The Strategic Water Supply Act (NMSA 72-12C-1 et seq.) created the Strategic Water Supply (SWS) Program to help protect New Mexico’s freshwater by supporting the study, production, treatment, and management of brackish water. The Act allows the New Mexico Environment Department (NMED) and the Office of the State Engineer (OSE) to fund projects that use treated brackish water.
Strategic Water Supply (SWS) Grants are available to public entities and federally recognized Indian Nations, Tribes, or Pueblos located fully or partly in New Mexico. Grants may support project stages from early research and feasibility studies through environmental review, final design, and construction. Details on eligibility and project types are below.
These grants support projects that improve New Mexico’s long-term water resilience, strengthen critical water infrastructure, and advance state, Tribal, or local economic development goals. NMED and OSE seek projects that:
- Support projects that can be built, funded, and operated over the long term.
- Move strategic water supply projects from planning to implementation;
- Develop, test, or show ways to produce or use treated brackish water;
- Provide lasting environmental, community, and economic benefits;
- Make freshwater resources more available and reliable; and
- Support projects that can be built, funded, and operated over the long term.
2026 SWS Grant Application Period Now Open
NMED and OSE are now accepting applications for 2026 Strategic Water Supply Grants. Funding is available to support projects that explore, develop, treat, and beneficially use brackish water to help protect New Mexico’s limited freshwater resources. More information about this funding opportunity can be found below and in the SWS Grants 2026 Request for Applications (RFA).
Applications open: August 20, 2026
Application deadline: October 20, 2026
Applicant Information Webinar: September 2, 2026, 11:30am – 12:30pm MT (register for the webinar using the link below)
2026 Grant Funding Available
Anticipated award range amounts are estimates only. NMED and OSE reserves the right to modify funding allocations based on application quality, program priorities, and available funding. Final award amounts will be determined through the application review process. Anticipated award ranges across the project categories are shown in the table below:
| Project Category | Anticipated Award Range |
| Construction Projects | $2,000,000–$10,000,000 |
| Design Pilots | $1,000,000–$3,000,000 |
| Environmental Documentation & Demonstration | $750,000–$2,000,000 |
| Feasibility Assessments | $250,000–$2,000,000 |
| Research Projects | $250,000–$750,000 |
Application Information
Eligible Entities
Eligible entities are public entities and federally recognized Indian Nations, Tribes, or Pueblos located wholly or partially in New Mexico. The Act defines a public entity as:
- Federally recognized Indian Nations, Tribes, and Pueblos located wholly or partially within New Mexico
- Counties
- Municipalities
- Political subdivisions of the State
- State agencies
- State institutions of higher education
Eligible Projects
Eligible projects include construction projects, feasibility assessments, design pilots, environmental documentation projects, and research projects. Collectively, projects funded by SWS grants will advance all phases of a brackish water project including the exploration, production, treatment and use of brackish water in New Mexico.
Pursuant to the requirements of the Strategic Water Supply Act, a successful grant project shall:
- Be approved by the State Engineer as advancing the exploration, production or treatment of brackish water in New Mexico;
- Comply with applicable state, federal, tribal, and local governmental standards and permit requirements and other provisions of law, including public notice, public hearing processes, and all other associated requirements related to public involvement, to protect existing water rights, conservation of water within the state, public welfare, public health, and the environment; and
- Clearly demonstrate how the project will advance state, tribal, or local government economic development goals in accordance with the purposes of enhancing the state’s freshwater resources.
For more information about eligible project types see the SWS Grants 2026 RFA.
Details on Different Project Types
Applicants should submit an application for the project category that best represents the primary purpose of their proposed project.
| Project Category | Description |
| Construction Projects | Develop, expand, or implement full-scale brackish water treatment facilities and related infrastructure. |
| Design Pilots | Test treatment technologies and project designs before full-scale implementation. |
| Environmental Documentation & Demonstration | Complete environmental review, permitting, and demonstration activities needed to advance projects toward implementation. |
| Feasibility Assessments | Evaluate potential projects and determine technical, financial, operational, and regulatory feasibility. |
| Research Projects | Develop innovative treatment technologies and improve scientific understanding of brackish water resources. |
For complete eligibility requirements, see Section 2 of the SWS Grants 2026 RFA.
How to Apply for 2026 SWS Grant Funding
All grant applications will be reviewed by a committee, comprised of experts from state agencies.
Instructions for how to apply can be found at the “How to Apply for SWS Grant Funding” webpage and in Section 3 of the SWS Grants 2026 RFA.
Applications open: August 20, 2026
2025 Strategic Water Supply Grants
2025 Selected Grantees
NMED and OSE launched SWS Program in 2025 to support innovative projects that diversify New Mexico’s water portfolio. The first funding round attracted applications from communities, public agencies, Tribal governments, and research institutions across the state.
2025 SWS Selected Grantees:
- Alamo Navajo School Board ($1.83M): Socorro County, Construction of a small-scale brackish water treatment plant to improve public health, water security, and community self-sufficiency.
- Arrowhead Center at New Mexico State University ($3.0M): Dona Ana County, Establishment of a Brine Valorization Accelerator Hub to convert waste brines into valuable products and build a statewide water-technology ecosystem.
- City of Anthony ($1.41M): Dona Ana County, Environmental analysis and testing for a brackish groundwater pilot, producing scalable recommendations and a permitting roadmap for statewide use.
- New Mexico Institute of Mining & Technology ($1.58M): Socorro County, Advanced membrane research to recover over 98% high-purity water while reducing brine waste and supporting clean-energy supply chains.
- Pueblo of Laguna ($6.0M): Sandoval County, Tribal-led feasibility study to characterize brackish water resources and support long-term water resilience.
- University of New Mexico ($400K): Bernalillo County, Statewide evaluation of economic and environmental tradeoffs associated with brackish water management.
- Village of Cuba ($11.7M): Sandoval County, Design of a first-of-its-kind zero-waste desalination facility estimated to produce 518,000 gallons of potable water per day while generating jobs and revenue.
2025 Grant Applicants
NMED and OSE received a total of 12 applications for the first round of the SWS Grants. Below are the entities that submitted applications for the 2025 SWS Grants:
- Alamo Navajo School Board, Inc.
- Arrowhead Center at New Mexico State University
- City of Deming
- City of Jal
- Doña Ana County
- Mesa Partners New Mexico Operating LLC
- New Mexico Institute of Mining and Technology
- Pueblo of Jemez/Natural Resources Department
- Pueblo of Laguna
- Southwest Salt Company Looking to Partner with Eddy County NM or other agencies
- The Village of Cuba, New Mexico