USDA Rural Development Invests More Than $19 Million to Support Healthcare, Clean Water and Economic Growth in Iowa
(Des Moines, Iowa, July 10, 2026) – U.S. Department of Agriculture Rural Development Iowa State Director Mike Sexton today announced that the agency is investing more than $19 million in projects to improve medical services, emergency response, clean water and support for businesses in rural Iowa communities.
“Economic development is vital to our rural Iowa counties and communities, especially places in northwest Iowa hit by flooding in 2024,” said Sexton. “Under the leadership of President Trump and Agriculture Secretary Rollins, USDA is helping modernize services and outfit facilities to recover from disaster, strengthen local infrastructure, and unleash economic prosperity for rural Iowa.”
Project details:
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The city of Spencer received a $142,000 grant through Communities Facilities programs to retrofit its Sioux Rapids Family Care clinic in Sioux Rapids, Iowa. This project will replace furniture, equipment and fixtures in the clinic that severe flooding destroyed, which was a presidentially declared disaster in 2024. Once completed, the project will restore safe, efficient, and fully operational healthcare services to the residents of this rural Buena Vista community.
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The city of Macedonia received $223,000 through the Emergency Community Water Assistance Grants program to provide additional funding to improve its water system. This project will construct a new well in the existing well field. Currently, during dry weather conditions, the city must reduce the pumping rate of the wells, and the water supply can become insufficient. This project will help the city meet peak demands. Once completed, this project will provide safe, reliable drinking water for the 267 residents of this rural Pottawattamie County community.
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Pathfinders Resource Conservation and Development Area Inc., a non-profit organization in Fairfield, Iowa, received a $99,000 Rural Business Development Grant to provide technical assistance to small and emerging Iowa businesses in Davis, Jefferson, Mahaska and Van Buren counties. The organization focuses on promoting economic development and natural resource conservation.
The Rural Economic Development Loan and Grant program supplied funds for these projects:
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Readlyn Telephone Company received a $300,000 grant to establish a revolving loan fund. The initial loan from the grant will partially finance construction of a new combined emergency services facility for the Readlyn Volunteer Fire Fighters Association in Readlyn in Bremer County, Iowa. Repayment of the loan will be for future business and community development loans.
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Corn Belt Power Cooperative, headquartered in Humboldt County, will use a $300,000 grant to replenish an existing revolving loan fund it administers. The initial loan from the grant will partially finance the purchase of equipment for Kossuth Regional Health Center in Algona in Kossuth County. This project will modernize the radiology department and will create a new job. Repayment of the loan will be for future business and community development loans.
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Algona Municipal Utilities will use a $300,000 grant to replenish an existing revolving loan fund it administers. The initial loan from the grant will partially finance the purchase of equipment for Kossuth Regional Health Center in the rural community of Algona in Kossuth County, Iowa. This project will help modernize the radiology department and will create one new job. The purpose of this funding program is to provide rural economic development.
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Butler County Rural Electric Cooperative to Feldmeier Equipment Inc., received a $1 million loan to fund a pass-through loan to Feldmeier Equipment Inc. This project will purchase equipment for Feldmeier’s business expansion project in Shell Rock, in Butler County, Iowa. The purpose of this funding program is to provide rural economic development.
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Corn Belt Power Cooperative received a $1 million loan to fund a pass-through loan to Feldmeier Equipment Inc. This project will purchase equipment for Feldmeier’s business expansion project in Shell Rock, in Butler County, Iowa. The company fabricates a variety of stainless-steel tanks and pressure vessels for food, beverage, brewery, pharmaceutical, dairy, and cosmetic industries.
The Water and Waste Disposal Loans and Grants program supplied funds for these projects:
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Lyon & Sioux Rural Water System received a $10,350,000 loan to help make improvements to the water system. This project will construct a new 800,000-gallon water tower and eight miles of piping to connect the new tower to the existing system. Once completed, the project will promote the health and safety of 9,293 rural residents in Sioux and Lyon counties in northwest Iowa.
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The city of Correctionville received a $651,000 grant and a $5,149,000 loan to improve the water system. This project will construct a new well and water treatment plant. The project will also install a raw water main to connect the current well to the new facility. Once completed, the project will promote the health and safety of the 766 rural residents of this rural Woodbury County, Iowa, community.
For more information on USDA Rural Development investments in rural America, visit the Rural Data Gateway. The Rural Data Gateway is an online tool that strengthens USDA Rural Development partnerships with rural people, entrepreneurs, government officials and Congress by making investment data accessible to the public.
To learn more about these programs, call 515-284-4663 or visit www.rd.usda.gov/ia. If you’d like updates from USDA Rural Development, visit our GovDelivery subscriber page and follow us on X at @RD_Iowa.
To learn more, visit www.usda.gov/ia.
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USDA is an equal opportunity provider, employer and lender.
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