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Oct. 23, 2024 |  By: Mark Moran - Public News Service

Rural Iowa towns face barriers to accessing federal money

rural iowa

By Mark Moran - Public News Service

Leaders in Iowa's small towns sometimes express frustration when trying to get help from the federal government.

Local and federal officials met recently to discuss the challenges in rural Iowa and ways to overcome them. Small town Iowa officials met with federal agencies at the "Connecting the Corridor" session to learn how to bridge the gap between knowing what money is available and how to put it to work locally.

Michael Holton, city administrator of Treynor, population 1,100 talked about some of the challenges.

"Most of these small, rural communities don't have dedicated staff that are necessarily right on top of things when it comes to being able to get funds to get them through the rainy days," Holton explained. "They have to look to other people to be able to help them through this jigsaw puzzle."

Holton pointed to Iowa's extremely active tornado season this year, and admitted knowing how to get funds from the Federal Emergency Management Agency was challenging. He noted local officials came away from the "Connecting the Corridor" session with direct federal contacts to call when problems arise in the future.

The American Rescue Plan Act made federal COVID relief funds available to even the tiniest of towns for some pretty big projects. Holton pointed out in some cases, the money was awarded in the form of Destination Iowa grants.

"Treynor was fortunate enough to get a Destination Iowa grant of $800,000," Holton recounted. "The administrative details are what bog it down."

Holton acknowledged the importance of some red tape to avoid fraud and said the "Connecting the Corridor" session helped close the gap between local and federal agencies by reducing the amount of bureaucracy.