USDA Rural Development Rural Alaska Village Grant Program 1

USDA Rural Development

Rural Alaska Village 

Grant Program

Transforming Lives in Rural Alaska Villages
2 USDA Rural Development Rural Alaska Village Grant Program

Many Alaska Villages Still Need 

Water and Sanitation Systems

USDA’s Rural Alaska Village Grant 

Program (RAVG) was created in 

1994 to address the urgent need 

for adequate water and sewer 

systems in Alaska’s most remote 

rural villages. Primarily inhabited 

by Eskimo, Indian, and Aleut tribes, 

these sparsely populated villages 

are among the poorest communities in the Nation and, although 

progress has been made, many villages are still without running 

water and sanitation systems. In these villages, water must be 

hauled from a community source or from untreated rivers or 

streams, and residents use 5-gallon buckets (commonly referred 

to as “honeybuckets”) or pit privies to dispose of human waste. 

In many villages, communal washbasins are used, which can 

easily transmit bacteria and affect the health of the entire village, 

especially children.

For over two decades, RAVG has been helping Alaska’s rural or 

Native American villages construct water and waste disposal 

systems to address rural villages’ most dire water and sanitation 

needs. Working with program partners, USDA has provided 

more than $397 million in funding to 130 Alaska villages since its 

inception in 1994. Thanks to RAVG’s success, nearly 98,000 village 

residents have benefited from water and sewage disposal projects 

and are enjoying better health as a benefit of improved sanitation.

$25,000,000

$20,000,000

$15,000,000

$10,000,000

$5,000,000

$80,000,000

$60,000,000

$40,000,000

$20,000,000

$0

RAVG Program Funds RAVG Administrative

$0

2009 2010 2011 2012 2013 2014 2015

Technical Assistance Grants/Non-RAVG

RAVG Technical Assistance

RAVG Pre-Development and Planning Grants

RAVG Construction

RAVG Projects Funded FY 2009-2015

RAVG Appropriations 2009-2015

2009 2010 2011 2012 2013 2014 2015
USDA Rural Development Rural Alaska Village Grant Program 3

How RAVG Works

Through the RAVG grants, USDA provides funding for the planning, 

development, and construction of water and wastewater systems to improve 

health and sanitation conditions in rural Alaska villages. RAVG grants can also 

be used, in some situations, to install piped sewer and water systems, wells, 

septic systems, and plumbing in individual homes if the residents cannot 

afford to pay for the improvements themselves. In addition to project funding, 

RAVG grants can be used to provide technical assistance and training. RAVG 

provides funding for the Alaska Department of Environmental Conservation’s 

Remote Maintenance Worker Program, which provides training and technical 

assistance to rural water and sewer operators through a circuit rider program, 

and also provides technical assistance funding to the Alaska Native Tribal Health 

Consortium (ANTHC) for energy improvements.

Participant Eligibility 

To qualify for RAVG funding, the village must have a:

RAVG Partners

The RAVG program, like other USDA Rural Development programs, leverages 

partnerships to achieve results. To ensure that RAVG funds result in timely, 

quality service to Alaska villages, USDA Rural Development relies on a strong 

working relationship with Federal, State, and nonprofit partners. Alaska’s 

Department of Environmental Conservation (DEC) administers the Village 

Safe Water Program, which works with rural Alaska communities to develop 

sustainable sanitation facilities. DEC also administers Alaska’s Remote 

Maintenance Worker Program. ANTHC provides health services to Alaska 

Natives and American Indians in Alaska. Other partners include the 

U.S. Environmental Protection Agency (EPA) and the Indian Health Service (IHS).

United States Department of Agriculture

Rural Development

Population of 

10,000 or less

Median income that does not exceed 110% of 

the State nonmetropolitan median income

Dire sanitation 

condition
Types of Water and Sanitation 

Systems Funded With RAVG Grants

A variety of systems can be funded with RAVG grants. Care is taken when planning the project to build a 

system that will best meet the needs of a particular village. RAVG construction grants can be used to pay for:

PIPED WATER AND SEWER SYSTEMS

Centralized systems where water is piped 

directly to individual homes.

