Water Quality

The National Fish and Wildlife Foundation (NFWF) and the Wildlife Habitat Council (WHC)—in cooperation with the U.S. Environmental Protection Agency (EPA), USDA Forest Service (USFS), U.S. Fish and Wildlife Service (USFWS), USDA Natural Resource Conservation Service (NRCS) USDA Office of Urban Agriculture and Innovative Production, FedEx and Southern Company—are pleased to solicit applications for the 2025 Five Star and Urban Waters Restoration program. This program will award approximately $2.5 million in grants nationwide.

The Five Star and Urban Waters Restoration grant program seeks to develop community capacity to sustain local natural resources for future generations by providing modest financial assistance to diverse local partnerships focused on improving water quality, watersheds and the species and habitats they support.

Projects include a variety of ecological improvements along with targeted community outreach, education and stewardship. Ecological improvements may include one or more of the following: wetland, riparian, forest and coastal habitat restoration; wildlife conservation, community tree canopy enhancement, wildlife habitat, urban agriculture and community gardens, wildlife and water quality monitoring and green infrastructure best management practices for managing run-off.

Projects should increase access to the benefits of nature, reduce the impact of environmental hazards and engage local communities, particularly underserved communities, in project planning, outreach and implementation. This program expects that applicants will represent a mixture of urban and rural communities. NFWF may use a mix of public and private funding sources to support any grant made through this program and we expect that more than half of projects awarded will engage underserved communities.

What does this program do?

This program provides funding for clean and reliable drinking water systems, sanitary sewage disposal, sanitary solid waste disposal, and storm water drainage to households and businesses in eligible rural areas.

Who may apply?

This program assists qualified applicants who are not otherwise able to obtain commercial credit on reasonable terms. Eligible applicants include:

Most state and local governmental entities
Private nonprofits
Federally-recognized tribes
What is an eligible area?

Areas that may be served include:

Rural areas and towns with populations of 10,000 or less -- check eligible addresses
Tribal lands in rural areas
Colonias
What kinds of funding are available?

Long-term, low-interest loans
If funds are available, a grant may be combined with a loan if necessary to keep user costs reasonable.
How may the funds be used?

Funds may be used to finance the acquisition, construction or improvement of:

Drinking water sourcing, treatment, storage and distribution
Sewer collection, transmission, treatment and disposal
Solid waste collection, disposal and closure
Storm water collection, transmission and disposal
In some cases, funding may also be available for related activities such as:

Legal and engineering fees
Land acquisition, water and land rights, permits and equipment
Start-up operations and maintenance
Interest incurred during construction
Purchase of facilities to improve service or prevent loss of service
Other costs determined to be necessary for completion of the project
See 7 CFR Part 1780.7 and 1780.9 for a complete list
What is the loan term and rate?

Up to 40-year payback period, based on the useful life of the facilities financed
Fixed interest rates, based on the need for the project and the median household income of the area to be served
Contact us for details and current interest rates applicable for your project

Are there additional requirements?

Borrowers must have the legal authority to construct, operate and maintain the proposed services or facilities.
All facilities receiving federal financing must be used for a public purpose.
Partnerships with other federal, state, local, private and nonprofit entities that offer financial assistance are encouraged.
Projects must be financially sustainable.

What does this program do?

This program provides funding for clean and reliable drinking water systems, sanitary sewage disposal, sanitary solid waste disposal, and storm water drainage to households and businesses in eligible rural areas.

Who may apply?

This program assists qualified applicants who are not otherwise able to obtain commercial credit on reasonable terms. Eligible applicants include:

Most state and local governmental entities
Private nonprofits
Federally-recognized tribes
What is an eligible area?

Areas that may be served include:

Rural areas and towns with populations of 10,000 or less -- check eligible addresses
Tribal lands in rural areas
Colonias
What kinds of funding are available?

Long-term, low-interest loans
If funds are available, a grant may be combined with a loan if necessary to keep user costs reasonable.
How may the funds be used?

