A guide to grants for rural communities and rural-serving nonprofits, including USDA Rural Development, HUD, HRSA, foundation, and corporate funding sources.

Rural communities have access to a substantial and often underused set of federal grant programs designed specifically for them. From USDA’s Rural Development portfolio to HUD rural programs to HRSA’s rural health emphasis, federal funders make significant investments in rural community vitality, and so do many foundations.

This guide covers the main sources of grants for rural communities and rural-serving nonprofits.

TL;DR: Quick Answers

Who funds rural communities? USDA (especially Rural Development), HUD, HRSA, DOT, DOE, state and tribal agencies, and many foundations.
Who can apply? Rural nonprofits, rural local governments, tribal entities, cooperatives, FQHCs, rural hospitals, and partnerships.
What do they fund? Rural housing, businesses, broadband, healthcare, food systems, energy, infrastructure, and community development.
Where do most rural organizations start? With USDA Rural Development State Offices.

Major Federal Rural Funders

USDA Rural Development. The largest single federal funder for rural communities. Programs include Community Facilities, Rural Business Development Grants, Rural Cooperative Development Grants, Distance Learning and Telemedicine, Broadband Programs, and many housing programs. See USDA grants.

USDA Rural Health Care Services Outreach Grants (through HRSA Federal Office of Rural Health Policy). Funds rural healthcare partnerships.

USDA Forest Service, including community forestry and rural conservation.

HUD. Community Development Block Grants for non-entitlement areas (often state-administered), see HUD grants.

DOT. Rural transit and infrastructure programs, see DOT grants.

DOE. Rural energy programs, including in USDA Rural Development.

HRSA. Rural Health Programs, including Rural Health Care Services Outreach Grants, Rural Health Network Development, and Critical Access Hospital programs, see HRSA grants.

ED. Rural Education Achievement Program (REAP), see Department of Education grants.

State agencies. Many states have dedicated rural programs.

Major Foundation Funders for Rural Work

Foundations focused on rural communities include the W.K. Kellogg Foundation (substantial rural work), the Northwest Area Foundation, the Heinz Endowments, the Walton Family Foundation, the Conrad N. Hilton Foundation (selected), the Bush Foundation, the Marguerite Casey Foundation, and many state and regional foundations.

Community foundations are particularly important in rural areas.

What Counts as “Rural”

Federal definitions of rural vary by program. Common thresholds:

USDA Rural Development: Often population ≤ 50,000 for most programs (varies).
HRSA: Federal Office of Rural Health Policy uses specific eligible counties/areas.
HUD: Non-entitlement areas for certain programs.

Always check the specific program’s rural definition; geography is a binary eligibility test for most rural programs.

Major Program Types Funded

Rural grants commonly support:

Housing. Single-family, multi-family, rehabilitation, see HUD grants and USDA Section 502/504/515.
Community facilities. Health clinics, libraries, fire stations.
Broadband and telecommunications.
Rural businesses and cooperatives.
Rural healthcare, including Critical Access Hospitals, FQHCs, and outreach networks.
Rural education, including school district support.
Conservation and working lands.
Energy and clean energy in rural communities.
Local food systems and agriculture.

What Rural Funders Look For

Genuine local presence. Rural funders are wary of urban-based organizations parachuting in.
Community partnerships. Local governments, schools, healthcare, faith communities.
Geographic eligibility documentation.
Rural-specific data in the statement of need: rural Census data, BLS employment, RUCA codes, HPSA designations.
Evidence of need despite small numbers. Rural communities can’t always show urban-scale impact; demonstrate rural-relevant scale.
Sustainability and capacity to manage federal funds.

How to Win Rural Grants

1. Engage USDA Rural Development State Office. State staff are accessible and often willing to advise.

2. Document rural eligibility carefully. Geographic boundaries matter.

3. Use rural-specific data. ACS rural subgroups, USDA ERS data, HPSA/MUA designations.

4. Build local coalitions. Local government, schools, healthcare, see partnerships in grant proposals.

5. Pair grants with loans where applicable. Many USDA programs combine grant and loan dollars; structuring both can unlock larger projects.

6. Plan for capacity. Federal compliance is rigorous; document or build the systems.

7. Use community foundation relationships to build a local track record.

Where Most Rural Organizations Start

For most rural-serving organizations:

USDA Rural Development State Office conversation.
State-administered programs (CDBG non-entitlement, USDA pass-throughs).
Community foundation grants.
HRSA rural programs for healthcare.
Rural-focused national foundations.
Federal competitive programs (USDA, HUD, HRSA, ED REAP) matching your work.

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Grants for Rural Communities and Rural-Serving Nonprofits