WASHETERIAS 

Village-owned buildings for public use that 

have toilets, drinking water that can be carried 

home, and laundry and shower facilities.

TANK HAUL SYSTEMS

Village homes have separate tanks for drinking 

water and wastewater. Service providers fill the 

water tanks and remove (haul) the waste from 

storage tanks.

INDIVIDUAL WELLS AND SEPTIC SYSTEMS 

Can also be funded if individual facilities make 

the most sense for the village.

4 USDA Rural Development Rural Alaska Village Grant Program
USDA Rural Development Rural Alaska Village Grant Program 5

RAVG: Where Partnership and Process Meet

RAVG grants can be awarded directly to a rural or Native American village or to DEC or ANTHC on behalf of a rural 

Alaska village. USDA Rural Development will pay up to 75 percent of an approved project’s cost. The State of 

Alaska must fund 25 percent of the total project cost. 

USDA Rural Development Rural Alaska Village Grant Program 5

Communities and partners submit applications 

through the Capital Investment Project process, 

then the partners meet to discuss and score potential 

projects. High-scoring projects are prioritized.

DEC and ANTHC bundle project proposals and 

submit a funding request on behalf of multiple 

villages. Villages can apply individually, but most 

projects are submitted by DEC and ANTHC.

If approved, USDA obligates funds for the project. 

USDA will fund up to 75 percent of a project’s cost, 

and the State of Alaska must fund 25 percent. Funds 

are designated for specific projects and cannot be 

transferred for use in other RAVG projects.

ANTHC and DEC oversee project 

construction, track funding for each 

project, and report back to USDA.

USDA conducts independent audits 

of RAVG activities.

STEP

1

STEP

2

STEP

4

STEP

5

STEP

3

Rural Alaska Villages

75% 

FUNDING

25% 

FUNDING

Other Technical

Assistance Providers

USDA

Rural

Development

STATE 

OF ALASKA

Rural Alaska Villages
6 USDA Rural Development Rural Alaska Village Grant Program

Pre-Development and Planning: 

The Key to Success

In addition to funding construction costs, RAVG grants can also be used to pay for planning and pre-development 

costs that are associated with a project (PPG grants). Allowable planning costs include costs for needed master plans, 

feasibility studies, and detection or source studies. RAVG grants of up to $1 million per village can be used to fund predevelopment costs to pay for the preliminary engineering and environmental reports, application development, review and 

establishment of rights-of-way and easement, and full construction design that is needed in order to apply for construction 

funding. RAVG grants of up to 4 percent of the annual RAVG funding may also be used for training and technical assistance.

Working with fellow RAVG partners, USDA led a streamlining initiative in 2010 to identify 

ways to simplify and expedite the RAVG application process and enable villages to more 

fully utilize program funds. While the RAVG program had made inroads prior to 2010, 

Federal and State processes were not aligned: not all projects were being completed, and 

village residents were experiencing delays in getting much-needed water and sanitation 

services. The streamlining effort was initiated to redesign RAVG processes and create a 

more effective Federal/State, public/private partnership to benefit rural and Native Alaskans. 

The RAVG Process Improvement Conference 

was held in Anchorage, Alaska, in April 2010. 

Representatives from USDA, DEC, ANTHC, EPA, 

IHS, and the Denali Commission participated in 

the conference. The conference was successful 

and resulted in an MOU between USDA, IHS, DEC, 

and ANTHC that was signed on June 15, 2011. 

The MOU contained guidelines to ensure 

fiscal accountability, improve and streamline 

application procedures, and facilitate improved cooperation between the MOU partners.

