Drinking Water State Revolving Fund

To provide a low-cost, long-term source of drinking water infrastructure financing, EPA awards capitalization grants to States and Puerto Rico to capitalize their Drinking Water State Revolving Funds (DWSRFs). EPA also awards construction grants to t

Grants are made to States and Puerto Rico to capitalize their Drinking Water State Revolving Funds (DWSRFs) which provide a low-cost, long-term source of financing for the costs of drinking water infrastructure. Grants are also made to the District of Columbia, U.S. Territories (Virgin Islands, Northern Mariana Islands, American Samoa, and Guam), and Indian Tribes.

States (includes District of Columbia), U.S. Territories or Possessions (the Commonwealth of Puerto Rico, Virgin Islands, Mariana Islands American Samoa, and Guam), and Federally Recognized Indian Tribal Governments are eligible for grants from the program. The Consolidated Appropriations Act, 2023, Public Law 117-328, provides two sets of additional funding. Division N of the Act appropriates $450 million in disaster supplemental funding for the DWSRF, available only to states or territories in EPA Region 4 in areas where the President declared an emergency in August of fiscal year 2022 pursuant to the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. §§ 5121 et seq.). The President's emergency declaration dated August 30, 2022, applies to Hinds County, Mississippi, but was necessitated by the water crisis impacting the City of Jackson's public water systems. Therefore, the City of Jackson's public water systems (PWS ID No. MS0250008 and PWS ID No. MS0250012) are the nation's only public water systems eligible for these funds. Division N of the Act also includes $402 million in supplemental funding for the DWSRF, available only to states or territories in EPA Regions 2 and 4 for drinking water facilities impacted by Hurricanes Fiona or Ian. Only the State of Florida and the Commonwealth of Puerto Rico are eligible to apply for these DWSRF supplemental funds. Two percent of the appropriated funds are reserved for direct grants or interagency agreements to benefit Tribes. The American Relief Act, 2025, Public Law 118-158, provides funding in Title VII of the Act in the amount of $1.77 billion for the DWSRF programs, available only to states or territories in EPA Regions 3, 4, and 9 for wastewater treatment works and drinking water facilities impacted by Hurricanes Helene and Milton and the Hawai'i wildfires. Only the States of Florida, Georgia, Hawai'i, North Carolina, South Carolina, Tennessee, and Virginia are eligible to apply for these DWSRF supplemental funds.

States, U.S. Territories or Possessions (the Commonwealth of Puerto Rico, Virgin Islands, Mariana Islands American Samoa, and Guam), Federally Recognized Indian Tribal Governments, local, and intrastate.

Capitalization grants are made available to each State and Puerto Rico for the purpose of establishing a DWSRF for providing assistance to public water systems for infrastructure improvements. States award loans and other types of financial assistance to eligible public water systems for projects. Once invoices for these projects are submitted to the State, the State can request reimbursement from the Federal Treasury up to the amount of their capitalization grant. A State may elect to use up to approximately 31% of the capitalization grant for other eligible activities, including 4%, $400,000 or 1/5th percent of fund valuation for administration of the program. States may also elect to transfer up to one-third of the DWSRF capitalization grant amount to the Clean Water State Revolving Fund (CWSRF) or an equivalent amount from the CWSRF to the DWSRF program. Grants are also made available to Federally Recognized Indian Tribal Governments, U.S Territories, and the District of Columbia. The Infrastructure Investment and Jobs Act (IIJA), 2021, (Public Law 117-58), makes available additional capitalization grants to each state and construction grants to the other listed entities for the purpose of providing assistance through the Drinking Water SRF to: (1) activities identified above, (2) activities identified above for projects that address emerging contaminants in drinking water, and (3) activities identified above for projects that identify and replace lead service lines (including related planning and design projects and activities). Assistance agreement awards under this program may involve or relate to geospatial information. Further information regarding geospatial information may be obtained by viewing the following website: Geospatial Resources at EPA (https://www.epa.gov/geospatial).

Funds are available for EPA's obligation to the State during the fiscal year in which they are allotted and during the following year. The term of the grant shall be determined at the time of award. States must agree to enter into binding commitments with loan recipients to provide financial assistance from the DWSRF in an amount equal to the sum of Federal assistance, less amounts used by the State for eligible set-aside purposes, and the State match (if applicable). States must agree to commit and expend all funds in the DWSRF as efficiently as possible, and in a timely manner.

This program is eligible for coverage under E.O. 12372, "Intergovernmental Review of Federal Programs." An applicant should consult the office or official designated as the single point of contact in his or her State for more information on the process the State requires to be followed in applying for assistance, if the State has selected the program for review. Note that EPA has determined that states meet their intergovernmental review responsibilities under 40 CFR Part 29 when they comply with the public notice requirements for Intended Use Plans prescribed in 40 CFR 35.3555. States are required to prepare and provide for public comment on a plan identifying the intended uses (Intended Use Plan, or IUP) of the funds in the DWSRF and how those uses support the goals of the DWSRF. The IUP is to be submitted no later than the application. An environmental impact statement is not required prior to grant award; however, a State environmental review process must be applied to all subsequent State assistance for public water systems.

A grant application is reviewed by the appropriate Regional Office, and if approved, the grant is awarded by the Regional Administrator under a delegation of authority from the Administrator of EPA. EPA Headquarters retains the authority to review certain applications or parts thereof.

Approval time averages 45 days.

For those portions of the applicant's program that do not change from year to year, a subsequent grant application may incorporate by reference relevant portions of the previous year's application which have not changed.

Disputes relating to matters other than the competitive selection of recipients will be resolved under 2 CFR 1500 Subpart E, as applicable.