Federal Formula Grant Award Summary

The Environmental Protection Agency (EPA) Region 3 awarded the Maryland Department of the Environment a capitalization grant of $46.045 million under the Clean Water State Revolving Fund (CWSRF) program (CFDA 66.458) effective July 1, 2025, with a completion date of June 30, 2032. This formula grant establishes a long-term financing mechanism through which the state provides low-interest loans to numerous municipalities and local subrecipients for water quality improvement and protection projects. The primary deliverable is financing for planning, design, and construction of eligible water infrastructure activities, including wastewater treatment facilities, stormwater management systems, and emerging contaminant remediation projects.

Through this revolving fund structure, the state capitalizes a self-sustaining loan program that will continue generating funding availability as subrecipients repay loans over the performance period. The anticipated outcomes include improved and protected water quality and enhanced public health for citizens throughout Maryland. No direct subawards are included in the assistance agreement; rather, the state acts as the intermediary lender, deploying the capitalization grant as low-interest financing to eligible public entities undertaking water quality projects.