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Consider a memorandum/resolution authorizing the submission of a Defense Economic Adjustment Assistance Grant application to the Texas Military Preparedness Commission, in an amount up to $5,000,000, for the Restationing Facility Improvements, New Fiber Backbone project.
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DATE: September 15, 2026
TO: Kent Cagle, Interim City Manager
FROM: Judith Tangalin, Executive Director of Finance
SUBJECT: DEAAG Grant Application Submittal for installation of New Fiber Backbone
BACKGROUND AND FINDINGS:
The Defense Economic Adjustment Assistance Grant (DEAAG) Program, created in 1997, is an infrastructure grant program designed to assist defense communities for infrastructure projects that enhance the military value of installations and/or support expansion or reduction of defense missions at military installations.
The Heart of Texas Defense Alliance (HOTDA), in coordination with Fort Hood and the City of Killeen, identified a project associated with the restationing of the 116th Military Intelligence Brigade (HADES) which will bring approximately 1,200 Soldiers, 1,800 Family Members, along with the new High Accuracy Detection & Exploitation System (HADES) aircraft to Fort Hood.
The project includes facility improvements with installation of a new fiber backbone to West Fort Hood to support mission-critical data flow for the 116th Military Intelligence Brigade’s HADES operations. Simultaneously, the fiber extension also provides enhanced network support to West Fort Hood which includes Robert Gray Army Airfield, the Ammunition Supply Point, and other units.
The total estimated project cost is $13,775,000, consisting of a $5,000,000 DEAAG grant request and $8,775,000 in identified cost share. The cost share consists of $8.7 million in federal funding and a $75,000 in-kind contribution from the City of Killeen. The City’s in-kind contribution represents existing personnel and supply costs associated with administering the grant and does not require an additional cash contribution.
The City of Killeen will serve as the applicant and project sponsor for the DEAAG application. HOTDA is coordinating with Fort Hood and the City to prepare the grant application. If awarded, the City will administer the grant on behalf of Fort Hood, including applicable grant compliance, financial administration, reimbursement, accounting, and reporting requirements.
The DEAAG application period opens September 1, 2026, and applications are due to the Texas Military Preparedness Commission no later than November 4, 2026.
THE ALTERNATIVES CONSIDERED:
1. Do not approve submission of the DEAAG grant application.
2. Approve submission of the DEAAG grant application for the Restationing Facility Improvements project.
Which alternative is recommended? Why?
Staff recommend Alternative 2 to support infrastructure improvements that enhance the military value and mission capabilities of Fort Hood.
CONFORMITY TO CITY POLICY:
Conforms to City policies.
FINANCIAL IMPACT:
What is the amount of the revenue/expenditure in the current fiscal year? For future years?
Approval authorizes the submission of a grant application and has no immediate cash impact on the City. The City will serve as the grant administrator for projects benefiting Fort Hood. Project expenditures will be fully funded by grant proceeds and paid through the City of Killeen.
The City’s in-kind contribution consists solely of existing personnel and supply costs associated with administering the grant; no additional cash contribution is required.
Grant awards are anticipated at the beginning of Fiscal Year 2027. Following grant approval, the associated grant revenue and offsetting expenditures will be appropriated in the Governmental CIP Fund through the next scheduled budget amendment.
Is this a one-time or recurring revenue/expenditure?
This is a one-time grant-funded revenue and expenditure.
Is this revenue/expenditure budgeted?
No. The grant revenue and offsetting expenditures will be appropriated after the grant is awarded.
If not, where will the money come from?
Project expenditures will be funded entirely from grant proceeds. The City’s in-kind administrative costs will consist of existing personnel and supply resources.
Is there a sufficient amount in the budgeted line-item for this revenue/expenditure?
Upon grant approval, sufficient budget authority will be established through a budget amendment appropriating the grant revenue and offsetting expenditures in the Governmental CIP Fund.
RECOMMENDATION:
Staff recommends City Council approve a resolution authorizing the City Manager, or Executive Director of Finance, to submit an application to the Texas Military Preparedness Commission for up to $5 million in Defense Economic Adjustment Assistance Grant funding for the Restationing Facility Improvements project and authorizing the City of Killeen to serve as the project sponsor/applicant.
DEPARTMENTAL CLEARANCES:
Finance
Legal
ATTACHED SUPPORTING DOCUMENTS:
Presentation