Overflow Sewer Grants and Stormwater Reuse Municipal Grants Program

The Overflow Sewer Grants and Stormwater Reuse Municipal Grants Program is administered by the Construction Programs Bureau within the New Mexico Environment Department. This program supports municipalities and municipal entities in implementing projects that address critical clean water infrastructure needs. The grants are provided under the authority of Section 603(c) of the Clean Water Act, aligning closely with the allowable uses of the Clean Water State Revolving Fund (CWSRF). These uses typically include the construction and enhancement of wastewater treatment plants, stormwater management systems, and other clean water infrastructure. As a fully grant-based program, the Overflow Sewer Grant (OSG) provides 100% funding for eligible projects, but funding availability is limited. Eligible applicants for this program include municipalities and municipal entities located in the state of New Mexico. The program is designed to fund projects that meet the criteria under the federal Clean Water Act, and applicants must submit the CWSRF application form, clearly indicating OSG as the funding source. By doing so, applicants are entered into a list of those eligible for consideration under the OSG allocation cycle. The OSG program does not operate independently of the broader CWSRF framework; instead, it integrates directly into that process, using a shared application and review infrastructure. Funds are generally allocated once per federal fiscal year, indicating an annual cycle in the availability of resources. Applicants are encouraged to have projects that are ready to proceed, and they should submit comprehensive planning documents such as preliminary engineering reports or feasibility studies. Additional project documentation, such as environmental reviews and construction specifications, may also be necessary depending on the project’s scope and readiness. Projects that prioritize water resource protection, promote environmentally sustainable practices, and demonstrate regional cooperation are likely to align well with the goals of the program. The application itself is submitted through the FY2026 Clean Water State Revolving Fund Application portal. This online form collects detailed information about the organization, the type and stage of the project (planning, design, construction), the funding source for future repayment if applicable (for loan-based programs), environmental review contacts, and various technical and readiness metrics. While the OSG is grant-based, the form mirrors that of loan-based programs and asks for information about revenue streams and rate structures, which may support broader funding considerations or prioritize readiness. The application does not appear to include a formal pre-application phase such as a Letter of Intent or Concept Paper. It is a single-step submission process through the shared portal. The program is likely to be evaluated on project need, environmental impact, financial capacity, and alignment with state and federal clean water goals. The Construction Programs Bureau can be contacted via their main phone lines at 505-827-2855 or 1-800-219-6157 for application support and program inquiries. The application interface is also accessible and designed to be compatible with assistive technologies. As funding cycles are tied to the federal fiscal year, applicants can expect a recurring annual opportunity, with future cycles likely to open in Fall or Winter each year depending on prior award timelines and administrative processes. Interested applicants should monitor the New Mexico Environment Department’s website or contact the bureau directly for updates on annual deadlines and allocation announcements.