Largely funded by federal dollars under the Clean Water Act, the dedicated state revolving fund provides low-interest or interest-free loans and subsidies to improve municipal wastewater infrastructure, stormwater systems, and a defined list of national assets.
The fund works like a revolving door—as municipalities pay back loan principals and interest, the money is recycled back into the fund to finance new projects.
According to the draft plan, in the 2025 federal fiscal year, which starts on Oct. 1, the fund can put up to $2.7 billion toward such projects, although demand for funding is even higher.
More than 10 Orange County municipalities have landed their wastewater treatment projects in the draft spending plan, and a handful qualify for interest-free loans and grants.
The town of South Blooming Grove is asking for $43 million in low-interest financing for a major sewer expansion project, the town of Warwick for $16 million to upgrade the facilities at the Wickham Sewer District, and the town of Cornwall for $5.8 million for a municipal sewer project.
Municipalities can qualify for—primarily based on demographics and household income—up to $25 million of interest-free loans from the revolving fund.
Being included in the annual spending list does not guarantee that a project will be financed in the next federal fiscal year. EFC can bypass qualified projects if they fail to submit necessary documents or meet regulatory deadlines.
Since the inception of the clean water state revolving fund in 1990, EFC has provided $20.6 billion—$37.1 billion when combining refinancing—to clean water infrastructure projects.
The drinking water state revolving fund provides financial assistance for infrastructure improvements at municipal and private water plants.
