State Awards Nearly $500,000 to Strengthen Rural Communities Across Iowa

October 27, 2025 (DES MOINES, IA) — Gov. Kim Reynolds and the Iowa Economic Development Authority (IEDA) today announced $490,000 in Empower Rural Iowa grants supporting 16 communities across the state.

The funding will help expand housing, strengthen child care and encourage business and community growth.

Rural Innovation: Housing 2.0
Six communities each received $50,000 to increase and improve housing. In addition to projects in Fairfield, Keosauqua and Red Oak, grants were awarded to:

  • Decorah: Winneshiek County Development and Tourism, in collaboration with Decorah Jobs and the city, plans 18 to 24 energy-efficient homes on a 3.5-acre infill site. Compact designs will cluster around shared green spaces and parking, creating much-needed workforce housing for moderate-income households.
  • Kalona:  The city will continue a summer program where students build or renovate homes while gaining hands-on job skills and creating affordable housing. In partnership with schools and local contractors, the project will also produce a tool kit to help other rural communities replicate the model.
  • Spencer: Northwest Iowa Corridor Habitat for Humanity will add storm-ready garages and carports — featuring safe rooms and backup power — to modular homes built by inmates at the Newton Correctional Facility. The project strengthens access to affordable, resilient housing.

Rural Housing Readiness Assessment
Grants of $20,000 were awarded to the cities of Forest City, Imogene, Lake Mills, Manchester and West Burlington, as well as the Clarion Development Alliance. These communities will partner with Iowa State University Extension and Outreach to assess housing needs and guide local development strategies.

Rural Child Care Planning
Grants of $20,000 were awarded to Little Smiles & Company, Adair; the city of Lake Park; and Mahaska Health, Oskaloosa. Working with the national nonprofit First Children’s Finance, recipients will analyze local data and identify solutions to meet specific child care needs.

Rural BOOST
Additionally, the city of Manning received a $10,000 grant through the Rural Building Ownership and Organization by Strengthening Teams (BOOST) program, which helps community and business leaders plan for next-step growth. Manning will work with a BOOST team of experts to explore new uses for a former nursing home — the community’s only vacant downtown building — and implement recommendations.

About Empower Rural Iowa grants
Administered by IEDA’s Center for Rural Revitalization, Empower Rural Iowa grants are funded through an appropriation from the Iowa Legislature for the Governor’s Empower Rural Iowa initiative. Applicants are required to provide matching funds and are evaluated on economic need, partnerships, project readiness and alignment with strategic goals.

Programs support Iowa communities with fewer than 20,000 residents that are not adjacent to cities of 40,000 or more. 

To learn more about Empower Rural Iowa programs, eligibility requirements or upcoming grant opportunities, visit the Center for Rural Revitalization webpage.

Download a full list of Empower Rural Iowa award recipients.

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