Fort Smith may seek state grant money for water, sewer system work
The city of Fort Smith plans to apply for funds from a new state grant program for water and sewer treatment work, but the process and available funding point to the difficulty in securing enough grant funds to make a dent in the significant needs of the city’s water system.
The Arkansas Department of Agriculture announced July 9 it is accepting applications for the Water and Sewer Treatment Facilities Grant Program created under Act 812 of 2025. The program will provide $25 million annually for three years for “shovel‑ready water and wastewater infrastructure projects,” according to the department.
“Communities across Arkansas have critical water and wastewater projects that are ready to move but need additional support to get across the finish line,” Arkansas Secretary of Agriculture Wes Ward said in the July 9 press release. “This grant program is designed to close that gap. By focusing on shovel-ready projects, we are helping communities move from planning to construction and making targeted investments in the infrastructure Arkansas families, businesses, and industries depend on every day.”
Applications for the new grant must be submitted no later than Sept. 11, 2026, and awards are expected to be announced at the Arkansas Natural Resources Commission meeting in November. Since 2021, the department has awarded nearly $2.8 billion in financing for water and wastewater projects.
Chris Hoover, government relations and grants manager for the city of Fort Smith, told Talk Business & Politics that city staff is working on an application package to present to the Fort Smith Board of Directors in early September.
“Yes, we have internally met to discuss this, and we do plan on applying. Unfortunately, only $20 million of this is eligible for cities of the 1st/2nd class, so it is going to be extremely competitive,” Hoover said in a statement.
As to the competition, Hoover said as of April 1 there were $1.518 billion worth of estimated costs for clean water projects in the state, and $1.746 billion for drinking water projects in Arkansas. Hoover said a majority of what the state has to offer to municipalities for water and wastewater help are in the form of loans instead of grants. He said the proposed federal budget for fiscal year 2027 indicates a reduction in money states will have for grants and loans.
Following are projects the city may submit to the board to approve for the grant application.
• Lake Fort Smith pump station: $1.1 million
Arkansas portion: $770,000
Fort Smith portion: $330,000
• Lake Fort Smith media filter: $1.5 million
Arkansas portion: $1.05 million
Fort Smith portion: $450,000
• Massard Wastewater Treatment Plant (belt press): $1.25 million
Arkansas portion: $875,000
Fort Smith portion: $375,000
• Northside lift station: $1.25 million
Arkansas portion: $875,000
Fort Smith portion: $375,000
WATER SYSTEM NEEDS
The complex and expensive Fort Smith water system needs include upgrades at the Lake Fort Smith water treatment plant in Mountainburg, Lee Creek water treatment plant upgrades, completion of a new water transmission line from Lake Fort Smith to the eastern side of Fort Smith, aging distribution lines in the city, and modern water meters for all customer categories.
Water-treatment plans, and completion of a 48-inch water transmission line are estimated to cost between $328 million and $585 million, according to an August 2025 report to the board. That cost estimate does not include replacing aging water lines and modernizing water meters. Existing revenue is not near enough to meet the funding needs.
The board in August 2025 rejected a plan put forth by city staff to begin the process of replacing water meters in the city. The estimated cost for that project ranged between $20 million and $48 million. The board on March 17 approved an estimated $5.2 million for the 2026 “Prioritized Capital Improvement Plan for Water.”
Despite frequent requests for water system funding and frank warnings from top city engineers about system deterioration and critical needs, the board has been reluctant to consider significant new revenue options.