Funds may be used to finance the acquisition, construction or improvement of:

Drinking water sourcing, treatment, storage and distribution
Sewer collection, transmission, treatment and disposal
Solid waste collection, disposal and closure
Storm water collection, transmission and disposal
In some cases, funding may also be available for related activities such as:

Legal and engineering fees
Land acquisition, water and land rights, permits and equipment
Start-up operations and maintenance
Interest incurred during construction
Purchase of facilities to improve service or prevent loss of service
Other costs determined to be necessary for completion of the project
See 7 CFR Part 1780.7 and 1780.9 for a complete list
What is the loan term and rate?

Up to 40-year payback period, based on the useful life of the facilities financed
Fixed interest rates, based on the need for the project and the median household income of the area to be served
Contact us for details and current interest rates applicable for your project

Are there additional requirements?

Borrowers must have the legal authority to construct, operate and maintain the proposed services or facilities.
All facilities receiving federal financing must be used for a public purpose.
Partnerships with other federal, state, local, private and nonprofit entities that offer financial assistance are encouraged.
Projects must be financially sustainable.

What does this program do?

This program provides funding for clean and reliable drinking water systems, sanitary sewage disposal, sanitary solid waste disposal, and storm water drainage to households and businesses in eligible rural areas.

Who may apply?

This program assists qualified applicants who are not otherwise able to obtain commercial credit on reasonable terms. Eligible applicants include:

Most state and local governmental entities
Private nonprofits
Federally-recognized tribes
What is an eligible area?

Areas that may be served include:

Rural areas and towns with populations of 10,000 or less -- check eligible addresses
Tribal lands in rural areas
Colonias
What kinds of funding are available?

Long-term, low-interest loans
If funds are available, a grant may be combined with a loan if necessary to keep user costs reasonable.
How may the funds be used?

Funds may be used to finance the acquisition, construction or improvement of:

Drinking water sourcing, treatment, storage and distribution
Sewer collection, transmission, treatment and disposal
Solid waste collection, disposal and closure
Storm water collection, transmission and disposal
In some cases, funding may also be available for related activities such as:

Legal and engineering fees
Land acquisition, water and land rights, permits and equipment
Start-up operations and maintenance
Interest incurred during construction
Purchase of facilities to improve service or prevent loss of service
Other costs determined to be necessary for completion of the project
See 7 CFR Part 1780.7 and 1780.9 for a complete list
What is the loan term and rate?

Up to 40-year payback period, based on the useful life of the facilities financed
Fixed interest rates, based on the need for the project and the median household income of the area to be served
Contact us for details and current interest rates applicable for your project

Are there additional requirements?

Borrowers must have the legal authority to construct, operate and maintain the proposed services or facilities.
All facilities receiving federal financing must be used for a public purpose.
Partnerships with other federal, state, local, private and nonprofit entities that offer financial assistance are encouraged.
Projects must be financially sustainable.

Urban stormwater is a significant source of water pollution and can be a public health concern. Stormwater can collect various pollutants including trash, chemicals, oils, and dirt/sediment and convey them to nearby waterways. When mixed with domestic and industrial wastewater in combined sewers, stormwater can also contribute to combined sewer overflows during heavy storm events. Managing runoff remains a complex environmental challenge for local communities across the country. Many communities often face financial challenges trying to correct these issues given the costs to construct, operate, and maintain the infrastructure. This new grant program will provide funding for critical stormwater infrastructure projects in communities including combined sewer overflows (CSO) and sanitary sewer overflows (SSO).

Grants will be awarded to states, which will then provide sub-awards to eligible entities for projects that address infrastructure needs for CSOs, SSOs, and stormwater management. In 2021, the Bipartisan Infrastructure Law amended the program to add a focus on funding projects in rural and finically distressed communities while also eliminating project cost share requirements for these communities.

States are required to prioritize funding projects for communities that are financially distressed, have a long-term municipal CSO or SSO control plan, or for projects that have requested a grant on their Clean Water State Revolving Fund (CWSRF) Intended Use Plan. Projects under this program will have many of the same program requirements as the CWSRF and, to the extent that eligible projects are available, at least 20 percent of a state’s allocation must be used for green infrastructure, water and energy efficiency improvements, and other environmentally innovative activities. In addition, a state should use at least 25 percent of a grant for available projects located in rural communities (population of 10,000 or fewer) and/or in financially distressed communities. States may apply up to four percent of their allotment towards their administrative expenses.