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

The Illinois Environmental Protection Agency (IEPA) received a $133.698 million capitalization grant from the Environmental Protection Agency (EPA) Region 5 under the Clean Water State Revolving Fund (CWSRF) program (CFDA 66.458), awarded July 1, 2025. This Infrastructure Investment and Jobs Act (IIJA)-funded award supports IEPA's administration of a state revolving loan fund that provides low-interest financing to municipalities and other subrecipients for water quality improvement and protection projects. Through this award, IEPA will fund $111.415 million in loans as identified in its intended use plan, enabling eligible subrecipients to finance planning, design, and construction activities for wastewater treatment facilities, stormwater management systems, and other water quality management initiatives.

The anticipated outcomes of this three-year award (concluding June 30, 2028) include improved and protected water quality and enhanced public health protection for Illinois citizens statewide. As a pass-through entity, IEPA deploys these federal capitalization funds as a self-sustaining financing mechanism wherein loan repayments generate continued funding availability for future water infrastructure projects. The CWSRF program is exempt from certain subrecipient management requirements, with assistance provided in the form of loans rather than traditional subawards.

Activities:the recipients of these funds provide low interest financing to numerous subrecipients. Subrecipient:the clean water SRF program is exempt from 2 CFR 200.332 subrecipient management requirements for sub-awards as provided in 2 CFR 1500. The program provides assistance in the form of loans. Of this grant amount, iepa will fund $111,415,000 in loans in their intended use plan.outcomes:anticipated deliverables include financing planning, design, and construction of eligible water quality improvement and protection projects. The expected outcomes are to improve and protect water quality and public health. The intended beneficiaries include citizens throughout the state.