PA Small Water and Sewer

The Pennsylvania Small Water and Sewer Program provides financial assistance for municipalities and municipal authorities to improve public water supply and sanitary sewer systems. The program is administered by the Commonwealth Financing Authority (CFA) under the Pennsylvania Department of Community & Economic Development (DCED). This initiative is designed to support infrastructure projects that enhance water supply, wastewater treatment, stormwater management, and flood control. The funding is intended to assist with projects ranging from $30,000 to $500,000 in total cost. Eligible applicants include municipalities such as cities, boroughs, townships, counties, and municipal authorities established under the Municipal Authorities Act. Projects must involve the construction, improvement, expansion, repair, or rehabilitation of eligible water and sewer systems. Additionally, regional consolidation or integration of multiple water supply or sewer systems may qualify. Eligible expenses include construction, land acquisition, equipment purchases, security installations, engineering and inspection costs, permit fees, and administrative costs up to 2% of the grant amount. Applicants are required to provide at least a 15% cash match of the total eligible project cost, which can come from sources such as PENNVEST. Additionally, projects must comply with regional, county, and local comprehensive plans, with a supporting letter from the relevant planning agency. Projects should align with sustainability practices, including water conservation and energy efficiency improvements. All construction work may be subject to the Pennsylvania Prevailing Wage Act. Applications for the 2025 cycle will be accepted from February 3, 2025, to April 30, 2025 through the Pennsylvania DCED’s online grants portal. Applications must include a detailed project description, cost estimate, funding commitment letters, permits, and planning approval documentation. The CFA will evaluate applications based on project readiness, cost-effectiveness, sustainability, economic impact, and the ability to secure funding. Upon approval, grantees will receive an electronic commitment letter and grant agreement, which must be signed and returned within 45 days. The PA Small Water and Sewer Program is subject to compliance with non-discrimination policies, record-keeping requirements, and other regulatory provisions. Questions regarding the program can be directed to the CFA Programs Division at ra-dcedsitedvpt@pa.gov or (717) 787-6245.