State Revolving Funds and PFAS Compliance Financing
EPA’s Drinking Water State Revolving Fund (DWSRF) program provides low-interest loans and grants for water system infrastructure improvements. PFAS compliance projects have become a major priority for DWSRF financing as EPA’s MCL rule requires capital investment from thousands of utilities across the country.
Bipartisan Infrastructure Law DWSRF Supplementation
The Bipartisan Infrastructure Law provided $11.7 billion in supplemental DWSRF funding, with specific set-asides for PFAS and emerging contaminants. States are required to prioritize disadvantaged communities and small systems—those with the greatest financial need and often the highest PFAS exposure burdens—for principal forgiveness and grants rather than loans.
Disadvantaged Community Prioritization
EPA guidance requires states to target PFAS DWSRF funds toward communities with PFAS contamination above MCLs and limited financial capacity to finance compliance treatment independently. Median household income thresholds and utility affordability metrics determine disadvantaged community eligibility. Environmental justice considerations are increasingly incorporated into DWSRF priority setting.
Application Process and Technical Assistance
States administer DWSRF programs through annual Intended Use Plans that identify eligible projects and financing terms. Utilities seeking PFAS treatment financing should engage with state drinking water programs early in the planning process to understand funding availability, application requirements, and technical assistance programs that support treatment design and implementation