Drinking Water State Revolving Funds

The Virginia Department of Health (VDH) is pleased to announce several opportunities for funding drinking water infrastructure. ALL applications may be submitted year-round; however, VDH will conduct one round of evaluations submitted by the deadlines described below. Applications postmarked/received after the due date will be considered for funding in the following round. Funding is possible through the Drinking Water State Revolving Fund (DWSRF) Program, the Bipartisan Infrastructure Law (BIL) – Lead Service Line funding only, Water Supply Assistance Grant Fund (WSAG) Program (if funds are available), and Virginia General Assembly Funding (if funds are available).

The fiscal year 2027 (FY 2027) DWSRF Intended Use Plan (IUP) will use stakeholder input for decision-making. VDH still has Bipartisan Infrastructure Law (BIL) funding for BIL Lead Service Line Replacement (LSLR) Projects from previous funding years. For these LSLR projects, please use the application titled “Application for the Lead Elimination Assistance Program (LEAP),” and NOT the application titled “Application for Construction Funds.”

1. Public Comments and Set-Aside Suggestions Invited (Submission deadline August 7, 2026)

To identify ways to improve our Program, VDH seeks meaningful input from the public, the waterworks industry, or any other interested party. Anyone may make comments or recommendations to support or revise the Program. Anyone can suggest new or continuing set-aside (non-construction) activities. Set-aside funds help VDH assist waterworks owners prepare for future drinking water challenges and assure the sustainability of safe drinking water.

2. Construction, Consolidation, and Refinance Fund Requests (DWSRF Application deadline August 7, 2026)

Owners of community waterworks and nonprofit non-community waterworks are eligible to apply for construction funds. VDH makes selections based on criteria described in the DWSRF Program Design Manual, such as: existing public health problems, noncompliance, affordability, regionalization, and the availability of matching funds. VDH anticipates a funding level of approximately $15 million in DWSRF funding. The actual amount available will be dependent on the allocation that VDH receives from the EPA.

3. 1452(k) Source Water Protection Initiatives (Application deadline August 7, 2026)

Loan funds are available to: (1) community and non-profit non-community waterworks to acquire land/conservation easements, and (2) community waterworks, only to establish local voluntary incentive-based protection measures.

4. Lead Service Line (LSL) Replacement Program (LEAP Application construction deadline is August 7, 2026)

Applicants must have documentation of lead service lines that need to be replaced to apply for funding. The LSL includes pipe entry into the structure (up to shut off valve) but excludes the premise plumbing. Continued LSL inventory development is still eligible but must be combined with LSL replacement work. VDH anticipates a funding level of approximately $58 million for BIL Lead funding (from previous funding years and reallocation from other states). The actual amount available will be dependent on the allocation that VDH receives from the EPA.

The VDH’s DWSRF Program Design Manual describes the features of the above opportunities for funding. After receiving public input, VDH will develop an IUP for public review and comment. The IUP will describe specific details for use of the funds. A public comment period is planned, and written comments will be accepted before submittal of a final version to the USEPA for approval.

Applications, set-aside suggestion forms, Program Design Manuals, and 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.