Formula Grant 22000225

The Environmental Protection Agency (EPA) Region 6 awarded $20.9 million in capitalization grant funding to the Louisiana Department of Environmental Quality on October 1, 2025, under the Clean Water State Revolving Fund (CWSRF) program (CFDA 66.458). This grant establishes and capitalizes a long-term financing mechanism through which the state provides low-interest loans to municipalities for water quality improvement and infrastructure projects. The primary deliverables include financing for the planning, design, and construction of eligible water quality improvement and protection projects, with loans issued to subrecipient municipalities through the state revolving fund program to support direct infrastructure development.

The anticipated outcomes of this three-year award (through September 30, 2028) are to improve and protect water quality and public health across Louisiana by establishing and managing an effective comprehensive CWSRF program while maintaining a self-sustaining revolving fund structure. Citizens throughout the state benefit from this funding mechanism, which enables municipalities to access affordable financing for wastewater treatment facilities, stormwater management systems, and other water infrastructure investments without requiring direct grant disbursements. The self-sustaining nature of the revolving fund allows loan repayments to generate capital for future project financing beyond the initial federal capitalization grant.