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

The Environmental Protection Agency (EPA) Region 8 awarded the South Dakota Department of Agriculture and Natural Resources $13.09 million on September 1, 2025, under the Drinking Water State Revolving Fund (DWSRF) program (CFDA 66.468). This capitalization grant enables the state to provide low-interest financing to eligible public water systems for planning, design, and construction of drinking water infrastructure improvements. The funding supports projects that advance Safe Drinking Water Act objectives and may also be allocated to set-aside activities including technical assistance for small water systems, operator certification, and source water protection initiatives. All assistance is structured as revolving loans rather than direct grants, ensuring sustainable long-term financing mechanisms for public health protection.

As of the grant period through July 31, 2032, three sub-awardees have been identified to receive financing for specific water infrastructure projects: the City of Wessington Springs (pipe replacement and service line upgrades totaling approximately 5,100 feet), the City of White (water distribution line replacement south of Main Street), and the Town of Henry (waterline replacement and installation of a ground storage tank with booster pump station to address cracking and deteriorating infrastructure). These projects collectively address critical drinking water quality and infrastructure needs across South Dakota communities.

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 loans.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.