Keaton PetersWater and electric systems across rural America are set to receive major upgrades. The U.S. Department of Agriculture is investing $1.3 billion in rural infrastructure projects across 30 states. The goal of this funding is to modernize infrastructure, expand access to reliable electric grids and safe drinking water and create jobs in rural and tribal communities.
The investment is split between two main programs: $852 million through the Electric Infrastructure Loan and Loan Guarantee Program, benefiting 14 states, and $443 million through the Water and Waste Disposal Loans and Grants program, benefiting 24 states. Of the total funding, approximately $1.18 billion is in loans with the remaining $137 million being grants.
Rural areas often face significant infrastructure challenges due to aging systems, limited local resources and geographic isolation. These communities are frequently underfunded relative to their urban counterparts and struggle to maintain and upgrade essential services.
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Many of these areas have also felt the brunt of natural disasters such as hurricanes and wildfires. This federal funding aims to ease the burden of making critical upgrades and repairs to rural infrastructure and improve the quality of life for residents.
“In the face of climate change, resilient power grids and strong water infrastructure are even more critical to building resilient rural communities and maintaining strong local economies,” says Deputy Secretary of Agriculture Xochitl Torres Small in a press release.
One of the largest electric infrastructure projects is a $153 million loan to Kauai Island Utility Cooperative in Hawaii. This funding will connect 1,380 homes to the grid and build or improve 55 miles of power lines. The project includes $3.3 million for smart grid technologies that protect against blackouts and help the grid operate more efficiently, benefiting nearly 39,000 people across the Island of Kauai.
In the Midwest, Dairyland Power Cooperative will receive a $127 million loan to build and improve 78 miles of transmission lines, which is set to improve the grid for more than 287,000 people across 55 counties in Illinois, Iowa, Minnesota and Wisconsin. The project also includes $12 million for smart grid technologies.
Another project is the $31 million loan to Ntua Generation-Utah LLC for constructing a 72-megawatt solar photovoltaic farm. Located on trust land within the Red Mesa Chapter of the Navajo Nation, this project will provide clean energy to approximately 26,000 Native Americans, demonstrating a commitment to renewable energy in tribal areas.
In the water infrastructure category, one of the largest allocations is the $35 million loan to South Granville Water and Sewer Authority in North Carolina. This project will address health and sanitary conditions by installing 34,800 feet of new gravity collection lines, 22,400 feet of new water mains, new pumping stations and manholes.
The city of Rocky Ford, Colorado, will receive a $20 million loan and a $7.9 million grant to repair its wastewater collection system. This project will modernize the system used by about 4,000 residents by replacing and repairing over 100,000 feet of pipes.
In Wisconsin, the village of St. Nazianz will use a $4.3 million loan and a $4 million grant to update its wastewater treatment plant infrastructure. This project will replace aging pumping and filtration equipment with up-to-date technology, improving operation control, water quality and compliance with phosphorus limits. The upgrades will maintain the overall capacity of the plant while improving its efficiency and environmental performance.
