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 Environmental Protection Agency (EPA) Region 6 awarded $62.8 million in formula grant funding to the Texas Water Development Board on September 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, establishes a revolving loan fund to provide low-interest financing to eligible public water systems for planning, design, and construction of drinking water infrastructure projects. The award emphasizes emerging contaminant mitigation, with particular focus on Perfluoroalkyl and Polyfluoroalkyl Substances (PFAS) treatment initiatives that align with Safe Drinking Water Act objectives.

The Texas Water Development Board will deliver complementary services beyond direct project financing, including technical assistance to small water systems, operator certification activities, and source water protection initiatives. Sub-awards will be issued as low-interest loans to communities and utilities participating in the DWSRF program through September 1, 2029. The expected outcomes include enhanced technical, managerial, and financial capacity of public water systems across Texas, with primary beneficiaries being citizens throughout the state who will benefit from improved public health protection through emerging contaminant mitigation in their drinking water supplies.

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:the texas water development board will be entering into funding agreements with communities/utilities as part of the drinking water state revolving fund program, and are therefore considered sub-awards. However, these will be awarded as loans and not sub-grants.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.