HB 2302 grant programs remain oversubscribed; task force hears small-city plea for sustained funding
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Summary
The task force heard that HB 2302s technical assistance and water projects funds have seen hundreds of applications and dramatic unmet need. Victoria Asbury of the Kansas Water Office reviewed program rules, eligibility, evaluation criteria and recent application totals, and a small-city grant writer urged continued and expanded funding.
The Kansas Water Office reported large demand for the HB 2302 grant programs created by the 2023 legislature and funded by a State General Fund transfer to the State Water Plan Fund.
Victoria Asbury described two statutory grant lines created by HB 2302: (1) a Technical Assistance Fund (statutory cap per award $1,000,000) to help municipalities and water districts prepare plans, engineering and other pre-construction technical work; and (2) a Water Projects Fund (statutory cap per award $8,000,000) to support construction, repairs, match for federal grants and specified KDHE loan assistance. The law mandated transfers and initial allocation; the legislature added modest additional amounts for the FY26 award round.
The Water Office reported three competitive cycles: FY24 (309 applications requesting $380 million; $18 million awarded), FY25 (269 applications requesting $233 million; $27 million awarded) and FY26 (281 applications requesting $272 million; $18 million available). The Office said application review was underway for FY26 and awards would be announced after scoring.
Asbury noted statutory priorities, including a directive that some fee revenue be used for public water technical assistance and an expressed legislative preference for supporting smaller communities (the application guidance and Office prioritization have emphasized municipalities under 2,000 population). She also told the Task Force the Office had developed evaluation criteria that include statutory factors (population, public-health and socioeconomic considerations) and additional program criteria (emergency issues, regionalization, conservation elements). The Office said draft rules and formal regulations were still under development and that staff are publishing program guidelines for now.
Public commenter Christy Cruz, a grant writer who works with very small Kansas cities, told the task force HB 2302 had helped communities buy meters and prepare projects but that funding remains inadequate: "There's a massive need for this funding," she said, and urged sustained funding and investments in asset-management and match assistance to help small utilities apply and plan.
Why it matters: The HB 2302 transfers boosted short-term capacity but demand greatly exceeds available funds. The water office advised the task force that grant rules and monitoring processes are being refined and that several statutory and administrative choices (e.g., prioritization for communities under 2,000 and loan‑assistance caps) materially affect which communities receive awards.
