Hurricane Helene State Revolving Fund (SRF) - Drinking Water and Clean Water

The North Carolina Department of Environmental Quality (DEQ), through its Division of Water Infrastructure, is offering funding under the Hurricane Helene State Revolving Fund (SRF) program for both Drinking Water and Clean Water systems. This disaster-specific program provides zero-interest loans with 100 percent principal forgiveness, effectively functioning as grants, to assist communities affected by Hurricane Helene in repairing, rebuilding, and improving their water and wastewater infrastructure. The program draws from two federal State Revolving Fund capitalization grants: the Drinking Water State Revolving Fund (DWSRF Helene) with approximately 409 million dollars available and the Clean Water State Revolving Fund (CWSRF Helene) with approximately 253 million dollars available, totaling approximately 662 million dollars in combined funding. Eligible applicants include local government units and certain non-profit and investor-owned water and wastewater corporations affected by Hurricane Helene. Specifically, counties, cities, towns, sanitary districts, water and sewer authorities, metropolitan districts, and other units of local government may apply. Investor-owned drinking water corporations affected by Hurricane Helene are also eligible for DWSRF Helene funds. Projects must reduce flood risk and vulnerability at drinking water or wastewater treatment works, or enhance resiliency to rapid hydrologic change or natural disasters at treatment works. The maximum award under the CWSRF program is 5 million dollars per project, while the DWSRF program allows up to 10 million dollars per project. Project funding can carry 20- to 30-year loan terms based on the anticipated life of the infrastructure, and all funds must be spent within 5 years or by December 2031, whichever comes first. A cost share or matching requirement applies to this program. Recipients must comply with SRF federal crosscutter requirements, including Engineering Report approval, Environmental Review, federal and state procurement requirements, American Iron and Steel requirements, and Davis-Bacon Wage requirements. These crosscutters apply to the entire project. Notably, Build America, Buy America (BABA) Act requirements do not apply to SA-HMW funds. No duplication of benefits is allowed, meaning applicants cannot receive funding for the same costs from multiple disaster recovery sources. The application deadline is March 2, 2026, and this is a fixed deadline with no rolling submissions. Award announcement dates are staggered, with announcements on December 10, 2025, February 18, 2026, April 15, 2026, and April 16, 2026, indicating that applications are reviewed and awarded on a rolling basis as they are received even though the submission deadline is fixed. This is a one-time funding opportunity tied specifically to Hurricane Helene disaster recovery and is not expected to recur. Applicants must submit comprehensive narratives with supporting documentation, a priority rating system score sheet, affordability or handwritten affordability calculations, a financial information form, current water and sewer rate sheets, a fund transfer certification, and an application resolution by the governing body. Application forms and additional resources are available through the North Carolina DEQ Division of Water Infrastructure website. A webinar recording and slide presentation are available as resources to help applicants understand the program requirements and application process. Given the complexity of required documentation including engineering reports, environmental reviews, and federal compliance requirements, applicants should allow substantial time for preparation and should engage engineering and financial consultants early in the process.

Project funding can have 20- to 30-year loan terms based on anticipated infrastructure life, so applicants should consider long-term infrastructure planning when scoping projects. Engage engineering consultants early since Engineering Report approval and Environmental Review are required crosscutters. Ensure compliance with American Iron and Steel and Davis-Bacon Wage requirements from project inception as crosscutters apply to the entire project. Review the webinar recording and slides available from NC DEQ for detailed guidance on application requirements. Since awards are announced on a rolling basis (December 2025 through April 2026), earlier submissions may receive faster review.