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Drinking Water Small System Capacity and Resiliency Program Grants

August 29, 2025
drinking water tank

The Vermont Bond Bank (VBB) is accepting applications for Round 2 of the Small System Capacity and Resiliency Program (SCRP) Tier 2 grant program. The intention of the program is to help small public drinking water systems replace infrastructure at risk of failure. This program was created through a State of Vermont ARPA grant in collaboration with the Vermont Department of Environmental Conservation (DEC). 

What This Program Funds

This program provides small public drinking water systems serving 10,000 or fewer (largely residential) customers with grants of up to $250,000 for the replacement of infrastructure at risk of failure. Eligible activities include:

  • Preliminary engineering evaluations
  • Engineering design and bid specification
  • Permitting
  • Construction for small drinking water systems at risk of failure, serving largely residential users
  • Activities that comport with the Drinking Water State Revolving Loan Fund’s eligible project types as outlined in the EPA's Drinking Water State Revolving Fund Handbook.
  • Projects completed since July 1, 2023, as well as projects yet to be completed
How Your Community Applies

Apply using the Bond Bank's online form. In addition to information about the project, customers served by the project and the system, the application requires identifying project funding sources and uses and uploading financial statements and a financial projection for post-project completion.

Applications are due October 29, 2025.

Make Your Community’s Application Competitive

Systems that are most competitive will:

  • be ranked higher in the Vermont Community Index.
  • have higher household rate burdens (combined household cost of total utility rate burden).
  • have a commitment to sound financial and managerial planning.
  • be small in size.
Where You Can Learn More
Find Grant Writing or Grant/Project Management Help for Your Community

The Bond Bank offers free technical and grant application assistance through an agreement with Vermont's 11 Regional Planning Commissions (RPC). To identify your RPC, visit the Vermont Association of Planning and Development Agencies (VAPDA) website. (Scroll down on the homepage until you see the map of Vermont. Use the map to identify which RPC serves your town/service area, then click on that RPC’s name to get to its contact information.)