Southern Minnesota water systems set for upgrades under $11.4 million federal funding
(UI) — Communities across southern Minnesota are set to move forward with long-delayed water and wastewater infrastructure upgrades after Brad Finstad secured $11.4 million in federal funding through the FY 2026 appropriations process.
The funding, included in H.R. 6938, the Commerce, Justice, Science; Energy and Water Development; and Interior and Environment Appropriations Act, 2026, supports 11 Community Project Funding requests spanning pipeline replacements, watermain upgrades, new wells, treatment facilities, and contamination remediation across the district.
Projects range from replacing aging asbestos watermains and deteriorating distribution systems to expanding wastewater treatment capacity and constructing new regional facilities. Several communities cited increasing watermain failures, contamination risks, and infrastructure age as drivers for the improvements.
“I’m grateful for the opportunity to help bring these federal investments home to southern Minnesota,” Finstad said. “It’s an honor to serve in Congress and advocate for this much-needed funding that strengthens critical water and utility infrastructure and supports the long-term vitality of our communities.”
Among the largest awards is $1.75 million for the City of Manchester to replace a 70-year-old asbestos watermain, and $1 million for the North Zumbro Sanitary Sewer District to construct a new regional wastewater treatment facility serving multiple municipalities and the Prairie Island Indian Community. Other projects focus on repairing failing drinking water distribution systems, constructing new wells and filtration systems, and upgrading wastewater treatment facilities to meet current and future demand.
Local officials said the investments will help reduce public health risks, improve system reliability, and position communities for residential and economic growth while easing financial pressure on ratepayers.
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