Formula Grant 02D36325

Federal Grant Award Summary

The Environmental Protection Agency (EPA) Region 4 awarded $68.6 million to the North Carolina Department of Environmental Quality (NCDEQ) on July 1, 2025, under the Drinking Water State Revolving Fund (DWSRF) program (CFDA 66.468) as a capitalization grant funded by the Infrastructure Investment and Jobs Act. This award enables NCDEQ to provide low-interest rate financing to eligible public water systems throughout North Carolina for planning, design, and construction of drinking water infrastructure improvement projects. The grant supports critical public health objectives under the Safe Drinking Water Act by enabling communities to address water quality infrastructure needs and compliance with National Primary Drinking Water Regulations.

In addition to direct project financing, NCDEQ will utilize set-aside portions of the funding for technical assistance to small water systems, operator certification activities, and source water protection initiatives. NCDEQ will administer subawards to entities implementing loan administration, technical assistance programs, and state program management activities. The anticipated outcomes include financing and completion of eligible public health-related drinking water projects while increasing the technical, managerial, and financial capacity of public water systems statewide. The award performance period extends through June 30, 2032, with total dollars obligated at $82.3 million.