State Wastewater Reserve and Drinking Water Reserve Programs
State Wastewater Reserve and Drinking Water Reserve Programs support North Carolina local governments and nonprofit water corporations with water and wastewater infrastructure projects to address community needs.
Funder: North Carolina Department of Environmental Quality
Due Dates: September 30, 2026 (Fall 2026 applications)
Funding Amounts: Approximately $10 million in Fall 2026 grants; construction grants up to $3 million per system type over three years
Summary: State reserve grants and loans support planning, design, and construction of North Carolina drinking water and wastewater infrastructure.
Key Information: Reserve funding is available only when other funding sources are not reasonably available to the applicant.
Description
The North Carolina Department of Environmental Quality’s Division of Water Infrastructure administers the State Wastewater Reserve and Drinking Water Reserve Programs. They support planning, design, and construction for wastewater collection systems and treatment works and for public water systems. The Fall 2026 construction round covers drinking water sources, treatment, transmission, distribution, and storage, as well as wastewater treatment and collection.
The programs use affordability criteria to determine eligibility for grants and the share of project costs a grant can cover. This directs limited grant funding toward applicants with the greatest need and least ability to afford a project. The reserves also authorize loans, though State Reserve Program loans are not available in the Fall 2026 funding round.
