Resources - Funding
Systems in need of infrastructure improvements should first look at whether their rates or taxes collected are enough to cover their improvement costs. If they are not, the system should consider increasing these collection efforts to address their needed improvements. For information on setting appropriate water or wastewater rates, review the CRG's Formulate Great Rates: The Guide to Conducting a Rate Study for a Water System.
Systems that have reviewed their rate and tax structure for possible increases to address their infrastructure need, but still lack adequate funding to construct their improvement, should look to other funding sources for financial assistance. For general information on some of the financial assistance programs offered around the state, check out this short video on Funding for Water Systems.
Texas Water Development Board (TWDB)
The TWDB has a number of financial assistance programs to assist many different types of water and wastewater providers (e.g. public water and wastewater systems, water supply corporations, utility districts, investor owned utilities, school districts, wholesale water providers, etc.). For a general overview of these programs, review the Financial Assistance Programs document. More specific information regarding each funding program, including contacts, can be found on the TWDB's Financial Assistance page.
For systems interested in the Clean or Drinking Water State Revolving Fund programs (CWSRF/DWSRF), view a recent presentation on the programs.
If you have received an invitation to the Drinking Water State Revolving Fund, the next step is to attend a Pre-Application conference. Tutorial presentations on completing an application for any of the TWDB's funding programs can be found here.
Texas Department of Agriculture (TDA)
The TDA has a number of financial assistance programs to assist water and wastewater providers.
The Disaster Relief Fund offers assistance to systems in need of funding during times of emergencies. Review the Disaster Relief Fund page for eligibility, highlights, and contact information.
The Planning and Capacity Building Fund provides assistance to systems in search of grants for local planning activities. Review the Planning and Capacity Building Fund page for eligibility, highlights, and contact information.
The Urgent Need Fund offers grants to restore water or wastewater infrastructure whose sudden failure poses an imminent threat to life or public health. Review the Urgent Need Fund for more eligibility, highlights, and contact information.
Community Resource Group (CRG)
The CRG provides lending services to small, rural water system infrastructure projects through its Revolving Loan Fund (RLF). For more information on this funding program, visit the Water/Wastewater Lending page.
United States Department of Agriculture (USDA) – Rural Development
The USDA offers numerous financial assistance programs to assist water and wastewater service providers. Below is a listing of these programs with links for more detailed information regarding eligibility, requirements, and contacts.
- Water and Waste Disposal Direct Loans and Grants are to develop water and waste disposal systems in rural areas and small towns.
- Water and Waste Disposal Guaranteed Loans provide a loan guarantee for the construction or improvement of water and waste disposal projects serving the financially needy communities in rural areas.
- Emergency Community Water Assistance Grants are to assist rural communities that have experienced a significant decline in quantity or quality of drinking water due to an emergency, or in which such decline is considered imminent, to obtain or maintain adequate quantities of water.
- Texas Water and Environmental Programs provide loans, grants and loan guarantees for drinking water, sanitary sewer, solid waste and storm drainage facilities. Funding is only eligible for systems located within 150 miles of the U.S./Mexico border.
- Water and Waste Disposal Grants to alleviate health risks are intended to provide water and waste disposal facilities and services to low income rural communities whose residents face significant health risks. Funding is only eligible for systems located within 150 miles of the U.S./Mexico border.
For information on receiving a USDA loan, review the CRG's USDA Rural Utilities Service Borrower's Guide: A How-to for Water and Wastewater Loans from USDA RD.
North American Development Bank (NADB)
The NADB offers numerous financial assistance programs to water and wastewater providers along the U.S. – Mexico board. Below is a listing of these programs with links for more detailed information regarding eligibility, requirements, and contacts.
- NADB Loan Program provides loans to public and private borrowers for eligible projects.
- NADB Border Environment Infrastructure Fund makes infrastructure projects affordable for communities by combining grant funds with loans and other forms of financing.
- NADB Community Assistance Program supports the implementation of critical environmental infrastructure projects for sponsors with limited capacity to incur debt.