Communities Awarded More Than $136 Million in 2025 from N.C. Commerce Rural Grant Programs

In 2025, the North Carolina Department of Commerce, along with its Rural Economic Development Division and the state’s Rural Infrastructure Authority, awarded rural communities across North Carolina $136.3 million in grants to revitalize housing in local neighborhoods, install and upgrade industrial infrastructure, upfit older buildings to attract businesses, and advance projects in downtown districts.

“Rural communities are an integral part of what makes North Carolina strong,” said Governor Josh Stein. “The Department of Commerce’s investment of more than $130 million in hometowns across the state helped drive North Carolina’s best year ever for job recruitment and economic development. Let’s continue to invest in prosperity in every community across the state.”

The Rural Economic Development Division, led by Commerce Secretary Lee Lilley and Assistant Secretary Reginald Speight, houses eight program areas that serve rural communities in the state’s Tier 1 and Tier 2 counties, as well as communities located within rural census tracts of Tier 3 counties.

“Our department offers rural communities a large menu of grant opportunities and programs to help local leaders better prepare their communities for economic development success,” said Commerce Secretary Lee Lilley. “Following an outstanding performance year in 2025, we look forward to assisting even more rural communities in the coming year.”

“Rural places and spaces are becoming central to long-term economic growth and sustainability,” said Commerce Assistant Secretary Reginald Speight, head of Commerce’s Rural Economic Development Division. “Our division, through strategic partnerships, is witnessing measurable community enhancement and transformative change that strengthens local economics and communities.”

The Commerce Rural Division programs and their work in 2025 include:

The Appalachian Regional Commission (ARC), a partnership between 13 states and the federal government, builds community capacity in 31 western North Carolina counties. In 2025, ARC awarded 37 grants in North Carolina totaling $33.5 million to build Appalachian businesses, the workforce ecosystem, infrastructure, regional culture and tourism, and community leaders and capacity.

The Southeast Crescent Regional Commission (SCRC), a similar partnership between the federal government and seven states, works to build capacity in 69 North Carolina counties. In 2025, SCRC awarded 10 grants in the state totaling more than $4 million to build infrastructure, improve health and support services, foster entrepreneurial and business development, expand housing stock, and promote environmental conservation, preservation, and access.

The Community Development Block Grant (CDBG) Program awards grants to eligible local governments in support of low- to moderate-income North Carolinians. A variety of CDBG categories address different community needs, such as adequate housing (the Neighborhood Revitalization or CDBG-NR program) and economic development projects (CDBG-ED). In 2025, N.C. Commerce awarded CDBG grants of $14.4 million for infrastructure needs, $222,375 for economic development projects, and $40.5 million for the CDBG-NR (housing) program. The CDBG program is federally funded through the U.S. Department of Housing and Urban Development (HUD).

The Industrial Development Fund – Utility Account provides infrastructure grants in the state’s Tier 1 and Tier 2 counties, allowing more economically distressed communities to install the necessary industrial infrastructure that attracts businesses.  Water, sewer, industrial access, natural gas, and rail projects are supported by this fund, which itself is funded from a portion of the proceeds from certain Job Development Investment Grants (JDIG). In 2025, nearly 60% of the $8.5 million awarded went for projects in the state’s most distressed regions (Tier 1 counties).

The North Carolina Main Street and Rural Planning Center is a team within the Rural Division that offers economic consulting services and technical expertise and manages the state’s Main Street program benefiting downtown districts. Strategic plans for 29 rural communities were developed and delivered in 2025, and the Center helped award $8,680,612 in downtown development grants.

The Rural Engagement & Investment Program (RE&I) provides grants and technical assistance to support critical economic development initiatives, such as the popular Rural Reuse grants that help local communities refurbish buildings to attract businesses. Grant projects can include renovations, infrastructure, demolition, remediation, and downtown revitalization. In 2025, the RE&I program granted $8.38 million for projects bringing 1,475 jobs; 62% of the program’s projects were related to manufacturing.

The Small Business Infrastructure Grant Program (SmBIZ) helps western North Carolina local governments recover from Hurricane Helene by funding the rebuilding of infrastructure and other critical resources that small businesses rely on to operate. From an available pool of $55 million for grantmaking, the SmBIZ program awarded $18.1 million in 2025, its first year of operation.

The North Carolina Outdoor Economy Office works to grow the state’s outdoor recreation economy, serving as a central information clearing house and convening business and governmental leaders focused on this important sector of the state’s economy.

For more information about the Commerce Department’s available programs and services for rural North Carolina, visit commerce.nc.gov/rural.