Water and Waste Facility Loans and Grants to Alleviate Health Risks for Colonias

The Water and Waste Facility Loans and Grants to Alleviate Health Risks for Colonias program is administered by the U.S. Department of Agriculture’s Rural Development division. This federal initiative is part of the USDA’s Water and Environmental Programs, which aim to ensure that underserved and economically challenged rural communities have access to essential public utilities, particularly clean drinking water and waste disposal infrastructure. The program is governed by 7 CFR 1777 and authorized under Public Law 113-79, also known as the Agricultural Act of 2014. Its specific focus is on addressing acute health risks in designated Colonias—communities typically found in the U.S.-Mexico border region that historically lack basic infrastructure and public health resources. The main objective of this grant and loan program is to help low-income rural communities develop and maintain access to safe, reliable drinking water and waste disposal services. The program targets Colonias that were officially recognized before October 1, 1989, and where residents continue to experience serious health hazards due to the absence of adequate water or waste systems. Eligible uses of funding include the construction of essential water and wastewater facilities, including those designed to manage stormwater drainage. This flexibility is crucial in allowing communities to address both immediate and long-term infrastructure deficits. Eligible applicants include state and local governments, federally recognized Tribes, and nonprofit organizations that serve qualifying Colonias. To be considered eligible, communities must be located in rural areas or towns with populations of 10,000 or fewer. These areas must have been recognized as Colonias prior to the 1989 cut-off and must be demonstrably affected by health risks linked to insufficient access to clean water or proper sanitation. Matching funds are generally required, as the USDA encourages cost-sharing arrangements with federal, state, or local agencies. However, in certain cases—and when program funds are sufficiently available—a full 100 percent grant may be awarded. This exception is particularly significant for extremely low-income communities that lack the financial capacity to provide matching funds, thereby enhancing the accessibility and equity of the program. Applications are accepted year-round, and there is no fixed closing date. This rolling basis allows applicants to apply as soon as they are ready, offering significant flexibility. Interested entities are advised to initiate the process by contacting their local USDA Rural Development office, where staff can provide guidance on eligibility, application procedures, and potential partnerships with nonprofit organizations offering technical assistance and training. There are no pre-application deadlines or question submission periods mentioned, simplifying the engagement process. Further information, including specific forms and documentation requirements, is available directly through local USDA Rural Development offices. The application process does not appear to include a set list of narrative questions or scoring criteria; instead, proposals are evaluated based on the community’s eligibility and the health risks associated with their current water and waste systems. Contact information for local offices varies by state and is the primary point of contact for applicants.