July 9, 2025

USDA Funding Offered to Cities

Kentucky cities with a population of less than 50,000 can apply for USDA Rural Development grants to provide strong rural communities the leadership and technical know-how to continue growing.

Funding is available through the Rural Community Development Initiative (RCDI) program for fiscal year (FY) 2025. The program awards grants to qualified intermediary organizations to deliver financial and technical assistance to help recipients build capacity to carry out projects related to housing, community facilities, and community and economic development.

This is a 50/50 matching grant, but in-kind funds can’t be used for the match. The minimum award amount is $50,000. KLC members who wish to undertake a project within the grant parameters should have some funds set aside for the match portion. Cities and municipal agencies may want to work regionally, either alongside their county or area development district.


The deadline to submit electronic applications via Grants.gov is no later than 11:59 p.m. EDT on Aug. 7. Paper applications must be received by 4:00 p.m. EDT on Aug. 12.

Click here for more information or here to complete your application.