Walz announces $20 million-plus boost for economic development in Greater Minnesota

34 Greater Minnesota cities, townships and counties to receive grants

Gov. Tim Walz
Gov. Tim Walz
We are part of The Trust Project.

ST. PAUL — Gov. Tim Walz and Lt. Gov. Peggy Flanagan announced Tuesday over $20 million in funding for small cities, townships and counties in Minnesota. The Small Cities Development Program (SCDP) grants will be used for infrastructure and rehabilitation projects in 34 Minnesota cities, townships and counties.

“From St. Peter to Swanville, Minnesota does better when all of our neighborhoods are thriving,” said Walz. “These grants are going directly to smaller communities to help with infrastructure projects and keep our cities growing and thriving. We are working to make Minnesota the best state to live, work and raise a family — no matter where you live.”

“By investing in projects that will keep moving Minnesota forward, this program will address current and emerging needs for communities across Minnesota,” added Flanagan. “Minnesota is in a strong economic position, and we will keep working to make sure all of our cities are thriving.”

SCDP grants will be administered by the Department of Employment and Economic Development and are part of the Community Development Block Grant Program of the U.S. Department of Housing and Urban Development (HUD). The grants are administered by DEED’s Small Cities Development Program Unit. The SCDP grants pay for rehabilitating housing and commercial buildings and updating public infrastructure in small cities and counties.

The SCDP awards announced Tuesday total $20,820,999, and are to be used for owner-occupied housing rehabilitation, rental rehabilitation, commercial rehabilitation, public facility improvement projects, community centers and streetscape projects.


Southwest Minnesota communities to be awarded grants include:

  • Balaton, $599,955 for owner-occupied housing and rental rehabilitation
  • Hendricks/Garvin, $1,198,325 for owner-occupied housing, rental rehabilitation and public facility improvements
  • Jackson, $1,035,000 for owner-occupied housing and commercial rehabilitation
  • Mountain Lake, $759,000 for owner-occupied housing and commercial rehabilitation
  • Sanborn, $600,000 for public facility improvements
  • Slayton, $737,840 for owner-occupied housing, rental and commercial rehabilitation

“This is really a phenomenal program to help small cities in Greater Minnesota grow,” said DEED Commissioner Steve Grove. “By driving over $20 million to infrastructure growth in the rural areas of our state, we’re backing up our belief that you can live anywhere in Minnesota and have an extraordinary quality of life — and a positive economic outlook.”
Cities and townships with populations under 50,000 and counties with populations under 200,000 can apply for SCDP grants. Eligible projects must meet one of three objectives: benefit people of low and moderate incomes; eliminate slum and blighted conditions; or eliminate an urgent threat to public health or safety.

What To Read Next
The administration is bringing back an Obama-era decision, later reversed by Trump, that bans new mineral leases on 225,500 acres of the Superior National Forest for the next two decades.
Blowing snow caused poor visibility and the wind and plummeting temperatures combining to make spending time outdoors an uncomfortable experience for anyone unprepared.
Wednesday’s community input meeting at Worthington High School was the third of four planned by the Minnesota Attorney General’s Office.
Minnesota’s Historic Tax credit had an 11-year run before ending in 2022. Now, advocates of the program are attempting to bring it back.