Agriculture Minister Ron Kostyshyn (koh-STIH'-shen) says the money is meant to help communities get back on their feet.
The goal is to restore economic activity to levels at least equal to what they where before the floods.
Kostyshyn says in a release that 42 grants ranging between $1,000 and $100,000 have been issued to 34 communities.
Projects include restoring damaged tourist facilities, co-ordinating plans for residential and tourism redevelopment and promoting "buy local" campaigns.
The minister is to address delegates later this week at the Keystone Agricultural Producers meeting in Winnipeg.