HENDERSON, Ky. — Millions of dollars are flowing into what was once coal country. U.S. Secretary of Commerce Gina M. Raimondo on Tuesday announced the Economic Development Administration (EDA) is awarding a $3 million grant to the city of Henderson for construction of a high-pressure natural gas line needed to support manufacturing growth.

The grant is funded by the American Rescue Plan and EDA’s $300 million Coal Communities Commitment, the department announced in a news release. Once the gas line is completed, it'll provide service to a new advanced technology paper mill, promoting job creation in the region that has been greatly impacted by the declining use of coal.

The EDA investment will be matched with $2.8 million in local funds and is expected to create 320 jobs and generate $400 million in private investment, according to grantee estimates.

“President Biden’s American Rescue Plan offers direct relief to American communities as they work to build a better America for the future,” said Secretary of Commerce Gina M. Raimondo. “This EDA investment will help Henderson build a stronger, more robust regional economy and boost U.S. competitiveness.”

Gov. Andy Beshear called the funding "crucial" in a statement thanking Raimondo and her department.

“This federal EDA grant will bring much-needed improvements to the City of Henderson’s utility service,” Beshear said. “Beyond the increased reliability and safety this new high-pressure natural gas line will bring, building modern infrastructure will support the dramatic investment in jobs in the region and attract further economic development in this community."

EDA’s Coal Communities Commitment allocates $300 million of EDA’s $3 billion American Rescue Plan appropriation to support coal communities as they recover from the pandemic and to help them create new jobs and opportunities, including through the creation or expansion of a new industry sector. Specifically, EDA has dedicated $100 million of its Build Back Better Regional Challenge funds and $200 million of its Economic Adjustment Assistance funds to directly support coal communities.