The Drinking Water State Revolving Fund is a financial assistance program to help water systems and states to achieve the health protection objectives
of the Safe Drinking Water Act. States are required to give priority for the use of Drinking Water State Revolving Fund project funds to: Address the
most serious risks to human health, ensure compliance with the requirements of the Safe Drinking Water Act, and assist systems most in need on a per
household basis according to state affordability criteria. Not all drinking water compliance problems, however, can be solved through capital financing
of infrastructure improvements. Under the Bipartisan Infrastructure Law, 49 percent of funds shall be eligible to be grants or 100 percent principal
forgiveness loans.
Eligible Uses
Capitalization grants are available to each State, and Tribes and territories for the purpose of establishing a Drinking Water State Revolving Fund. This
revolving fund provides loans and grants to water systems for eligible infrastructure projects including:
- Improving drinking water treatment
- Fixing leaky or old pipes (water distribution)
- Improving sources of water supply
- Replacing or constructing finished water storage tanks
- Other infrastructure projects needed to protect public health