Financing Involved
Beginning in FY 2024, the Legislature began appropriating State Water Plan Fund (SWPF) moneys and directing transfers from the State General Fund (SGF) to the SWPF that were higher than historical averages. During this time, SWPF appropriations were directed at water infrastructure projects; however, SWPF was not the sole funding source directed to finance water infrastructure projects. The Legislature and the State Finance Council approved additional financing for water infrastructure projects from the SGF and the federal American Rescue Plan Act (ARPA) fund. These SWPF, SGF, and ARPA appropriations for water infrastructure projects were made to the Kansas Department of Health and Environment (KDHE)–Division of Environment and the Kansas Water Office (KWO).
Kansas Department of Health and Environment–Division of Environment
The Small Town Water and Sewer Infrastructure Grant Program (Program) is operated by the Bureau of Water within the Division of Environment, KDHE. The Program is made available to small towns with populations of less than 1,000 for technical and financial assistance to improve drinking water and sewage infrastructure. From FY 2024 to FY 2025, the Program has used a mix of ARPA, SWPF, and SGF to finance these grants. No additional appropriations have been made to the Program for FY 2026 or beyond.
ARPA. In FY 2024, the Program received a $10.0 million appropriation of State ARPA funds, of which $5.0 million was awarded to seven recipients for drinking water projects, and $5.0 million was awarded to nine recipients for sewage projects.
SWPF. In FY 2024, $3.2 million SWPF was approved for the Program. The moneys financed one drinking water project and two sewage projects.
SGF. In FY 2025, $16.0 million SGF was approved for the Program. The moneys financed six drinking water projects totaling $5.0 million and seven sewage projects totaling $11.0 million.
Kansas Water Office
The 2023 Legislature passed, and the Governor signed, Senate Sub. for HB 2302, which, among other things, created the Water Projects Grant Fund and the Technical Assistance Grant Fund to be administered by the KWO. The legislation was enacted into statute as KSA 82a-955 through 82a-957.
See the interactive chart from the Kansas Water Office.
Technical Assistance Grant Fund. The 2023 Legislature directed transfers from the SWPF to the Technical Assistance Grant Fund totaling $5.0 million for FY 2024.
For FY 2025 and FY 2026, approved transfers from the SWPF to the Technical Assistance Grant Fund total $7.5 million and $5.5 million, respectively. Transfers from the SWPF are the only source of revenue for the Technical Assistance Grant Fund.
To date, the Technical Assistance Grant Fund has been used to finance 58 grants. In FY 2024, a total of $5.0 million was awarded to 19 grants. The remaining 39 grants, totaling $7.4 million, were awarded in FY 2025.
Water Projects Grant Fund. The 2023 Legislature directed transfers from the SWPF to the Water Projects Grant Fund totaling $12.0 million for FY 2024. The 2025 Legislature added another $1.0 million transfer from the SWPF to the Water Projects Grant Fund for FY 2024.
For FY 2025 and FY 2026, approved transfers from the SWPF to the Water Projects Grant Fund total $19.5 million and $12.5 million, respectively. The Water Projects Grant Fund is exclusively funded by transfers from the SWPF.
To date, the Water Projects Grant Fund has been used to finance 9 grants totaling $11.9 million in FY 2024 and 24 grants totaling $16.8 million in FY 2025. The Fund has also provided funds for 6 loan assistance grants totaling $1.1 million in FY 2024, and another 7 loan assistance grants totaling $2.1 million in FY 2025.
Combined State Assistance
Across fiscal years 2024 and 2025, KDHE awarded a total of $29.2 million, from all funding sources, administering the Program.
Similarly, KWO has provided $12.3 million from the Technical Assistance Grant Fund and $31.9 million from the Water Projects Grant Fund for a total of $44.2 million in funding.
In aggregate, these initiatives have invested $73.5 million, from all funding sources, in water infrastructure projects in Kansas since the start of FY 2024.