Federal Formula Grant Award Summary

The U.S. Environmental Protection Agency (EPA) Region 4 awarded $30.3 million to the Kentucky Infrastructure Authority 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. The award extends through September 30, 2032, with total dollars obligated at $36.37 million. The Kentucky Infrastructure Authority will provide low-interest rate financing to eligible public water systems throughout Kentucky for planning, design, and construction of drinking water infrastructure improvement projects that advance public health protection objectives under the Safe Drinking Water Act.

In addition to direct project financing, the recipient may allocate funds toward specific set-asides including technical assistance to small water systems, operator certification activities, and source water protection initiatives. Anticipated deliverables include financing, design, and construction of eligible public health-related projects, with expected outcomes focused on increasing the technical, managerial, and financial capacity of public water systems and ultimately protecting public health for citizens throughout Kentucky. The DWSRF program operates as a revolving loan mechanism, enabling the state to continue financing water infrastructure improvements beyond the initial award period.