EPA announces USD 7.5 billion WIFIA available funding

Funding for a wide range of water infrastructure projects, which can be combined into a single loan

The WIFIA program provides its borrowers with creative, affordable financing options. It can fund the planning, design, and construction of a wide range of water infrastructure projects and offers the ability to combine multiple projects into a single loan. By streamlining the funding process, communities can accelerate their infrastructure projects.

The program offers interest rate resets, debt structuring, and fast disbursements, benefits not traditionally offered with other financing sources. For example, borrowers may defer repayment for up to five years following construction completion, and then customize their repayment schedule through the 35-year loan term. This flexibility provides borrowers with immediate funding to implement projects while helping to keep rates more affordable.

This is the eighth round of funding available, and it includes USD 6.5 billion available through WIFIA and USD 1 billion available through the State Water Infrastructure Financing Authority, known as SWIFIA. EPA is accepting letters of interest for WIFIA and SWIFIA loans.

Positive health and environmental outcomes

Completed WIFIA-financed projects show positive health and environmental outcomes, as well as the advantages of financing with WIFIA loans. For example:

Orange County Water District (California) customers have a more drought-proof drinking water supply and are less reliant on imported water due to the completion of the Groundwater Replenishment System Expansion project.

City of Wichita (Kansas) residents benefit from more reliable drinking water because of its new Northwest Water Treatment Facility. Due to WIFIA financing, the project was initiated seven years sooner than originally planned and now delivers clean drinking water to the community.

City of Tacoma Sewer Utility (Washington) customers have a more reliable, resilient wastewater treatment system because of the completion of the Electrical Distribution System Replacement Project, which modernized the treatment plant’s electrical system. By deferring WIFIA loan repayment for four years after construction completion, the city can pay off existing state-revolving fund (SRF) loans prior to repaying their WIFIA loan.

Priority areas

The funding announcement demonstrates EPA’s continued commitment to water infrastructure improvements that ensure all communities have access to clean and safe drinking water. For this round of funding, EPA has identified the following priority areas:

Increasing investment in disadvantaged communities and improving health and livability.

Making rapid progress on lead service line replacement.

Addressing PFAS – known as “forever chemicals” – and emerging contaminants.

Strengthening climate resilience in the water sector.

Supporting water innovation and resilience.

More about the WIFIA program and this funding announcement is available here and here, subsequently.

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