FREDERICKSBURG, Texas (KXAN) — The City of Fredericksburg was awarded a $1.4 million grant to support local tourism. The U.S. Secretary of Commerce’s Economic Development Administration awarded the grant, which is being funded by the American Rescue Plan.

The grant will be used for construction of a parking facility, which will accommodate additional visitors to the city’s businesses and local attractions, according to a press release from the U.S. Department of Commerce. The grant will also be matched with $5.3 million in local funds.

This project is expected to create 536 jobs and retain 33 jobs.

“The Economic Administration’s investment in Fredericksburg will help boost local tourism and bring economic opportunities to the community,” said Governor Greg Abbott. “Fredericksburg is a Texas treasure and national tourist attraction, bringing in people from across the nation to the beautiful Hill Country region. This grant will bring critical infrastructure improvements to the city, ensuring Fredericksburg continues to grow and thrive.”

This project is funded under EDA’s $240 million American Rescue Plan Travel, Tourism, and Outdoor Recreation program. EDA awarded $510 million in 2021 to all 50 states and territories. The two programs are designed to accelerate the recovery of communities that rely on the travel, tourism and outdoor recreation sectors after they took a hit from the pandemic.

Fredericksburg is a popular tourist city in Central Texas, known for its German heritage and the Enchanted Rock State Natural Area.