Federal Dollars Flow to Fix Overflowing Sewers

The EPA has opened $80 million in grants to help municipalities fix sewer overflows and upgrade stormwater systems nationwide.

29 Jun 2026

The United States Environmental Protection Agency has made $80 million in federal grants available to municipalities working to upgrade sewer and stormwater infrastructure, the agency announced on 29 April 2026. The funding spans fiscal years 2025 and 2026 and flows through the Sewer Overflow and Stormwater Reuse Municipal Grant Program.

Small and financially distressed communities receive priority under the programme's allocation rules.

Eligible projects include planning, design, and full construction work, giving local governments flexibility depending on where they stand in the project cycle. At least 20 per cent of each allocation must support low-impact development and green infrastructure, directing a portion of spending toward nature-based solutions alongside conventional engineering.

Jess Kramer, the EPA's assistant administrator for water, set out the agency's rationale. "Stormwater and sewage systems are critical for managing pollution to keep our nation's waterways clean and support healthy people, economic growth, and thriving ecosystems," Kramer said. "This $80 million investment will help states upgrade stormwater management systems."

For businesses near waterways, improved runoff management can reduce regulatory exposure and lower long-term remediation costs. Communities that secure grants can modernise ageing infrastructure without bearing the full cost alone.

Storm events are intensifying across much of the country, increasing pressure on systems that were not designed for current conditions. How quickly municipalities move to apply may determine whether infrastructure improvements arrive ahead of the next significant weather event or after it.