Funds awarded through this annual competitive program assist cities and counties with projects such as sanitary sewer system improvements, water system improvements, water and wastewater treatment facility projects, storm sewer projects related to sanitary sewer system improvements, and rural water connections and stormwater conveyances to mitigate flood risks.
The program is funded through the federal Community Development Block Grant (CDBG). The goal of this program is to provide economic opportunities for people, especially those of low- and moderate income.
The maximum funding request for all Water/Sewer applications is $500,000, regardless of population.
Eligibility
Projects must primarily benefit low- and moderate-income persons as defined by the U.S. Department of Housing and Urban Development.
Requirements
- Environmental/Historic Review - yes
- Procurement - yes
- BABA – yes, if total project cost over $250,000 (match and CDBG funding)
- Davis Bacon - yes
- Lead-Based Paint - no
- Section 3 – yes
- URA – yes
Application Process
- Applications are competitive.
- 2026 application windows:
- March 2, 2026 - May 1, 2026
- July 1, 2026 - September 1, 2026
- Visit iowagrants.gov for application instructions and to apply for funds.
Resources
Water & Sewer Fund Award Map
