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

Environmental Protection Agency Region 3 awarded Pennvest $225.259 million on July 1, 2026, under the Drinking Water State Revolving Fund program (CFDA 66.468), a capitalization grant funded by the Infrastructure Investment and Jobs Act to support lead service line identification, planning, design, and replacement activities.

Pennvest, the Pennsylvania Infrastructure Investment Authority and a child entity of the Commonwealth of Pennsylvania, will provide low-interest rate financing to eligible public water systems for planning, design, and construction of lead service line replacement projects and associated activities. The recipient may also deploy portions of the funding for setasides including technical assistance to small water systems, operator certification activities, and source water protection activities. The funding will increase technical, managerial, and financial capacity for public water systems across Pennsylvania and protect public health for citizens throughout the state.

No sub-awards are included in this assistance agreement. Pennvest channels capitalization grants as revolving loans to municipalities and water systems rather than through federal subawards.

The period of performance runs from July 1, 2026, through June 30, 2033. Performance takes place in Pennsylvania.

Funds will be used for dwsrf-eligible lead service line replacement projects and associated activities directly connected to the identification, planning, design, and replacement of lead service lines. The award furthers the public health protection objectives of the safe drinking water act (sdwa). Activities:the recipient of these funds will provide low interest rate financing to eligible public water systems for the costs associated with the planning, design, and construction of eligible drinking water improvement projects. The recipient may also use some of the funding for specific setasides, including but not limited to providing technical assistance to small systems, for operator certification activities, and source water protection activities. Subrecipient:no subawards are included in this assistance agreement.outcomes:the anticipated deliverables include financing, planning, design, and construction of eligible lead service line projects and associated activities. Deliverables will also be used to increase the lead service line-related technical, managerial, and financial capacity of public water systems. The expected outcome is public health protection. The intended beneficiaries include citizens throughout the state.