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

The Environmental Protection Agency (EPA) Region 5 awarded the Wisconsin Department of Natural Resources a Clean Water State Revolving Fund (CWSRF) capitalization grant of $51.47 million on July 1, 2025, with a completion date of June 30, 2029. Under CFDA 66.458, this award establishes a long-term financing mechanism through which WDNR provides low-interest loans to municipalities and local government entities for planning, design, and construction of water quality improvement and protection projects. The SRF program enables states to deploy federal capitalization grants as self-sustaining loan funds whereby repayments generate continued funding availability for future eligible water infrastructure activities.

Through this capitalization grant, WDNR has already issued sub-awards to implement water quality infrastructure projects across Wisconsin. Sub-grantees include the City of Milwaukee for sanitary and combined sewer replacement and rehabilitation (awarded December 10, 2025), Green Bay Metropolitan Sewerage District for pumping and headworks improvements at its De Pere facility Phase 2 (December 10, 2025), and the same district for East River Interceptor rehabilitation and targeted sewer repair (October 8, 2025). The anticipated outcomes of these financed projects include improved water quality, enhanced public health protection, and comprehensive wastewater infrastructure modernization benefiting citizens throughout the state.

Activities:the recipients of these funds provide low interest financing to numerous subrecipients. Subrecipient:the clean water SRF program is exempt from 2 CFR 200.332 subrecipient management requirements for sub-awards as provided in 2 CFR 1500. The program provides assistance in the form of loans.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.