[Hartland, VT] — The Center on Rural Innovation (CORI) today released Uneven Ground: Local Public Funding Gaps Between Rural and Nonrural America, a new research report examining how structural disparities in public investment limit long-term economic opportunity in rural communities across the United States.

Drawing on more than four decades of U.S. Census of Governments data, the report finds that rural communities consistently generate and control significantly less local public revenue per capita than nonrural communities, limiting their ability to invest in infrastructure, education and workforce development, entrepreneurship, and other place-based assets that support long-term economic growth.

The report argues that while rural America receives people-based public spending through programs such as Social Security, Medicare, Medicaid, and SNAP, these programs largely stabilize households rather than build the local economic capacity needed for long-term resilience and growth.

“Stabilizing rural communities and investing in them are not the same thing,” said Dr. Amanda Weinstein, Director of Research at the Center on Rural Innovation and lead author of the report. “This research shows that many rural communities face structural barriers that limit their ability to raise and direct resources toward their own economic futures. Without stronger place-based investment, public spending can stabilize decline without creating access to opportunity for rural residents.”

Key findings from the report include:

  • Rural counties consistently spend less per capita through local government than nonrural counties, despite often facing higher per-capita infrastructure and service delivery costs.
  • Rural governments generate substantially less locally controlled revenue through property taxes, sales taxes, and other own-source revenues.
  • Competitive federal grant systems often advantage communities that already possess administrative capacity, grant-writing expertise, and matching funds — conditions more common in large metropolitan regions.
  • Persistent-poverty rural counties receive significantly lower levels of place-based public investment than comparable nonrural counties.
  • Place-based investments in infrastructure, workforce systems, entrepreneurship, and civic institutions are critical to long-term rural economic resilience.

The report also highlights Portsmouth, Ohio, as a case study in how coordinated, place-based investment can help communities rebuild local capacity and economic momentum after decades of industrial decline and disinvestment.

“Portsmouth demonstrates what becomes possible when communities regain the ability to invest in themselves,” said Weinstein. “Its progress reflects sustained investments in institutions, entrepreneurship, public spaces, and civic infrastructure that together begin rebuilding local resilience.”

The report calls for reforms that expand access to flexible, locally controlled funding and strengthen rural governments’ ability to pursue long-term economic development strategies.

Recommendations include:

  • Distributing more federal funding through formulas that reach all rural communities — not just places with the staff and capacity to win grant competitions
  • Reducing or waiving match requirements for low-capacity communities
  • Investing in local planning and administrative capacity, including support for intermediaries and technical assistance that can extend the reach of under-resourced rural governments and organizations
  • Structuring federal investment programs to better account for rural conditions and capacity constraints
  • Supporting entrepreneurship and small business development in rural regions

The report was funded by the Robert Wood Johnson Foundation.

About the Center on Rural Innovation

The Center on Rural Innovation (CORI) builds the infrastructure for inclusive innovation in rural America. As a national nonprofit, CORI works with communities across the country to develop tech-based economies by supporting local leaders, learners, and founders. CORI’s work has supported more than 400 startups, 1,000 tech jobs, and $238 million in follow-on investment.

Learn more at ruralinnovation.us

Media Contact:
Nikki See
CORI Director of Communications
nikki.see@ruralinnovation.us
612-242-9852