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 Region 5 awarded the Minnesota Public Facilities Authority $45,195,600 on January 1, 2026, as a capitalization grant under the Drinking Water State Revolving Fund program (CFDA 66.468), funded by the Infrastructure Investment and Jobs Act.

The award funds low-interest financing to eligible public water systems for planning, design, and construction of drinking water infrastructure projects. The Minnesota Public Facilities Authority will deploy $25,987,470 as loans to public water systems. Set-aside allocations total $11,662,530 and support program administration ($1,506,520), program management ($3,766,300), local assistance including a system reliability grant program and wellhead protection ($5,649,450), and small systems technical assistance ($753,260). These set-asides provide technical assistance to small systems, operator certification activities, and source water protection activities, with funding directed to the Minnesota Department of Health and the Minnesota Public Facilities Authority for staffing and contractor support.

The anticipated deliverables include financing, planning, design, and construction of eligible public health-related projects that increase the technical, managerial, and financial capacity of public water systems. The expected outcome is public health protection for citizens throughout Minnesota.

Performance runs from January 1, 2026, through June 30, 2029, with all work performed in Minnesota.

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:of this grant amount, the minnesota public facilities authority (PFA) will utilize $25,987,470 as loans (DA) as per minnesota's intended use plan. Assistance provided in the form of loans within the dwsrf program is exempt from 2 CFR 200.332 subrecipient management requirements for subawards as provided in 2 CFR 1500. PFA will use $1,506,520 in program administration (DD) set-aside funding for minnesota department of health (MDH) and PFA dwsrf staff; $3,766,300 in program management (DF) set-aside funding for MDH drinking water staff; $5,649,450 in local assistance (DG) set-aside funding that includes $1,883,150 for a system reliability grant program and $3,766,300 wellhead protection MDH staff; and $753,260 in small systems (DE) set-aside funding for MDH staff and contractor support.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.