ST. PAUL, Minn., Aug. 5, 2004 -- Agriculture Secretary Ann M. Veneman today was joined at the State Capital by community leaders from several rural Minnesota communities for an announcement of over $17.3 million in grants and low-interest loans to assist with basic community water and wastewater infrastructure in Minnesota. The newly announced USDA Rural Development funds are part of the overall infrastructure investment of $141 million by the Bush Administration to help rural Minnesota communities and residents increase their economic opportunity and improve their overall quality of life.

"Investing in basic community infrastructure supports President Bush's vision for a strong and vibrant rural America," said Veneman. "Rural communities are the heart and soul of our Nation and they are emblematic of the unique character of the American people."

Funds announced today include $6,643,800 in grants and $10,692,300 in loans. For the Leech Lake Band of Ojibwe, $3.55 million in loan and grant funds will assist in the consolidation of the community's various water systems, creating a more efficient single-system. The City of Bird Island has been approved for a $3.39 million loan to separate the existing sewer/storm water distribution system to ease the demand on the existing sewage treatment ponds. In other Minnesota communities, funds will allow for drilling of new water wells, construct sewage treatment facilities, upgrade existing infrastructure and address other community health and safety needs.

In addition to the newly announced funds, Veneman highlighted other recent funding announcements, including funds for the Garrison Kathio/West Mille Lacs Sanitary Sewer District who recently received $4,000,000 in loans and grants to construct a sanitary sewer collection system along the west side of Mille Lacs Lake. The new system will benefit approximately 2,400 local residents and help meet system demands created by the large volume of tourism traffic during peak fishing seasons.

Since the beginning of the Bush Administration, USDA Rural Development has nationally funded $5.4 billion in loans and grants to assist communities in the construction or improvement of over 3,578 water or wastewater systems. The investment has benefited more than 2.7 million people living in rural areas. In Minnesota, USDA Rural Development invested over $141 million to support building and renovating rural community infrastructure, benefiting nearly 66,000 rural Minnesotans.

Funding announced today includes:

• City: Bird Island
• Grant Funding: $1,600,000
• Loan Funding: $3,392,000

• City: Leech Lake Band of Ojibwe
• Grant Funding: $2,226,000
• Loan Funding: $1,359,300

• City: Hoffman
• Grant Funding: $401,500
• Loan Funding: $1,770,000

• City: Ulen
• Grant Funding: $607,000
• Loan Funding: $1,352,000

• City: Hill City
• Grant Funding: $433,000
• Loan Funding: $1,018,000

• City: Ogema
• Grant Funding: $619,000
• Loan Funding: $372,000

• City: Alberta
• Grant Funding: $365,000
• Loan Funding: $475,000

• City: Storden
• Grant Funding: ----
• Loan Funding: $135,000

• City: Urbank
• Grant Funding: $350,000
• Loan Funding: $100,000

• City: Kettle River
• Grant Funding: $42,300
• Loan Funding: -----

• City: Conger
• Grant Funding: ----
• Loan Funding: $719,000

• Total
• Grant Funding: $6,643,800
• Loan Funding: $10,692,300

USDA Rural Development's mission is to deliver programs in a way that will support increasing economic opportunity and improve the quality of life of rural residents. As a venture capital entity, Rural Development provides equity and technical assistance to finance and foster growth in homeownership, business development, and critical community and technology infrastructure. Further information on rural programs is available at a local USDA Rural Development office or by visiting USDA's web site at http://www.rurdev.usda.gov/