USDA-RD funding options available for water projects

The United States Department of Agriculture Rural Development has several programs to assist businesses and municipalities with infrastructure issues in rural areas. The USDA–RD Michigan office recently announced that they have additional appropriation from the federal office for its Water and Waste Disposal Grant and Low Interest Loan Program. This program provides funding for clean and reliable drinking water systems, sanitary sewage disposal, sanitary solid waste disposal, and storm water drainage to households and businesses in eligible rural areas.

Available Funding Options

  • Loan – Approximately $150 million
  • Grant – Approximately $23 million

Per USDA RD National Office policy, the grant portion of any project will be capped at $5 million. Grant amount is still tied to a user rate of equal to or greater than 1.5% of the Median Household Income (MHI).

Loans can be amortized over 40 years.

Requirements

  • Applicants must be a local/state governmental entity, private nonprofit, or federally-recognized tribe.
  • The served area must have a population of 10,000 or less.

These funds can be leveraged with other funding programs, including MDOT and MEDC/CDBG, and as such will require coordination with the appropriate agencies to define and manage the requirements specific to each program.

If you have any questions about this program or others offered by USDA Rural Development, please call P&N Senior Project Manager Jason Washler, PE at 616–364–8491.

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