Loans & Grants
KDHE’s Bureau of Water manages programs that can provide funding assistance for municipalities desiring to make drinking water and wastewater infrastructure improvements. Grant funding is available for planning assistance related to drinking water infrastructure and also for planning, design, and construction of drinking water or sewer infrastructure to resolve health or regulatory compliance issues for small towns. Loan funding is also available for planning, design, and construction of both drinking water and wastewater system infrastructure.
Small Town Water and Sewer Infrastructure Assistance Grant Program
The Small Town Water and Sewer Infrastructure Assistance Grant Program is a limited time grant program administered by KDHE to fund water and sewer infrastructure projects for water and wastewater utilities serving populations less than 1,000 that would resolve a health or regulatory compliance issue. There is no maximum grant amount, but depending on the number of eligible projects submitted for consideration, KDHE may cap the size of a single grant award. If the project is for a utility population of 500 people or less, there is no match requirement. However, a 10% match is required for populations of 501 to 750, and a 20% match is required for populations of 751 to 999. If the project is more expensive than available grant funds, the utility will have to use additional funding sources to complete the project.
Planning Grant Programs
There are 3 planning grant programs, Regional Public Water Supply Planning Grants, and Small Public Water Supply Systems Grants, and Corrosion Control Study Grants. Regional Public Water Supply Planning Grants can provide for 50% of the cost (up to $12,500) for developing engineering studies that evaluate regional solutions to public water supply needs. Small Public Water Supply System Grants can provide for 50% of the cost (up to $5,000) for developing engineering studies for public water supply systems serving a population of 1,000 or less that are out of compliance with drinking water regulations. Corrosion Control Study Grants can provide for 50% of the cost (up to $3,000) for developing a corrosion control study for public water supply systems serving a population of 10,000 or less that have had an action level exceedance for lead or copper.
The Kansas State Revolving Fund can provide subsidized interest rate loans for almost any public water supply system or wastewater system infrastructure need. Standard term loans (20 years) have interest rates set at 60% of the market interest rate. There are also options for longer term loans but with a higher interest rate.