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 program (dwsrf)

The Vermont Department of Environmental Conservation received a $7.857 million capitalization grant from the U.S. Environmental Protection Agency (EPA) Region 1 under the Drinking Water State Revolving Fund (DWSRF) program (CFDA 66.468), effective October 1, 2025 through September 30, 2032. Funded through the Infrastructure Investment and Jobs Act, this award capitalizes Vermont's DWSRF to provide low-interest rate financing to eligible public water systems for planning, design, and construction of drinking water infrastructure improvements, with particular emphasis on emerging contaminant mitigation—specifically perfluoroalkyl and polyfluoroalkyl substances (PFAS) treatment projects.

The grant supports public health protection objectives under the Safe Drinking Water Act by enabling Vermont to extend affordable, long-term financing to drinking water systems and directing set-aside funding toward technical assistance for small water systems, operator certification activities, and source water protection initiatives. Deliverables include funded infrastructure projects addressing emerging contaminants, increased technical and managerial capacity at public water systems, and enhanced public health protection across Vermont. No subrecipients are identified; all assistance is provided as loans to eligible systems.

These funds are for dwsrf-eligible projects that address emerging contaminants in drinking water with a focus on projects addressing perfluoroalkyl and polyfluoroalkyl substances (PFAS). 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:n/a - all SRF assistance will be provided as loansoutcomes:the anticipated deliverables include financing, planning, design, and construction of eligible emerging contaminant-focused, 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.