Wastewater and Drinking Water Treatment Financial Assistance Program

The Wastewater and Drinking Water Treatment Financial Assistance Program (WTFAP) is administered by the State of Iowa through collaboration between the Iowa Finance Authority (IFA), the Iowa Department of Natural Resources (DNR), and the Iowa Department of Agriculture and Land Stewardship (IDALS). This state-level grant program aims to support community infrastructure improvements in Iowa, specifically targeting the treatment of wastewater and drinking water. By pooling resources and oversight from multiple agencies, the program reflects a coordinated state effort to improve water quality throughout Iowa, especially in underserved or disadvantaged communities. The primary objective of WTFAP is to provide financial assistance to Iowa communities for the installation or upgrading of wastewater and drinking water treatment facilities. The initiative places a particular emphasis on projects that promise substantial improvements to local water quality or implement innovative treatment technologies. By focusing on these key areas, WTFAP aims to address not only environmental concerns but also public health risks related to inadequate water infrastructure. It also aligns with the broader goals of the Iowa Nutrient Reduction Strategy, emphasizing the importance of reducing nutrient runoff into state waters. For the 2025 funding round, approximately $8 million in total funding is available, with a maximum grant amount of $500,000 per project. Although no specific minimum amount is indicated, eligible communities must be prepared to begin construction before September 2026. This stipulation ensures that only projects ready for timely implementation receive funding, thereby maximizing the impact of allocated resources within a defined project window. The program does not explicitly mention a required cost match, which should be confirmed by applicants. The program gives priority consideration to specific types of applicants and projects. Eligible applicants are Iowa communities demonstrating financial disadvantage, particularly those with water or sewer rates exceeding 2% of the median household income. Additional priority is extended to projects that improve waters currently listed as impaired or where the community’s source water is on the impaired waters list. Projects that utilize alternative treatment technologies or incorporate elements aligned with the Iowa Nutrient Reduction Strategy are also strongly favored. Applications for the 2025 cycle are due by Monday, November 3, 2025. Interested applicants must ensure they submit a complete application by this date, as late applications may not be considered. The program does not require a pre-application step such as a Letter of Intent or concept paper. Award announcements are scheduled for late 2025, allowing communities to plan for timely project launches by the required construction start deadline in September 2026. Applicants seeking additional information or assistance may contact the program team via email at waterquality@iowafinance.com or by phone at 515-348-6200. The Iowa Finance Authority, located at 1963 Bell Avenue, Suite 200, Des Moines, IA 50315, serves as the primary point of contact. Prospective applicants should review all application materials thoroughly and prepare submissions that clearly demonstrate both community need and potential water quality impact.