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KIA describes Kentucky Waters progress: 34 initial projects, $52M in 2026 awards and applications open for 2027 funding
Summary
Kentucky Infrastructure Authority reported 34 Kentucky Waters awards in the first round (23 underway), described success stories including Livingston and Mercer County, and said applications are open through Aug. 31 for the 2027 $45M-per-year funding round.
Sandy Williams, executive director of the Kentucky Infrastructure Authority (KIA), told the budget committee that the Kentucky Waters program — a state water and wastewater assistance initiative for financially strained systems — has moved from policy into projects, with construction underway on many early awards.
Williams said the program approved 34 projects in its first funding cycle and that 23 of those projects were already under way. She highlighted several local success stories: Livingston used Kentucky Waters funds to repay debt and sold its system to Kentucky American Water Company, Mercer County Sanitation District received funding for a sewer installation that will benefit Lake Harrington, and Sturgis is replacing leaking water lines after discovering missing records and a high water-loss percentage.
Why it matters: The program is designed to help small or financially stressed utilities complete capital and non-capital projects (including debt relief in limited cases) so they can stabilize finances, seek loans or transfer systems to regional operators where appropriate.
Funding and timeline: Williams said projects approved in the 2026 session totaled just over $52 million across 17 projects. For the 2027 cycle KIA said it has $45 million available in year one and $45 million in year two; applications are being accepted through Aug. 31, with KIA scoring and ranking in September-October and a legislatively required ranked list to the General Assembly by Dec. 1.
Eligibility, scoring and program changes: KIA told the committee that the eligibility threshold was tightened so applicants must meet three or more of the program's criteria (many income-based) to be considered. New scoring also awards credit when a project directly resolves a notice of violation or consent order, and KIA added provisions to improve cost-estimate accuracy including professional review (a professional engineer is asked to review estimates and timelines, though a stamp is not required) and a phased-project option to fund planning or preliminary phases of large projects.
Loan terms and grants: Kentucky Waters can provide 0% principal-repayment options with partial principal forgiveness and low-interest loans for qualifying utilities; Williams cited an example of a qualifying utility receiving a very subsidized loan at about 0.5% interest in the recent round.
Technical assistance: KIA said it offers online resources, a program handbook, application instructions, sample resolutions and two dedicated staff contacts (Rit Harrison and Cinnamon Jones) to help applicants — particularly smaller utilities unfamiliar with grant or loan administration.
Regional role and next steps: Williams explained that Area Development Districts (ADDs) collect and map local project data, rank regional priorities and feed projects into KIA's application process. KIA will continue to accept applications through Aug. 31 and expects to present a ranked list to the General Assembly by the Dec. 1 statutory deadline.
Committee members asked whether larger utilities such as Bowling Green Municipal Utilities would qualify; Williams said the program targets economically restrained systems and larger, well-run utilities generally do not qualify but can pursue other KIA programs.
At the end of the presentation the committee recessed and set its next meeting for Aug. 5.
