DEQ announces drinking water and wastewater funding opportunities for fiscal year 2027

October 17, 2025

Contact: MaryAnna Peavey, Grants and Loans Bureau Chief, [email protected]   

BOISE -The Idaho Department of Environmental Quality (DEQ) is announcing fiscal year 2027 funding opportunities for Idaho's drinking water and wastewater systems.   

Funding will be used to assist eligible public drinking water and wastewater systems with facility planning projects and help entities build or repair existing infrastructure. Eligible drinking water applicants include all community public water systems and nonprofit noncommunity systems. Eligible wastewater applicants include governmental entities and nonprofit corporations.

Funding Availability   

DEQ has several funding opportunities available.    

• State Revolving Fund (SRF) Loans: SRF loans provide low-interest funding for up to 100% of design and construction costs for drinking water and wastewater facilities. SRF loans also offer below-market interest rates with average rates under 4%.   

• Planning Grants: Planning grants are available to help systems cover the cost of preparing facility planning documents and environmental reviews. These grants cover 50% of eligible costs.   

• Supplemental Funding: The Bipartisan Infrastructure Law included funding for emerging contaminants and drinking water lead service lines. Additionally, there is funding for a sewer overflow and stormwater planning grant.  

Application Process and Deadline   

For each funding opportunity, submit a letter of interest, also known as an LOI, detailing the need for funding to [email protected]. LOI forms are available on DEQ's Grants and Loans web page. Completed LOIs are due by January 9, 2026. DEQ will evaluate, rate, and rank responses for inclusion on the annual priority lists. LOI forms that receive the highest ratings will then be invited to submit grant or loan applications.        Training Opportunities   

DEQ will host a training opportunity to assist with the application process and give an update for the fiscal year 2027 funding outlook. Attendance is free but pre-registration is required. The virtual workshop is scheduled for November 4, 2025, from 2 to 3 p.m. MDT. Register on DEQ's Events web page.   

Visit DEQ's Grants and Loans web page for more information.