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 3 awarded the Maryland Department of the Environment a capitalization grant of $71.5 million under the Clean Water State Revolving Fund (CWSRF) program (CFDA 66.458), effective July 1, 2025, through June 30, 2032. Funded through the Infrastructure Investment and Jobs Act (IIJA), this grant establishes a long-term financing mechanism that provides low-interest loans to municipalities and local government entities for water quality improvement and protection projects. The primary products delivered include financing for planning, design, and construction of eligible wastewater treatment facilities, stormwater management systems, and other water quality management activities in accordance with the Clean Water Act.

As administrator of the state revolving fund, the Maryland Department of the Environment will deploy these capitalization grant funds as loans and subawards to subrecipients throughout Maryland, creating a self-sustaining financing mechanism whereby loan repayments generate continued funding availability for future projects. The anticipated outcomes include improved and protected water quality and public health benefits for citizens statewide. No federal sub-awards are included in this assistance agreement; rather, the recipient will manage the revolving loan fund mechanism directly to support eligible water infrastructure projects across the state.

Activities:the recipients of these funds provide low interest financing to numerous subrecipients. Subrecipient:no 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.