Constructing a new fire station requires substantial financial resources. In fact, in most cases, you will need to string together several different financial sources to complete a new fire station.
While traditional methods such as municipal bonds and local taxes are common ways to finance these projects, grant funds and other innovative resources are becoming an increasingly viable option to support the construction of fire stations. These sources can provide essential funding without the need to drastically increase local taxes or wreak havoc within your budget.
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Find your firm — and your budget
For a project of this size, it’s essential to hire a fire station architect before approaching any funding agency. The architectural firm you select should have experience with fire station design and construction.
Before you start shopping your project to funding sources, it is essential that you have at least a preliminary design and a cost estimate that you are comfortable with. The cost estimate is crucial since it sets a fixed budget for the project — this is difficult to alter once funding has been granted.
Grant funding options
Let’s start with grants — everyone’s favorite way to finance projects. Grants are financial contributions provided by government entities, private organizations, or foundations to support specific projects or initiatives. These funds are typically awarded based on specific criteria and do not require repayment, making them an attractive option for fire departments seeking to build or renovate fire stations.
From a federal grant standpoint, there are two funding sources for fire station renovation or new construction projects: the U.S. Department of Housing and Urban Development (HUD) Community Development Block Grants (CDBG) program and the U.S. Department of Agriculture Community Facilities Program.
- Community Development Block Grants: This program provides annual grants on a formula basis to states, cities and counties to develop viable communities. Yes, CDBG funds can potentially be used to finance the construction of a new fire station, but it depends on your community’s specific demographics. The primary focus of the CDBG program is to benefit low- and moderate-income individuals, eliminate slums or blight, or address urgent community needs. A fire station project could qualify if it meets one of these objectives. For instance, if the fire station serves a primarily low- and moderate-income area or helps address an urgent public safety need, it might be eligible. Additionally, some local governments prioritize funding for community facilities like fire stations as part of their overall CDBG allocation. If you’re considering this program for funding, I recommend checking with the administering agency in your area like your city or county government.
- USDA Community Facilities Program: This program is a possible source of funding for rural fire departments to consider for a station construction or renovation project. This program provides grant and loan funding for essential community facilities in rural areas, including public safety services like fire departments. Eligible areas are rural communities with populations of 20,000 or fewer, and priority is given to smaller, low-income communities. Funds can be used for construction, equipment purchases and related project expenses. It’s a great option for rural fire departments looking to enhance their facilities and services.
Unfortunately, both grant programs are currently on the chopping block for the proposed fiscal year 2026 budget. Read more about the planned cuts, and reach out to your federal legislators about working to save these essential grant programs.
Additionally, several states have programs that can be used to finance fire station construction projects. For example, Pennsylvania has a program called Local Share that uses proceeds from statewide gambling to fund such projects. Under this program, you can apply for up to $1 million. The catch is the application must be filed by a unit of local government.
Step-by-step guidance
Securing grant funding for fire station construction involves several steps:
- Research and identify grants that are applicable to fund fire station construction.
- Hire a fire station architect for design and cost estimate.
- Review the eligibility criteria for each grant. Ensure that the project meets all the requirements and that the fire department or municipality is qualified to apply.
Develop a well-prepared proposal. The proposal should include:
- Project description: Outline the scope of the construction project, including the size of the fire station, the services it will provide, and the expected benefits to the community.
- Budget: Provide a detailed budget that includes all costs associated with the construction, such as materials, labor, permit fees and equipment.
- Timeline: Develop a timeline that outlines the key milestones and completion dates for the project.
- Supporting documentation: Include any necessary documentation, such as architectural plans, environmental impact assessments, and letters of support from community leaders.
Follow the specific submission guidelines for each grant. Ensure that all required information is included and that the application is submitted by the deadline.
After submitting the application, follow up with the granting agency to ensure that it has been received and to address any questions or concerns.
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Alternative avenues
If grant funds aren’t available for your project or they won’t fund your entire project, consider some alternative ideas:
Public safety bonds
- Issue municipal bonds specifically for fire station construction.
- Use general obligation bonds (backed by taxes) or revenue bonds (backed by station revenue or fees).
Tax increment financing (TIF)
- Capture future increases in property tax revenue from the area surrounding the new fire station to finance the project.
Lease-to-own agreements
- Partner with a private developer who finances and builds the station, then lease it with an option to buy after a set period.
Build-operate-transfer (BOT)
- A private firm builds and operates the station for a fixed term, transferring ownership back to the municipality afterward.
Joint-use facilities
- Partner with other police, EMS, or public health agencies to share costs or even commercial developers (i.e., integrate a public safety center into a mixed-use development).
Naming rights and sponsorships
- Offer naming rights for training rooms, apparatus bays or other public spaces.
Energy efficiency and renewable incentives
- Include solar panels and energy-efficient building designs to qualify for federal/state energy credits and utility company rebates.
Carbon offset and green bonds
- Issue green bonds to finance eco-friendly construction and operations.
- Partner with environmental groups for carbon offset incentives.
While exploring these diverse funding options, it’s essential to evaluate which works best with your project’s goals and values. With the cost of today’s fire stations, you may have to combine multiple sources to increase the likelihood of securing the necessary funds for your project. Juggling several funding sources will create another set of headaches for you, but it may be the only way to keep your project on track to completion.
Final thoughts
These are several funding sources available to help with your unique fire station construction project. By understanding the types of resources available, preparing detailed proposals, and navigating the application process, you can successfully secure funding for your fire station project. Good luck, and remember, this process isn’t going to happen overnight so have patience.
ABOUT THE AUTHOR
Jerry Brant is a senior grant consultant and grant writer with FireGrantsHelp and EMSGrantsHelp. Brant has more than 40 years of experience as a volunteer firefighter in west-central Pennsylvania. He is a life member of the Hope Fire Company of Northern Cambria, where he served as chief for 15 years, and he is an active member of Patton Fire Company 1. Brant has successfully written more than $70 million in grant applications.
Grant funding considerations and challenges
Applying for grants to fund fire station construction can be a great move, but it comes with several challenges. The process is highly competitive, as departments and municipalities across the country vie for limited funding opportunities. This means applicants may invest significant time and effort only to be denied. Additionally, federal and state grants often have lengthy application and approval timelines, sometimes taking months or even over a year before funds are disbursed. This delay can be problematic for construction budgets and addressing replacement of stations with deteriorating architectural conditions or chronic system issues like heating or electrical issues.
Strict eligibility and compliance requirements further complicate the process. Many grants cater to specific departments, such as rural fire stations, and require adherence to federal regulations like NEPA environmental reviews, Davis-Bacon wage laws, and Buy American provisions, all of which can drive up costs and complexity. Moreover, most grants necessitate a local funding match, typically between 10% and 50%, which can strain municipal budgets.
Even after securing grants, the post-award administrative burden can be overwhelming. Strict reporting, auditing and recordkeeping obligations are required to maintain compliance, and failure to do so can result in funding freezes or future grant ineligibility. Delays in financial support may lead to project stagnation or scaled-back development. Additionally, political and bureaucratic hurdles can slow down approval processes, as state and federal agencies may shift priorities or introduce policy changes.
Design and procurement restrictions further limit flexibility, as grants often dictate specific construction standards, procurement rules and competitive bidding processes.
Lastly, grants generally offer one-time funding with no guarantees for future financial support, leaving departments and municipalities to contend with long-term maintenance costs after construction is complete.
