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)

The Environmental Protection Agency (EPA) Region 10 awarded the Washington State Department of Health a capitalization grant of $18.026 million under the Drinking Water State Revolving Fund (DWSRF) program (CFDA 66.468), effective July 1, 2025, through June 30, 2030. Funded through the Infrastructure Investment and Jobs Act, this formula grant provides low-interest rate financing to eligible public water systems for planning, design, and construction of drinking water infrastructure projects addressing emerging contaminants, with particular focus on perfluoroalkyl and polyfluoroalkyl substances (PFAS). The recipient may also allocate funds for set-aside activities including technical assistance to small water systems, operator certification programs, and source water protection initiatives. The grant supports sustainable long-term financing mechanisms that build the technical, managerial, and financial capacity of public water systems while advancing Safe Drinking Water Act objectives.

Sub-awards totaling multiple loan agreements were issued to Washington water utilities beginning in November 2025, including funding to Public Utility District No. 1 of Clark County for the Yacolt Satellite Connection Project (26,900 linear feet of water main installation), Thurston PUD for PFAS filtration system construction and water system connections, Madrona Beach Water Service for pump house construction, and City of Kennewick for PFAS contamination improvements. These sub-awards represent the primary mechanism through which capitalization grant funds are distributed as loans to public water systems, enabling communities throughout Washington State to implement critical drinking water infrastructure and contamination remediation projects that protect public health.

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). 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:all dwsrf funding assistance will be provided as 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 of washington.