Iowa’s newly enacted appropriations bill, HF 2771, represents a significant, long-term investment in water quality and infrastructure across the state.

The legislation includes the “Farm to Faucet” package and commits $319 million over the next 12 years, with a strong focus on supporting communities, especially small and mid-sized municipalities, in addressing drinking water and wastewater challenges. Water quality continues to be a top priority in Iowa, particularly as communities face increasing pressure from nutrient contamination and aging infrastructure. HF 2771 delivers expanded funding, more flexible financing options, and strategic investments to help communities move critical projects forward.

Overview

HF 2771 restructures how Iowa funds water quality initiatives, prioritizing proven programs and expanding access to financial assistance. Key changes include the elimination of the Water Quality Financing Program and the redistribution of its $8.5 million annual funding to other, more targeted initiatives.

City of Asbury water improvement updates included increased water storage and distribution.

Who Benefits

This legislation is designed to support:

• Cities and municipalities, particularly small and mid-sized communities
• Utilities and regional water systems
• Rural communities needing affordable financing for infrastructure upgrades

Additionally, large regional systems like Central Iowa Water Works (CIWW) will receive targeted investments to address critical treatment capacity needs that affect a significant portion of the state’s population.

Key Programs & Funding Opportunities

1. Wastewater and Drinking Water Treatment Financial Assistance Program (WTFAP)

• Annual funding increased from $7.7 million to $12.09 million
• Includes a one-time $8 million boost
• Grant maximum increased to $1 million (up from $500,000)
• Supports upgrades to wastewater and drinking water treatment facilities and systems
• Next application cycle is expected later this summer

2. Rural Iowa Infrastructure Bank (New)

• $10 million one-time revolving loan fund
• Provides low-interest loans (1% or less)
• Designed for small and medium-sized communities
• Funds water and wastewater infrastructure improvements

An upgraded wastewater treatment facility in La Porte City cost-effectively boosts compliance and long-term resiliency.

3. Central Iowa Water Works Investment

• $25 million one-time allocation
• Will double nitrate removal capacity within three years
• Supports a system serving 1 in 5 Iowans

4. Additional Water Quality Investments

• Creation of the Greater Des Moines Watershed Program with $3.72 million annually
• Increased funding for water quality monitoring (totaling ~$3.5 million statewide)
• Expanded support for conservation practices through IDALS, including cover crops, wetlands, and nutrient reduction strategies

Types of Projects Covered

• Drinking water treatment facility upgrades
• Wastewater treatment improvements
• Nutrient and nitrate removal enhancements
• Infrastructure modernization and expansion
• Conservation and watershed-based water quality initiatives

Conservation, nutrient reduction, and watershed-based water quality efforts qualify.

Eligibility

While specific criteria vary by program, funding is generally available to:

• Cities and municipalities
• Public water and wastewater utilities
• Regional and watershed-based partnerships
• Small and rural communities seeking infrastructure improvements

Timeline & Next Steps

• WTFAP grant applications: Expected later this summer
• Loan funding availability: Rolling or program-specific timelines
• Regional and watershed initiatives: Multi-year funding commitments beginning immediately

As Iowa’s “Farm to Faucet” legislation begins to take shape, it represents more than just funding — it signals a meaningful shift toward proactive, long-term solutions for water quality and infrastructure challenges. With expanded programs, increased financial support, and new opportunities for communities of all sizes, this initiative provides a critical foundation for improving drinking water systems, strengthening wastewater treatment, and advancing conservation efforts statewide.

As additional guidance, timelines, and implementation details emerge, staying informed will be key to making the most of these opportunities. Be sure to stay tuned for more updates, insights, and practical information to help communities navigate what’s ahead and turn this historic investment into lasting impact.