KEY MOU 

COMPONENTS

lRevised application review – 

applications are reviewed to 

determine grant need only

lSeparate funding for 

planning and construction

lNew single master 

application process

lImproved reporting and 

tracking measures

lSingle lead for environmental 

and historical preservation 

6 USDA Rural Development Rural Alaska Village Grant Program

PPG

GRANTS

CONSTRUCTION

GRANTS

1 2 BENEFITS

ü	Improved coordination can help more villages 

in the planning process.

ü	Villages in the planning process can be helped 

while construction projects are underway in 

other villages.

ü	Better Government investment and use of funds.

ü	RAVG construction funds are obligated 

based on well-planned and priced systems. 

Construction funds are not “parked” on a 

project while pre-development activities occur, 

freeing up funding for construction projects.

ü	Reduction/elimination of cost overruns.

ü	Reduced processing time.

ü	PPGs require less documentation than a full 

RAVG application, are quickly funded, and 

are used to develop documents needed for 

construction, which makes processing of 

construction grants more efficient.

USDA and partners sign the agreement in June 2011.

RAVG Streamlining: From Memorandum 

of Understanding (MOU) to Regulation

A final rule for the RAVG program was published in September 2015 and is now in effect. A separate rule was created 

for RAVG in order to formally incorporate the streamlined processes of the MOU into USDA regulations. A New Rule For RAVG 
USDA Rural Development Rural Alaska Village Grant Program 7

RAVG Results

The new RAVG process is achieving results. More rural Alaskan villagers have 

water and waste services.

USDA Rural Development Rural Alaska Village Grant Program 7

$397,858,409 

RAVG Project Funding

211 Projects

144 Construction

67 PPG Grants

98,293

Alaskan Villagers Served
8 USDA Rural Development Rural Alaska Village Grant Program

RAVG in Action: 

Transforming Village Lives

Kwethluk

March 2014 was a month of 

celebration, as many of Kwethluk’s 

unserved homes received muchanticipated running water and 

indoor plumbing, marking the near 

end of a 15-year effort to bring a 

water and sanitation system to 

this Yupik village of 700 residents 

in western Alaska. Children and 

adults alike enjoyed watching clear, 

drinkable water splash from faucets 

into kitchen and bathroom sinks. 

For the first time in many of their 

lives, they could flush toilets, wash 

their hands and dishes in warm 

water, and luxuriate in a warm bath. 

In 2011, $110,000 in USDA Rural 

Development RAVG funds were 

used to complete a sanitation 

facilities master plan and, with 

the help of additional RAVG grants 

of $5.5 million in 2012 and 

$4.6 million in 2013, the first 

Kwethluk homes began receiving 

water and sewer service in 

November 2013. Constructed 

in stages, the first phase of the 

project resulted in the construction 

of a sewage lagoon and water 

treatment plant, followed by the 

building of a water storage tank, 

waste collection system, and 

underground piped water. Most 

homes were also outfitted with 

basic indoor plumbing and fixtures. 

During a visit to rural Alaska in 

the spring of 2014, USDA Rural 

Development’s Deputy Under 

Secretary Patrice Kunesh was able 

to see first-hand the need for RAVG 

assistance while visiting the home 

of 90-year-old Kwethluk resident 

Xenia Nikoli (pictured above with 

Jim Nordlund, Alaska State Director, 

USDA Rural Development). As 

Kunesh relates, “upon inviting me 

into her spotlessly clean house, 

she embraced me, then wept and 

apologized for the stench of the 

overflowing ‘honey bucket’ sitting 

imposingly in her tiny bathroom.” 

Deeply moved, Kunesh leaned 

into her and told her that it was 

she who should apologize to her. 

Nikoli’s home was subsequently 

equipped with indoor plumbing, 

and she began receiving service at 

the end of the summer.

