Public Finance Authority seeks funding for North Dakota clean water program disparities

The Senate Appropriations Committee meeting on April 7, 2025, focused on funding for the Clean Water State Revolving Fund (SRF) and highlighted significant disparities in grant availability between clean and drinking water programs in North Dakota. Linda Swyhovick, representing the Public Finance Authority, emphasized the need for increased support for clean water initiatives, particularly for small communities struggling to finance essential infrastructure projects.

Swyhovick explained that the Clean Water SRF program allows communities to secure loans to match grants, but noted that the current funding landscape heavily favors drinking water programs. She provided statistics showing that from 2023 to the present, the clean water program approved 33 loans totaling approximately $212 million, with only eight receiving grants from other sources amounting to $25.5 million. In contrast, the drinking water program had 38 loan approvals for about $137 million, with 27 grants totaling $98 million.

The disparity in funding is particularly concerning for small towns, which often face the same costs for infrastructure improvements as larger communities but lack the financial capacity to repay loans. Swyhovick pointed out that many small communities, some with populations as low as 154, are replacing critical infrastructure like water mains and lead pipes, making grant support essential for their sustainability.

During the meeting, committee members raised questions about the fairness of grant distribution, particularly regarding how funding impacts residents in communities with varying property values. Swyhovick clarified that water and sewer rates are typically based on usage rather than property value, ensuring that higher-value homes pay more if they consume more water.

The committee's discussions underscored the urgent need for equitable funding solutions to support clean water initiatives across all communities in North Dakota. The Public Finance Authority's call for increased funding aims to address these disparities and ensure that all residents have access to safe and reliable water infrastructure.