EPA Launches New Grant Program: No-Match Funds for Climate Adaptation Plans Focused on Low-Income Communities

The new Climate Adaptation Plan Act of 2025 (CAP Act) sets up a competitive grant program run by the Environmental Protection Agency (EPA) specifically to help local governments and Tribal organizations develop detailed plans for dealing with climate change. This isn’t just about planting trees; it’s about serious, funded strategy. To get this money, applicants must prove they serve a low-income community, have relevant planning experience, and, crucially, they don’t have to put up any matching funds—a huge win for smaller municipalities and Tribal entities that often lack the cash reserves for federal grants. The EPA has one year to get this program off the ground, and they’re required to consult with a wide range of groups, from farmers to union members, before finalizing the rules.

The Fine Print: Who Gets Priority and Why

This grant program is laser-focused on equity. The bill prioritizes applicants that represent an Environmental Justice Community—areas with significant populations of color, low-income groups, or Indigenous communities that are already bearing the brunt of environmental and health impacts from climate change. This means if you live in a community already struggling with poor air quality and increased flood risk, your local government will have a leg up in securing these planning dollars. The requirement that applicants serve a Low-income community (where 30% or more of residents are below 80% of local median income or 200% of the poverty line) ensures the funding goes where the need is greatest.

What the Plan Has to Cover: From Zoning to Ecosystems

If a local government secures a CAP grant, the resulting plan must be comprehensive. It needs to include three major risk assessments. First, it must look at risks to people, paying specific attention to social factors like race, income, and historical systemic racism. Second, it must assess risks to local natural ecosystems, like wetlands or forests. Third, it must look at risks to infrastructure—think roads, public buildings, and housing. After mapping these risks, the plan must detail specific actions, which could include changing local zoning laws, updating building codes, or developing strategies to restore vulnerable natural areas. For a city planner, this means integrating climate resilience directly into foundational documents like hazard mitigation plans, making the climate strategy actionable, not just aspirational.

The Catch: Expertise and Scope

While the no-match requirement is fantastic for reducing financial barriers, the application process itself might pose a hurdle. Applicants must demonstrate they have experience in complex areas like climate risk assessment, hazard mitigation planning, and project financing. For a small, understaffed local government, this might mean they have to hire outside consultants just to write the application, potentially favoring larger, better-resourced entities that can afford that initial investment. Furthermore, the bill defines the required “Climate adaptation plan” as a framework for both tracking and reducing greenhouse gas emissions and adapting to climate change. This dual focus might stretch the resources of a local government that was primarily looking for adaptation funding, potentially diluting the focus on immediate resilience efforts.