New State Grants Aim to Revive Struggling Downtowns

Governor Josh Shapiro
Credit: Commonwealth Media Services

WEST READING, PA — More than $17 million in state funding will flow into downtown business districts, commercial corridors, housing projects, and community redevelopment efforts across Pennsylvania under a new round of Main Street Matters grants announced Tuesday by Governor Josh Shapiro.

What This Means for You

  • Pennsylvania is awarding $17.2 million to 56 community redevelopment projects statewide.
  • Funding will support downtown revitalization, façade improvements, small business growth, housing, and commercial redevelopment.
  • Communities receiving grants include projects in Pittsburgh, Erie, Bethlehem, Philadelphia, State College, Dickson City, and West Reading.

Governor Josh Shapiro and Pennsylvania Department of Community and Economic Development Secretary Rick Siger visited small businesses in Berks County to highlight the latest round of awards through the Main Street Matters program.

The program awarded $17.2 million across 56 projects statewide after receiving more than 220 applications seeking over $68 million in funding.

Main Street Matters is administered by the Department of Community and Economic Development and supports projects intended to strengthen local business districts and community infrastructure.

West Reading Project Targets Downtown Improvements

Shapiro and Siger toured businesses along Penn Avenue in West Reading, where the West Reading Community Revitalization Foundation received a $60,000 grant for façade improvements.

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A façade improvement project typically involves upgrades to the visible exterior of commercial buildings, including storefronts, windows, lighting, signage, masonry, or architectural restoration work.

During the visit, officials stopped at Simply Bold Cafe, Holistic Skate Shop, Symbiote Collectibles, and the West Reading Motor Club, businesses expected to benefit from the funding.

“Every community in Pennsylvania, whether rural, suburban, or urban, relies on a strong Main Street to support local businesses, create jobs, and bring people together,” Shapiro said. “Main Streets are the beating heart of our communities.”

Siger described the funding as part of the administration’s long-term economic development strategy focused on strengthening commercial corridors and downtown economies.

West Reading Mayor Samantha Kaag emphasized the role small businesses play in local identity and economic activity.

“Main Streets are not just economic engines, they are places where people feel connected, they are places where communities build identity, pride, and possibility,” Kaag said.

Nick Price, executive director of the West Reading Community Revitalization Foundation, stated that the grant would help property owners make long-needed improvements while preserving the architectural character of downtown buildings.

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Projects Span Housing, Business Development, and Historic Preservation

The statewide funding package includes projects ranging from affordable housing construction to historic preservation and commercial redevelopment.

Among the larger awards:

  • $1 million will support renovation work at the historic New Granada Building in Pittsburgh’s Hill District, including plans for a café, theater, kitchen, and lounge space.
  • Erie Downtown Development Corporation received $850,000 to redevelop the Flagship City Commons property into affordable retail and office space.
  • Bethlehem City received $1 million for the Gateway on 4th mixed-use development project, which will include 120 housing units and commercial space on formerly underutilized land.
  • Xiente in Philadelphia received $1 million for phase two of the Mi Casa rehabilitation project, creating affordable housing units in the Norris Square neighborhood.
  • Dickson City Borough received nearly $274,000 to rehabilitate the historic Delaware & Hudson Railway Station into a community hub.

Mixed-use development refers to projects combining residential, commercial, retail, or office space within the same development area.

Local Officials Stress Economic Impact

State Senator Judith Schwank described West Reading and Penn Avenue as examples of how sustained investment can help create regional destinations for businesses and visitors.

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Representative Johanny Cepeda-Freytiz, who owns a small business, framed the funding as a direct investment in local economic growth and job creation.

Since the Main Street Matters program launched in fiscal year 2024, the state has awarded more than $34 million to 137 projects across Pennsylvania.

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