Appropriations committee backs $5 million rural development fund carried by regional councils, lowers population threshold

The House Appropriations Committee voted to advance Senate Bill 2390 as amended, which creates a $5 million one-time rural development grant fund administered through the state’s eight regional councils and prioritizes very small communities.

Committee members discussed two competing rural proposals and favored SB 2390 because the regional councils already have infrastructure and governance to administer grants and leverage other funding. Representative Nelson moved an amendment to lower the population maximum for eligibility from 4,500 to 3,000; the committee adopted that amendment on a roll call (recorded as 23 yes, 0 no). The committee then voted to give SB 2390 a do-pass recommendation as amended; the roll recorded the motion as carried 23 yes, 0 no.

Members argued regional councils can pair state funds with foundation money, federal grants and other local investments, and that councils’ staff and boards know local conditions and priorities. The amended bill includes a requirement that at least 50% of grant funds be allocated to communities with populations under 1,500.

Committee discussion also examined where to draw a population cutoff; members noted any specific threshold would exclude some communities close to the line and that regional councils can prioritize applications within their regions. Representative Richter and other members said the regional model would help leverage the $5 million into more substantial local investment. Representative Mitscog stressed the program is a “starting point” to address vanishing main streets and grocery stores in rural areas.

The committee adopted the do-pass motion and selected Representative Mitscog as carrier; Representative Nelson and Representative Munson were involved in amendment motions. Members said the regional councils’ membership on the administering committee will ensure regional representation in awarding funds.