This agreement provides a capitalization grant 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 $19.68 million capitalization grant under the Drinking Water State Revolving Fund (DWSRF) program (CFDA 66.468) on September 1, 2025. This formula grant funds the establishment and maintenance of a low-cost, long-term financing mechanism through which the state provides below-market-rate loans to eligible public water systems for planning, design, and construction of drinking water infrastructure improvements. The award also supports set-aside activities including technical assistance to small water systems, operator certification programs, and source water protection initiatives. These activities further the public health protection objectives of the Safe Drinking Water Act and are intended to increase the technical, managerial, and financial capacity of public water systems throughout Iowa.

The award includes subawards to multiple sub-grantees for specific water system projects with completion anticipated by September 30, 2028. Notable sub-awards include funding to the City of Grinnell for water system improvements (awarded October 24, 2025), support for a 12 million gallon per day membrane water treatment plant in Dallas Center (awarded July 18, 2025), and a buy-in fee for Central Iowa Water Works from the City of Waukee (awarded December 19, 2025). Through these financing mechanisms and technical assistance initiatives, the grant aims to deliver public health protection benefiting 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: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.