City of Underwood Awarded $5.54 Million for Construction of New Water Treatment Plant

The City of Underwood’s current water treatment plant. (Senator Rasmusson’s Office)

Underwood, MN – Senator Jordan Rasmusson (R-Fergus Falls) announced on Wednesday, August 20, that the Minnesota Public Facilities Authority (PFA) has approved $5.54 million in funding for critical water infrastructure improvements in the City of Underwood.

During the 2025 legislative session, the Minnesota Legislature approved a bipartisan $700 million capital investment package authored by Rasmusson, which includes significant funding for clean water grants. These grants enable communities across Greater Minnesota, such as Underwood, to upgrade and modernize their water infrastructure.

“Congratulations to the City of Underwood on receiving this important funding,” said Rasmusson. “Clean water is foundational for every thriving community, and this project will keep Underwood’s water system strong for years to come.”

The PFA has awarded the city a $5.54 million project financing package to build a modern water treatment facility. The package includes a $1.7 million loan through the Drinking Water State Revolving Fund (SRF), a $3.5 million grant through the Drinking Water State Revolving Fund – Principal Forgiveness (SRF-PF) program, and a $350,000 grant from the Water Infrastructure Fund (WIF).

“Safe drinking water is a right for everyone. Without the assistance of organizations like PFA, small cities would disappear,” said Mayor Anna Kiser, mayor of Underwood. “The funding that the City of Underwood is receiving will enable us to continue to provide safe water to our residents and businesses at a rate our property owners can afford while still being able to enjoy all that our small community offers. For that, we are always grateful.”

The new facility will replace aging infrastructure and add advanced filtration systems. These improvements will address long-standing maintenance challenges, reduce costly repairs, and ensure reliable and high-quality drinking water for residents.

Story courtesy of Senator Rasmusson’s Office.