The state of Massachusetts has announced that 70 projects are eligible to receive more than $1 billion in low-interest loans to upgrade drinking water and wastewater infrastructure. The funding, provided through the State Revolving Fund (SRF), aims to support the renewal of ageing systems while reducing energy consumption and operational costs at treatment facilities.
In addition to the main allocation, a further $143 million will be made available to communities on a rolling basis throughout the year. Governor Maura Healey stated, “The State Revolving Fund gives our communities the funds they need to keep Massachusetts a national leader in clean drinking water.”
The SRF is administered by the Massachusetts Department of Environmental Protection and the Massachusetts Clean Water Trust. Most of the funds will go towards infrastructure construction projects, either new or previously approved multi-year projects. This includes approximately $703 million for 41 wastewater construction projects and about $315 million for 29 drinking water construction projects. These initiatives will be implemented by municipalities, regional districts and the Massachusetts Water Resources Authority.
The funding package also includes an estimated $135 million in loan forgiveness for eligible projects, particularly those linked to renewable energy or located in communities meeting affordability criteria. This approach seeks to reduce costs for ratepayers while supporting investment in less-resourced areas.
State officials also underlined the importance of the funding in responding to climate-related pressures and emerging contaminants such as lead and PFAS. As Energy and Environmental Affairs Secretary Rebecca Tepper stated, “Massachusetts is feeling the impacts of climate change – bigger storms, more often that can stress our water infrastructure.”
This year’s SRF allocations are structured as follows:
- Clean Water SRF ($728 million total):
- Approximately $413 million for 29 new construction projects
- Around $289 million for 12 previously approved multi-year projects
- $13 million for planning and PFAS design projects
- $5 million for the Community Septic Management Program
- $4 million for the Sewer Overflow and Reuse Program
- $3 million allocated to an emergency reserve
- Drinking Water SRF ($434 million total):
- Approximately $167 million for 16 new construction projects
- Around $148 million for 13 previously approved multi-year projects
- $103 million for lead service line replacement
- $10 million for planning and PFAS design projects
- $5 million allocated to an emergency reserve
Since its creation, the SRF has provided $10.4 billion to water infrastructure projects across the state, reinforcing its role as a key financing mechanism for improving water quality and protecting public health.
