EDA details budget rules, 40% match requirement and key prohibitions for AI Upskill Accelerator applicants

Carla Garrett, workforce lead in the Economic Development Administration's Office of Innovation and Entrepreneurship, opened a webinar for prospective applicants to the AI Upskill Accelerator pilot program and emphasized that the AI addendum and the notice of funding opportunity are the authoritative guides for preparing proposals.

The presentation focused on the budget narrative and required budget documents. Garrett said applicants must submit three documents: a budget narrative, the SF-424A budget form, and a staffing plan that lists each proposed position, salary and percentage of time devoted to the project. "Federal funds cannot be used to pay program participant wages," Garrett said, noting that limitation should shape program design.

Nancy Isle, a program attorney with EDA, provided legal context for allowable and unallowable costs under the NOFO and cited relevant federal regulations. Isle said match is "the portion of the project costs not paid for by federal funds" and must be eligible, documented and valued in accordance with 2 CFR. "This AI addendum requires a 40% match; EDA cannot contribute more than 60% of the total project amount," she said.

Isle stressed that match letters must be specific and independent. Each organization pledging match must submit its own signed letter that itemizes the contribution, states valuation and confirms the match will be unencumbered and available at the time of award. "Once it's donated to the project, it becomes a permanent part of the project," she said.

Presenters clarified common prohibitions applicants should plan around: construction costs that disturb ground or modify structures are not allowable except for minimal equipment installation that receives prior EDA approval; contractor equipment purchases are unallowable; for-profit entities cannot receive direct EDA funding as recipients (though they may serve as contractors or employers); and award funds cannot be used to provide individuals with cash or wage subsidies.

Shunie and other presenters detailed budget-category expectations: list equipment items (tangible, non-expendable property generally costing $10,000 or more per unit) with quantity, purpose and unit cost; itemize supplies (units under $10,000); and describe contractual costs whether proposed as subawards or contractor agreements. The presenters reiterated that any cost placed in "other" must include a detailed justification.

The session closed with a reminder that applicants should consult the NOFO, the AI addendum, posted FAQs and past webinars for authoritative guidance and that EDA staff will monitor the chat and respond to submitted OE mailbox inquiries.

The agency said a follow-up webinar on data evaluation and impact is scheduled for June 23 at 12:00 p.m. ET.