Program
Water Project Fund
Water Project Fund
NMFA makes loans and grants for projects recommended by the Water Trust Board. With a reliable revenue stream to fund applications annually and a transparent set of policies that guide applicants, the Water Project Fund has become an increasingly sought-after source of funding for a variety of water projects statewide.
Water Trust Board awards are a combination of grants and loans, based upon the financial capacity of the applicants.
Under the Act, there are five project types eligible for consideration of financial assistance:
- Water conservation or recycling, treatment or water reuse projects;
- Wastewater collection, conveyance and treatment;
- Flood prevention projects;
- Endangered Species Act (ESA) collaborative projects;
- Water storage, conveyance or delivery projects;
- Watershed restoration and management projects.
New Mexico Unit Fund Pilot Cycle II
Grant Funding for Water Projects
Application Round: June 26 - August 25, 2026
The Interstate Stream Commission is making $26 million available from the New Mexico Unit Fund to pay the costs of water utilization projects to meet water supply demands in the southwest planning region of the state that encompasses Catron, Grant, Hidalgo, and Luna counties.
Eligible Applicants:
- Counties, cities, towns, and villages;
- Acequias and community ditches in compliance with New Mexico state law;
- Soil and water conservation districts, conservancy districts, and irrigation districts;
- Mutual domestic water consumer associations;
- Land grant-merceds;
- An association of political subdivisions of the state;
- Indian nations, tribes, or pueblos
- Public institutions of higher education if partnered with an Indian nation, tribe, or pueblo or a political subdivision of the state located in the southwest planning region
Eligible Projects: 1) Planning, 2) Design, or 3) Construction of water utilization projects to meet water supply demands and provide a public benefit, including:
- Conservation and efficient use of water;
- Construction, repair, or protection of water infrastructure;
- Watershed health such as the restoration of riparian ecosystems, water quality improvement, or mitigation of damage to water resources from wildfire.
Grant Amounts: No individual project funding cap for general application pool requests. Please refer to the policy for Small Entities and Planning and Design special eligibility category funding opportunities.
How to Apply: Review the policy for eligibility guidelines and other important information, then click on the application link to start. Applications will be prioritized after the application period closes on August 25. Application Link
Application Period: June 26 – August 25, 2026
For more detailed information, including application review and prioritization, visit the NM Unit Fund Pilot Cycle II Policy
Questions?
Visit: NMFinance.com
Email: SRodriguez@nmfa.net
Call: (505) 629-9463
Water Project Fund/Technical Assistance Program (TAP)
TAP has free professional assistance available for water and wastewater systems in need of planning that do not have the financial means to pay for these services on their own. Types of assistance available includes the following:
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- Engineering, Technical, or Hydrological Services
- Geospatial Mapping Services
- Accounting, Legal, or Facilitator Services
TAP focuses its efforts on facilitating regionalization and individual system planning. The main objective is to help water and wastewater utilities become more cost efficient while making necessary improvements to water infrastructure by supporting regionalization, individual system planning, and technical support of the execution of water projects. A key priority of this $3.5 million program is to ensure that small and disadvantaged communities benefit equitably. Funds are awarded on a first-come, first-served basis.
The assistance provided by TAP is free, and the process is designed to be simple and streamlined for water and wastewater systems. NMFA will provide oversight and manage the respective contracts, develop scopes of work and deliverables, establish contract amounts and timelines, and pay contractors directly based upon completed deliverables.
Start the Application Process
Questions?
Featured Resources
About the Water Project Fund
Pursuant to the Water Project Finance Act, NMFA provides administrative support to the 16-member Water Trust Board and manages the Water Project Fund on its behalf.
The Water Project Fund annually receives 9% of Senior Severance Tax Bond (“STB”) proceeds as well as a distribution from the Water Trust Fund. These monies are used to fund a variety of water projects recommended by the Water Trust Board. Water Trust Board awards are a combination of grants and loans, based upon the financial capacity of the applicants.
Under the Act, there are five project types eligible for consideration of financial assistance:
- Water conservation or recycling, treatment or water reuse projects;
- Flood prevention projects;
- Endangered Species Act (ESA) collaborative projects;
- Water storage, conveyance or delivery projects;
- Watershed restoration and management projects.
New Mexico Unit Fund Planning and Design Grant Application (Pilot Program).
If you have any questions about the application or the application process, please contact Susan Rodriguez at srodriguez@nmfa.net or (505) 984-1454. The NMISC encouraged all eligible entities to apply for funding through the Pilot Cycle.