Rural Development Water and Environmental Programs (USDA)

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Does not require a cost share or matching funds
Gives special consideration for small communities
Allows in-kind services to contribute toward nonfederal cost share requirements

Summary: Small municipalities can leverage the United States Department of Agriculture’s (USDA) Water and Environmental Programs (WEP), the federal government’s only set of 10+ programs exclusively focused on the water and waste infrastructure needs of rural communities with populations of 10,000 or fewer. The WEP suite includes grants for predevelopment planning and low-interest loans for water and waste disposal infrastructure. These programs can be used to address flooding concerns through storm drainage or other similar projects. Matching funds are not required for several of the grants, although they may still be recommended.

Eligible activities: Planning, technical assistance, and project implementation to support water and waste disposal projects. For example, Pine Ridge Indian Reservation in South Dakota used an $85,000 loan and a $71,000 grant from the program to fund new storm drainage systems in 2016.

Funding: $3,000 to $100,000 (varies by subprogram).

Cost share: Varies by program. Some grants mandate a 75% federal / 25% local cost share requirement, while the maximum guarantee of a loan may be 90% of the loan amount. Some programs may merely encourage partnerships with other federal, state, local, private, and nonprofit entities.

Application process: 

  • Apply through USDA Rural Development’s application portal.
  • Partnerships with other federal, state, local, private, and nonprofit entities that offer financial assistance are encouraged.
  • Special consideration may be given for activities serving an area with fewer than 5,500 or fewer than 2,500 people; regional, multi-state, or national areas; or lower-income populations.
  • Some WEP programs are region specific or targeted to serve a subset of communities

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