Currently, local jurisdictions face a growing number of infrastructure challenges, which have been exacerbated by the impacts of climate change. Both State and Federal grants can be found to assist communities fund infrastructure projects for transportation and water. However, applying for grants can be a difficult task for local jurisdictions as there are various State and Federal programs, and it can be difficult to navigate the requirements of the various agencies that provide infrastructure grants. The “Resources” section provides a sample of applicable grant programs that could be used to support infrastructure and housing in Valley communities.

Lack of unified system and application for State funding. Finding grants to fund infrastructure improvements is a difficult task. The stakeholder interviews identified a “Chaotic State Funding System” as an issue faced when funding infrastructure projects. The most often cited impediment was the lack of a unified application for State funding as there are currently too many agencies with differing missions and focus. Additionally, the application process can be cumbersome with rules and guidelines that change from year to year. 

Funding targeted to rural communities. Over the years, more grants have become available to rural, local jurisdictions that lack adequate infrastructure. The 2019-2020 Budget Act established the Prohousing Designation Program. This incentive-based program prioritizes jurisdictions that have achieved a prohousing designation for grant programs directed at sustainable housing and communities including the Affordable Housing and Sustainable Communities (AHSC), Infill Infrastructure, and Transformative Climate Communities grant programs. Some programs such as the AHSC programs have also set aside funding specifically for rural projects. 

The Prohousing Designation Program is a new program implemented by the California Department of Housing and Community Development (HCD) which provides incentives in the form of additional points or other preference in the scoring of competitive grant applications to local governments that adopt prohousing policies. In order to receive the designation, jurisdictions must meet basic threshold requirements including compliance with all State housing laws, a compliant housing element, and having completed all required rezones. Jurisdictions meeting the threshold requirements must then earn a minimum of 30 points for prohousing policies that fall under the four following categories: 1) Favorable zoning and land use; 2) Accelerating production time frames; 3) Reducing construction and development costs; and 4) Providing financial subsidies. Applications for the program are accepted and reviewed by HCD on a rolling basis. Jurisdictions with the Prohousing Designation are more competitive because they are awarded additional points for grant applications for the Affordable Housing and Sustainable Communities (AHSC), Infill Infrastructure Grant (IIG), and Transformative Climate Communities (TCC) programs.

Resources, up-to-date database of grants provided by State and Federal agencies. 

HCD. Grants and Funding website. provides information regarding both housing and infrastructure grants.

The Institute for Local Government (ILG) provides information on funding opportunities for infrastructure and housing: 

Funding Resources


US Environmental Protection Agency (EPA). EPA Brownfields Grant Funding. Provides technical assistance to communities, states, tribes, and others to assess, safely clean up and sustainably reuse contaminated properties.

US Department of the Treasury. Coronavirus Local Fiscal Recovery Fund. Allows funds to be used for making necessary investments in water, sewer, or broadband infrastructure

US Department of Agriculture. ReConnect Loan and Grant Program. Provides loans and grants to fund the costs of construction, improvement of facilities and equipment to provide broadband services in eligible rural areas.

US EPA grant funding for water systems:

TIFIA Rural Project Initiative, a Federal program that helps improve transportation infrastructure in America’s rural communities.

National Telecommunications and Information Administration (NTIA). Broadband Grants. Administers grant programs that further the deployment and use of broadband and other technologies. 


California Strategic Growth Council. Affordable Housing and Sustainable Communities (AHSC) Program. Provides funds for housing, land use and transportation for projects that support infill and compact development and reduce greenhouse gas emissions. The funds may be provided as a loan or as a grant. One of the three project types include Rural Innovation Project areas. Previously in 2015, no rural projects were funded so the California Coalition of Rural Housing advocated for some of the funds to be set aside for them. The AHSC program then set aside 10 percent of the funds for rural projects.

HCD. Infill Infrastructure Grant (IIG) Program. Provides gap funding for infrastructure improvements for residential or mixed-use infill developments and affordable housing. This program also includes exceptions and different qualifications for rural areas such as requirements for net densities. 

HCD Prohousing Designation Program. 

California Strategic Growth Council. Transformative Climate Communities (TCC) program. Funds infrastructure projects that achieve environmental, health, and economic benefits in disadvantaged communities. 

Caltrans. Active Transportation Program (ATP). Consolidates three different transportation programs (Transportation Alternatives Program (TAP), Bicycle Transportation Account (BTA), and State Safe Routes to School (SRTS)) into one. This program provides funding for active transportation projects that promote biking and walking, increase safety for non-motorized users, and enhance public health, among other goals. 

Caltrans. Sustainable Communities and Strategic Partnerships Grant Program. Provides funding for local and regional multimodal transportation and land use planning projects that promote sustainability, preservation, accessibility, safety, and social equity. 

HCD. Senate Bill 2 (SB 2) California’s Building Homes and Jobs Fund. Provides funding to support housing development. 

HCD. Building Equity and Growth in Neighborhoods (BEGIN) Program. Provides grants to local governments that reduce regulatory constraints to housing

California Department of Water Resources (DWR). Sustainable Ground Water Management Grant Program. Provides funding for Ground Water Sustainability Agencies and others to promote projects that improve groundwater supply and quality. 

California State Water Board. Division of Financial Assistance – Grants and Loans. Provides grants and loans to fund construction of municipal sewage and water recycling facilities, remediation for underground storage tank releases, watershed protection projects, nonpoint source pollution control projects, among others. 


Fresno Council of Governments. Measure C TOD Fund. Provides funding through a sales tax aimed at improving the overall quality of Fresno County’s transportation system.

San Joaquin Council of Governments. Valley Air Grants. Provides funding to assist with the development or expansion of transportation infrastructure and alternative modes of transportation.