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Lawmakers hear push to fund $15 million annual state aid grants for municipal wastewater projects
Summary
Representatives urged the Finance Committee to level-fund a $15 million annual State Aid Grant program (RSA chapter 486) to help municipalities afford wastewater projects, leveraging federal funds and supporting housing growth.
Representative Tom Buco introduced House Bill 97, which would appropriate $15 million in fiscal years 2026 and 2027 for state aid grants to municipalities for planning, design and construction of wastewater projects under RSA chapter 486.
Buco told the committee the appropriation would “level fund” a program that historically has been funded inconsistently and that reliable state aid improves municipal willingness to issue debt and proceed with costly wastewater projects. He said steady state funding also supports the governor’s stated housing priorities by enabling communities to expand water and sewer infrastructure.
Witnesses gave technical and practical reasons for the appropriation. Ian Hanley, executive director of the State Conservation Committee, and Patrick Hounsell (North Conway) and others described how $15 million in state funding leverages federal programs — state revolving funds and USDA Rural Development — to support hundreds of millions of dollars of local infrastructure. Hounsell said $15 million a year leverages roughly $600 million of completed infrastructure and long-term debt.
Margaret Burns of the New Hampshire Municipal Association reiterated that the grants typically cover 20–30% of eligible planning, design and construction costs and argued inconsistent state funding has forced municipalities to cover the state share in past years. Sheila Connolly of the New Hampshire Water Pollution Control Association said roughly 100 of 234 communities operate publicly owned treatment plants and stressed the public-health and environmental importance of the program.
Committee members asked about the statutory priorities and mechanics. Representative Mooney asked if DES maintains a priority list; Buco and witnesses said DES administers project approval and maintains a priority list, and municipalities generally must complete projects before receiving payment. Representative Munoz and others asked whether the appropriation was targeted to previously identified towns; Buco said the appropriation would fund the overall state-aid program rather than distribute money to specific towns by the bill language.
No committee vote was held; the committee said HB 97 will go to division for further consideration.
