North Dakota’s governor this week signed a bill maintaining state funding for rural communities in dire need of thriving grocery stores.

The state launched a specialized grant program in 2023, setting aside $1 million for smaller communities to share if their local grocery store was in danger of closing its doors, a problem seen in many rural counties.

For example, one small community used its share to match funds for the purchase and reopening of a local convenience store, which added groceries and a restaurant.

Ellen Huber, rural development director for the North Dakota Association of Rural Electric Cooperatives, spoke in support of the new bill extending the grant opportunities.

“Without action, our rural communities are becoming increasingly reliant on distant markets for basic needs and are paying the transportation and fuel costs,” Huber said.

Huber told lawmakers since 2014, North Dakota has lost 47 rural grocery stores, leaving only 90 operating around the state. Like the initial funding cycle, the grant program receives $1 million to cover the next two budget years. The bill received overwhelming support in the Legislature but there were some “no” votes as competing rural investment plans surfaced this year.

Just like water, emergency services and health care, Huber argued grocery stores are essential to small-town survival.

“To attract people to live in communities, (those residents) need ready access to healthy, affordable food,” Huber said.

Huber and policy experts said shifts in federal law have given bigger chains an edge in buying products in bulk at cheaper prices. It has inspired efforts in parts of North Dakota to establish local grocery store co-ops, through which a handful of smaller shops buy items in bulk together.