Canaan officials say $1.5M federal earmark for water projects is locked; town may lose funding

Town staff told the select board that a $1.5 million federal earmark intended for water-system work has been secured but is not currently accessible through the town’s grants account, putting the money at risk of lapse. A staff speaker reported the earmark was obtained in 2022–2023 and said the town has not been able to log into grants.gov to draw down the funds, adding urgency to resolving account access.

"You successfully got an earmark of $1,500,000 from Jean Jaheen," the staff speaker said in the transcript, noting that the money is “locked up” and that it is not clear why the town has been unable to access the account. The staff member said they will prioritize gaining access and work with state partners to prevent the funding from expiring.

The staff update also flagged aging water infrastructure that the earmark was intended to address. The speaker said water lines, lead service connections and galvanized pipe need phased remediation. He described the pumping station as in poor condition and gave a replacement cost estimate of roughly $500,000 for the pumping station alone, with a 3–5 year timeline for full replacement from design to construction if market capacity for engineering firms is available.

Board members asked staff to pursue immediate steps with the New Hampshire Department of Environmental Services and grants administrators to determine why the town cannot access the account. The staff speaker said he will research the account access issue, report back on options to secure the funds, and provide periodic updates to the board.

The board did not take a final action on the projects during the meeting; staff recommended further work and possible follow-up sessions to address grant-account access and project sequencing.