Securing funding for water infrastructure projects has never been more complex. Between shifting federal funding priorities, new compliance regulations such as the Build America, Buy America (BABA) Act, and evolving technologies, utilities face increasing pressure to deliver projects that are not only shovel-ready but strategically aligned.

The American Water Works Association’s 2025 State of the Water Industry Report made it clear: aging infrastructure and capital financing remain top challenges for utilities of all sizes. With over 60% of surveyed utilities reporting they “rarely or never” access grant funding or a state revolving fund (SRF), it’s clear that an untapped opportunity exists. 

At the same time, emerging contaminants like PFAS chemicals, impacts of increasingly severe weather events, and a retiring workforce make the landscape even more unpredictable. Navigating this terrain requires a blend of foresight, flexibility, and funding fluency. 

The most successful applicants aren’t just responding to notices of funding opportunities (NOFO), they’re anticipating them. These utilities embed funding considerations directly into their long-term capital planning. That means identifying potential projects early, mapping them to known funding sources, and preparing required documentation and partnerships in advance.

They also think creatively. An applicant’s project may offer benefits such as resilience or water quality improvements that closely align with funding agency goals, even if, at first glance, the project scope may not perfectly match a NOFO. Slight project tweaks like phased construction or added community engagement can tip the scales from eligible to competitive.

Take a real-world example: a $9.4 million PFAS contamination treatment project that received $7.52 million in grants and $1.88 million in low-interest loans from an SRF. Early in planning, the team identified items that couldn’t meet BABA requirements, such as control panels and instrumentation totaling $440,000.

By applying the de minimis rule (5% of total project cost = $470,000), they remained compliant without submitting a waiver.

Early documentation, centralized tracking, and coordination across contractors were keys to success. Waiting until the end of design or construction would have jeopardized eligibility.

The funding journey doesn’t end at award. Agencies now scrutinize project execution just as closely as proposals. Utilities must be prepared to: 

• Submit detailed documentation for drawdowns or reimbursements. 
• Navigate evolving procurement rules and wage requirements. 
• Communicate project changes early to key stakeholders. 
• Manage BABA compliance, environmental reviews, and audits. 

From engineers and contractors to regulators and community members, everyone needs to be aligned with funding conditions and timelines. Document everything, from procurement rationale to shop drawing certifications, to avoid post-award surprises. 

At GFT, we help our clients do more than win funding. We help them build lasting legacies. Our experience across federal, state, and local governments means we can decode evolving requirements and anticipate challenges before they arise. 

Whether it’s evaluating your capital plan through a funding lens, preparing funding and waiver applications, or aligning your project with equity and climate goals, we act as a nimble, informed partner. 

As the Bipartisan Infrastructure Law, also known as the Infrastructure Investment and Jobs Act, sunsets in 2026 and federal priorities continue to shift, proactive and informed action is your best defense against uncertainty. Funding is available, but only for those prepared to pursue it with strategy, creativity, and consistency. 

If you’re ready to move from uncertainty to execution, let’s talk.