Small Town Grants

The Small Town Grants program is a subprogram of the Clean Water State Revolving Fund (CWSRF) administered by the Nebraska Department of Environment and Energy (NDEE). This initiative aims to provide financial assistance to small municipalities for the construction and improvement of wastewater treatment facilities and sanitary sewer collection systems. The program specifically targets communities with populations of 10,000 or fewer residents and offers matching grants in conjunction with CWSRF loans. The source of grant funding is the CWSRF’s Construction Administration Fund. As of July 1, 2020, the Small Town Grants program has disbursed approximately $10.1 million to support small towns across Nebraska. The need for such grants arises from the high costs associated with wastewater infrastructure projects, which can be financially burdensome for smaller communities. The additional grant funds alleviate some of this burden by reducing the overall debt service required under the CWSRF loan, thus enhancing affordability and feasibility for necessary public works improvements. The legal authority for this program was expanded during the fiscal year 2008, allowing the NDEE to allocate up to 65% of prior-year revenue from fees collected on CWSRF loans toward the program. Additionally, the eligibility criteria were broadened to include communities with populations up to 10,000 residents, an increase from the previous limit of 5,000. This expansion enables a larger pool of Nebraska municipalities to benefit from the program. To be eligible, a community must have completed a Needs Survey and be included on the CWSRF’s Intended Use Plan. Furthermore, only municipalities with a median household income below the state’s median household income are eligible to apply. Projects are prioritized based on several criteria, including the public health or environmental benefits of the project, the estimated debt service per capita as a percentage of the median household income, and the potential reduction in debt service afforded by the grant. The program also includes provisions for facility planning grants, which fund preliminary engineering studies and related work that help municipalities comply with the federal Clean Water Act and promote wastewater reuse. These planning grants are financed through the CWSRF Administrative Fee Fund and are intended to provide technical and financial support during early stages of project development. Prospective applicants can contact the DWEE State Revolving Fund Section at (402) 471-4200 or email DWEE.SRF@nebraska.gov for more information. Additional support may be obtained from the Nebraska Department of Economic Development, USDA Rural Development, and the EPA’s Region VII Small Community Outreach Coordinators. There is no specific deadline or opening date listed, and no indication that the grant is offered on a rolling or recurring basis, so applicants are advised to reach out directly for up-to-date details.