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)

EPA Region 6 awarded the New Mexico Finance Authority $7.64 million on July 1, 2026, under the Drinking Water State Revolving Fund program (CFDA 66.468), a capitalization grant funded by the Infrastructure Investment and Jobs Act to support drinking water infrastructure financing through June 30, 2028.

The recipient will provide low-interest-rate financing to eligible public water systems for planning, design, and construction of drinking water improvement projects addressing emerging contaminants, with particular focus on perfluoroalkyl and polyfluoroalkyl substances (PFAS). The New Mexico Finance Authority may also deploy funding for set-asides including technical assistance to small systems, operator certification activities, and source water protection initiatives. Loans issued to municipalities are documented as subawards but structured as loans rather than grants, even where principal forgiveness applies.

California Water Service Co received a sub-award of $7.64 million obligated on August 28, 2026, for design and construction of PFAS treatment at two well sites to meet EPA standards for various PFAS compounds and offset treatment-related customer rate impacts.

Performance occurs in New Mexico. The award supports public health protection objectives of the Safe Drinking Water Act by increasing the technical, managerial, and financial capacity of public water systems statewide.

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:for the state revolving fund programs, loans issued to municipalities are considered subawards. However, the grantee will issue these as loans and not grants, even in the case of subsidy.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.