Funding Water Sector Resilience

The implementation of adaptive measures to address natural hazard impacts at water sector utilities are necessary to ensure clean and safe water provisions throughout the nation. Listed below are funding programs and resources through the Environmental Protection Agency (EPA), National Aeronautics and Space Administration (NASA), U.S. Small Business Administration (SBA), United States Department of Agriculture (USDA), and others. These Federal Funding Sources, along with EPA’s Financial Tools, will guide you to a variety of sources that fund resilient infrastructure projects, pay for operation and maintenance costs, and sustain resiliency programs. 

On this page:

• Environmental Protection Agency Funding Sources
• Other Federal Agency Funding Sources
• EPA Financial Tools

Environmental Protection Agency Funding Sources

• The Drinking Water State Revolving Fund (DWSRF) finances water infrastructure improvements that protect public health and comply with the Safe Drinking Water Act. State Revolving Fund programs are individually managed by the states, and state agencies directly provide aid to systems and communities. For more information along with examples of projects that the DWSRF funds, check out the eligibility handbook. Use this link to find your state’s DWSRF contact.
• The Clean Water State Revolving Fund (CWSRF) was created by the 1987 amendments to the Clean Water Act and is a federal-state partnership that provides low-cost financing for water quality infrastructure projects, including, but not limited to, municipal wastewater facilities, nonpoint source pollution control, decentralized wastewater treatment systems, stormwater runoff mitigation, energy efficiency, and water reuse. See examples of past projects. CWSRF assistance is provided directly from state agencies; find your state’s CWSRF contact.  
• The Water Infrastructure Finance and Innovation Act (WIFIA) accelerates investment in water infrastructure by offering flexible financing for significant drinking water and wastewater infrastructure projects. The WIFIA program offers long-term loans to help communities implement critical water infrastructure projects, which protect public health, deliver environmental benefits, and support local economies, for a lower cost. Borrowers have the ability to combine multiple projects into a single loan and access flexibilities that include interest rate resets, debt sculpting, and fast disbursements. In FY2024, WIFIA is offering $7.5 billion in credit assistance: $6.5 billion allocated under the WIFIA Notice of Funding Availability, and $1 billion allocated under the State Infrastructure Financing Water Authority WIFIA (SWIFIA) Notice of Funding Availability. Any States, cities, Tribes, utilities, and other public and private entities seeking financing for their water infrastructure projects can submit a letter of interest at any time. Interested in learning more about WIFIA loans? Check out the program’s upcoming webinars or office hours sessions, or schedule a meeting with a staff member.
• Environmental Finance Centers (EFCs) include both regional and national organizations that provide technical and financial assistance to communities, including Tribal communities, that have historically struggled to secure public funding to support infrastructure improvements that safeguard public health and the environment. Use the link above to find the EFC servicing your area. 
• EPA’s Water Technical Assistance (WaterTA) connects communities to experts who help assess and implement solutions for their drinking water, sewage, and stormwater needs. WaterTA initiatives support communities in identifying lead pipes for removal, enhancing resilience against cybersecurity threats and natural hazards, assessing emerging contaminants, providing resources for workforce development, addressing stormwater challenges, building capacity, and developing application materials to access water infrastructure funding, among other services.  Learn more about who can receive WaterTA, and request assistance through the WaterTA Request Form.  

Other Federal Agency Funding Sources

• FEMA’s Hazard Mitigation Assistance program provides funding to build resilience to a range of natural hazards, including wildfires, flooding, drought, hurricanes, earthquakes, and extreme heat. Explore primary funding programs as well as opportunities organized by natural hazard.
• NASA’s National Integrated Drought Information System (NIDIS), and its partners, offer competitive funding opportunities related to drought early warning research. Use this link to explore NIDIS opportunities.
• The Indian Health Service’s (IHS) Sanitation Facilities Construction (SFC) Program delivers environmental engineering services and sanitation facilities projects that ensure tribal communities have access to safe drinking water and waste disposal. The SFC program maintains a Sanitation Deficiency System, which tracks projects to address sanitation needs. IHS is situated within the U.S. Department of Health and Human Services and is responsible for providing federal health services to members of federally recognized Native American Tribes and Alaska Native people.  
• The U.S. SBA provides financing for private for-profit and private non-profit drinking water and wastewater utilities to help return infrastructure and operations to their pre-disaster operability. This includes Business Physical Disaster Loans and Economic Injury Disaster Loans.
• USDA Rural Development’s Water and Environment Programs (WEP) helps rural communities, with populations of 10,000 or less, obtain technical assistance and financing necessary to develop drinking water and waste disposal systems. WEP’s grant programs are administered through National Office staff in Washington, D.C. and a network of field offices scattered throughout the States. Use this link to find your state or local field office and contact information for WEP support. For many states, WEP contact information is analogous to the broader Community Programs (CP) category.

EPA Financial Tools

• The Resilient Strategies Guide (RSG) assists drinking water, wastewater, and stormwater utilities in the natural hazard adaptation planning process. Using the RSG, utilities can identify their planning priorities, vulnerable assets, potential adaptation strategies as well as available funding sources tailored to their location and needs. If you are a water utility that would like to receive technical assistance using the RSG, please request technical assistance through SWIFT.
• Federal Funding for Water and Wastewater Utilities in National Disasters (Fed FUNDS) presents information tailored to water and wastewater utilities, to include Tribal utilities, on federal disaster and mitigation funding programs from EPA, FEMA, USDA, SBA, the U.S. Department of Housing and Urban Development, and more. Search Fed FUNDS for the right funding by answering simple questions about your utility, and check out the numerous success stories in your state.
• The Water Finance Clearing House helps communities find informational resources as well as actual funding sources and contact information for financing their water sector infrastructure needs. Use this link and navigate to “Search Funds” to narrow your potential funding sources.
• EPA’s Funding Integration Tool for Source Water (FITS) explains how drinking water utilities and other users can integrate federal funding to support activities that protect drinking water sources. Click the link for more information and to launch the FITS tool.
• EPA’s Financing Alternatives Comparison Tool (FACT) is a financial analysis tool that helps identify the most cost-effective method to fund a wastewater or drinking water management projects. FACT compares various financing options for utility projects by incorporating financing, regulatory, and other important costs. Click the link for more information and to download the tool.