The Agriculture and Veterans Affairs Committee voted to advance several bills aimed at rural economic development and community support, including an amended Senate Bill 2390 that requires at least 50% of any appropriation in the bill be directed to communities with populations under 1,000.

The committee additionally voted to refer Senate Bill 2097 (an endowment proposal with a $50 million endowment and $5 million seed allocation), Senate Bill 2342 (a $10 million appropriation from the Agricultural Diversification Development Fund for a milk processing/value‑added facility) and Senate Bill 2228 (rural grocery store sustainability grants, amended to prioritize reopening stores in communities lacking a grocery store) to the appropriations committee.

Why it matters: The package would channel state dollars to rural communities that committee members and outside witnesses said lack access to fundraising networks and capacity. Lawmakers split over whether to send multiple competing bills forward or consolidate a single vehicle for appropriations. Debate focused on targeting aid to the smallest towns and on how much of any appropriation should be effectively reserved for those places.

Testimony and key points

Patrick Kirby, founder of Do Good Better Consulting, told the committee the catalyst grant program in SB 2390 would do “one of the most strategic and potentially game‑changing” things for small‑town philanthropy, saying the bill’s matching requirement — nonprofits must bring one dollar of non‑state funds for every $2 received — “is about teaching nonprofits how to build sustainable fundraising streams.”

Megan Langley of Strength and ND spoke in a neutral capacity and explained differences between SB 2390 and SB 2097: SB 2097 focuses on communities of 1,000 or fewer residents and proposes a larger endowment structure. Langley told the committee that SB 2097’s 10% administrative ceiling would be at the discretion of the Department of Commerce and that a 10% ceiling is typical for pass‑through administration fees.

Ryan Greg testified for the Farmers Union and said the organization supports investment in rural areas but had no firm preference on the delivery vehicle.

Committee debate and amendments

Senator Meerdal proposed an amendment to SB 2390 to reserve roughly $5 million (about 16% of a $30 million appropriation mentioned in discussion) specifically for communities with fewer than 1,000 people. That amendment failed on a roll call.

Senator Weber then moved an amendment requiring that at least 50% of any appropriated amount in SB 2390 be designated for towns with populations under 1,000; that amendment carried on a roll call and was incorporated into SB 2390 before the committee moved the bill as amended.

On SB 2228 (rural grocery store grants), Senator Bridal offered an amendment to change the language from establishing new grocery stores to prioritizing reopening stores in communities that lack a grocery store, and to prohibit using the funding for off‑site food processing or preparation; the committee adopted the amendment and then passed the bill to appropriations.

On SB 2342 (milk processing/value‑added facility), the committee moved a due pass and re‑referred the bill to appropriations. The motion included referral language so appropriators would receive the bill with committee record of support.

SB 2097 (endowment plus seed money) drew a do‑not‑pass motion but that motion failed; the committee later adopted a do pass and referred SB 2097 to appropriations.

Formal actions (summary)

- Amendment to SB 2390 to reserve ~$5,000,000 for towns under 1,000 — failed (roll call recorded; motion failed).
- Amendment to SB 2390 to require at least 50% of any appropriation be spent on communities under 1,000 — adopted (roll call recorded).
- SB 2390 as amended — moved as a do pass and referred to appropriations (committee carried the bill).
- SB 2342 (milk processing/value‑added facility) — do pass and re‑referred to appropriations.
- SB 2228 (rural grocery store sustainability grants) — amended to prioritize reopenings and prohibit off‑site processing; do pass and re‑referred to appropriations.
- SB 2097 (endowment and seed funding) — after debate the committee voted do pass and referred the bill to appropriations.

Committee context and next steps

Committee members repeatedly said they wanted a single, politically palatable vehicle to send to appropriations, but several members argued both bills had merit and could proceed. Multiple senators noted the session’s fiscal constraints and urged strategic choices by appropriators. All advanced bills will next be considered by the Senate Appropriations Committee, which will make funding decisions.

Ending

The committee adjourned after clearing the day’s rural development measures and sending the amended bills on to appropriations for consideration in the budget process.