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Grants to Montana Local, State, and Tribal Governments for Capital
Projects to Improve Water and Wastewater Infrastructure

ARPA Water and Sewer Grant - Competitive Grant Program

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Montana Department of Natural Resources and Conservation (DNRC) - American Rescue Plan Act (ARPA) of 2021 - Montana Infrastructure Advisory Commission

Deadline Date:

01/14/22 5:00 PM


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Grants to Montana local, state, and tribal governments for capital projects that improve water and wastewater infrastructure. Funding is intended to support projects that improve community water systems, protect waterbodies from pollution, and improve sewer treatment plants. The purpose of the program is to protect public health and safety through activities that ensure compliance with drinking water and wastewater health standards.

A recipient may use funds to make investments in: Clean Water State Revolving Fund and Drinking Water State Revolving Fund investments.

Water Projects: The primary use of DWSRF funds is to assist communities in making water infrastructure capital improvements, including the installation and replacement of failing treatment and distribution systems. Planning and design are considered eligible uses of funds under the DWSRF program.

Drinking Water (DWSRF) Eligible Projects

  • Treatment
  • Transmission and Distribution
  • Source
  • Storage
  • Consolidation
  • Creation of New Systems
  • Water Security
  • Energy Efficiency
  • Capital Projects
  • Planning

Under the DWSRF Program, eligible entities for projects are public water systems:

  1. Existing privately-owned and publicly owned community water systems and non-profit non-community water systems, including systems utilizing point of entry or residential central treatment.
  2. New community water systems that represent cost-effective solutions to existing public health problems with serious risks caused by:
    •  Unsafe drinking water provided by individual wells or surface water sources, with the scope of the service area limited to the specific geographic area affected by contamination.
    •  Technical, managerial, and financial difficulties that consolidation into a new regional community water system can address, with the scope of the service area limited to that of the systems involved.

Sewer Projects:

The types of projects eligible for CWSRF assistance include projects to construct, improve, and repair wastewater treatment plants; control non-point sources of pollution; improve resilience of infrastructure to severe weather events; create green infrastructure; and protect waterbodies from pollution. Planning and design are considered eligible uses of funds.

For a list of eligible Sewer Projects, see

For further details about eligible projects and costs, see

GrantWatch ID#:

GrantWatch ID#: 197028

Estimated Total Program Funding:


Term of Contract:

Eligible project expenses fall within March 3, 2021 to December 31, 2026.

Additional Eligibility Criteria:

“Local government” means any city, county, consolidated city-county, school district, or other political subdivision or local government body of the state, including an authority as defined in 75-6-304, water district, sewer district, irrigation district, water users association*, conservation district, or tribal government.

For the ARPA Minimum Allocation Grants, House Bill 632 defines eligible applicants as those that receive funding through the gas tax allocation, as defined in MCA 15-70-101(2)(b), (2)(c), and (3).

For more information, please see:

The following tasks are ineligible:
- Activities outside of the scope of work including salaries/wages, travel, conferences and other expenses not directly related to the project.
- Costs incurred outside eligible term.
- Routine maintenance and operation, as well as tasks that are programmatic in nature.
- Routine compliance monitoring expenses.
- Indirect costs (for example, facilities or overhead). Indirect costs may be listed as matching funds.
- Prepay anticipated costs of future activity.
- Costs paid for with loan funds.

A recipient may not use funds for deposit into any pension fund. § 35.7.

A State or local government shall not use funds to either directly or indirectly offset a reduction in the net tax revenue of the State or local government resulting from a covered change during the covered period. § 35.8

A recipient may not use funds to pay interest or principal on any outstanding debts, sort-term revenue or tax anticipation notes, or fees or issuance costs associated with the issuance of new debt. Additionally, replenishing
financial reserves (e.g., rainy day or other reserve funds) would not be allowed, since such expenses do not directly relate to the provision of government services.

Rehabilitation of dams and reservoirs are ineligible projects under DWSRF and CWSRF.

Pre-Application Information:

Applications Due: January 14, 2022 at 5:00 PM

Required Match - The local government shall pledge the lesser of:
- One-to-one matching funds; or
- 25% of the amount that the local government received in coronavirus local fiscal recovery funds provided for in ARPA § 603. A local government may use coronavirus local fiscal recovery funds as matching funds.


Tools and Resources:

Contact Information:

Before starting your grant application, please review the funding source's website listed below for updates/changes/addendums/conferences/LOIs.

Apply Online:

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Geographic Focus:

USA: Montana

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