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

The Environmental Protection Agency (EPA) Region 3 awarded Delaware's Division of Public Health a capitalization grant of $13.122 million under the Drinking Water State Revolving Fund (DWSRF) program (CFDA 66.468), effective July 1, 2025 through June 30, 2032. This award funds the establishment and maintenance of a low-cost, long-term financing mechanism that provides below-market-rate loans to eligible public water systems for planning, design, and construction of drinking water infrastructure improvements. The recipient may allocate funds to set-aside activities including technical assistance for small water systems, operator certification, and source water protection initiatives.

The anticipated deliverables include financing, planning, design, and construction of eligible public health-related drinking water projects that increase the technical, managerial, and financial capacity of public water systems throughout Delaware. Two sub-awards have been issued to date: the Town of Delmar received funding (awarded April 15, 2026) for installation of an elevated storage tank to improve water pressure and emergency response capacity east of U.S. Route 13, and the City of Seaford received funding (awarded February 6, 2026) for construction of two new production wells and a treatment station to diversify source water supply, ensure regulatory compliance, and restore adequate system pressure and fire flow capacity. The expected outcome is comprehensive public health protection for citizens throughout the state.

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:no 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.