Guthrie County Hospital Breaks Ground on $37 Million Expansion and Renovation Project with Support from USDA

(Des Moines, Iowa, March 11, 2026) - U.S. Department of Agriculture Rural Development's Iowa State Director Michael Sexton today participated in a groundbreaking ceremony at the worksite for Guthrie County Hospital's expansion and renovation. Last August, Agriculture Secretary Brooke Rollins announced the Department would lend the hospital $37 million through the Community Facilities Direct Loans and Guaranteed Loans program to help make the project possible.

"This critical project is going to have a direct and positive impact on the health and safety of Iowans in Guthrie County and surrounding counties," said Sexton. "Under the leadership of President Trump and Secretary Rollins, USDA is making good on our commitment to infrastructure and support for healthcare in rural Iowa."

The Community Facilities Direct Loans and Guaranteed Loans program provides affordable funding to develop essential community facilities in rural areas. The funding here will support:

• A 16,000 square foot addition to include a behavioral health room in the ER, an MRI room, exam rooms, and lab space
• Updates to the nurse call technology, new digital master and area alarm panels, and new sleep ventilators
• A fire suppression system for the ambulance garage
• Renovations to the dining hall and kitchen

Contact USDA Rural Development

USDA Rural Development has 11 offices across the state to serve the 1.3 million Iowans living in rural communities and areas. Office locations include a state office in Des Moines, along with area offices in Albia, Atlantic, Humboldt, Indianola, Iowa Falls, Le Mars, Mount Pleasant, Storm Lake, Tipton and Waverly.

To learn more about investment resources for rural areas in Iowa, call 515-284-4663 or visit www.rd.usda.gov/ia . If you'd like to subscribe to USDA Rural Development updates, visit our GovDelivery subscriber page .

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