Federal Grant Award Summary

The Environmental Protection Agency Region 4 awarded $76.2 million to the North Carolina Department of Environmental Quality on July 1, 2025, under the Drinking Water State Revolving Fund (DWSRF) program (CFDA 66.468). This capitalization grant, funded through the Infrastructure Investment and Jobs Act, provides low-interest financing to eligible public water systems for planning, design, and construction of drinking water infrastructure improvements, with a specific focus on lead service line identification, replacement, and associated activities. The award extends through June 30, 2032, enabling the recipient to offer below-market-rate financing mechanisms that facilitate public water systems' access to capital for critical drinking water infrastructure projects.

In addition to direct project financing, the NCDEQ will utilize funds for targeted set-asides including technical assistance to small water systems, operator certification activities, and source water protection initiatives. Through subawards to eligible public water systems and related activities, the program will increase the technical, managerial, and financial capacity of participating water systems while advancing the public health protection objectives of the Safe Drinking Water Act. The anticipated outcomes include completion of lead service line replacement projects and measurable improvements in drinking water infrastructure resilience across North Carolina communities.