What’s at stake for rural people

Hi Neighbor, 

I wish that we were communicating with better news, but we’ve got a lot to cover today. 

The new administration is unlawfully freezing funding that Congress has already authorized and obligated through legally binding contracts and grants. As a result, small towns, local businesses, and community organizations that relied on these agreements are now facing dire economic consequences. We’re already seeing stop-work orders, layoffs, and disruptions to essential services – real consequences for businesses and communities that planned and budgeted in good faith.

Federal funding is a vital tool for rural self-reliance, economic strength, and essential services. When the administration freezes or cuts authorized funding, jobs disappear, businesses struggle, and critical services like healthcare, childcare, and infrastructure are put at risk. Rural communities rely on federal investment to attract private capital, bridge funding gaps, and sustain growth. Without them, families and businesses face rising costs and fewer opportunities.

These dollars don’t just fund programs; they uphold legal commitments to Tribal Nations, keep hospitals open, expand broadband, and support small businesses. Pulling back funding doesn’t save money, it shifts the burden onto hard working families and businesses. When federal dollars for infrastructure dry up, it’s rural residents who end up paying higher utility bills, transportation costs, and healthcare expenses.

Now is the time to reinforce these commitments, not walk away. Over the past year, we’ve highlighted dozens of stories showing how federal dollars drive immediate economic impact. Here’s what that looks like:

It’s about lowering costs for small businesses and families. In Decorah, Iowa, Good Shepherd Lutheran Church leveraged federal tax credits to go net-zero, reducing their energy costs to just $23 per month. This allows them to redirect thousands of dollars each year toward community programs instead of utilities. Without continued federal investment, other communities will lose their chance to lower costs and reinvest in local needs. 

It’s investing in and retaining our workforce. In Cokato, Minnesota, Terning Seeds' solar installation cut their electricity costs by nearly $20,000 annually, offsetting up to 80% of their energy needs – savings that allow them to keep investing in their operations and workforce. Federal funding helped make this possible, but future projects like this could be wiped out if support is stripped away.

It’s about keeping healthcare local and reducing patient travel costs. In Colorado City, Arizona, Creek Valley Health Clinic received a $1.3 million ARPA grant to open its doors after 10 years without a healthcare facility. Today, it serves over 3,500 patients annually, many of whom would otherwise travel more than 100 miles for basic medical care. Without continued investment, clinics like this will close, leaving families without access to critical services.

It supports American farmers. In White Earth, Minnesota, Benson & Turner Foods used a federal grant to open a meat processing facility, reducing reliance on large corporate packers and ensuring that livestock producers had a local market. Without this investment, millions of dollars in agricultural revenue would have left the region. 

It fulfills trust and treaty commitments with sovereign Tribal governments. Federal investment in Tribal Nations is a legal obligation rooted in treaties and the unique government-to-government relationship between Tribal Nations and the United States, not discretionary spending. Upholding this commitment strengthens Tribal economies, benefits surrounding communities, and honors sovereign rights affirmed by the U.S. Constitution, Supreme Court rulings, and international law.

And keeps rural businesses open and competitive. In Pineville, Kentucky, Long’s Pic Pac grocery store installed solar panels with support from the Inflation Reduction Act, reducing energy costs by $15,000 per year and allowing the store to stay competitive despite razor-thin grocery profit margins. These investments strengthen communities by keeping businesses open and rural economies growing.

These aren’t just isolated wins. They’re proof that targeted federal investments create real, measurable progress. When this funding disappears, it’s not just numbers on a budget spreadsheet; it’s working families who will pay the price. It means healthcare clinics curtailing services, laying off workers, and facing risk of closure. It means childcare providers facing potential closures, and farmers being on the hook for millions of dollars.

The cost of inaction is clear. Without federal investment to help attract private capital, rural communities face economic loss, rising costs, and declining services. But we know that rural America isn’t disposable – our communities are strong, innovative, and determined to thrive. 

That’s why we’re not backing down. Across the country, local leaders, small business owners, farmers, and advocates like you are standing up to ensure these investments continue. Our network is mobilizing to share stories, connect with decision-makers, and push for solutions that keep rural communities moving forward.

We want to hear from you. If federal funding has supported your work or community, tell us how. Your voice is powerful in showing what’s at stake.

Thank you, and more soon, 

Resource Rural

PS: Federal funding is crucial for keeping rural communities strong, but it’s under threat. You can use these talking points to highlight what’s at stake and advocate for the investments that create jobs, support local businesses, and keep essential services running. Our lines are open for feedback and ideas!