Nebraska Plan Lists $82,137 in Revolving Funds for Newman Grove

NEWMAN GROVE, Neb. — Nebraska’s 2026 Annual Action Plan lists Newman Grove for an estimated $82,137 in locally retained Community Development Block Grant program income or revolving-fund money available for eligible projects during the July 1, 2026, through June 30, 2027, program year.

The figure appears in Appendix 2.2, AP-90, of the plan prepared by the Nebraska Department of Economic Development. The table identifies the amount as an estimate based on the December 31 reporting-period status. It should not be treated as a confirmed August 2026 bank balance or as money newly awarded to the city.

Not a new unrestricted grant

The listing concerns CDBG program income or a local revolving-fund account, not a newly awarded unrestricted grant, tax revenue or general-purpose city money. The state plan says local governments may retain program income or establish local revolving-fund accounts for eligible CDBG activities.

Newman Grove is the municipality listed in the state plan and is located in Madison County. Local planning documents identify streets, sidewalks, water and sanitary lines, housing and commercial conditions among the city’s infrastructure and community-development concerns. The records reviewed for this report do not show that Newman Grove has approved a 2026 project, authorized spending, opened an application process or established a construction schedule tied to the $82,137 estimate.

Possible uses include infrastructure and housing

The state plan identifies eligible categories that may be supported with locally retained CDBG funds, including water and sewer improvements, street improvements, sidewalks, direct economic-development assistance to for-profit businesses, owner-occupied housing rehabilitation, lead-based-paint testing and mitigation, housing-rehabilitation management and general administration.

Those are eligible possibilities under the program, not announced Newman Grove projects. Any proposed use would have to comply with applicable CDBG rules, a Nebraska DED-approved local reuse plan and required state oversight.

Projects must meet CDBG objectives

Nebraska DED guidance says CDBG projects must meet a national objective. For locally retained program income and revolving funds listed in the state plan, the identified objectives include benefiting low- and moderate-income people through area benefit, limited clientele, housing or job creation and retention.

That means an infrastructure project may need to serve a qualifying low- and moderate-income area or otherwise document eligible beneficiaries. Housing work must benefit qualifying residents, while economic-development assistance must meet the program’s requirements for creating or retaining jobs for low- and moderate-income people.

The state plan also requires local governments to operate under an approved reuse plan and maintain applicable records, reporting and compliance procedures. The funds remain federal program income even when retained locally and cannot be spent as ordinary city revenue.

Inactive accounts may have to be returned

Nebraska DED says program income cannot be held indefinitely without qualifying activity. Funds held for 12 months or more without an accomplishment or beneficiaries may be classified as an idle account. DED evaluates local program-income accounts semiannually, and an account deemed idle may be required to return its balance and future funds to the department.

The plan’s local program-income table is separate from earlier CDBG awards in Newman Grove. In 2024, DED announced a $430,000 public-works award for street, storm-drainage and sidewalk improvements and a separate $43,000 planning award for a community development plan. Those prior awards should not be combined with the current $82,137 program-income estimate.

Newman Grove’s strategic plan, adopted in July 2024, identified the city’s street network and public swimming pool as the community’s two most important facility priorities and included broader goals involving infrastructure, housing and local businesses. The current state records do not establish that the estimated program income will be directed to those needs or to any other specific project.

Sources

• Nebraska 2026 Annual Action Plan
• City of Newman Grove Strategic Plan