KY Division of Water Adds Sewer Overflow and Stormwater Reuse Municipal Grant (OSG) for 2026

Gov. Beshear: Funds Available for Local Governments to Boost Stormwater Infrastructure and Prevent Flooding

FRANKFORT, Ky. (April 7, 2026) – Today, Gov. Andy Beshear announced local governments can apply for grant funding to improve stormwater infrastructure and protect the health and safety of their communities. Project applications must be submitted to the Kentucky Division of Water no later than July 10, 2026. Additionally, letters of intent to apply, which are optional but highly recommended, are due to the Kentucky Division of Water by May 15, 2026. Communities that submit a letter of intent will receive feedback on their project that may assist in development of their application.

“Too many Kentucky families have seen heavy rain turn streams into rivers, make roads impassable, and flood homes and businesses,” said Gov. Beshear. “These funds use practical tools that strengthen infrastructure and protect our people during future storms.”

Funded through the America’s Water Infrastructure Act of 2018, the Sewer Overflow and Stormwater Reuse Municipal Grant (OSG) program helps local governments address infrastructure needs and better manage stormwater. The program supports projects that use natural solutions, which can include a variety of measures that mimic or enhance natural systems to store or disperse stormwater. Funding can be used for planning, design and construction of eligible projects.

Stormwater overflows cause health and safety concerns in addition to flooding. Trash, chemicals, oils and pollutants get deposited into community waterways, increasing the pollution and public health concerns. An excessive stormwater event can flood wastewater systems and may lead to sewer overflows.

In 2025, Gov. Beshear awarded more than $866,000 in OSG improvement projects. The city of Millersburg received $296,000 to install permeable sidewalks and trees to capture stormwater and help address that town’s stormwater challenges.

“Millersburg is grateful to have received this grant, which will allow us to take meaningful steps toward addressing long-standing stormwater challenges in our community,” Millersburg Mayor Julie Hopkins said. “With aging infrastructure, poor drainage, and recurring localized flooding, this investment will help us improve safety, protect property, and enhance walkability through upgraded systems and green infrastructure solutions. For a small, rural city like ours with limited financial resources, this funding is truly transformative and will have a lasting impact on our residents and our future.”

Communities that qualify as rural or disadvantaged will receive priority. Rural communities are classified as those with a population of less than 10,000. Communities with a median household income of less than 80% of the state’s median household income qualify as disadvantaged. Communities that do not meet definitions for rural or disadvantaged are required to provide 20% matching funds.

Kentucky Division of Water staff will review the project applications and rank them according to eligibility and priority criteria.

To determine if your project is eligible and to obtain the letter of intent form and other supporting documents, please visit the grant funding program page (bit.ly/OSGKY).

For more information, contact Dale Booth at 502-782-6895 or dale.booth@ky.gov.

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