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Rural Infrastructure Authority seeks recurring funds to address persistent water and sewer needs
Summary
The Rural Infrastructure Authority told lawmakers it has funded nearly 100 projects and seeks to convert one‑time ARPA allocations into recurring funds — asking for $12 million recurring for the rural fund and $12 million recurring for the statewide fund to meet ongoing demand.
Bonnie, executive director of the Rural Infrastructure Authority, told the committee RIA focuses on water, wastewater and stormwater infrastructure and reported the authority funded 99 projects totaling about $195,000,000 last year through grants and loans.
Bonnie said RIA’s loan portfolio exceeds $2,000,000,000 with $850,000,000 in outstanding receivables and that the authority can offer incentive rates (she cited a 2.6% promotional rate) to attract borrowers. She stressed the authority has not experienced a loan default and highlighted a rapid‑assessment program that brings technical, financial and management experts to small communities to produce actionable recommendations.
RIA said it has expended roughly $710,000,000 of ARPA SCIP funds to date and expects to disburse another large tranche before the program deadline of December 31, 2026. To sustain support beyond one‑time funding, Bonnie requested converting prior one‑time awards into recurring appropriations: $12,000,000 recurring for the rural fund and $12,000,000 recurring for the statewide fund. She said the authority received far more applications than it could fund and aims to prioritize projects that yield regional solutions and drainage improvements.
Committee members praised RIA’s work and asked about coordination with other agencies and how to avoid returning unused ARPA funds to the federal government. RIA said it would welcome guidance and reiterated the December 2026 expenditure deadline.
