Rural Development Initiatives in North Carolina: A Boost for Local Communities
In a significant push towards enhancing the economic landscape of rural North Carolina, the state’s Department of Commerce, together with the Rural Economic Development Division and the Rural Infrastructure Authority, has allocated $136.3 million in grants. These funds, distributed in 2025, aim to breathe new life into neighborhood housing, modernize industrial facilities, refurbish historic buildings to attract businesses, and stimulate downtown district projects.
Governor Josh Stein emphasized the importance of these initiatives, stating, “Rural communities are an integral part of what makes North Carolina strong. 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.”
Under the guidance of Commerce Secretary Lee Lilley and Assistant Secretary Reginald Speight, the Rural Economic Development Division is focused on delivering economic progress to Tier 1 and Tier 2 counties, along with rural areas within Tier 3 counties. According to Commerce Secretary Lee Lilley, “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.”
Assistant Secretary Reginald Speight added, “Rural places and spaces are becoming central to long-term economic growth and sustainability. Our division, through strategic partnerships, is witnessing measurable community enhancement and transformative change that strengthens local economics and communities.”
Key Programs and Funding Initiatives of 2025
The Appalachian Regional Commission (ARC), a cooperative venture between 13 states and the federal government, awarded $33.5 million across 31 western North Carolina counties. These funds supported business development, workforce enhancement, infrastructure projects, and cultural and tourism initiatives.
The Southeast Crescent Regional Commission (SCRC) contributed over $4 million spanning 69 counties, focusing on infrastructure improvements, health and support services, entrepreneurial growth, housing expansion, and environmental conservation.
The Community Development Block Grant (CDBG) Program saw federal support via HUD, providing $14.4 million for infrastructure, $222,375 for economic initiatives, and $40.5 million for housing revitalization under the CDBG-NR program.
The Industrial Development Fund – Utility Account directed $8.5 million to advance infrastructure in Tier 1 and Tier 2 counties, focusing on essential services like water, sewer, natural gas, and rail to attract business investments.
Through the North Carolina Main Street and Rural Planning Center, strategic plans were crafted for 29 rural communities, along with $8.68 million in downtown development grants to invigorate local economies.
The Rural Engagement & Investment Program (RE&I) allocated $8.38 million towards projects that enhanced infrastructure, created jobs, and supported manufacturing, which constituted 62% of its initiatives.
In response to Hurricane Helene, the Small Business Infrastructure Grant Program (SmBIZ) disbursed $18.1 million of its $55 million available funds to support small business recovery and infrastructure rebuilding in western North Carolina.
Lastly, the North Carolina Outdoor Economy Office aims to expand the state’s outdoor recreation sector by facilitating collaboration among business and government leaders.
For more details on these programs, visit the North Carolina Department of Commerce’s Rural Economic Development Division at commerce.nc.gov/rural.
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