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)

Environmental Protection Agency Region 5 awarded the Michigan Department of Environment, Great Lakes, and Energy $26.577 million on October 1, 2025, under the Drinking Water State Revolving Fund (CFDA 66.468) capitalization grant program, funded by the Infrastructure Investment and Jobs Act. The award includes $9.144 million transferred from a Clean Water SRF emerging-contaminants grant.

Michigan EGLE will provide low-interest-rate financing to eligible public water systems for planning, design, and construction of drinking water infrastructure projects that address emerging contaminants, with a focus on perfluoroalkyl and polyfluoroalkyl substances (PFAS). Set-aside activities include technical assistance to small systems, operator certification, and source water protection. Michigan EGLE will deploy the funds entirely as additional subsidy to protect water quality and public health and support economic development through job creation.

The award period runs from October 1, 2025, through September 30, 2028. Performance occurs in Michigan. The Drinking Water State Revolving Fund program is exempt from subrecipient management requirements under 2 CFR 200.332 and provides assistance in the form of loans. Anticipated deliverables include financing for planning, design, and construction of emerging-contaminant-focused, public-health-related projects and increased technical and managerial capacity.

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). In addition, michigan egle has provided a request and all the necessary documentation to transfer the full CW EC grant to DW EC. The CW EC funds of $9,144,000 are awarded as EPA in-kind in (4X-03E03283) and will be awarded to michigan in this, the DW emerging contaminants grant. Michigan egle will provide the funds in michigan entirely as additional subsidy, consistent with the law, to protect water quality and public health in michigan and to vitalize the economy through the creation of jobs. This process satisfies the statutory requirement that the cwsrf award be made prior to the funds transfer. 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 CFR 200.332 subrecipient management requirements for subawards 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 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.