A presidential task force released its recommendations Tuesday on how to best invest $40 million in aid for Florida's Space Coast workforce as the space shuttle program is retired next year.

Secretary of Commerce Gary Locke visited the Kennedy Space Center in early August. Credit: NASA/Cory Huston

Led by NASA and the Department of Commerce, the multi-agency panel reported the Economic Development Administration should direct $35 million of the assistance money toward fast-track grants for "the most promising job creation and economic development programs," a NASA statement said.

The competitions will be announced Sept. 1, according to NASA.

Another $5 million will help create a Commercial Spaceflight Technical Center to support the Federal Aviation Administration's role in privately-run launch and reentry activities.

The proposed Commercial Spaceflight Technical Center would provide support to FAA's safety and technical oversight functions.

Small businesses and industry clusters on the Space Coast will immediately receive $600,000 from the Economic Development Administration and Small Business Administration, according to the task force's report.

The government will also stage a job fair in late 2010 or early 2011 to help displaced workers seek other federal jobs.

The task force also urged continued retraining for shuttle workers and strengthening partnerships between government, venture capitalist and corporate stakeholders.

The White House formed the Task Force on Space Industry Workforce and Economic Development in May to help employees at risk of losing their jobs in Kennedy Space Center's transition to life after the shuttle program.

NASA Administrator Charles Bolden and Secretary of Commerce Gary Locke co-chaired the committee, which included leaders of other Cabinet departments and federal agencies.

"Over the past few months, we have worked diligently with local government officials, economic development agencies and affected corporations and employees to develop a comprehensive plan that will create high-skill, high-wage jobs and a strong economic base in the Space Coast," Locke said. "Space is a key driver of the 21st century American economy, and that's why the president believes so strongly in empowering NASA to pursue new avenues of discovery."

The Obama administration says its vision for NASA would eventually create thousands of new jobs on the Space Coast. But a gap between the shuttle's retirement and the start of new commercial transportation and government exploration programs will cause hardships for space workers.

President Obama set aside $40 million in NASA's fiscal year 2010 budget to supplement other stimulus funds and infrastructure improvements aimed at the Space Coast. The budget also includes $60 million to assist other parts of the country affected by the NASA transition.

The White House's budget request, including its overhaul of NASA and the $40 million in assistance funding, is still being considered by Congress.

The Department of Labor also awarded a $15 million emergency grant to the region for job training programs.

In a visit to the Space Coast on Tuesday, Sen. Bill Nelson, D-Fla., announced new legislation that would give tax breaks to commercial space businesses around the Kennedy Space Center.

Nelson said the bill would help attract new space employers to the Space Coast, giving the region's workforce another cushion in the post-shuttle environment.

"President Kennedy was right when he predicted that space exploration would create a great number of new companies and strengthen our economy," Nelson said in a statement. "What we're doing now is everything we can to ensure KSC's continued importance to our nation's space exploration effort, while also broadening the economic opportunities along our Space Coast."