Language Translation
  Close Menu


The Indiana Department of Environmental Management (IDEM) assists communities in meeting their environmental responsibilities and goals through environmental projects. In order to accomplish these projects, IDEM works in cooperation with other agencies to provide funding in the form of grants and loans.

The following grants and loans are available for local governments and other eligible entities who wish to tackle environmental problems within their community:

Funding Programs

Clean Water Act

Section 205(j) Grants

Section 205(j) grants are for water quality management planning to determine the nature, extent and causes of point and non-point source pollution problems, as well as develop plans to resolve these problems.

  • Eligible Entities: Municipal governments, county governments, regional planning commissions, and other public organizations.
  • Amount Available: Amount varies, averages $350,000 annually.
  • Grant Cycle: One application round per year.

Section 319(h) Grants

Section 319(h) grants are for projects that reduce documented non-point source water quality impairments. Funds may be available to develop and implement Total Maximum Daily Loads (TMDLs) and watershed management plans, provide technical assistance, demonstrate new technology, conduct assessments, and provide education and outreach.

  • Eligible Entities: Nonprofit organizations, universities, and local, state, and federal governmental agencies.
  • Amount available: $4,000,000 annually; Grants are for 60% of project costs; a 40% matching contribution is required. Federal funds cannot be used for matching.
  • Grant Cycle: One application round per year.

Central Indiana Waste Diversion Pilot Project

Sections 1 and 8 of House Enrolled Act 1226 (IC 13-20-26) establishes and implements the Central Indiana Waste Diversion Pilot Project (CIWDPP) for the purposes of determining the most practical and effective means of diverting recyclable materials from waste streams for commercial reuses. Funding is available for waste diversion and recycling projects. To be eligible, project must be located in Marion County

Pilot project funding is available through IDEM’s Recycling Market Development Program. Projects must demonstrate waste diversion from landfills and establish a dedicated Indiana-based market for commercial use of the material. Proposals are accepted through October 1, 2022.

The Central Indiana Waste Diversion Pilot Project page offers detailed information, application guidelines, and provides the link to the application form.

Community Recycling Grant Program

The Community Recycling Grant Program offers funding to projects that include education and promotion of recycling, waste reduction, organics management (including yard waste management and composting), or household hazardous waste collection and disposal. Solid waste management districts (SWMDs), counties, municipalities, schools, and nonprofit organizations located in Indiana are eligible to apply for funding from the CRGP. Businesses, commercial operations, and for-profit organizations are not eligible for funding. Complete information is available on the Community Recycling Grant Program page.

Indiana Brownfields Program Financial Assistance

The Indiana Finance Authority (IFA) administers state and federal funding with environmental technical support from IDEM staff as part of the Indiana Brownfields Program. Brownfields are abandoned, idled, or underused properties where environmental contamination, either real or potential, hampers expansion and redevelopment. The IFA offers financial assistance as an incentive to address environmental issues associated with brownfields, such as site assessment and remediation, in order to facilitate brownfield redevelopment.

Indiana Recycling Market Development Program

The Recycling Market Development Program has a limited amount of funding available each year for private businesses to invest in equipment purchases to expand or create new recycling enterprises. The Recycling Market Development Program page provides complete information.

State Revolving Fund Wastewater and Drinking Water Loans

The State Revolving Fund (SRF) Loan Programs provide low interest loans to eligible entities for the planning, design, construction, renovation, improvement or expansion of wastewater and drinking water systems. SRF Program Loans or other financial assistance is available for improvements to wastewater and drinking water plants, sewer line and water line extensions projects. Funds are also available for the costs associated with non-point source water pollution abatement projects, such as wetland restoration/protection, erosion control measures, storm water projects that improve water quality practices, and wellhead and source protection measures.

  • Eligible Entities: Political subdivision including incorporated cities, towns, counties, regional sewer/water districts, conservancy districts and water authorities are eligible for both DWSR and WWSRF. Private and not-for-profit facilities are eligible only for DWSRF. Private and not-for-profit facilities are eligible only for drinking water SRF loans.
  • Amount Available: SRF Loans are fixed rate 20 year loans. An eligible entity's interest rate is determined based upon the calendar quarter in which its loan is closed. Interest rates are adjusted quarterly, and the ensure a subsidized rate is being offered, rates are set at or below 90% of the average 20 year AAA-rated general obligation bond Municipal Market Date. Rates are further discounted based upon the applicant's median household income (from current census data) and local user rates.
  • Grant Cycle: Continuous throughout the year.

Volkswagen Mitigation Trust Program Funding

Indiana’s share of the federal Volkswagen Environmental Mitigation Trust Fund settlement is nearly $41 million. Grant funding will be awarded to projects that can produce the greatest air quality benefits to Hoosiers, with a focus on nitrogen oxides emission reductions, reduced public exposure to the pollutants in diesel exhaust, and the promotion of clean vehicle technologies.

The Indiana Volkswagen Environmental Mitigation Trust Program page provides additional information.

Additional Information:

 Top FAQs