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 U.S. Environmental Protection Agency Region 8 awarded $14.5 million to the South Dakota Department of Agriculture and Natural Resources on September 8, 2025, as a capitalization grant under the Clean Water State Revolving Fund (CWSRF) program (CFDA 66.458), funded through the Infrastructure Investment and Jobs Act. This award establishes a long-term financing mechanism enabling South Dakota to provide low-interest loans to municipalities and local entities for water quality improvement and protection projects. The grant supports planning, design, and construction of eligible wastewater infrastructure activities, with an anticipated completion date of July 31, 2032.

Through this capitalization grant, the recipient state agency will deploy funds as financing to multiple subrecipients, creating a self-sustaining revolving loan fund whereby repayments generate continued funding for future water infrastructure projects. Sub-awardees include the City of Sioux Falls (Phase 1 award, April 9, 2026), which is constructing sanitary sewer force mains, gravity trunk lines, and lift stations along Lincoln County Highway 106, and the City of White (Phase 2 award, February 10, 2026), which is conducting wastewater collection system improvements south of Main Street and west of County Highway 25. The program's expected outcomes include improved water quality and public health protection throughout South Dakota.

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.