Water Sector Program

The Water Sector Program was created to provide grant funding for repairs, improvements and consolidation of community water and sewer systems around the state.

Louisiana dedicated $750 million from its American Rescue Plan Act Coronavirus State Fiscal Recovery Fund allocation to establish the Water Sector Program. The state later created a Phase II Subfund to manage new grants under the program, as well as an Emergency Subfund to administer funding for urgent needs. The state Legislature appropriated $140 million for the Phase II Subfund and $10 million for the Emergency Subfund.
 

Program Phases


The Water Sector Program was created to provide grant funding for repairs, improvements and consolidation of community water and sewer systems around the state. The program has two phases – Phase I, which uses federal funds and Phase II, which uses state funds.

Phase 1 – Federal Funds

Pursuant to the American Rescue Plan Act, Louisiana allocated $750 million to the Water Sector Program, established by R.S. 39:100.56, from the state's allocation of ARP funding from the Coronavirus State Fiscal Recovery Fund. The program provides grant funding for repairs, improvements and consolidation of community water and sewer systems statewide.

Phase 2 – State Funds

Act 497 of the 2024 Regular Session (PDF) created a Phase II Subfund for the deposit, distribution and administration of new grants within the Water Sector Program. The Act also established an Emergency Subfund to support emergency grants. The State Legislature appropriated $70 million for the Phase II Subfund and $5 million for the Emergency Fund in FY 2024-2025 and FY 2025-2026. The Water Sector Commission has approved guidance for FY 2026-2027 in anticipation of additional appropriations in the next legislative session. Important dates for this round can be found in the FY 26-27 WSP Phase II Guidance below. No funds will be awarded to applicants listed on the Louisiana Legislative Auditor’s Non-Compliance List.

Archived Resources