Water & Waste Disposal Predevelopment Planning Grants

The Water and Waste Disposal Predevelopment Planning Grants program is administered by the U.S. Department of Agriculture through its Rural Development mission area. The program is designed to support low-income rural communities in preparing applications for water and waste disposal projects funded by USDA Rural Development. These predevelopment planning grants aim to reduce barriers for disadvantaged areas by providing resources to develop the necessary plans, engineering studies, and application materials required for future infrastructure projects. The program is grounded in Section 306 of the Consolidated Farm and Rural Development Act and codified under 7 CFR 1780. The purpose of this program is to assist small, economically challenged communities in taking the initial steps toward critical infrastructure improvements. Eligible projects include water systems, wastewater systems, and waste disposal services essential for public health and community sustainability. Funding is intended for planning, feasibility assessments, environmental reviews, and the development of formal applications for USDA’s water and waste disposal funding programs. These grants cannot be used retroactively for work already completed, and the awarded funds are deducted from any subsequent USDA loan or loan-grant award made for the same project. If a community’s loan or grant application is not ultimately successful, the predevelopment planning grant does not need to be repaid. Eligibility for this program is limited to state and local governments, nonprofit organizations, and federally recognized Tribes. The areas served must be rural, defined as towns or communities with populations of 10,000 or fewer, including tribal lands and colonias. Furthermore, the median household income of the area must be below the poverty line or less than 80 percent of the statewide non-metropolitan median household income. This ensures that the program targets communities with the greatest financial need. Partnerships with other federal, state, and local funding sources are encouraged, but applicants must demonstrate that borrowing is not feasible. The funding terms provide a maximum award of $60,000 or up to 75 percent of predevelopment planning costs. Applicants are required to provide a minimum 25 percent cost share, which may come from their own funds or third-party sources. In-kind contributions do not qualify toward this match. This matching requirement is intended to ensure that communities and their partners share investment responsibility in planning infrastructure improvements. Grants are awarded based on demonstrated need and availability of funds, emphasizing both financial hardship and the critical importance of the proposed project to public welfare. Applications are accepted year-round through local USDA Rural Development offices, making the program continuously open without a single fixed deadline. Interested communities can work directly with local RD staff to obtain necessary forms, certifications, and guidance documents. Nonprofit associations also provide training and technical assistance to help applicants strengthen their submissions. The program does not require a letter of intent or pre-proposal stage; applicants may proceed directly to preparing a full application for predevelopment support. Evaluation is based on need, eligibility, and availability of funding. Since the program is designed to assist the most disadvantaged communities, financial capacity and economic conditions are key review factors. Once submitted, applications are processed locally, with USDA staff providing technical guidance as necessary. The program does not provide an explicit timeline for award notifications or performance periods but is structured to provide flexible, rolling support to communities preparing for larger USDA infrastructure projects. This ongoing acceptance process underscores its role as an entry point for rural communities to secure funding for critical water and waste disposal systems.