Hendersonville -- September 22, 2026: City leaders, state officials, and regional partners gathered at the Hendersonville Wastewater Treatment Facility to formally announce a $72 million funding package designed to expand operations and fortify critical municipal infrastructure against future flood events.
The multi-source investment combines federal, state, and regional grants with low-interest loans. The project directly addresses catastrophic vulnerabilities exposed when floodwaters submerged major components of the facility, forcing an emergency shutdown that lasted nearly two weeks.
Funding Package Breakdown
The $72 million blend includes substantial non-repayable grant relief alongside state infrastructure financing:
$39 Million Low-Interest Loan: Administered through the North Carolina Department of Environmental Quality (DEQ) State Revolving Fund.
$20.1 Million Federal Grant: Awarded by the U.S. Economic Development Administration (EDA) to protect utility capacity for regional manufacturing and job creation.
$11 Million State Grant: Issued through the DEQ State Revolving Fund specifically designated for flood mitigation.
$2 Million Regional Grant: Contributed by the Dogwood Health Trust to accelerate local utility expansion and public health safeguards.
Hardening Critical Infrastructure
Engineers designed the upcoming improvements to safeguard water processing during historic weather extremes. Rather than simply repairing ground-level components, the plan systematically elevates and relocates vital electrical and biological processing machinery above projected flood stages.
Protecting the facility prevents raw wastewater discharge into Mud Creek, a primary tributary feeding into the French Broad River Basin. Safeguarding these waterways remains an urgent environmental priority for both Henderson County and communities downstream.
Expanding Capacity for Regional Growth
Beyond flood protection, the funding supports a planned operational expansion. The upgrades will raise daily processing limits from 4.8 million gallons per day (MGD) to 6.0 MGD.
This added capacity provides immediate utility bandwidth for residential development, commercial expansion, and local manufacturing facilities across the Hendersonville service area.
Protecting Ratepayers
By securing more than $33 million in grant awards, city officials significantly reduced the financial burden on local utility customers. Leveraging non-repayable aid alongside state revolving loans allows the municipality to complete essential modernization work without placing the full cost onto residential water and sewer bills.
The comprehensive overhaul is projected to eventually exceed $100 million, and municipal leaders confirm they are actively pursuing additional federal and state recovery funds to complete all remaining phases.