Governor Stein, Department of Environmental Quality Announce $204 Million for Drinking Water and Wastewater Projects

Raleigh, NC - Governor Josh Stein announced on July 23 that 27 counties across the state will receive more than $204 million in funding for 48 drinking water and wastewater infrastructure projects. The awards will improve drinking water and wastewater infrastructure, address PFAS and other forever chemicals, identify and replace lead pipes, and improve resiliency after future storms.

“When you turn on the faucet in your home, you shouldn’t have to worry about whether that water is safe for your family,” said Governor Josh Stein. “These investments will help ensure North Carolinians have access to clean drinking water and will help keep people safe when disaster strikes."   

“At DEQ, we’re committed to ensuring everyone in North Carolina has access to clean water,” said Department of Environmental Quality Secretary Reid Wilson. “This funding will address aging infrastructure and improve public health for communities large and small.”

Notable projects include:

• The Town of Bryson City (Swain County) will receive $9.2 million in Clean Water State Revolving Funds for wastewater treatment plant improvements.
• The Town of Waynesville (Haywood County) will receive $8.2 million from the Clean Water State Revolving Fund for improvements to the Little Champion Gravity Sewer and Pump Station.
• The City of Graham (Alamance County) will receive $3.4 million in Infrastructure Investment and Jobs Act (IIJA) Drinking Water State Revolving Fund-Emerging Contaminant (PFAS) Construction funding for Graham-Mebane Water Treatment Plant improvements.
• The Fayetteville Public Works Commission (Cumberland County) will receive $20.5 million from IIJA Drinking Water State Revolving Fund Emerging Contaminant (PFAS) Construction funding for the P.O. Hoffer / Glenville Lake Water Treatment Plant Granulated Activated Carbon (GAC) facility.
• The Town of River Bend (Craven County) will receive $6.3 million in Drinking Water State Revolving Funds for Phase II drinking water improvements.
• The Martin County Regional Water and Sewer Authority will receive $1 million in IIJA Drinking Water State Revolving Fund-Emerging Contaminant (PFAS) Construction funding for GAC filters for PFAS removal.
• The City of Lenoir (Caldwell County) will receive $5.6 million from the Clean Water State Revolving Fund for Lower Creek Wastewater Treatment Plant Process Basin Improvements. Lenoir will also receive $1 million in IIJA Drinking Water State Revolving Fund Lead Service Line funding for its Lead Service Line Inventory Phase 3 project.
• The City of Lexington (Davidson County) will receive $13.7 million in Clean Water State Revolving Funds for the Lexington Regional Wastewater Treatment Plant Solids Handling Improvements project.
• The City of Henderson (Vance County) will receive $10.7 million from the Clean Water State Revolving Fund for the Sandy Creek Pump Station and Force Main project.
• The Town of Warrenton (Warren County) will receive $10 million from the Clean Water State Revolving Fund for its Phase IV Wastewater Treatment Plant Improvements project.
• The City of Sanford (Lee County) will receive $7.3 million in Clean Water State Revolving Funds for its Dry Creek Basin Sewer Rehabilitation project and $1 million each for its Sanford/TriRiver Water/Chatham County and Sanford/TriRiver Water/Siler City Lead Service Line Inventory projects.
• The Pfeiffer-North Stanly Water Association (Stanly County) will receive $4.9 million in Drinking Water State Revolving Funds for its N. Main Street and Old 52 waterline replacement project.
• Carolina Water Service, Inc. will receive a total of $5.5 million for six projects involving PFAS-related, lead service line identification or water line-related funding in Cumberland, Gaston, Moore and Pender counties.

A list of all projects selected for funding is available on the North Carolina Department of Environmental Quality (NCDEQ) website.

NCDEQ’s Division of Water Infrastructure reviewed 133 eligible applications, which requested a total of $1.57 billion. The State Water Infrastructure Authority approved the awards during its July 16 meeting. The Authority is an independent body with primary responsibility for awarding federal and state funding for water infrastructure projects. 

Funding this round came from the State Revolving Funds, including IIJA funds. The State Revolving Funds provide low-interest loans that may be partially forgiven for drinking water and wastewater projects. State Revolving Funds are funded by federal capitalization grants and revolving loan repayments. This round included IIJA Emerging Contaminants (PFAS) funds and IIJA Lead Service Line Replacement funds. 

The Division of Water Infrastructure’s Fall 2025 funding round begins July 29. Applications are due by 5 p.m. Sept. 30, 2025. Funding for the Fall 2025 round will come from multiple existing programs, including evaluating options to address PFAS contamination, identifying and replacing lead service lines, and Viable Utility Reserve grants. The Viable Utility Reserve provides grants to local government units that are designated as Distressed for planning and construction projects that will support the long-term viability of the utility.?

In addition, the Division will accept applications on a rolling basis for the new federal supplemental appropriations from the 2025 American Relief Act to build resilience to infrastructure for Hurricane Helene-impacted communities. Helene State Revolving Fund supplemental funds for western North Carolina towns that have experienced Helene damage will continue to be available through year-round applications starting at the end of July until 2026.  

The Division of Water Infrastructure will conduct in-person funding application training for the Fall 2025 funding round at six locations: Clyde, Hickory, Boone, Fayetteville, Winterville, and Research Triangle Park/Durham. A virtual option via Webex will also be available, and a recording of the training will be posted on the Division’s training web page.

Learn more about the Division of Water Infrastructure’s funding programs here.