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Grants are a key financing tool available for water and wastewater systems to help fund critical infrastructure improvements. Getting started with grant funding can feel daunting, but it doesn’t have to be. By starting small, assessing your capacity to apply, and staying organized throughout the process, communities can successfully pursue and manage grant opportunities.
Grants are financial awards that generally do not need to be repaid and are typically designated for a specific project or purpose. Common sources of grant funding for water and wastewater infrastructure projects include federal and state programs as well as private foundations. Municipalities and nonprofit organizations usually compete for these funds through an application process and, if awarded, must comply with reporting, financial management, and project tracking requirements.
Things to Consider Before Applying for Grants
Because grants generally do not need to be repaid, they are often an attractive funding option for communities. However, grant funding comes with administrative responsibilities. Most grants require financial management, documentation, and regular reporting throughout the project’s lifecycle. Before applying, communities should consider whether they have the staff capacity and systems needed to successfully manage the award. In addition, some grants may include financial requirements that must be met by the applicant.
Many federal and state grants require a local match, meaning the community must contribute to a portion of the project cost. Match requirements vary by program and may range from a small percentage to 25% or more. Before applying, identify how your community will provide the required match, whether through cash contributions, eligible in-kind services, or other allowable sources.
Many federal and state grants operate on a reimbursement basis; meaning expenses are paid upfront and then reimbursed after documentation is submitted. Communities should evaluate their cash flow and project timeline before applying to ensure they can cover costs while awaiting reimbursement to keep projects moving forward without delays.
Taking the time to evaluate capacity, match fund requirements, and cash flow before applying can help communities pursue grant opportunities that are both competitive and manageable.
Getting Ahead
Funding programs typically publish guidance that outlines the purpose of the funding, eligibility requirements, application instructions, and important deadlines. Federal agencies often provide this information through a Notice of Funding Opportunity (NOFO), while states may use program guidance, funding announcements, or application manuals. Some programs accept applications on a rolling basis, while others have firm deadlines.
It helps to become familiar with the funding programs available in your area. Identify state, regional, and federal programs that support water and wastewater projects and note when applications are typically due. Sign up for email updates so you are notified when funding opportunities are announced. The Environmental Finance Center Network’s Funding Tables are a great place to start exploring available programs.
Creating a simple grant calendar can help you stay ahead of deadlines. Many federal and state grant applications take weeks or even months to prepare, so giving yourself plenty of time can reduce stress and improve the quality of your application.
Looking In the Right Places
One of the best places to search for federal grants is Grants.gov. You can narrow your search by agency, funding category, or keyword to find opportunities that fit your project’s needs. For water and wastewater systems, agencies such as the Environmental Protection Agency (EPA) and the U.S. Department of Agriculture (USDA) often offer relevant funding programs.
State water offices, rural water associations, and technical assistance providers may also promote state-level funding opportunities and can be valuable sources of information about available programs.
Staying Organized
Once you have a project in mind that you’d like to pursue funding for, create a folder to keep all related materials in one place. Save project descriptions, planning documents, costs estimate, maps, engineering drawings, permits, and other supporting materials as they become available.
Keeping project information organized can save time when funding opportunities become available. Many grant applications ask for similar information, and having key documents readily available can make the application process much easier.
Ready to Get Started?
Grants are valuable financing tools for water and wastewater operators. Grants are available from federal agencies like the EPA, USDA, state water offices, and philanthropic organizations. A good first place to look for available federal grant funding is Grants.gov. Many grants have administrative and reporting requirements, which you should consider before you apply. Staying organized and working with technical assistance providers can help in the grant application and reporting process.