This agreement funds a capitalization grant, funded by the infrastructure investment and jobs act (IIJA) (PL 117-58), for the recipient's clean water state revolving fund program

The Environmental Protection Agency (EPA) Region 1 awarded a capitalization grant of $14.5 million to the Vermont Department of Environmental Conservation (VT DEC) under the Clean Water State Revolving Fund (CWSRF) program (CFDA 66.458), effective October 1, 2025, through September 30, 2032. Funded through the Infrastructure Investment and Jobs Act (IIJA), this award enables VT DEC to establish and sustain a long-term financing mechanism providing low-interest loans to municipalities and local government entities for water quality improvement and protection projects. The primary products and services delivered include financial assistance for planning, design, and construction of eligible water infrastructure activities aimed at improving public health and environmental quality throughout Vermont.

Under this capitalization grant, VT DEC serves as the intermediary financing provider, channeling federal funds as revolving loans to subrecipients rather than direct grants. Notable subawardee activity includes the City of Burlington's Community & Economic Development Office, which received funding on February 4, 2026, for wastewater treatment plant upgrades focusing on headworks improvements at Stage 0. The self-sustaining structure of the revolving fund model ensures that loan repayments generate ongoing capital for future water quality projects, creating a perpetual financing mechanism that extends the federal investment's impact well beyond the initial grant period.

Activities:the recipients of these funds provide low interest financing to numerous subrecipients. Subrecipient:n/a - all SRF assistance will be provided as loansoutcomes: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.