Drinking Water Funding Program Details & Application


FCAP accepts applications on a year round basis. However, FCAP will only conduct one round of evaluations submitted by the deadline. Projects addressing eligible acute, chronic health/SDWA compliance or public health problems will be given higher priority over other projects. Both construction and non-construction assistance are available.

Construction Assistance

Construction Loan

Interest rates from 3% to ceiling rate (1% below municipal bond market rates). Maximum term 20 years. Lower rates and longer terms (up to 30 years) are considered for waterworks meeting disadvantaged criteria.

Construction Grant

Will be considered for waterworks meeting disadvantaged criteria.

Force Account Construction

Projects are completed with non-contractor related labor.

Non-Construction Assistance

Planning and Design Funds

Projects up to $45,000 to be awarded. Applications accepted year-round. Funds are especially for small, disadvantaged community waterworks.

Application Deadlines

The Application Deadline depends on the type of funding and method of delivery. Electronic copies are preferred. Hard copies are optional. Please see the highlighted section below for more details. Unless otherwise stated, all applications must be submitted by the deadline below to be included in the next round of funding offers.

  • The required Funding Application Discussion Meeting must be held by April 3, 2024
  • If electronically submitted, the application must be received by May 3, 2024
  • If hand delivered, the application must be received by 5:00 PM on May 3, 2024
  • If sent by mail, the application must be postmarked by May 3, 2024

Submittal Options

Please see below for application submittal options. Electronic copies are preferred. We highly recommend that an electronic copy of the entire application, including all attachments, be submitted either via USB flash drive or by email. If submitting hard copies, only one printed copy of the application and attachments is required.

  • For Construction Applications:
  • For LEAP Applications:
  • If files are too large and exceed email file attachment limits, it is acceptable to send multiple emails with your application and attachments
  • Alternatively, you may send a Google Drive link (or similar platform) to share access to your application documents
    • Please note: Unfortunately, applications submitted via Dropbox can no longer be accepted. VDH has blocked Dropbox due to the fact that it does not meet the Agency's security standards.

Important Changes - New for FY2024

  1. The Construction Funds Application has been updated to streamline and clarify items. Most notably, TMF-related questions have been compiled in one section and hyperlinks to required forms/templates have been added. The corresponding Instructions and Scorecard have also been updated to reflect these changes.
  2. The Lead Elimination Assistance Program (LEAP) Application and corresponding Instructions have also been updated. Most notably, the application has been significantly streamlined for LSL Inventory projects and new questions related to the proposed project scope and readiness to proceed have been added. The corresponding Instructions and Scorecard have also been updated to reflect these changes.
  3. The requirements for Funding Application Discussion meetings and TMF reviews no longer apply to LSL Inventory projects.
  4. The evaluation of Environmental Justice criteria has been updated from using the EJSCREEN tool by EPA to the Climate and Economic Justice Screening Tool (CEJST) by the White House Council on Environmental Quality (CEQ). See the Program Design Manual and Application Instructions for more information on how the Environmental Justice Community designation is determined.
  5. The Build American Buy American (BABA) requirements will now be in effect for projects funded through the Bipartisan Infrastructure Law (BIL) funding. Depending on the project, waivers may be available and will be evaluated on a case-by-case basis.
  6. A new Interest Rate Methodology is now in place for Construction Projects. The Core Program is a 20-year loan with the interest rate set at the time of loan closing. The core program rate is set at 1% below the market interest rate for municipal 20-year AA revenue bonds. Historically the core program rate has been between 1.4% and 3.0%. For 30-year terms, the interest rate is set at ½ of 1% (50 basis points) below the market rate.


Guidance & Announcements

Please view the contents below for detailed guidance for additional information on our funding program and filling out applications.

View the manuals below for the Drinking Water State Revolving Fund (DWSRF) Program and the Water Supply Assistance Grant (WSAG) Fund Program. The DWSRF Program Design Manual provides very detailed information on the background of the program, eligibility, and types of financial assistance. We strongly recommend viewing the DWSRF Program Design Manual first prior to filling out Applications.

DWSRF Program Design Manual

WSAG Program Guidelines

Application Forms & Instructions

Please view the Funding Announcement Letter for additional details on the application period for this fiscal year. Please also note that there is no separate application for WSAG funds. You may use the Application for Construction Funds form below to submit an application to either the DWSRF program or the WSAG program, and FCAP will determine the source of the funding. Click on the bars below to expand each section.

Set-Aside Application Form

Please use the form below to submit Public Comments and/or Set-Aside Suggestions. Please submit one form for each Set-Aside Suggestion by the closing date. Attach additional pages if necessary. For suggestions or projects not funded, VDH reserves the right to reconsider funding the above project if funds become available. For additional information, please contact Barry.Matthews@vdh.virginia.gov / (804) 477-5171 or Julie.Floyd@vdh.virginia.gov / (540) 460-9348.