The United States Environmental Protection Agency’s (USEPA’s) new Sewer Overflow and Stormwater Reuse Municipal Grants Program stands out as a positive development. Addressing runoff is a multifaceted environmental challenge for local communities throughout the country. Many municipalities face financial difficulties in addressing these issues due to the substantial costs of constructing, operating, and maintaining necessary infrastructure.
2026 Grant Program
On April 29, 2026, the EPA announced $80 million in grants for the Sewer Overflow and Stormwater Reuse Municipal Grant (OSG) Program. This Funding, which is part of the Clean Water State Revolving Fund (CWSRF), supports planning, design, and construction of projects addressing combined sewer overflows, sanitary sewer overflows, and stormwater management. This investment aims to help communities improve water quality and public health.
With funds now being distributed to states, states are currently in the process of identifying specific projects through September 2026. Under the guidance, the states will prioritize small and financially distressed communities, those with long-term control plans, or projects seeking grants on their CWSRF Intended Use Plan. The 2026 Grants share many requirements with the CWSRF, including using at least 20% of allocations for Low Impact Development (LID), Green Infrastructure (GI), water and energy efficiency, and innovative environmental activities. Under the new program, up to 4% of a state’s allotment may be allocated to administrative expenses.
SCS Engineers provides stormwater services across public and private sectors in the United States. SCS can assist with grant applications and projects and help determine eligibility under the OSG Program. Contact SCS Engineers to learn how they can support your project and guide you through the application process.
History
The Clean Water Act, enacted in 1972, established the foundational framework for the EPA to regulate water pollution and safeguard the nation’s waterways because untreated stormwater in large municipalities can pose significant public health risks. The growing frequency of heavy precipitation events places considerable strain on urban infrastructure. When stormwater is combined with domestic and industrial wastewater in shared sewer systems, it can result in combined sewer overflows during intense storms.
Section 221 of the CWA (33 USC 1301), amended by the 2018 America’s Water Infrastructure Act (AWIA), allows the EPA to provide grants to states for CSO, SSO, and stormwater infrastructure. The 2021 Infrastructure Investment and Jobs Act (IIJA) further supports rural and distressed areas, reinforcing the program’s commitment to equitable water infrastructure development.
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