ST PAUL, Minn. — The Minnesota Department of Employment and Economic Development (DEED) announced Thursday that more than $20.7 million in Small Cities Development Program (SCDP) grants will support economic growth in 33 Greater Minnesota cities and counties, funding nearly 300 property rehabilitation projects.
“Funding through DEED’s Small Cities Development Program enables cities to undertake projects that promote economic vitality and quality of life in their communities,” said DEED Commissioner Matt Varilek. “These grants ensure all Minnesotans feel the benefits of economic development and have a safe, healthy community and home, regardless of where they live.”
The SCDP program provides funding for housing, public infrastructure, and commercial rehabilitation projects, primarily serving low- and moderate-income communities. This year, 92% of recipients serve residents in those income brackets. Grants are administered by DEED and funded through the U.S. Department of Housing and Urban Development.
Among the 2025 grant recipients:
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Canby — $1,069,500 for rehabilitation of 18 owner-occupied homes and 12 commercial buildings.
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Fairfax — $600,000 for watermain looping improvements.
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Fulda — $1,155,654 for rehabilitation of 21 homes and streetscape upgrades.
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Hanley Falls, Lamberton, Russell, and Walnut Grove — $600,000 each for public water distribution improvements.
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Tracy — $600,000 for rehabilitation of the city’s water plant.
Communities with fewer than 50,000 residents, or counties with fewer than 200,000, are eligible to apply. DEED is now accepting preliminary proposals for the next round of SCDP grants. More information is available on the DEED website.
