Today, the U.S. Environmental Protection Agency (EPA) announced a $196 million loan to improve Indiana's drinking water and wastewater systems. The announcement was made by Bruno Pigott, head of the EPA’s Water Office, alongside Jim McGoff from the Indiana Finance Authority, at an event held at the Indiana Statehouse.

The loan is part of the State Infrastructure Financing Authority Water Infrastructure Finance and Innovation Act (SWIFIA) program. It aims to address the needs of a growing population by upgrading aging infrastructure and expanding services across Indiana communities. Projects benefiting from this funding are expected to impact 134,000 residents statewide.

Bruno Pigott emphasized the importance of this partnership with Indiana: “I want to congratulate the State of Indiana for securing a $196 million loan from EPA. Through our partnership, we will upgrade water infrastructure across the state to keep residents healthy, protect water resources, and create good-paying jobs while keeping water bills affordable.” He also noted that Indiana is proactive in utilizing EPA financing to achieve its water infrastructure goals.

Jim McGoff highlighted the significance of alternative funding sources: “The IFA is continually searching for alternative funding sources to keep pace with Indiana’s increasing water-infrastructure needs,” he said. “EPA’s SWIFIA program provides that additional source of funding, which will help communities across Indiana invest more than $400 million in their local water systems.”

This SWIFIA loan marks Indiana Finance Authority’s first under this specific program and third overall through EPA’s Water Infrastructure Finance and Innovation Act (WIFIA), totaling over $630 million in financing for state projects. The loan offers benefits such as deferment of principal payments for 20 years and significant savings for residents.

Since its inception, EPA's WIFIA program has provided $21 billion in financing for $45 billion worth of projects nationwide, enhancing drinking water, wastewater, and stormwater infrastructure while creating over 150,000 jobs.

The WIFIA program was established by Congress in 2014 to provide low-cost credit assistance for critical national projects. The current selection round offers $6.5 billion through WIFIA and $1 billion through SWIFIA loans exclusively for state authorities like Indiana's.