accept the eight-figure grant from the U.S. Economic Development Administration.
Allentown Mayor Matt Tuerk ahead of the vote called it “the largest competitive federal grant that the city has received.”
“We have a lot of work to do, and it's a lot of pressure, but this is just amazing."Allentown DCED Director Vicky Kistler, who will oversee the city's Recompete program
The grant will “transform our city’s ability” to help residents enter the labor force and find good-paying jobs, Tuerk said.
“We’re in uncertain economic times,” he said. “This is an opportunity to put a tool in the hands of Allentonians that will prepare them for that uncertain future.”
Allentown’s proposal for the Distressed Area Recompete Pilot Program was named as a finalist in December before EDA officials in August announced it as one of six winners from a pool of 565 applications.
Other grant winners include Puerto Rico; Birmingham, Ala.; Clallam County, Washington; Eastern Kentucky; and Wind River, Wyoming.
'Historic' grant for Allentown
Each location selected for funding has experienced a “dramatic change” in its economic landscape that fueled high unemployment among people ages 25-54, known as the “prime age” for workers, U.S. Assistant Secretary of Commerce Alejandra Castillo said in Allentown this summer.
City officials plan to use the grant to connect residents to jobs and break down barriers to employment, particularly the region’s lack of affordable child care services and accessible public transportation.
The federal money will be directed toward Franklin Park, Center City and the First and Sixth wards.
“The Recompete folks would like us to start the process of onboarding as soon as possible. They don’t want us to wait until January to put the positions into place.”Allentown Community and Economic Development Director Vicky Kistler
Allentown Community and Economic Development Director Vicky Kistler called the Recompete grant “historic.”
“We have a lot of work to do, and it's a lot of pressure, but this is just amazing,” she said.
The $20 million grant is set to be spread out across five years, with officials saying the city expects to spend about $8 million in 2025.
A breakdown in council’s documents shows the city plans to use just under $18 million to directly boost services and help people find jobs, while about $950,000 will cover salaries for city employees.
Kistler said the award mandates the city create three grant-funded positions: two planners and a violence prevention coordinator.
She asked council to cut short its 14-day waiting period between a bill’s introduction and its passage to accept the $20 million grant Wednesday so she can start to hire those new employees.
“The Recompete folks would like us to start the process of onboarding as soon as possible,” Kistler said. “They don’t want us to wait until January to put the positions into place.”
