This agreement provides a capitalization grant for the recipient's drinking water state revolving fund (DWSRF) program

EPA Region 5 awarded Michigan Department of Environment, Great Lakes, and Energy $29.86 million on October 1, 2025, as a capitalization grant for the state's Drinking Water State Revolving Fund (DWSRF) program under CFDA 66.468. The award funds low-interest rate financing to eligible public water systems for planning, design, and construction of drinking water infrastructure improvements. Of the total, $18,174,320 is obligated as loans to public water systems, and $200,000 is obligated as grants under the Local Assistance Set-Aside for wellhead protection activities in local communities. The program also supports technical assistance to small systems, operator certification, and source water protection activities.

The period of performance runs through September 30, 2028, with place of performance in Michigan. Anticipated deliverables include financing, planning, design, and construction of public health-related drinking water projects. The program aims to increase the technical, managerial, and financial capacity of public water systems statewide, with intended public health protection for Michigan citizens.

Three sub-recipients receive pass-through funding for specific projects. The City of Munising received a sub-award on July 16, 2026, to replace an estimated 214 lead service lines throughout the city. The City of Saginaw received a sub-award on July 16, 2026, for water main replacement and lead or galvanized service line replacement across multiple city neighborhoods. Great Lakes Water Authority received a sub-award on March 31, 2026, for replacement and rehabilitation of approximately 22,580 linear feet of vintage cast iron water main and 742 associated lead service line replacements in Detroit neighborhoods.

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 set-asides, including but not limited to providing technical assistance to small systems, for operator certification activities, and source water protection activities. Subrecipient:the drinking 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. Of the grant amount, $18,174,320 will be provided as loans and $200,000 will be provided as grants under the local assistance set-aside to local communities to support wellhead protection activities.outcomes:the anticipated deliverables include financing, planning, design, and construction of eligible public health-related projects. Deliverables will also be used to increase the technical, managerial, and financial capacity of public water systems. The expected outcome is public health protection. The intended beneficiaries include citizens throughout the state.