On September 6, the U.S. Environmental Protection Agency (EPA) announced the availability of $7.5 billion in funding through the Water Infrastructure Finance and Innovation Act (WIFIA). This program provides long-term loans to assist communities in implementing essential water infrastructure projects, aiming to protect public health, deliver environmental benefits, create over 60,000 jobs, safeguard waterways including drinking water sources, and support local economies at a reduced cost.
“Good infrastructure is the foundation for delivering clean, safe water to people across the country,” said EPA Administrator Michael S. Regan. “The Biden-Harris administration has prioritized water infrastructure investment with this $7.5 billion infrastructure funding through WIFIA, on top of the unprecedented $50 billion in funding the Biden-Harris Administration secured under the Bipartisan Infrastructure Law. With these resources, communities will keep building on progress to replace lead pipes, cut PFAS pollution, and protect people from climate change.”
The WIFIA program offers borrowers creative and affordable financing options for planning, designing, and constructing a wide range of water infrastructure projects. It allows for combining multiple projects into a single loan and streamlines the funding process to accelerate project implementation. Benefits include interest rate resets, debt structuring, fast disbursements, deferred repayment for up to five years following construction completion, and customized repayment schedules over a 35-year loan term.
This eighth round of funding includes $6.5 billion available through WIFIA and $1 billion through the State Water Infrastructure Financing Authority (SWIFIA). The EPA is currently accepting letters of interest for both WIFIA and SWIFIA loans. To date, WIFIA has closed loans totaling more than $20 billion to finance $44 billion in projects nationwide.
Completed WIFIA-financed projects have demonstrated positive health and environmental outcomes as well as financial advantages:
- Orange County Water District (California) customers benefit from a more drought-proof drinking water supply due to the Groundwater Replenishment System Expansion project.
- City of Wichita (Kansas) residents have access to reliable drinking water from the new Northwest Water Treatment Facility.
- City of Tacoma Sewer Utility (Washington) customers enjoy a modernized wastewater treatment system thanks to the Electrical Distribution System Replacement Project.
The announcement underscores EPA’s commitment to improving water infrastructure so all communities can access clean and safe drinking water. The priority areas for this round of funding include:
- Increasing investment in disadvantaged communities.
- Making rapid progress on lead service line replacement.
- Addressing PFAS and emerging contaminants.
- Strengthening climate resilience in the water sector.
- Supporting water innovation and resilience.
Established by the Water Infrastructure Finance and Innovation Act of 2014, WIFIA aims to accelerate investment in national water infrastructure by providing long-term credit assistance for significant projects. The program supports President Biden’s Justice40 Initiative which targets that 40% of certain federal investments flow to disadvantaged communities.
In addition to WIFIA loans, President Biden’s Bipartisan Infrastructure Law represents a substantial investment in national water infrastructure.
