Economic Development Program (EDP)

The Economic Development Program (EDP) grant provides state assistance for roadway improvements or new construction essential for access to new or expanding industrial, manufacturing, or distribution companies in Illinois. Funding is available for preliminary engineering, construction, construction engineering, and contingencies. The primary objective is to create and retain permanent full-time jobs. Projects solely intended to improve opportunities for future development or those of a speculative nature are ineligible. This is not a competitive grant program, but funding levels are determined based on the number of jobs created or retained. Companies must commit to creating or retaining employment in Illinois, and funding amounts are determined using Form PRO 2100. EDP funds provide $30,000 per new job created and $10,000 per job retained, up to a maximum of $2 million per project. The grant is only available to projects sponsored by a local government entity (e.g., county or municipality) in Illinois on behalf of eligible businesses. Recipients must comply with Public Act 93-552, the Corporate Accountability for Tax Expenditures Act, which mandates annual reporting of job creation and retention metrics for five years following the grant award. Annual progress reports are completed online through the Department of Commerce and Economic Opportunity (DCEO). If the employment commitments are not fulfilled, the Department may require repayment of all or part of the grant, depending on the circumstances. The program is funded entirely by state resources, with the state covering 50% of the costs for locally owned roadways and 100% for state-owned routes. The remaining 50% for locally owned roadways must be funded by local governments or private entities through sources such as Motor Fuel Tax (MFT) funds, state or federal grants, or direct company contributions. EDP funding is capped at $2 million per project, with additional costs beyond that limit being the responsibility of the local community, business, or developer. Preliminary engineering cost estimates must be completed before applying, and the total reimbursement for preliminary and construction engineering combined is limited to 15% of the total project cost. No other professional services are eligible for reimbursement. Applications require a commitment to the business investment and job creation/retention representations made to the Department. If there are significant changes to these commitments or the business fails to firmly commit to the project site, the Department may reevaluate its funding commitment. Work such as bidding, letting, or construction cannot begin before the issuance of an award letter or approval of project plans, as doing so risks forfeiting EDP funding. Projects must also adhere to all state and federal standards before construction begins. To apply, interested parties must obtain the Uniform Application for State Grant Assistance form by contacting John Paris at the Illinois Department of Transportation (IDOT). Applications may be submitted via mail, phone, or email. Questions about the grant process or engineering requirements should be directed to the relevant District Local Roads Engineer or IDOT’s General Accountability and Transparency Act (GATA) resources. This program supports local economic development projects by enabling critical roadway access for new or expanding businesses, ensuring compliance with state standards, and emphasizing measurable job creation and retention outcomes. Recipients must demonstrate their ability to meet program requirements to secure and maintain funding.