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Funding opportunities

Bipartisan Infrastructure Law:
Drinking Water and Wastewater Investments

The Bipartisan Infrastructure Law (BIL) delivers more than $50 billion to the U.S. Environmental Protection Agency (EPA) over the next five years to improve our nation’s drinking water, wastewater, and stormwater infrastructure – the single largest investment in water that the federal government has ever made. During the first year of funding, 2022, allocations for New Mexico’s State Revolving Funds (SRFs) total $63 million. This investment into our state will mean safe drinking water, clean water for communities and healthier watersheds.

Communities and other eligible applicants should apply now through the Clean Water SRF and Drinking Water SRF programs to express interest in BIL funding for specific projects. Scroll down on this Funding Opportunities page for program details.

For more information about Clean Water SRF funding, contact or 505-469-3365.

For more information about Drinking Water SRF funding, contact or 505-231-2120.

EPA Waiver

EPA Closing Wastewater Access Gap

Brownfield Clean-up Revolving Loan Fund

NMED offers low-interest loans with favorable terms that can be used for remediating contamination at an eligible brownfield site. The funds may also be used for asbestos removal or abatement. The availability of cleanup funding can leverage the other funding needed – on average, $17 for every dollar of brownfields funding.

Contact us to discuss the eligibility of your project and the application process.

Clean Water State Revolving Fund

Funding is available for Planning Loans, Design Loans and Construction Loans. Loan subsidy may be available to disadvantaged borrowers or to borrowers that incorporate sustainability features into projects. Loan terms may be up to 30 years with repayment beginning one year after project completion.

Clean Water State Revolving Fund (CWSRF) applications are accepted year-round.

Eligible Borrowers

  • Municipalities
  • Counties
  • Water and Sanitation Districts
  • Mutual Domestic Water Associations
  • Pueblos and Tribes

Program Eligibility (Including, but not limited to)

  • Publicly owned centralized wastewater treatment works construction, repair or replacement;
  • Implementation of a non-point source management plan;
  • Decentralized systems treating municipal or domestic sewage;
  • Measures reducing, treating, or managing stormwater;
  • Measures reducing demand to publicly owned treatment works through conservation;
  • Watershed projects;
  • Reducing energy consumption at publicly owned treatment works;
  • Projects for reusing or recycling wastewater or stormwater;
  • Increasing security at publicly owned treatment works

Loan Interest and Terms

Clean Water State Revolving Fund loans are offered at low interest rates from 0.01% for public entities that do not qualify for 0% and 2.375% for private entities. Loan repayment terms may be up to 30 years.

Priority Rating System

Projects are evaluated and ranked based on the level of water quality protection achieved. More information on the ranking system is available here.

Contact us with questions at or 505-469-3365.

Corrective Action Fund

The Corrective Action Fund (CAF) is used to clean up and monitor leaks and spills from petroleum storage tanks in the state. In some cases, if owners/operators are unable to fund a clean-up, or if they are deceased and the spill is at a facility that is no longer used (i.e. old gas station), the state Corrective Action Fund may be used. Groundwater clean-ups are long-lasting and expensive, so this is often an option for small business owners who own only one or two facilities.

All Corrective Action Fund forms and applications are available on the NMED Forms page.

Diesel Emissions Reduction Act

In 2005, the U.S. Congress passed the Diesel Emission Reduction Act (DERA) as an amendment to the Energy Policy Act. DERA was designed to reduce diesel emissions from existing diesel fleets that did not meet the recently adopted federal emission standards. The U.S. Environmental Protection Agency (EPA) is responsible for overseeing and distributing the DERA funds. For more information, visit the EPA website.

The goal of the New Mexico Clean Diesel Program is to reduce the amount of air pollution created by diesel-fueled heavy-duty trucks and buses. Funding can be used to retrofit existing vehicles with emission control devices or to replace diesel vehicles.

Contact Neal Butt at 505-629-2972 or for additional information regarding potential funding for qualified projects.

