Local nonprofit leaders in Grand Forks have expressed serious concerns regarding proposed cuts to the city’s community service grant (CSG) program, which they say would significantly impact their operations. According to Everett Jones Sr., Director of Northlands Rescue Mission, the proposed budget cuts would be a “pretty significant blow” to essential services that rely on these funds.
The city’s proposed budget for 2026 includes zero allocations for the CSG program, along with other funding initiatives such as the Arts ReGrant and Special Event funding derived from local sales tax collections. While the administrative structure for these programs would remain intact, the lack of allocated funds means that no grants could be disbursed. The CSG program has been operational since 2019, allowing nonprofits to apply for operational grants that undergo review by the Community Advisory Committee and the Grand Forks City Council.
The current grant application remains open with $400,000 available, which is $10,000 less than last year’s funding. Heather Novak Fuglem, Executive Director of United Way of Grand Forks and East Grand Forks, highlighted the adverse effects of potential funding cuts on vulnerable populations. She noted that reduced funding would hinder efforts to assist homeless families in securing necessary documentation for housing, such as Social Security cards and birth certificates. “If we don’t have the capability through CSG for our families-first program, that’s going to add bigger barriers for our families,” Novak Fuglem stated.
Jones emphasized the importance of collaboration among the city and local nonprofits to address these challenges if the cuts are implemented. “We are part of a larger system,” he said. “It’s crucial that we work together to find solutions.” He expressed gratitude for the community’s philanthropic support, which has helped fill funding gaps in recent months.
The financial landscape for Grand Forks is shifting as city leaders assess the impact of rising costs associated with public safety and infrastructure. In 2025, the city’s 12-month rolling average of sales tax collections ranged from $33.8 million to $35.5 million. Currently, around $2.5 million is allocated annually from the Economic Development Fund to support programs like CSG. With the state’s new 3% property tax levy cap, city officials are aiming to reduce reliance on property taxes.
City Director of Finance Maureen Storstad explained the rationale behind reallocating funds. “The general 1% sales tax recommendation is driven by the need for street capital projects and the long-term sustainability of funding for public safety,” she said.
The sales tax revenue in Grand Forks is divided into several allocations. The general sales tax contributes to the general fund, infrastructure fund, and economic development fund; while specific percentages are dedicated to street and water infrastructure, event center capital improvements, and operations of the Alerus Center.
The City Council is set to vote on the preliminary budget on August 4, 2025, determining the future of these vital funding programs. As local nonprofits brace for the potential impact, their leaders are calling for community support to ensure essential services continue to be available for those in need.