Iowa has approved a $319 million water quality funding package that will support drinking water, wastewater, and watershed improvement projects over the next 12 years. The legislation, known as Farm to Faucet, takes effect on July 1, 2026.
A key component of the package is a one-time $25 million investment in Central Iowa Water Works to expand nitrate removal capacity. The utility plans to increase treatment infrastructure over the next three years following recent challenges linked to elevated nitrate levels in source water supplies.
The legislation also creates the Rural Iowa Infrastructure Bank with $10 million in initial funding. The revolving loan program will provide financing at interest rates of 1 percent or less for small and mid-sized communities upgrading water and wastewater infrastructure.
Additional funding will support water quality monitoring and treatment improvements statewide. The package allocates an extra $500,000 annually for Iowa’s water quality monitoring network and increases support for the state’s Wastewater and Drinking Water Treatment Financial Assistance Program. The legislation also raises the maximum grant award under that program from $500,000 to $1 million.
The funding package directs an estimated $52 million over 12 years toward conservation practices in the Greater Des Moines watershed. Eligible projects include cover crops, wetlands, edge-of-field buffers, and grazing systems designed to reduce nutrient runoff and improve water quality.
State officials estimate the package will provide nearly $320 million in water quality investments without creating a new funding source.