(Des Moines, Iowa, May 8, 2026) – U.S. Department of Agriculture Rural Development Iowa State Director Mike Sexton today announced the agency is investing $6.78 million in grants and $37.6 million in loans for critical rural water infrastructure projects in five Iowa counties, including Montgomery County. Director Sexton said in a press release, “These water and sanitation projects will help support rural Iowa communities that are integral to the economic foundation of the nation.
“Under the leadership of President Trump and Agriculture Secretary Brooke Rollins, USDA is working to ensure clean, reliable drinking water and sanitary systems are in place to safeguard the health of Iowans and to promote the opportunity to live, work, and prosper in the heartland of America.” USDA is administering the funding through Rural Development’s Water and Wastewater Disposal Loans and Grants program.
Project details:
- City of Red Oak received a $20.2 million loan to improve its wastewater treatment facility. This project will build a new treatment system to replace the aged facility, update a lift station, and line a large portion of the collection system to decrease infiltration and inflow. Once completed, the project will help the city maintain compliance with water quality standards and will promote the health and safety of residents and visitors of this rural Montgomery County, Iowa, community.
- City of Marcus received a $1.5 million grant and a $13.3 million loan to improve the water system. This project will construct two additional wells and a new water treatment plant. This project will address an identified health and sanitation issue. Once completed, the improvements will help safeguard the health of residents and visitors of this rural community in Cherokee County, Iowa.
- City of Churdan received a $985,000 loan to provide additional funding for the replacement of an aged water main that has a high rate of water loss. This project will replace old lead gooseneck fixtures with modern equipment. The project will also install an elevated water tank. Once completed, the project will protect water services, comply with water standards, and promote the health and safety of residents, businesses, and visitors to this rural Greene County community.
- City of Onslow received a $1.5 million grant and a $965,000 loan to improve its water system. This project will construct a well and a booster station, install a backup power source, and add water mains to increase pressure and remove dead ends. These improvements will help resolve water and sanitation issues. Once completed, the project will better safeguard the health of residents and visitors of this rural Jones County community in Iowa.
- City of Leland received a $3.8 million grant and a $2.1 million loan to help improve its wastewater system. This project will construct a two-cell aerated lagoon, install a submerged attached growth reactor treatment system, and install an ultraviolet disinfection system. These improvements will help bring the system into compliance with water quality standards and promote the health and safety of residents and visitors of this rural Winnebago County community.
