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

Environmental Protection Agency Region 5 awarded the Minnesota Public Facilities Authority $94.548 million on January 1, 2026, under the Drinking Water State Revolving Fund program (CFDA 66.468) to capitalize Minnesota's DWSRF and finance lead service line replacement projects and associated activities for eligible public water systems.

The capitalization grant, funded through the Infrastructure Investment and Jobs Act, will support low-interest financing for planning, design, and construction of DWSRF-eligible drinking water improvement projects, with emphasis on lead service line identification, planning, design, and replacement. The MPFA will deploy the funds across four categories per Minnesota's Intended Use Plan: $80.981 million as loans to public water systems, $9.640 million for local assistance set-asides, $3.856 million for administration set-asides, and $1.928 million for small systems set-asides that include technical assistance to small systems, operator certification activities, and source water protection activities.

Performance occurs throughout Minnesota from January 1, 2026, through June 30, 2029. The grant advances public health protection objectives under the Safe Drinking Water Act. The MPFA administers the state revolving fund as the primary recipient and financial conduit, managing sub-recipient pass-through to eligible public water systems and regional entities across the state.

Funds will be used for dwsrf-eligible lead service line replacement projects and associated activities directly connected to the identification, planning, design, and replacement of lead service lines. 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 setasides, 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 $9,640,700 for local assistance set-aside (DG) activities ($6,096,400 FFY25 dwsrf IIJA lslr allotment + $939,100 FFY23 1ST reallotment + $2,419,300 FFY24 1ST reallotment + $185,900 FFY22 3RD reallotment estimate = $9,640,700 total), $3,856,280 for administration set-aside (DD) activities ($2,438,560 FFY25 dwsrf IIJA allotment + $375,640 FFY23 1ST reallotment + $967,720 FFY24 1ST reallotment + $74,360 FFY22 3RD reallotment estimate = $3,856,280 total), $1,928,140 for small systems set-aside (DE) activities ($1,219,280 FFY25 dwsrf IIJA lslr allotment + $187,820 FFY23 1ST reallotment + $483,860 FFY24 1ST reallotment + $37,180 FFY22 3RD reallotment estimate = $1,928,140 total), and $80,981,880 as loans (DA) ($51,209,760 FFY25 dwsrf IIJA allotment + $7,888,440 FFY23 1ST reallotment + $20,322,120 FFY24 1ST reallotment + $1,561,560 FFY22 3RD reallotment estimate = $80,981,880 total) 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.outcomes:the anticipated deliverables include financing, planning, design, and construction of eligible lead service line projects and associated activities. Deliverables will also be used to increase the lead service line-related technical, managerial, and financial capacity of public water systems. The expected outcome is public health protection. The intended beneficiaries include citizens throughout the state.