Federal grant programs / Environmental Protection Agency

Drinking Water State Revolving Fund (66.468)

• Awarded, FY 2021 to 2025$23 billion
• Grant awards864
• Typical award$15.6 million
• Awarded in FY 2025$6.0 billion
• Size rank26 of 1,823
• Type of assistanceFormula grants

Key findings

• Annual funding rose from $1.1 billion in fiscal 2021 to $6.0 billion in fiscal 2025.
• It is the 26th largest of 1,823 federal grant programs by five-year awards.
• The 20 largest recipients received 65% of the money.
• Awards went to recipients in 53 states and territories.

What the program funds

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 the District of Columbia, U.S. Territories (Virgin Islands, Northern Mariana Islands, American Samoa, and Guam), and Indian Tribes. The funding priority established by the Safe Drinking Water Act (SDWA) is for capitalization grants to each state for infrastructure improvement projects that are needed to address the most serious risk to human health, are necessary to achieve or maintain compliance with SDWA requirements, and assist systems most in need on a per household basis according to State affordability criteria. A state may use a portion of the capitalization grant funds for programs emphasizing contamination prevention through technical assistance, capacity development, operator certification, and source water protection. The program supports the Agency's strategic goal of providing for clean and safe water. 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). The capitalization grant is deposited in the State's DWSRF, which is used to provide loans and other types of financial assistance to public water systems as described in Section 1452 of the SDWA. A maximum of four percent of the grant amounts, $400,000 each year, or 1/5 percent per year of the current valuation (total net position) of the fund, whichever is greatest, may be used by the States for the cost of administering the DWSRF. States may discretionally take other “set-asides” for small system technical assistance, state program management, and local assistance as described in Section 1452 of the SDWA. States determine priorities for funding within their State in accordance with the SDWA. For the 51 State DWSRFs, a portion of the capitalization grant funding must be used to provide additional subsidy in the form of grants, principal forgiveness, or negative interest loans.

From the federal Assistance Listing. Read the full listing on SAM.gov.

Open opportunities

No opportunity under this program is open or forecast on Grants.gov right now. Programs often post once a year, so the funding history below shows what to expect.

Rules from the program listing

Who can apply

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.

Continue reading on SAM.gov

What the money can and cannot pay for

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.

Continue reading on SAM.gov

Matching requirements

Statutory Formula: Title 42, Part Section 300j-12, Subpart NA,Public Law NA.Protection of the Environment Chapter 40 Part 35 Subpart 3515, 3540, and 3585 Public Law Safe Drinking Water Act, Sec. 1452 The funds available for allotment to State DWSRF programs are those funds appropriated by Congress under the Safe Drinking Water Act (SDWA 1452; 40 CFR 35.3540 and 35.3585). EPA allots funds to each State based on the State's proportional share of total eligible needs reported for the most recent Drinking Water Infrastructure Needs Survey (which is conducted every four years). The minimum proportional share that each State can receive is 1% of total funds available to States. EPA reserves up to 1.5% of the funds available for allotment to the States to provide grants to the U.S. Territories (Virgin Islands, Mariana Islands American Samoa, and Guam). The SDWA also requires the Administrator to reserve 1% of the funds available for allotment to the States to provide grants to the District of Columbia. The SDWA also allows EPA to reserve funds for national set-asides that include up to 2.0% of the national appropriation for grants to Indian Tribes as well as funding for health effects studies, small system technical assistance, and monitoring of unregulated contaminants.Under the DWSRF base appropriations the required State match is 20% of the amount of the capitalization made to the State.

Continue reading on SAM.gov

Deadlines

Contact the headquarters or regional location, as appropriate for application deadlines

Award range and average, in the agency's words

States: $60,905,000 to $470,659,000, average approximately $100,000,000/fiscal year. Tribes: $6,000 to $2,400,000/fiscal year; average approximately $480,000/fiscal year. Territories: $17,958,000 to $25,514,000, average approximately $21,000,000 /fiscal year.

Examples of funded projects

Fiscal Year2025: Drinking water projects addressing treatment, storage, source, transmission, distribution, and consolidation. Some project examples include: construction of an ultra-violet treatment facility; construction of pumping stations; upgrades of water treatment plant; water main replacement; service line replacement; and new wells (owned by a public water system) to replace wells that have been contaminated. For projects funded under the Infrastructure Investment and Jobs Act (IIJA), Public Law 117-58, some project examples include upgrade of a treatment facility to address PFAS; consolidation with another water system that does not have emerging contaminants present; costs for planning and design for a DWSRF-eligible project; complete removal of lead service lines (public and privately owned portion) or service lines made of galvanized iron or galvanized steel; and the development or update of lead service line inventories. For projects funded via the disaster supplementals appropriated in the Consolidated Appropriations Act, 2023, Public Law 117-328 and the American Relief Act, 2025, P.L. 118-158, some project examples include upgrade of a treatment facility; and projects to reduce flood or fire damage risk and vulnerability at eligible facilities under section 1452 of the Safe Drinking Water Act.

Quoted from the program's federal Assistance Listing. The notice of funding opportunity is the official source for each competition's rules.

Who usually wins

Almost all of the money went to state and local governments.

By state

Each state below has its own page for this program, with its recipients and yearly totals.

Award amounts are federal obligations reported to USAspending.gov for fiscal 2021 to 2025; see how our data works.