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San Antonio Council approves application for $5M DIAG grant to renovate Defense Health Agency site at Fort Sam
Summary
San Antonio City Council on Oct. 9 approved an ordinance authorizing the city to apply for and accept, if awarded, $5,000,000 from the Texas Defense Economic Adjustment and Assistance Grant (DIAG) program, with a $10,000,000 cash match included in the city's FY2026 capital budget.
San Antonio City Council on Oct. 9 approved an ordinance authorizing the city to apply for and accept, if awarded, $5,000,000 from the Texas Defense Economic Adjustment and Assistance Grant (DIAG) program, with a $10,000,000 cash match included in the city's FY2026 capital budget.
The request, presented by interim director and retired Marine Maj. Gen. Juan Ayala of the Office of Military and Veterans Affairs, would support renovation of the Defense Health Agency'preferred site aboard Fort Sam Houston known as the South Beach Pavilion. Ayala said contractor estimates place renovation costs between $36,000,000 and $40,000,000 and that the Defense Health Agency projected the move could create approximately 560 jobs.
"The purpose today is to request, from you all city council the approval to apply for and accept the 2025 DIAG grant, Defense Economic Adjustment Assistance Grant, in support of the Defense Health Agency," Ayala…
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