Feb 24, 2025
LYONS, NEBRASKA – The Center for Rural Affairs calls on members of Congress to uphold federal funding obligations. Last month, President Trump ordered a federal spending freeze that halted payments for federal grants and loans, jeopardizing the financial stability of agencies, organizations, programs, and projects that serve rural communities across the country.
Despite a judge’s order stopping the freeze, many organizations such as the Center remain unable to access contracted funds, creating major disruptions to their work that supports family farms, small businesses, civic infrastructure, and economic development in rural areas.
“These dollars have been appropriated by Congress and have far-reaching impacts for rural communities, including access to health care, supporting infrastructure projects, bolstering agriculture and conservation, and ensuring citizens have reliable and affordable electricity,” said Brian Depew, the executive director of the Center. “The funds are under contract and have been legally obligated. Congress needs to ensure those monies reach their intended purpose.”
Administrative actions have resulted in freezes, delays, or even cancellations of grants and loans awarded through the Bipartisan Infrastructure Law and Inflation Reduction Act.
“Rural states are significantly benefiting from these investments,” said Depew. “Nebraska alone has been slated to receive more than $1.4 billion in investments to address infrastructure needs such as levee repairs to reduce flooding risks, wildfire mitigation, energy efficiency grants and loans for small businesses and farmers, and deployment of community, multifamily, and rooftop solar projects.”
Depew says funding disruptions will result in programs or projects that rural residents are relying on ending with no notice or plan for replacement.
“Rural areas that have received these awards have already budgeted based on committed funding,” he said. “Lapses in this support creates uncertainty and places an undue strain on local communities, organizations, and projects.”
The Center urges lawmakers to ensure funds are unfrozen, that existing contracts are not arbitrarily canceled, and that priorities targeted through the Inflation Reduction Act, such as funds for working lands conservation and investments in energy infrastructure for rural communities, are included in the Congressional budget.
“Rural life can be precarious. It is common for rural areas to lack access to services and opportunities that are much more prevalent in urban areas,” said Depew. “Federal funding—in various forms—plays an essential role for improving the lives of many rural Americans.”
