Environmental Protection Agency announced $11.75 million in federal grant funding for ten midsize and large drinking water systems across the country. The initiative aims to strengthen cyber defenses against rising attacks and build infrastructure resilience against extreme weather events like wildfires, hurricanes, and flooding.
Federal Funding Targets Water System Vulnerabilities Across the Country
Communities from Florida to California are slated to receive significant financial support through the Midsize and Large Drinking Water System Infrastructure Resilience and Sustainability grant program announced by the U.S. Environmental Protection Agency. The awards address a dual threat facing critical public utilities: the increasing frequency of digital intrusions and the physical battering dealt by severe weather.
High-profile digital strikes have targeted more than 100 drinking water and wastewater systems across 12 states over the past year. At the same time, municipal operators face mounting destruction from natural hazards, requiring urgent updates to facilities, storage tanks, and power backups to ensure uninterrupted service.
Allocations for Infrastructure and Cybersecurity Upgrades
The competitive grant process, managed through a Notice of Funding Opportunity, awards federal dollars to public water systems serving populations of 10,000 residents or more once administrative requirements are satisfied. The ten selected projects span a wide range of regional climate and security challenges.
| Recipient System | Grant Amount | Targeted Threat or Upgrade |
|---|---|---|
| City of Lake City, FL | $189,875 | Cybersecurity modernization of SCADA and pump control systems |
| City of Orange City, FL | $1,068,750 | Hurricane resilience via stormwater and generator upgrades |
| City of Bloomington, IN | $2,375,000 | Facility, backup generator, and SCADA system upgrades |
| City of Bay City, TX | $1,110,105 | New well construction for hurricane and extreme event resilience |
| City of Coffeyville, KS | $687,240 | Treatment plant repairs and standby generator installation |
| Denver Water, CO | $1,125,000 | Dam infrastructure upgrades to mitigate wildfire and flood risks |
| City of San Diego, CA | $2,375,000 | Programmable Logic Controller replacement for cyber defense |
| City of Anderson, CA | $804,530 | Water tank replacement and smart monitoring for drought and wildfire |
| City of Hemet, CA | $1,150,000 | Storage tank and transmission main upgrades for wildfire and heat |
| California-American Water Company, Sacramento, CA | $864,500 | Wildfire system upgrades and emergency generator purchase |
Broader Federal Initiatives and Technical Support
This round of grants forms one component of a wider federal effort to safeguard vital resources. EPA Assistant Administrator for Water Jess Kramer emphasized the necessity of these measures for everyday public health.
“American families, businesses, and schools rely on their local drinking water system to provide clean and safe water, day-in and day-out. Cyberattacks, wildfires, flooding, and other hazards represent a significant risk to water system operations, and EPA provides vital support to help increase resiliency to such threats.”
Jess Kramer, EPA Assistant Administrator for Water
In addition to financial awards, the agency actively identifies digital vulnerabilities. During 2025, federal regulators proactively examined 277 water systems, deploying individualized solutions that included authentication protocols and strict access controls. Free technical assistance, assessments, and planning tools remain accessible to local utilities through the federal cyber water portal.
Lawsuit Challenges Department of Energy Grant Terminations
While water infrastructure projects receive funding, organizations that had received federal funding for environmental projects have filed a class action lawsuit in federal court in Boston on Wednesday, September 10, 2026, according to reuters.com. The lawsuit alleges that the U.S. Department of Energy unconstitutionally terminated nearly 300 grants worth billions of dollars due to the recipients residing in states that tend to vote for Democratic candidates. Plaintiffs ranging from a sustainable cement production company to a California-based non-profit filed the lawsuit, which takes aim at a decision by the Energy Department during the most recent government shutdown in October 2025 to terminate grants that largely supported projects promoting environmentally friendly energy. According to reuters.com, grantees were informed in termination letters that their funding was being halted because the grants do not effectuate the Department of Energy’s priorities of ensuring affordable, reliable, and abundant energy.
However, the complaint states that in the year since, the Trump administration stipulated in three other lawsuits that a primary reason the grants were terminated was that the grantee at issue was located in a “blue state. An Energy Department spokesperson stated in a comment reported by reuters.com:
None of the termination decisions were based on political considerations. Meanwhile, White House budget director Russell Vought announced on social media the termination of nearly $8 billion in funding
to fuel the Left’s climate agenda,” noting in a subsequent post that those projects were in 16 states that voted for Kamala Harris in the 2024 presidential election, including California and New York. The lawsuit, filed as Furno Materials v Wright in the U.S. District Court for the District of Massachusetts under case number No. 1:26-cv-14131, lists plaintiffs including Furno Materials (a California-based company focused on sustainable cement production that received a $20 million grant), Coonamessett Farm Foundation (a Massachusetts-based research foundation which lost a $3.5 million grant), and the California Green Building Council (previously awarded $3.8 million). Legal representation for the plaintiffs includes Emma Lerner Freeman of Lerner Freeman Law, Jamie Crooks of Fairmark Partners, and Gabriel Daly of Roselle LLP, as detailed by reuters.com.
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