This agreement funds a capitalization grant for the recipient's clean water state revolving fund program

The Iowa Department of Natural Resources received a $25.77 million Clean Water State Revolving Fund (CWSRF) capitalization grant (CFDA 66.458) from the U.S. Environmental Protection Agency Region 7, awarded September 1, 2025, with a completion date of September 30, 2028. This formula grant establishes a long-term financing mechanism whereby the state provides low-interest loans and subawards to municipalities and local government entities for planning, design, and construction of water quality improvement and infrastructure projects. The capitalization grant enables the state to deploy federal funds as revolving loans that self-sustain through repayments, supporting wastewater treatment facilities, stormwater management systems, and other eligible water infrastructure activities consistent with the Clean Water Act.

The anticipated deliverables include comprehensive financing support for water quality and public health protection projects benefiting citizens throughout Iowa. The first documented subaward, issued to the City of Dubuque on February 20, 2026, supports the Old Mill Road Lift Station and Force Main Phase 2 project, demonstrating the state's pass-through administration of federal resources to community-level water infrastructure initiatives. Annual reviews and compliance monitoring by EPA will assess the state's performance against the intended use plan and ensure proper stewardship of federal funds in accordance with applicable regulations.

Activities:the recipients of these funds provide low interest financing to numerous subrecipients. Subrecipient:subawards are included in this assistance agreement.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.