Rural Community Development Initiative (RCDI) | USDA RD HCFP RCDI 2025

Opportunity Information: Apply for USDA RD HCFP RCDI 2025

The Rural Community Development Initiative (RCDI) is a discretionary grant program run by the USDA Rural Housing Service (CFDA 10.446) that funds intermediary organizations to strengthen the capacity of local groups serving rural communities. The basic model is a "train and resource the trainers" approach: USDA awards a grant to an intermediary, the intermediary delivers financial and technical assistance to local recipient organizations, and those recipients then carry out programs and projects that ultimately benefit residents and communities (the beneficiaries). The focus is on building the long-term ability of local organizations to plan, finance, manage, and complete projects tied to housing, community facilities, and broader community and economic development.

The eligible applicant is the intermediary organization, which can be a qualified private, nonprofit, or public entity, including tribal organizations and governments. The intermediary has to be established and experienced, not brand new. Specifically, it must have been legally organized for at least three years and must also demonstrate at least three years of prior experience working with one or more of the following: private nonprofit community-based housing and development organizations, low-income rural communities, or tribal organizations. That experience must be in the program's core domains: housing, community facilities, or community and economic development. In other words, the program is designed for intermediaries that already have a track record providing capacity-building support and are positioned to scale that support to additional rural organizations.

A defining feature of RCDI is the pass-through capacity-building structure. The intermediary (the grantee) is responsible for designing and delivering a program of financial and technical assistance to recipients. "Technical assistance" typically means support such as training, coaching, strategic planning, financial management systems, governance development, project planning, compliance guidance, community engagement, and similar forms of organizational development that help recipients become stronger and more effective. "Financial assistance" refers to funds the intermediary provides to recipients to help them build capacity and undertake steps needed to move projects forward. The recipients then use that strengthened capacity to implement programs that support their communities, meaning the end beneficiaries are the rural places and residents served by those recipient organizations.

The program includes a significant cost-sharing requirement. The intermediary must provide matching funds in an amount at least equal to the RCDI grant award, creating a 1:1 match obligation. This means that if an intermediary receives a $200,000 federal grant, it must contribute at least $200,000 in match from eligible non-federal sources, consistent with the program rules in the full notice. This match requirement is central to the program design and can heavily influence which organizations are competitive, since applicants must be able to document and sustain the required match.

Funding levels are set with a clear floor and ceiling. The minimum grant amount per intermediary is $50,000 and the maximum is $500,000 (the award ceiling). USDA anticipates making about 30 awards under this opportunity. The opportunity is listed as USDA RD HCFP RCDI 2025, with an original closing date of August 7, 2025. Because the program is competitive and discretionary, applicants generally need to make a strong case not only that the work is eligible, but that the intermediary has the management capacity, partnerships, and rural reach to deliver measurable capacity-building outcomes.

Geography and population rules apply most directly to who gets served, not necessarily where the intermediary is located. All recipients and beneficiaries must be located in a city or town with a population of 50,000 or fewer inhabitants. The intermediary itself does not have to be located in a place under that population threshold, but it must direct its assistance to qualifying rural places through the recipients and their community-based work. This structure allows an experienced statewide, regional, or national organization to act as the intermediary, while ensuring the ultimate impact remains focused on smaller rural communities.

Eligible applicant types listed for this opportunity are broad and include state, county, and municipal governments; special district governments; independent school districts; public and state-controlled institutions of higher education; private institutions of higher education; federally recognized tribal governments; public housing authorities and Indian housing authorities; other tribal organizations; nonprofits with or without 501(c)(3) status (as long as they are not institutions of higher education in those categories); and even for-profit entities (including small businesses and other for-profits). Even with this broad eligibility, the intermediary-specific requirements still control in practice: applicants must be able to function as an intermediary delivering financial and technical assistance, meet the three-year organization and experience thresholds, and provide the full match.

Overall, RCDI is best understood as a rural capacity-building grant rather than a direct construction or direct service grant. The federal funds are intended to help intermediaries strengthen local organizations so they can successfully develop and carry out housing initiatives, improve community facilities, and advance community and economic development efforts in small towns and rural areas over the long term.

• The Rural Housing Service in the community development sector is offering a public funding opportunity titled "Rural Community Development Initiative (RCDI)" and is now available to receive applicants.
• Interested and eligible applicants and submit their applications by referencing the CFDA number(s): 10.446.
• This funding opportunity was created on 2025-07-08.
• Applicants must submit their applications by 2025-08-07. (Agency may still review applications by suitable applicants for the remaining/unused allocated funding in 2026.)
• Each selected applicant is eligible to receive up to $500,000.00 in funding.
• The number of recipients for this funding is limited to 30 candidate(s).
• Eligible applicants include: State governments, County governments, City or township governments, Special district governments, Independent school districts, Public and State controlled institutions of higher education, Native American tribal governments (Federally recognized), Public housing authorities/Indian housing authorities, Native American tribal organizations (other than Federally recognized tribal governments), Nonprofits having a 501 (c) (3) status with the IRS, other than institutions of higher education, Nonprofits that do not have a 501 (c) (3) status with the IRS, other than institutions of higher education, Private institutions of higher education, For-profit organizations other than small businesses, Small businesses.

Apply for USDA RD HCFP RCDI 2025

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