EPA Opens $6.5 Billion in Loans for Nationwide Water Upgrades
Published Date: 11/28/2025
Notice
Summary
The EPA is opening the door for water projects to get big loans—about $6.5 billion—to help fix and improve water systems across the U.S. If you’re planning a water infrastructure project, you can send your interest starting December 29, 2025, to apply for this funding. This is a huge chance to boost water projects with low-cost credit and make a splash in your community!
Analyzed Economic Effects
7 provisions identified: 4 benefits, 1 costs, 2 mixed.
EPA offering about $6.5B in WIFIA loans
The EPA estimates it may lend approximately $6.5 billion in long-term, low-cost WIFIA financing to help finance about $13 billion in water infrastructure projects. Prospective borrowers may submit letters of interest starting December 29, 2025 to seek this credit assistance.
How much WIFIA will pay (49% / up to 80%)
The maximum WIFIA credit assistance is generally 49% of eligible project costs; for small communities facing significant challenges, WIFIA may provide up to 80% of eligible project costs. EPA will endeavor to set aside 15 percent of its budget authority for small communities and any set-aside amounts not obligated by June 1 of the fiscal year may be used for any size community.
Minimum project size limits
Projects must have eligible costs anticipated to be at least $20 million, or at least $5 million for small communities serving not more than 25,000 people. Projects below these thresholds are not eligible under this NOFA.
Projects EPA will prioritize for scoring
EPA lists priority project types for scoring, including projects that improve drinking water and wastewater quality, address PFAS and emerging contaminants, remove lead service lines, advance water reuse and desalination, enhance energy efficiency, serve energy-impacted regions, and generate economic benefits. Projects addressing these priorities will be scored under the Project Impact criteria.
Project readiness 90-day contracting rule
Project readiness requires a reasonable expectation that construction contracting can commence within 90 days after the date a Federal credit instrument is obligated for the project under WIFIA. This readiness is part of the Project Readiness selection criteria.
Who can apply and sponsorship rule
Eligible applicants include corporations, partnerships, joint ventures, trusts, state, local, and tribal governments, and state infrastructure financing authorities. If a project is proposed by an entity that is not a state or local government or tribal government, public sponsorship is required.
LOI/application timing and no LOI fee
Letters of Interest (LOIs) submitted on or after December 29, 2025 will be reviewed under this NOFA on a rolling basis; there is no cost to submit an LOI. If invited, a final application should be received within 365 days of the invitation (EPA may extend this deadline case-by-case).
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