Clean Water State Revolving Fund (CWSRF)

The Clean Water State Revolving Fund (CWSRF) is a financial assistance program created by the 1987 amendments to the Clean Water Act. It replaced the EPA’s Construction Grants program and operates as a federal-state partnership designed to provide low-interest loans for a wide variety of water quality infrastructure projects. Administered by the U.S. Environmental Protection Agency (EPA), the program enables states to fund critical water quality improvement efforts. Since its inception, the CWSRF has distributed over $172 billion in assistance through more than 48,900 loans, improving water infrastructure across the United States. Under the program, EPA provides capitalization grants to all 50 states and Puerto Rico, while other U.S. territories receive direct funding. States contribute a 20 percent match to federal funds and operate their own revolving loan programs. Funds are loaned to eligible entities and repaid with interest, allowing the program to remain self-sustaining over time. Each state tailors its loan terms and prioritizes projects based on local water quality needs, with terms extending up to 30 years and interest rates ranging from zero to market rate. Eligible projects include municipal wastewater treatment facilities, nonpoint source pollution control, decentralized wastewater systems, green infrastructure, estuary protection, stormwater management, and water and energy efficiency initiatives. The CWSRF also supports projects related to water reuse, security at treatment facilities, watershed management, and technical assistance for small and mid-sized public treatment systems. Public, private, nonprofit, and governmental entities may qualify depending on the project type and statutory provisions. Types of financial assistance include direct loans, refinancing of debt, bond insurance, and guarantees. Since 2009, additional subsidization is permitted in the form of principal forgiveness, negative interest loans, and grants—particularly for projects that address affordability challenges or promote environmentally sustainable practices. The Green Project Reserve component encourages funding of projects that support green infrastructure and energy efficiency. States manage the application process independently. Interested applicants must contact their respective state agencies for submission instructions, eligibility confirmation, and additional guidance. The process may include application forms, project proposals, financial documentation, and technical planning details depending on state-specific requirements. The CWSRF is a recurring program and typically offers funding opportunities annually, although timelines may vary by state. Because states set their own application procedures and schedules, applicants are encouraged to monitor their state’s CWSRF office for updates on deadlines, funding rounds, and program changes. The program’s long-standing structure and success underline its critical role in safeguarding water quality and public health nationwide.

Prioritize projects that address affordability, green infrastructure, and energy/water efficiency; collaborate early with state CWSRF coordinators to tailor submissions.