Track One: Recovery Grants
The Emergency Rural Health Care Grant Program through USDA Rural Development is funded by The American Rescue Plan Act of 2021. Its goal is to help rural communities manage the COVID-19 pandemic by increasing access to testing, vaccines, and general health services. It also supports food banks and food distribution.
Track One: Recovery Grants funds are for immediate needs, preparing for future pandemics, or increasing access to health care. Awards will range from $25,000 – $1 million. Approximately $350 million is expected to be disbursed. Submit your application through your State Rural Development office. They will begin reviewing applications after October 12, 2021 and continue accepting new applications until all funds are spent.
Projects should expect to begin no earlier than November 1, 2021 and last no more than 3 years.
Eligibility
Public bodies such as municipalities, counties, and other sub-State level government entities are eligible to apply; State level bodies are not eligible. Federally recognized Tribes located in rural areas are also eligible, as are non-profit organizations. Non-profits must be able to demonstrate that they are significantly involved in the rural community in which grant funds will be spent.
The facility or project must be located in an area that meets the legal definition of ‘rural’ for Community facility loans and grants. This definition is “any area other than a city, town, or unincorporated area that has a population of greater than 20,000 inhabitants (Source).” Non-governmental applicants are not required to be headquartered in a rural area, but the funded project must primarily serve a rural area.
Cost Share
Cost-sharing is required, but the percentage of the project cost you must pay depends on the community’s population and median household income. The percentages cited below are the minimum amount you would be expected to provide.
| Population | Median Household Income | Cost share |
| 5,000 or fewer | Below the poverty line or 60% of state nonmetropolitan MHI (whichever is greater) | 25% |
| 12,000 or fewer | Below the poverty line or 70% of state nonmetropolitan MHI (whichever is greater) | 45% |
| 20,000 or fewer | Below the poverty line or 80% of state nonmetropolitan MHI (whichever is greater) | 65% |
| 20,000 or fewer | Below the poverty line or 90% of state nonmetropolitan MHI (whichever is greater) | 85% |
If you serve multiple communities, you will need to calculate a weighted median household income. An example of how to do this can be found on page 10 of the Application Guide. When in doubt, check with your State Rural Development office. In kind contributions can not be used as part of your cost share.
Eligible Activities
Grant funds may be used for one or more of the following activities:
- Increasing ability to distribute vaccines through purchase of equipment like refrigerators or vehicles.
- Purchasing medical supplies to accommodate increased patient loads. This can include personal protective equipment.
- Reimbursing revenue lost due to the COVID-19 pandemic going back to March 13, 2020. You must provide a certification from a certified public accountant to demonstrate how lost revenue was calculated.
- Increasing capacity to serve patients via telehealth by purchasing equipment and software, and paying for staff training.
- Construction or renovation of either temporary or permanent structures for testing and vaccine distribution.
- Salaries for increased staff needed for testing and/or vaccine distribution. You must provide a certification from a CPA that these expenses have not been reimbursed by another source. May not exceed $100,00.
- Supporting food banks and food distribution facilities. This includes operating expenses for the grant period and prior dating back to March 13, 2020.
Application Requirements
Every application must include:
- SF-424: Application for Federal Assistance
- Either SF-424A: Budget Information – Non-Construction Programs or
- SF-424C: Budget Information – Construction Programs
Non-profit organizations must also provide:
- Articles of organization, incorporation, or association
- By-laws
- Evidence of good standing – this is typically a certificate from your state Secretary of State’s office
- Evidence of ties to the local rural community – You can demonstrate this by showing that you are (1) closely associated with or controlled by a unit of local government, (2) owned or controlled by members of the community by providing a list of board members, (3) receiving substantial public funding.
- Evidence of eligibility (will primarily serve a rural area with a median household income below the poverty line or the percentage applicable to your cost-share)
- Three years of the most recent audits or financial statements, including a current balance sheet and income and expense statement
- Intergovernmental Review comments, if applicable, from the local planning district commission
- Certification of Non-Lobbying Activities or
- Disclosure of Lobbying Activities
- Certification regarding any known relationship or association with a USDA employee
- Certification from a CPA of how lost revenue was calculated, if you’re applying to be reimbursed
Construction projects will require an Environmental Report or Environmental Assessment and a preliminary architectural feasibility report or engineering
documentation. Work with your Rural Development Office to determine the specific requirements for your project.
