State Revolving Loan Funds

In 1987, Congress voted to phase out the old construction grants program for funding of municipal sewer and wastewater treatment plant upgrades, replacing it with the Clean Water State Revolving Fund (CWSRF).

Under the CWSRF, EPA provides annual capitalization grants to states, who in turn provide low interest loans for a wide variety of water quality projects. States must match the federal funds with $1 for every $5 (20 percent match). As a result of federal capitalization grants, state match, loan repayments, and leverage bonds, the total amount of assets in all the CWSRFs is approaching $40 billion. Between $3 and $4 billion is loaned annually from CWSRFs nationwide.

Some funds are also provided to territories and tribes to be used as grants for municipal wastewater treatment projects. Territories must match the federal funds with a 20 percent match, while the tribes are not required to provide a match.