8 USDA Rural Development Rural Alaska Village Grant Program

1 2

3

Kwethluk resident Xenia Nikoli, pictured with 

USDA Rural Development Alaska State Director 

Jim Nordlund, got indoor plumbing for the first 

time in 2014.
USDA Rural Development Rural Alaska Village Grant Program 9

1 Atmautluak 2 Ft. Yukon 3 Hooper Bay 4 Kasaan 5 Kwethluk 6 Old Kasigluk 

4

5

6

Pitkas Point

Troubled with a history of 

environmental contaminations 

to its water source, including two 

fuel spills, Pitkas Point residents 

were thrilled to finally abandon 

their “honey pots” for running 

water and piped sewer service 

to their individual homes. The 

$11 million project, completed in 

September 2011, brought a water 

treatment plant, water tank, and a 

new washeteria to Pitkas Point and 

equipped the village’s 30 homes 

with in-home plumbing and fixtures. 

Before receiving water and 

sewer services, the village’s 150 

residents would haul fresh water 

back to their homes from the 

central washeteria and empty 

sewage from honey buckets into 

the village’s waste lagoon. Raw 

sewage from brimming buckets 

was frequently spilled onto village 

roads. Residents of villages such 

as Pitkas Point, who are exposed 

to raw sewage and share water 

for cleaning and handwashing, 

experience significantly greater 

incidences of water-borne 

respiratory, gastrointestinal, and 

skin diseases than village residents 

with access to modern water and 

sanitation systems. 

In an October 15, 2011, YouTube 

video produced by the Alaska 

Dispatch News, village leader and 

28-year Pitkas Point resident 

John Riley, Sr., describes the 

new, and very welcome, indoor 

plumbing in his bathroom. 

Pointing to his bathtub with a 

big smile, he says “That’s where 

I take a hot swim every evening, 

sometimes twice a day – Why 

not?” With one finger on the toilet 

handle, he demonstrates the ease 

of flushing: “one finger and it’s 

all gone; it’s so awesome to have 

running water, you know?” Riley, Sr., 

isn’t the only one enjoying his bath. 

To celebrate, the village children 

held a competition to see who 

would take the first bath. 

The Pitkas Point project was 

completed under budget 

with funding from USDA Rural 

Development, the State of Alaska, 

and IHS. USDA Rural Development 

contributed $9.1 million in RAVG 

construction grants and $378,966 

for a pre-planning grant to fund 

the project. Because the project’s 

final cost was less than original 

estimates, some of the RAVG 

funding was returned to USDA.
10 USDA Rural Development Rural Alaska Village Grant Program

The Future of RAVG

The work of USDA, the RAVG program, and our funding partners is not finished. Together we 

will continue to:

• Improve coordination of technical assistance with RAVG partners and technical 

assistance providers

• Deliver high-quality programs and services

• Collaborate to improve the design and energy efficiency of water and waste systems, not 

only to lower villages’ fuel costs but to also build systems that can better withstand Alaska’s 

harsh environment and address the unique needs and lack of infrastructure in Alaska’s 

remote rural villages

• Focus on the building of water and sewer systems to ensure long-term sustainability in 

Alaska villages and provide the training necessary to enable villagers to operate and 

maintain their systems

• Finance critical construction and design projects for villages still in need

10 USDA Rural Development Rural Alaska Village Grant Program
Maps created by the Alaska Department 

of Environmental Conservation.

Photo Credits 

Honey buckets and a sewage bunker in Pitkas Point 

(p. 2), Jill Burke, Alaska Dispatch News

Flush tank and haul system (p. 4), CoWater Alaska, Inc.

Well and septic diagram with ground water (p. 4), 

Pacific Northwest Region Water Program Blog

Washeteria, Atmautluak, Alaska (p. 8), State of Alaska

Eric Kaiser plays with water in the sink in Hooper Bay 

(p. 8), Water and sewer lines being buried in Kwethluk, 

Alaska (p. 9), Bob Hallinen for the Anchorage Daily News

USDA is an equal opportunity provider, employer, 

and lender.

January 2016

ACKNOWLEDGEMENTS 

USDA Rural Development Rural Alaska Village Grant Program 11
www.rd.usda.gov USDA is an equal opportunity provider, employer, and lender.

USDA Rural Development is committed to the future of rural communities.