The U.S. Environmental Protection Agency (EPA) has announced it will waive fees for small communities applying for loans under the Water Infrastructure Finance and Innovation Act (WIFIA) program in fiscal years 2026 and 2027.
By eliminating the WIFIA Application and Credit Processing Fees, small communities can save nearly $200,000 when applying for a WIFIA loan, removing what the agency describes as a notable barrier to accessing funding for water infrastructure improvements.
"Small and rural communities are the backbone of America, and it is a top priority at the Trump EPA to support access to clean, safe drinking water and wastewater services. Water infrastructure in these communities is essential to their public health, environmental protection and economic prosperity," said EPA Assistant Administrator for Water Jess Kramer. "EPA's WIFIA program has $11 billion in flexible financing available to support water infrastructure projects. Our goal is to reduce barriers to access these resources, especially in our nation's small and rural communities."
The WIFIA program normally charges fees to loan applicants to reimburse the federal government for costs associated with processing and underwriting the loans
The WIFIA program normally charges fees to loan applicants to reimburse the federal government for costs associated with processing and underwriting the loans, costs that can otherwise be financed as eligible project costs within the loan itself. The Application Fee for small communities is $25,000, while the separate Credit Processing Fee currently averages approximately $156,000 per loan. Together, EPA says, these fees can pose significant barriers for small communities seeking WIFIA financing.
Under the new policy, EPA will waive the Application Fee for small communities with populations of 25,000 or fewer, and will waive the Credit Processing Fee for communities in fiscal years 2026 and 2027, subject to WIFIA's program requirements and available administrative funds.
The WIFIA program currently has approximately $11 billion in flexible financing available for water infrastructure projects nationwide, including in small and rural communities, where the program can finance up to 80 percent of project costs. EPA is currently accepting letters of interest from prospective applicants.
