Stormwater Local Assistance Fund

The Stormwater Local Assistance Fund (SLAF) is administered by the Virginia Department of Environmental Quality (DEQ) to provide matching grant assistance to local governments for projects that improve water quality through stormwater management practices. The Virginia General Assembly established the program in 2013 and directed DEQ and the State Water Control Board to administer annual solicitations when state appropriations are available. The program supports projects that reduce pollutant loads, improve watershed health, and assist local governments in meeting stormwater regulatory and nutrient reduction obligations. According to the FY 2026 authorization memorandum, DEQ has authorized 391 projects totaling approximately $253.5 million since the program’s inception. The program funds the planning, design, and implementation of stormwater best management practices and related restoration activities. Eligible project categories include new stormwater BMPs, retrofits of existing stormwater BMPs, stream restoration projects, low impact development initiatives, buffer restoration, pond retrofits, wetlands restoration, and the purchase of permanent certified non-point source nutrient credits. The program is designed to prioritize projects that demonstrate cost efficiency and measurable reductions in nutrient pollution. During the FY 2026 solicitation cycle, DEQ evaluated 28 stormwater projects and four nutrient credit purchase proposals totaling more than $42.5 million in requested funding. SLAF operates as a matching grant program for Virginia local governments. The FY 2026 funding list demonstrates that most projects received grants covering approximately 50 percent of total project costs, although some projects received lower percentages depending on funding availability and ranking considerations. DEQ noted that available funding for FY 2026 totaled approximately $23.1 million after combining unobligated balances from prior years, recovered unused award funds, and withdrawn grants from previous cycles. Due to limited funding availability, DEQ capped total grant awards to each locality at $4 million during the FY 2026 cycle in order to distribute assistance more broadly among communities. Applications are evaluated based on eligibility requirements, cost efficiency, nutrient removal performance, project ranking, and environmental benefit. The memorandum specifically references cost per pound of phosphorus removal and conversion values involving total nitrogen as major evaluation metrics. Some projects were excluded because they exceeded established cost thresholds, while others were removed for reasons such as low priority ranking, improper application submission, ineligible BMP enhancements, or ineligible applicant status. DEQ also conducts site visits for select projects as part of the evaluation process. Final funding authorization remains subject to compliance with program requirements and receipt of acceptable construction bids. The FY 2026 solicitation opened on August 1, 2025 and closed on October 1, 2025. Applications were submitted by local governments throughout Virginia. DEQ published the Authorization of FY 2026 SLAF Project Funding List on January 22, 2026. Because the program is dependent upon state appropriations, solicitations are issued only in years when funding is available, but the program has operated on a recurring basis over multiple fiscal years including FY 2014 through FY 2026. Based on prior cycles and the recurring nature of the program, applicants should monitor DEQ announcements for future funding opportunities and anticipated annual solicitation periods. DEQ established a three-phase submission and grant administration process for FY 2026 grantees. Phase 1 requires submission of a Project Information Worksheet and Procurement Certification by April 1, 2026. Phase 2 requires final plans, permits, design certifications, and related planning documentation by September 30, 2027. Phase 3 requires executed construction contracts, engineering task orders, and cost substantiation documentation by March 31, 2028. DEQ may withdraw authorization of funding if required submissions are not provided by the applicable deadlines. Questions regarding the program may be directed to David A. Taylor of DEQ’s Clean Water Financing and Assistance Program at David.A.Taylor@deq.virginia.gov or by phone at (757) 705-8293.

Projects with strong nutrient reduction performance and lower cost-per-pound calculations appear to score more competitively. Ensure all application materials and permits are complete because incomplete or improperly submitted projects may be excluded from funding consideration. Prioritize clearly eligible BMP activities and provide strong cost substantiation documentation.