Lawmakers Hear Support for Reauthorizing Rural Grocery Sustainability Grant with $1 million Request

Chairman Wanzick convened the hearing on Senate Bill 2228, a bill to reauthorize the Rural Grocery Sustainability Grant and include a $1,000,000 appropriation, as lobbyists, regional leaders and state officials explained how the money would be used and why it remains needed.

Ellen Huber, rural development director for the North Dakota Association of Rural Electric Cooperatives, told the division that the program, piloted in 2023, helped communities collaborate on purchasing and distribution to improve price, availability and variety of fresh foods. “Small towns do matter,” Huber said, adding that grocery stores are “as essential to small‑town survival as water, emergency services and health care.”

Huber described how the pilot funded feasibility studies, business planning and implementation for nine small towns, and said the bill expands eligibility to support existing stores, succession planning and store transitions. She said some applicants previously were ineligible because funds could not be used for building repairs and equipment — a common need when owners retire or sell.

Maria Efritz of the North Dakota Department of Commerce told the committee the department administered the first round and funded five facility projects and four studies. Efritz said the department could provide the committee with a list of awardees and award amounts and noted that the last appropriation of $1,000,000 was fully used.

Don Mant, executive director of the Red River Regional Council, described a recent Crystal, N.D., project (population 112) in which the community booster club, with grant help, purchased a convenience store and converted it into a multipurpose community facility. Mant said the group requested a $300,000 award but received $136,000 because program funds were exhausted, leaving a gap for building repairs and accessibility upgrades.

Supporters described other local financing tools. Huber said the Rural Development Finance Corporation (RDFC), affiliated with the rural electric and broadband cooperatives, has made low‑interest loans and helped secure private grants; she said RDFC balances are now under $200,000 for statewide projects. Witnesses also referenced USDA lending programs, private donor grants and public‑private partnerships as ways to multiply state dollars.

Committee members asked how many stores $1,000,000 could help. Huber said that with a 25% match and caps on awards the program could assist roughly five to 10 projects depending on award size and matching funds. Witnesses emphasized the appropriation would not cover all needs but would help with capital items such as coolers and freezers as well as planning and cooperative distribution efforts.

No formal vote on Senate Bill 2228 was recorded during the hearing. Witnesses urged lawmakers to reauthorize the program and include flexible eligibility and matching requirements so funds can be used for facility repairs, equipment and succession planning.

The hearing record includes detailed community examples and a department list of the nine projects funded in the pilot round; committee members asked Commerce staff to provide the award amounts and matching details to the committee.