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 Montana Department of Environmental Quality received a $14.5 million capitalization grant from the U.S. Environmental Protection Agency (EPA) Region 8 under the Clean Water State Revolving Fund (CWSRF) program (CFDA 66.458), awarded July 15, 2025, with an ultimate completion date of July 14, 2032. Funding from the Infrastructure Investment and Jobs Act (IIJA) capitalizes Montana's Clean Water State Revolving Fund program, enabling the state to provide low-interest financing to municipalities and local communities for water infrastructure improvements. Through this mechanism, the state functions as an intermediary lender, deploying federal funds as subawards to subrecipients for planning, design, and construction of eligible water quality improvement and protection projects.

The anticipated outcomes of this award include improved and protected water quality and enhanced public health across Montana. The revolving fund structure creates a self-sustaining financing mechanism whereby loan repayments generate continued funding availability for future water infrastructure projects. Primary beneficiaries include citizens and communities throughout Montana who will gain access to affordable financing for wastewater treatment facilities, stormwater management systems, and other water quality management activities consistent with the Clean Water Act.

Activities:the recipients of these funds provide low interest financing to numerous subrecipients. Subrecipient:this grant agreement capitalizes the state SRF program, allowing the state SRF program to make loans (subawards) to communities for infrastructure improvements.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.