Drinking Water State Revolving Fund

The New Mexico Environment Department co-administers the Drinking Water State Revolving Fund (DWSRF) loan program with the New Mexico Finance Authority (NMFA). This fund provides low-cost financial assistance to public water systems to finance the cost of repair and replacement of drinking water infrastructure; to ensure compliance with drinking water regulations; and to protect drinking water quality and public health.

NMED accepts Drinking Water State Revolving Fund preliminary applications year-round.

Projects are reviewed and ranked for placement on the Priority List quarterly.


  • New and replacement water sources
  • Treatment
  • Transmission and distribution lines
  • Storage
  • Supervisory Control and Data Acquisition (SCADA) systems
  • Infrastructure to interconnect or regionalize water systems
  • Energy efficiency and water conservation projects

In addition to funding costs needed for project construction the DWSRF can also finance planning, design and associated pre-project costs and land acquisition needed for locating project components.

Low Interest Loans

The NMFA will provide loans with interest rates ranging from 0% to 4%, depending on a PWS’s ownership and Median Household Income. If a PWS is publicly owned, then it is eligible to receive a DWSRF loan at 0% or 1% (lowered from 2% in 2019). The NMFA uses available subsidy from the Capitalization Grant to assist entities that are Disadvantaged or Severely Disadvantaged that could not otherwise afford DWSRF loans.

Project Priority Ranking and Intended Use Plan

Project pre-applications are evaluated and ranked quarterly based on a a variety of factors that determine greatest need, impact of project on water quality improvement, and other factors. For more information see the current IUP and Priority List on the DWB Infrastructure Projects & Funding page

Contact us with questions at:  or 505-231-2120.

Economic Development Toolbox

The New Mexico Economic Development Department (EDD) provides an overview of resources available to businesses and communities in New Mexico. The Toolbox has two main sections: EDD programs and programs offered by partner organizations. View the toolbox in English and Spanish.

Overflow Sewer Grants and Stormwater Reuse Municipal Grants Program

The Construction Programs Bureau administers the Overflow Sewer Grant (OSG) program.  Eligible entities are municipalities or municipal entities, and eligible projects are those under CWA section 603(c), essentially the same as the Clean Water State Revolving Fund.  The OSG program is 100% grant, but funding is limited.  OSG program allocations are typically released once per federal fiscal year.  To apply, use the CWSRF application and checkmark that OSG is the funding source. We will maintain a list of applicants eligible for the OSG program.

OSG Application Link

Recycling and Illegal Dumping Fund

The Recycling and Illegal Dumping (RAID) grant provides funding for the prevention and abatement of illegal dumpsites and promoting environmentally sound methods for reuse and recycling.

Grants are available to:

  • Municipalities
  • Counties
  • Solid waste authorities
  • Pueblos, tribes, and nations
  • Land grant communities
  • Cooperative associations (as defined in the Recycling and Illegal Dumping Act)

Ineligible entities are encouraged to partner with eligible entities.

About $800,000 is available annually for:

  • Offsetting the cost of scrap tire collection and recycling
  • Abating illegal dumpsites
  • Establishing recycling facilities
  • Developing recycling infrastructure
  • Purchasing equipment for recycling and scrap tire management
  • Performing marketing regarding recycling and scrap tire management
  • Providing educational outreach regarding scrap tire management, recycling, and illegal dumping
  • Purchasing products produced by a recycling facility
  • Contracting with vendors to promote recycling

At least two-thirds of budgeted grant money in each fiscal year is allocated to scrap tire abatement and recycling programs, and one-third is allocated to abatement of illegal dumping and recycling of other solid wastes. Matching funds and in-kind contributions are not required but are encouraged.

Projects are funded on a fiscal year cycle, July 1 to June 30. Funded projects must be completed within the fiscal year.

A list of previously funded projects is available here.

FY25 RAID Grant – Recycling Application
FY25 RAID Grant – Illegal Dumpsite Abatement Application
FY25 RAID Grant – Additional Dumpsite Information page

Contact the Solid Waste Bureau at: or (505) 827-0197.

