In 2025, the North Carolina Department of Commerce and its Rural Economic Development Division distributed $136.3 million in grants to rural communities across the state. The funding was used for a range of projects, including housing revitalization, industrial infrastructure upgrades, building renovations to attract businesses, and downtown development.
Governor Josh Stein commented on the significance of these investments: “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.”
The Rural Economic Development Division operates eight program areas that support rural counties classified as Tier 1 and Tier 2, as well as rural census tracts within Tier 3 counties. These programs are overseen by Commerce Secretary Lee Lilley and Assistant Secretary Reginald Speight.
“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.”
Commerce 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.”
Among the programs highlighted were:
– The Appalachian Regional Commission (ARC), which awarded 37 grants totaling $33.5 million in western North Carolina counties for business development, workforce initiatives, infrastructure improvements, tourism promotion, and leadership capacity.
– The Southeast Crescent Regional Commission (SCRC), which provided over $4 million through 10 grants aimed at infrastructure improvement, health services expansion, business development support, housing stock growth, and environmental conservation.
– The Community Development Block Grant (CDBG) Program delivered funds for infrastructure ($14.4 million), economic development ($222,375), and neighborhood revitalization/housing ($40.5 million). This program is funded by the U.S. Department of Housing and Urban Development.
– The Industrial Development Fund – Utility Account allocated $8.5 million for industrial infrastructure projects such as water systems and rail access; nearly 60% went to Tier 1 counties with higher levels of economic distress.
– The North Carolina Main Street and Rural Planning Center developed strategic plans for 29 rural communities in 2025 while helping award more than $8.6 million in downtown development grants.
– The Rural Engagement & Investment Program (RE&I) supported critical economic initiatives with $8.38 million granted toward projects expected to create nearly 1,500 jobs; most were manufacturing-related.
– The Small Business Infrastructure Grant Program (SmBIZ) focused on supporting western North Carolina’s recovery from Hurricane Helene by distributing $18.1 million from a pool of $55 million during its first year.
– The North Carolina Outdoor Economy Office worked on expanding outdoor recreation as an economic sector by connecting business leaders with government officials.
Further details about these programs can be found at https://commerce.nc.gov/rural.
