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

The U.S. Environmental Protection Agency (EPA) Region 7 awarded the Iowa Department of Natural Resources a Formula Grant of $44.9 million under the Drinking Water State Revolving Fund (DWSRF) program (CFDA 66.468) on September 1, 2025. This capitalization grant, funded through the Infrastructure Investment and Jobs Act (IIJA), enables Iowa to establish and maintain low-cost, long-term financing mechanisms for eligible public water systems. The primary deliverable is the provision of below-market-rate loans and grants to public water systems for planning, design, and construction of eligible drinking water infrastructure improvement projects. Additionally, Iowa may allocate portions of the funding to set-aside activities, including technical assistance to small water systems, operator certification programs, and source water protection initiatives. The anticipated outcome is enhanced public health protection and increased technical, managerial, and financial capacity of participating public water systems throughout the state, with the performance period extending through September 30, 2028.

The award includes subawards distributed to four Central Iowa municipalities for buy-in fees associated with Central Iowa Water Works: the City of Norwalk, City of Johnston, City of Waukee, and City of Ankeny. These subawards, issued on December 19, 2025, represent financing mechanisms through which local water systems can access the state revolving fund to support their respective drinking water infrastructure projects and initiatives.

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:subawards are included in this assistance agreement.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.