Ashland Secures $73 Million Federal Loan to Advance Water Treatment Plant Amid FEMA Grant Cuts

ASHLAND, Ore. — While recent changes to FEMA’s Building Resilient Infrastructure and Communities (BRIC) grant have raised some concerns, the City of Ashland Water Treatment Plant Project remains fully funded through a long-term, low-cost federal loan, and additional grants are still being sought to help reduce the financial burden on local ratepayers.

Ashland Water Treatment Plant Funding

Even as the City navigates shifts in federal grant programs, a $73 million loan from the Environmental Protection Agency’s Water Infrastructure Finance and Innovation Act (WIFIA) program is still the cornerstone of the project’s financing.

The WIFIA loan’s flexible repayment terms could save the City approximately $11 million over its life, helping minimize the cost impact on water ratepayers.

While the projected cost of the project is between $55.68M (low) and $71.15M (high), the WIFIA supports Ashland’s Water System Resiliency Improvement Project, which carries a total estimated cost of $113 million (over the 35-year loan term), will serve 21,000 people.

The City of Ashland also issued revenue bonds to cover financing of the construction of the water treatment plant after Measure 15-234 met with overwhelming support.

Although Ashland had pursued a FEMA BRIC grant to help offset the treatment plant’s cost, FEMA canceled all 2024 BRIC sub-applications and halted funding for previously awarded projects in April 2025.

While the cancellation of the BRIC program has no impact on the viability of the Water Treatment Plant Project, as the WIFIA loan already provides full funding, the City is still pursuing grant funding to lessen the impact on ratepayers.

Coordinating with the Oregon Office of Emergency Management (OEM) and the City’s grant consultant, West Yost, Ashland pivoted from BRICS to FEMA’s Flood Mitigation Assistance (FMA) program, which remains active and continues to fund eligible projects. Most of the BRIC application materials for the new FMA submission- now under review, were repurposed.

Additionally, a potential $9.8 million in additional grant support could emerge in 2026-2027, as the City is also collaborating with the Oregon Infrastructure Finance Authority (IFA) on grant funding through the Bipartisan Infrastructure Law – Emerging Contaminants (BIL-EC) program.

Progress on the Ashland Water Treatment Plant project can be tracked on the Ashland WaterPlant website.