This agreement provides a capitalization grant, funded by the infrastructure investment and jobs act (IIJA) (PL 117-58), for the recipient's drinking water state revolving fund program (DWSRF)

The Illinois Environmental Protection Agency (IEPA) received a $33.526 million Capitalization Grant from the Environmental Protection Agency (EPA) Region 5 under the Drinking Water State Revolving Fund (DWSRF) program (CFDA 66.468), effective July 1, 2025 through June 30, 2029. Funded through the Infrastructure Investment and Jobs Act (P.L. 117-58), this award capitalizes Illinois's DWSRF to provide low-interest rate financing to eligible public water systems for planning, design, and construction costs associated with drinking water infrastructure improvement projects, with a primary focus on emerging contaminants—particularly perfluoroalkyl and polyfluoroalkyl substances (PFAS)—that threaten public health under the Safe Drinking Water Act.

Beyond direct infrastructure financing, the grant enables IEPA to deploy set-aside funds for targeted capacity-building activities, including technical assistance to small water systems, operator certification programs, and source water protection initiatives. The anticipated deliverables include financing, planning, design, and construction of eligible emerging-contaminant-focused drinking water projects that increase the technical, managerial, and financial capacity of public water systems throughout Illinois. The ultimate outcome is enhanced public health protection for Illinois citizens through improved drinking water quality and system resilience.

These funds are for DWSRF-eligible projects that address emerging contaminants in drinking water with a focus on projects addressing perfluoroalkyl and polyfluoroalkyl substances (PFAS). The award furthers the public health protection objectives of the safe drinking water act (SDWA). Activities:the recipient of these funds will provide low interest rate financing to eligible public water systems for the costs associated with the planning, design, and construction of eligible drinking water improvement projects. The recipient may also use some of the funding for specific set-asides, including but not limited to providing technical assistance to small systems, for operator certification activities, and source water protection activities. Subrecipient:drinking water state revolving fund program is exempt from 2 CFR 200.332 subrecipient monitoring requirements as provided in 2 CFR 1500. Program provides assistance in the form of loans. Of this grant amount, illinois will fund $33,526,000 in loans.outcomes:the anticipated deliverables include financing, planning, design, and construction of eligible emerging contaminant-focused, public health-related projects. Deliverables will also be used to increase the technical, managerial, and financial capacity of public water systems. The expected outcome is public health protection. The intended beneficiaries include citizens throughout the state.