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 (dwsrf) program

The Environmental Protection Agency (EPA) Region 5 awarded the Illinois Environmental Protection Agency a capitalization grant of $245.9 million 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 (IIJA), this award enables Illinois to establish and maintain low-cost, long-term financing mechanisms for drinking water infrastructure improvements. The primary deliverables include low-interest rate loans to eligible public water systems for planning, design, and construction of drinking water infrastructure projects, with particular emphasis on lead service line replacement (LSLR) activities and associated identification and design work connected to lead service line remediation.

The IEPA will utilize the capitalization grant to support DWSRF-eligible projects while building technical, managerial, and financial capacity within participating public water systems. Funds may be allocated to specific set-aside activities that enhance water system capabilities and public health protection. The intended beneficiaries are citizens throughout the State of Illinois, with anticipated outcomes centered on public health protection through the elimination of lead service line hazards and improved drinking water infrastructure across the state.

Funds will be used for dwsrf-eligible lead service line replacement (lslr) projects and associated activities directly connected to the identification, planning, design, and replacement of lead service lines. 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. Funds will be used for dwsrf-eligible lead service line replacement projects and associated activities directly connected to the identification, planning, design, and replacement of lead service lines. Subrecipient:drinking water state revolving fund program is exempt from 2 CFR 200.332 subrecipient management requirements for subawards as provided in 2 CFR 1500. Program provides assistance in the form of loans.outcomes:the anticipated deliverables include financing, planning, design, and construction of eligible lead service line projects and associated activities. Deliverables will also be used to increase the lead service line-related technical, managerial, and financial capacity of public water systems. The expected outcome is public health protection. The intended beneficiaries include citizens throughout the state of illinois (IL).