Construction Finance
Nov 21, 2025

EPA Opens $7 Billion in Water Infrastructure Financing Opportunities

Westside Construction Group
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Major Federal Water Infrastructure Financing Program Expands

November 20, 2025 – The U.S. Environmental Protection Agency announced $7 billion in newly available Water Infrastructure Finance and Innovation Act (WIFIA) funding for water systems nationwide, along with approval of five major water infrastructure loans across Texas, Illinois, Oregon, and Florida.

The announcement, made by EPA's Assistant Administrator for Water Jessica Kramer, opens the 9th round of WIFIA financing. The program represents a significant opportunity for water utilities, municipalities, and private entities to finance critical infrastructure projects at competitive rates with long-term, low-interest financing.

Funding Available Breakdown

The total $7 billion allocation includes:

  • $6.5 billion for traditional WIFIA water infrastructure projects
  • $550 million through State WIFIA (SWIFIA) program directed to state infrastructure financing authorities

The EPA is currently accepting letters of interest through a rolling application process, meaning qualified entities can apply continuously rather than waiting for specific application deadlines.

Priority Areas for WIFIA Funding

The EPA has identified focus areas for this funding round aligned with the administration's Powering the Great American Comeback Initiative:

  • Safe Drinking Water: Projects addressing water quality and pollution in waterways
  • Energy Initiatives: Infrastructure supporting American energy dominance
  • Cooperative Federalism: Supporting local, regional, and state water priorities
  • Innovation: Projects incorporating new water sector technologies
  • Economic Growth: Infrastructure advancing industrial resurgence

For contractors and equipment suppliers, these priorities signal which project types are most likely to receive federal support.

Five New WIFIA Loan Approvals

The EPA approved five major loans in this announcement, totaling more than $711 million in financing:

Fort Worth, Texas – $347 Million

The City of Fort Worth received $347 million to upgrade wastewater collection and treatment infrastructure. The project includes design and construction of a newly engineered water reclamation facility that will support population growth while enabling wastewater reuse for industrial and irrigation purposes. Water reuse infrastructure represents an increasingly important component of municipal water strategies.

Pflugerville, Texas – $176 Million

The City of Pflugerville secured $176 million in WIFIA financing for multiple drinking water and wastewater projects in this growing municipality. The work includes:

  • Design and construction of a new wastewater treatment plant
  • Expansion and consolidation of wastewater collection systems
  • Water main rehabilitation to reduce system losses

This represents the second WIFIA loan to Pflugerville, indicating successful performance on the initial project.

Joliet, Illinois – $87 Million

The City of Joliet received $87 million to transition its drinking water supply from a stressed and unsustainable aquifer to water from Lake Michigan. Projects include distribution system upgrades to reduce water loss as the city shifts to the new water source. This is the third WIFIA loan to Joliet under an agreement providing total financing of $395 million, showing long-term commitment to infrastructure modernization.

Ashland, Oregon – $73 Million

The small, rural community of Ashland, Oregon received $73 million to build a new drinking water treatment plant, improving water safety and supply resilience for residents.

Wilton Manors, Florida – $28 Million

The City of Wilton Manors secured $28 million for pipeline replacement and wastewater system improvements. Projects include replacing water mains, rehabilitating and replacing wastewater lift stations and force mains, and improving stormwater drainage systems. These improvements reduce pipeline failure risk and system vulnerability during extreme weather events.

WIFIA Program Benefits for Contractors

WIFIA financing provides multiple advantages that translate to project opportunities for construction firms:

  • Extended Loan Terms: Long-term repayment periods reduce annual debt service requirements
  • Flexible Features: Customized financing structures accommodate various project types and borrower situations
  • Competitive Rates: Interest rates based on market conditions, often below conventional financing
  • Lower Costs: Projects financed through WIFIA typically feature superior project economics, making bidding more competitive

Communities able to finance major projects at favorable terms are more likely to move forward with planned capital improvements.

Track Record of WIFIA Success

Since its establishment by the Water Infrastructure Finance and Innovation Act of 2014, the WIFIA program has announced $22 billion in total financing support for 141 projects across the country. These projects have generated more than 160,000 jobs, demonstrating the program's significant economic impact.

The consistent funding and approval rate demonstrates WIFIA's role as a stable, long-term source of water infrastructure investment—important for planning and project development.

Application Process and Rolling Funding

Unlike traditional grant programs with fixed application deadlines, WIFIA operates a rolling application process. Water utilities and eligible borrowers can submit letters of interest at any time. The process provides:

  • Flexibility in application timing
  • Faster feedback on preliminary feasibility
  • Opportunity to refine projects before formal application

For contractors working with municipal clients on water infrastructure planning, understanding WIFIA requirements and timelines can help position clients for successful financing.

How Communities Benefit

According to the EPA: "EPA's WIFIA program provides a win-win for communities and American taxpayers. Communities use these competitive loans to upgrade water infrastructure to benefit residents and businesses while loan payments reimburse the U.S. Treasury."

This approach enables communities to maintain and improve critical water infrastructure while ensuring federal investments are repaid, supporting long-term program sustainability.

What Contractors Should Know

The combination of $7 billion in new WIFIA funding with continued state and local investment creates significant construction opportunities in water infrastructure. Key sectors include:

  • Wastewater treatment plant construction and upgrades
  • Drinking water treatment facility design and build
  • Water main replacement and rehabilitation
  • Wastewater collection system improvements
  • Stormwater management infrastructure
  • Specialized water reuse facilities

Contractors with experience in water infrastructure, permits, environmental compliance, and municipal project management are well-positioned to pursue these opportunities.

Source: U.S. Environmental Protection Agency News Release, November 20, 2025

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