In 2025, the North Carolina Department of Commerce, in partnership with its Rural Economic Development Division and the state’s Rural Infrastructure Authority, distributed $136.3 million in grants to rural communities across the state. The funding was used for projects such as housing revitalization, industrial infrastructure upgrades, business building improvements, and downtown district developments.
Governor Josh Stein commented on the importance of these efforts: “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 is overseen by Commerce Secretary Lee Lilley and Assistant Secretary Reginald Speight. This division manages eight program areas that serve rural counties classified as Tier 1 or Tier 2, as well as certain rural parts of Tier 3 counties.
“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 also noted: “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.”
Several key programs contributed to these results:
The Appalachian Regional Commission (ARC), which works with 31 western counties through a federal-state partnership, awarded $33.5 million via 37 grants aimed at supporting businesses, workforce development, infrastructure improvements, regional culture initiatives, tourism projects, and leadership training.
The Southeast Crescent Regional Commission (SCRC) operates similarly but covers 69 counties. In 2025 it provided over $4 million through ten grants for infrastructure upgrades, health services expansion, business development support, increased housing availability, and environmental conservation efforts.
Through the federally funded Community Development Block Grant (CDBG) Program—supported by the U.S. Department of Housing and Urban Development—North Carolina Commerce awarded $14.4 million for infrastructure needs; $222,375 toward economic development; and $40.5 million specifically for neighborhood housing revitalization projects.
The Industrial Development Fund – Utility Account focuses on providing necessary industrial infrastructure like water systems or rail access to economically distressed areas classified as Tier 1 or Tier 2 counties. Nearly sixty percent of its $8.5 million awards went to regions considered most distressed.
The Main Street and Rural Planning Center within the Rural Division delivered strategic plans for nearly thirty rural communities while facilitating about $8.7 million in downtown development grants during the year.
The Rural Engagement & Investment Program (RE&I) supported building renovations and related activities with $8.38 million granted in total; manufacturing-related projects made up sixty-two percent of this activity.
A new Small Business Infrastructure Grant Program (SmBIZ) began distributing funds—$18.1 million from a potential pool of $55 million—to help western North Carolina recover from Hurricane Helene by rebuilding essential small business infrastructure.
Additionally, the North Carolina Outdoor Economy Office continued its work supporting outdoor recreation industry growth statewide by acting as a hub for information-sharing among business leaders and government officials focused on this sector.
Further details about available programs can be found at commerce.nc.gov/rural.
