U S D A / Rural Development
Washington, D.C.  20250-0705

News Release

Contact: Kevin Herglotz, (202) 720-4623
Tim McNeilly, (202) 690-0498

USDA PROVIDES $17.5 MILLION TO ASSIST ECONOMICALLY DISTRESSED RURAL AREAS

     WASHINGTON, August 31, 2001--The U.S. Department of Agriculture today announced the selection of 66 projects totaling $17.5 million in competitive grant funds for economically distressed rural communities in 21 states. The grant funds will assist in developing essential community facilities in areas of extremely high unemployment and severe economic depression.

     "It's important that we help our rural areas that are in greatest need," said Agriculture Secretary Ann M. Veneman. "Today's selected projects will bring essential medical, fire fighting, and child care services and facilities to rural communities that may not otherwise be able to afford them."

     The grants are made available through a special initiative under the Community Facilities program of USDA Rural Development's Rural Housing Service. Funds under the initiative are earmarked by the Congress for rural communities where the "not employed" rate is greater than 19.5 percent. Rural Development offers assistance to develop essential community facilities and services for public use in rural communities with populations of less than 20,000.

     Grant funds are available to eligible public entities, nonprofit corporations and tribal governments. The monies provide for community service facilities including fire and rescue buildings/equipment, streets, utilities, community buildings, libraries, hospitals, clinics, and day-care centers.

     Applications were considered competitively, with communities having the lowest populations and lowest median incomes given selection priority. Other selection criteria included each project's economic feasibility and the program's goal of distributing program funds throughout all regions of the United States.

     Selected states and grant totals include:

Alaska - $6,306,387Arizona - $211,170Hawaii - $679,012
Idaho - $236,600Illinois - $554,090Iowa - $1,271,600
Kentucky - $530,000Louisiana - $539,000 Minnesota - $875,000
Mississippi - $1,146,960Missouri - $369,971Montana - $140,000
New Jersey - $700,000New Mexico - $777,025Oklahoma - $36,000
Puerto Rico - $1,232,287South Dakota - $299,660Utah - $50,000
Virginia - $700,000West Virginia - $150,330Wisconsin - $720,445

     A complete list of the selected individual grant recipients and projects can be found at: http://www.rurdev.usda.gov/rd/newsroom/2001/cfrecips01.html.

     USDA Rural Development serves as the lead federal entity for rural development needs, and administers program assistance through three agencies: Rural Housing Service, Rural Business-Cooperative Service, and Rural Utilities Service. Further information on USDA Rural Development can be obtained by contacting any USDA Service Center or by visiting USDA's web site at http://www.rurdev.usda.gov.

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