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

EPA Region 5 awarded the Michigan Department of Environment, Great Lakes, and Energy $127.108 million on October 1, 2025, under the Clean Water State Revolving Fund (CFDA 66.458) program. The award funds a capitalization grant under the Infrastructure Investment and Jobs Act to establish a long-term financing mechanism for water quality improvement and protection projects across Michigan.

MDEQ provides low-interest financing to sub-recipients for planning, design, and construction of eligible projects. The fund operates as a revolving loan program, with sub-recipients ultimately responsible for project delivery. Four sub-recipients have drawn financing: Great Lakes Water Authority (GLWA) is executing four projects across Detroit and Dearborn facilities, including sludge processing infrastructure improvements at the Water Resource Recovery Facility complex (awarded May 7, 2026; July 16, 2026), upgrades to two combined sewer overflow screening and disinfection facilities in Detroit and Dearborn (May 7, 2026), and a new screened final effluent pump station and secondary water system modifications at the Detroit wastewater treatment plant (February 9, 2026). The City of Lansing is undertaking combined sewer overflow separation work on Cherry, Pine, and Kalamazoo Streets downtown, including replacement of the Tecumseh River Road Pump Station with increased capacity and a new force main (February 9, 2026).

The award obligates $127.108 million with a period of performance through September 30, 2028. Place of performance is Michigan.

Activities:the recipients of these funds provide low interest financing to numerous subrecipients. Subrecipient:the clean water SRF program is exempt from the 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.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.