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 Communities Unlimited's Formulate Great Rates: The Guide to Conducting a Rate Study for a Water System and for other water utility resources see RCAP’s Managerial and Financial Hub.

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.

A list of current funding resources offered by TWICC members can be found at Funding Resources Guide.

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.).  Specific information regarding each funding program, including contact information, can be found on the TWDB's Financial Assistance page.

If you have received an invitation to the Drinking Water State Revolving Fund, the next step is to attend a Pre-Application conference. Application documents for any of the TWDB's funding programs can be found here.

Texas Department of Agriculture (TDA)

The TDA has several financial assistance programs to assist water and wastewater providers.

The Community Development Fund offers grants to improve water or wastewater infrastructure, utility planning, and other community development projects. Review the Community Development Fund page for eligibility, highlights, and contact information. For counties located near the Texas/Mexico border, the various Colonia Funds offer grants for similar activities. Note: Based on your type of system, you alone are not eligible for funding; however, an eligible County or City may apply for funding on your behalf.

The State 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 State Urgent Need Fund for more eligibility, highlights, and contact information.  Note: Based on your type of system, you alone are not eligible for funding; however, an eligible County or City may apply for funding on your behalf.

Communities Unlimited (CU)

Communities Unlimited 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. For more information on these programs, visit USDA-Rural Development's Water & Environmental Programs web page.

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.