New RAID Applications will be released Friday, March 15, 2024.

Rural Infrastructure Program

The Rural Infrastructure Program provides low-interest loans to rural communities for water, wastewater and solid waste projects. Mutual Domestic association or water and sanitation districts that supplies water, wastewater or solid waste services to, or municipalities that have a population of less than 20,000 or counties with populations of less than 200,000 are eligible for funding.

Funding is available by the New Mexico Legislature, Rural Infrastructure Program applications are accepted year-round. Loan funds are available for projects within eight weeks upon submission of complete application.  

Eligible Projects

  • Water pipelines
  • New sewer interceptors and collectors
  • Infiltration/inflow correction
  • Water and sewer system rehabilitation
  • Treatment plant improvements
  • Non-point source projects (i.e. septic tanks)
  • Cost of water rights acquisition
  • Eligible solid waste facilities including collection, disposal, storage and recycling
  • Engineering studies and design
  • Project inspection
  • Easement and right-of-way
  • Project legal costs
  • Purchase of equipment
  • Pollution Control

Loan Interest and Terms

The interest rate is 1% with a loan term of up to 20 years and repayment beginning one year after project completion.

Rural Infrastructure Revolving Loan Program 2022 State Fiscal Year

Rural Infrastructure Revolving Loan Program 2023 State Fiscal Year Annual Report

If you have any questions regarding RIP, contact us at or 505-469-3365.

Solid Waste Facility Grant Fund

This fund assists New Mexico solid waste facilities implement projects that help protect the health of the residents and the environment. Funding for the Solid Waste Facility Grant is made available by revenues from civil penalties associated with Solid Waste Bureau enforcement actions. The grant program is authorized by the New Mexico Solid Waste Act, Section 74-9-40.C NMSA 1978, and Solid Waste Rules, 20.9.25 NMAC. The purpose of this grant is to enable the development, engineering, construction and operation of solid waste facilities and systems throughout the state.

Only the following entities may apply for Solid Waste Facility Grant funding:

  • Counties
  • Municipalities
  • Solid waste authorities

Examples of eligible projects include:

  • Environmental monitoring wells (groundwater, methane)
  • Final closure design and certifications; purchase of materials for final cover
  • Traffic flow improvements at landfills, transfer stations, collection centers
  • Weather stations
  • Equipment purchases
  • Litter control mechanisms
  • Site surveys, engineering plans

Prioritization of awards is based on criteria described in NMAC.

Multiple eligible entities may submit a grant application jointly. Ineligible entities may partner with an eligible entity.

Please contact the Solid Waste Bureau to discuss how expenses associated with the proposed project may fit within eligible expenses. Eligible expenses are described in NMAC and include, but are not limited to:

  • Planning for the development of a regional solid waste disposal facility or for regional disposal services
  • Costs of engineering feasibility reports, contracted engineering design, inspection of construction, special engineering services which includes, but is not limited to, the preparation of operation and maintenance manuals
  • Contracted facility construction, operation or system operation

Projects are funded on a fiscal year cycle, July 1 to June 30. Funded projects must be completed within the fiscal year.

Solid Waste Facility Grant Fund Application FY24

Contact the Solid Waste Bureau at: or 505-827-0197.

Volkswagen Settlement

In 2016, New Mexico was among several states that received funds through a federal settlement was reached after Volkswagen admitted to installing devices on diesel passenger vehicles that misrepresented the amount of emissions. This resulted in excess motor vehicle emissions known as oxides of nitrogen (NOX). NOX emissions are responsible for increasing ozone which can adversely impact public health.

Under the Consent Decree, New Mexico was eligible to receive over $18 million to implement projects that reduce emissions of NOX from vehicles. As of 2022, all $18 million was allocated to projects that reduce NOX emissions across New Mexico communities.

Visit the VW Settlement page for more information.

Contact Us

Main Ph: 505-827-2855

Headquarters Location
Harold Runnels Building
1190 St. Francis Dr. Suite N4050
Santa Fe, NM 87505

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