USDA seeks grant applications for rural water projects

The U.S. Department of Agriculture (USDA) has announced that USDA is accepting Fiscal Year (FY) 2022 applications for grants to create revolving loan funds to build and improve water and wastewater disposal systems in rural areas.

USDA is making the grant funds available through the Water and Environmental Programs Revolving Funds Program. The program helps qualified nonprofit organizations create revolving loan funds that provide financing to water and wastewater projects operated by state and local governmental entities, nonprofit organizations, and Indian tribes on federal and state reservations and other federally recognized Indian tribes.

The funds could be used for pre-development costs or to finance short-term small capital improvement projects that are not part of regular operation and maintenance costs. Within approved guidelines, grant recipients can set the loan terms for the individual communities they serve.

USDA is offering priority points to projects that help communities recover from the COVID-19 pandemic, advance equity, and combat climate change. These extra points will increase the likelihood of funding for projects that will advance these key priorities in rural America.

Applications must be submitted electronically using Grants.gov no later than 11:59 p.m. Eastern Time on July 31, 2022.