The U.S. Environmental Protection Agency (EPA) has announced roughly $80 million in grant funding aimed at helping communities across the country address ageing sewer and stormwater infrastructure. The money will be distributed through the Sewer Overflow and Stormwater Reuse Municipal Grant programme, drawing on allocations from both fiscal years 2025 and 2026.
Funds will be channelled through individual states before reaching municipalities. Allocations are calculated using a weighted formula in which data from the Clean Watersheds Needs Survey accounts for half of each state's share, with total population, urban population, and average annual precipitation making up the remainder.
Jess Kramer, EPA Assistant Administrator for Water, underlined the urgency of the investment: "Stormwater and sewage systems are critical for managing pollution to keep our nation's waterways clean and support healthy people, economic growth, and thriving ecosystems. This $80 million investment will help states upgrade stormwater management systems to address the threat of aging and inadequate infrastructure."
Stormwater runoff is a leading source of water pollution, picking up trash, chemicals, oils, and sediment as it moves across urban and suburban surfaces before discharging into local waterways. In cities with combined sewer systems, heavy rainfall can push stormwater and raw sewage beyond system capacity, triggering overflows directly into water bodies.
The programme places particular emphasis on equity. At least 25% of each state grant must be directed toward eligible projects serving financially distressed communities or those with populations of 10,000 or fewer. States are also exempt from non-federal cost share requirements for those specific portions of funding, significantly lowering the financial barrier for the localities that need support most.
Water infrastructure costs remain a persistent challenge for utilities, particularly in rural areas, where the burden of construction, operation, and maintenance can weigh heavily on ratepayers and local budgets alike.
