Drinking Water GA Funding established by HB1600 (Chapter 725) Item 280
The Virginia Department of Health (VDH) is pleased to announce a new opportunity for funding drinking water infrastructure. This funding was established by the 2025 General Assembly (GA) Session HB1600 (Chapter 725) Item 280 which can be found at the following link: Item 280 (VDH) Drinking Water Improvement. HB1600 - Chapter 725
Pursuant to this budget bill, the VDH plans to utilize the existing Drinking Water State Revolving Fund (DWSRF) Program Design Manual, Scoring Criteria, application process, and standard operating procedures to implement this funding.
HB1600 (Chapter 725) Item 280 provides $25,000,000 to provide one-time grants to localities to upgrade or replace existing drinking water infrastructure.
To receive a grant, localities must provide proof of at least 25 percent match for the cost of the project. No grant to a locality shall fully fund a drinking water project.
VDH will receive public comments between July 1, 2025, and August 1, 2025, on the proposed implementation of this funding.
VDH plans to conduct one round of evaluations of applications with a deadline for applications of September 1, 2025. VDH will also consider construction applications received this past DWSRF funding cycle, on or prior to May 2, 2025, if the applicant sends us a letter requesting this.
Owners of community waterworks and nonprofit non-community waterworks are eligible to apply for construction funds. VDH plans to make selections based on criteria described in the Drinking Water State Revolving Fund Program Design Manual, such as existing public health problems, noncompliance, affordability, regionalization, and the availability of matching funds, occurrences of boil water advisories, system failures, evidence of contaminants, and readiness to proceed. This will also include a review of the financial condition of the locality wherein the grant is sought and the locality’s effort to access additional funding for the proposed drinking water infrastructure project from other sources.
The VDH’s DWSRF Program Design Manual describes the features of the above opportunity for funding. The existing score sheet for this funding can be found in this Program Design Manual on page 16 at the following location:
www.vdh.virginia.gov/content/uploads/sites/14/2025/02/Program-Design-Manual_2025-02-25.pdf
The Drinking Water GA Funding established by HB1600 (Chapter 725) Item 280 will differ from the DWSRF funding by eliminating the following requirements of federal funding, unless federal co-funding exists:
Additionally, projects with a primary purpose of economic development, which are not eligible for DWSRF funding, will be eligible for this GA HB1600 (Chapter 725) Item 280 funding.
After receiving public input, VDH will update the DWSRF application review process to address public comments and use that process to prioritize the applications. VDH plans to provide funding offers by mid-September 2025.
As indicated in HB1600 (Chapter 725) Item 280, VDH shall give priority consideration for grants to Greene County and the Town of Bowling Green, as both localities have demonstrated outstanding critical drinking water needs.
Applications, Program Design Manuals, and additional information materials are available at https://www.vdh.virginia.gov/drinking-water/fcap/drinking-water-funding-program/.
Please direct questions, comments, and information to Anthony Hess, FCAP Director, by calling (804) 584-0413 or via email at Anthony.Hess@vdh.virginia.gov, or via mail to:
Anthony Hess
C/O Theresa Hewlett
109 Governor Street, 6th Floor
Richmond, VA 23219
| Name / Title: | Anthony Hess / VDH-ODW, FCAP Division Director |
| Address: |
109 Governor Street 6th Floor Richmond, 23219 |
| Email Address: | anthony.hess@vdh.virginia.gov |
| Telephone: | (804)584-0413 FAX: ()- TDD: ()- |