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Grants for Small Drinking Water Systems

September 09, 2026
reverse osmosis system for drinking water plant automatic treatment system

The Vermont Bond Bank is now accepting applications for Small System Capacity and Resiliency Program (SCRP) Tier 2 grants of up to $50,000 for small drinking water systems at risk of failure.
 
The Bond Bank anticipates awarding approximately $5.7 million in Tier 2 grants over time, with $250,000 available this round. SCRP was created with a State of Vermont American Rescue Plan Act (ARPA) grant in collaboration with the Vermont Department of Environmental Conservation (DEC). All public Vermont drinking water systems serving 10,000 or fewer (largely residential) customers are eligible. Small, complete projects with big impact will be prioritized.
 
Applications for round 3 of SCRP Tier 2 grants are due October 26, 2026, by the end of the day. Awards will be announced in early December, and funds will be available for requisition soon after.

Eligibility

  • Vermont public drinking water systems serving 10,000 or fewer (largely residential) customers
  • 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 “DWSRF Handbook”
  • Projects completed since 7/1/2023 as well as projects yet to be completed

Application Help Available

In addition to grants, the Small System Capacity and Resiliency Program has been designed to provide Technical Assistance for small water systems as well - and the Bond Bank has arranged for free grant application assistance from your Regional Planning Commission (RPC). To identify your RPC, see 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 their contact information.)

Application Due Date: Monday, October 26 by EOD

Learn More: Small System Capacity & Resiliency Program - Round 3 of Tier 2 Grants | VT Bond Bank

Questions? Contact Vermont Bond Bank Senior Loan Officer Ken Linge via email at ken@vtbondagency.org or by phone at 802-861-0074.


Disclaimer: This resource was created by Municipal Operations Support (MOS) staff of non-legal professionals with expertise of the subject matter. It is only intended to provide information and does NOT constitute legal advice. Readers with legal questions are encouraged to contact an attorney. The use or downloading of this resource does NOT create an attorney-client relationship and will not be treated in a confidential manner. Non-legal questions about this resource can be directed to MOS staff at mos@vlct.org.