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 (IEPA) a capitalization grant of $90.67 million under the Drinking Water State Revolving Fund (DWSRF) program (CFDA 66.468), effective July 1, 2025, through June 30, 2029. This award, funded through the Infrastructure Investment and Jobs Act (IIJA), enables IEPA to provide low-interest rate financing to eligible public water systems for planning, design, and construction of drinking water infrastructure improvement projects that advance the public health protection objectives of the Safe Drinking Water Act (SDWA). The DWSRF operates as a revolving loan fund mechanism, allowing IEPA to issue loans to municipalities and water systems rather than direct grants, creating a sustainable long-term financing structure.

In addition to primary loan activities, the award permits IEPA to allocate funds for specific set-aside 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 public health-related projects, with expected outcomes focused on increasing the technical, managerial, and financial capacity of public water systems throughout Illinois. The intended beneficiaries are citizens across the state who will benefit from improved drinking water infrastructure and enhanced public health protection.

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 CFE 200.332 subrecipient monitoring requirements 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 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.