Governor Awards Over $1Billion to Water Infrastructure Projects
BOSTON — The Healey-Driscoll Administration today announced that 70 projects across Massachusetts are eligible to receive over $1 billion in low-interest rate loans to upgrade or replace aging drinking water and wastewater infrastructure and cut treatment plant energy use and costs.
These funds are a critical resource that cities and towns rely on each year to plan and advance water infrastructure projects. Additionally, $143 million in funding will be made available to communities on a rolling basis throughout the year.
"The State Revolving Fund gives our communities the funds they need to keep Massachusetts a national leader in clean drinking water," said Governor Maura Healey. "Cities and towns count on this funding to move projects forward, and we are making sure they have the resources they need to upgrade aging systems, protect public health, and keep costs down for residents.
The State Revolving Fund (SRF) is administered by the Massachusetts Clean Water Trust and the Massachusetts Department of Environmental Protection and finances projects implemented by cities and towns, regional water supply and wastewater treatment districts, and the Massachusetts Water Resources Authority (MWRA). The awards include 41
An estimated $135 million will be used to provide loan forgiveness for eligible projects. Loan forgiveness is awarded to renewable energy projects and for projects in communities that meet the affordability criteria established by the Massachusetts Clean Water Trust. The affordability criteria factors in per capita income, unemployment rate and population trends. Loan forgiveness helps reduce costs for ratepayers and supports communities with fewer resources in moving forward with critical projects.
The SRF is composed of two programs that have provided $10.4 billion to Massachusetts projects: the Clean Water Fund, first capitalized in 1989; and the Drinking Water Fund, which began operation in 1999.
This year, the Clean Water SRF provides $728 million in support for clean water projects across Massachusetts. Approximately $413 million will finance 29 new construction projects and $289 million will be allocated towards financing 12 previously approved multi-year projects. Additionally, $13 million will be set aside to finance planning and PFAS design projects, $5 million will be allocated to
The Drinking Water SRF provides $434 million in support for drinking water projects. Approximately $167 million will finance 16 new construction projects and approximately $148 million will be allocated towards financing 13 previously approved multi-year projects. Additionally, $103 million will be set aside to finance lead service line replacement projects, $10 million will be set aside to finance planning and PFAS design projects, and $5 million will be used to fund an emergency reserve.
Massachusetts awards subsidized infrastructure financing under the SRF, which is administered by the Trust – a joint effort of MassDEP, the Executive Office of Administration and Finance and the State Treasurer’s Office.
To be eligible for Clean Water or Drinking Water SRF loans, municipalities, wastewater districts and water suppliers filed project evaluation forms with MassDEP last year demonstrating that proposed projects offer significant public health or water quality benefits. Once a community is offered financing, it must appropriate the necessary local project funds by June 30, 2026 and submit a completed project loan application to MassDEP by October 2, 2026 to continue with the loan process.
