Bipartisan Infrastructure Law Funding
Clean Water Fund Program and Safe Drinking Water Loan Program
The Bipartisan Infrastructure Law (BIL), also known as the Infrastructure Investment and Jobs Act (IIJA) of 2021, will provide over $900 million in additional funding in Federal Fiscal Years 2022-2026 through the Wisconsin Department of Natural Resources (DNR) Environmental Loans programs.
The Clean Water Fund Program (CWFP) and Safe Drinking Water Loan Program (SDWLP) provide subsidized loans to municipalities for eligible wastewater and drinking water infrastructure projects. The standard loan interest rate is 55% of the market rate. Some municipalities may also be eligible for additional subsidy (principal forgiveness).
5-YEAR BIL CAPITALIZATION GRANT TOTALS BY PROGRAM
| Corresponding Fiscal Years | CWFP Supplemental | CWFP Emerging | SDWLP Supplemental | SDWLP Emerging | SDWLP LSL Replacement | |
|---|---|---|---|---|---|---|
| FFY 2022 | SFY 2023 | $48,116,000 | $2,527,000 | $30,660,000 | $12,877,000 | $48,319,000 |
| FFY 2023 | SFY 2024 | $56,351,000 | $5,749,000 | $36,053,000 | $13,082,000 | $81,203,000 |
| FFY 2024 | SFY 2025 | $61,481,000 | $5,749,000* | $39,358,000 | $13,082,000 | $83,278,000 |
| FFY 2025 | SFY 2026* | $67,272,000 | $5,807,000 | $42,633,000 | $13,082,000 | $83,278,000 |
| FFY 2026 | SFY 2027* | $67,272,000 | $5,807,000 | $42,633,000 | $13,082,000 | $83,278,000 |
In addition, these totals do not include reallocated funds available from states that did not use the entirety of their BIL capitalization grants nor DNR program funds, if available, rolled over from the previous state fiscal year.
The fiscal year is designated by the calendar year in which it ends.
- Federal fiscal year (FFY) 2025 runs from Oct. 1, 2024, through Sept. 30, 2025.
- State fiscal year (SFY) 2025 runs from July 1, 2024, through June 30, 2025.
OVERALL PROGRAM IMPACTS
The corresponding state fiscal year CWFP and SDWLP intended use plans (IUPs) provide funding details and descriptions of the changes made to each program relating to the implementation of BIL.
- View IUPs and amendments at Project Lists and Intended Use Plans.
Note: Effective with the state fiscal year 2025 funding cycle, all projects must follow the new versions of chapters NR 162 (CWFP) and NR 166 (SDWLP), Wis. Adm. Code, see the Statutes and Administrative Codes webpage.
LOAN CAPACITY UPDATE
Due to continued high demand for financial assistance, loan capacity limitations may impact the state fiscal year 2025 CWFP and SDWLP applications. For more information, go to the Loan Capacity webpage.
Principal Forgiveness (PF) Eligibility
The principal forgiveness allocation methodology aims to allocate PF funds to the highest priority projects in municipalities with the greatest financial need. Refer to the annual IUPs for details on the CWFP affordability criteria and the SDWLP disadvantaged community criteria used to allocate principal forgiveness. Learn about PF and the capped amounts on the Principal Forgiveness webpage.
Base Capitalization (Cap) Grants
Wisconsin implements a state revolving loan fund (Environmental Improvement Fund) that combines state funding with federal capitalization grants from the U.S. Environmental Protection Agency's Clean Water and Drinking Water State Revolving Funds (SRFs). Going forward, these established annual capitalization grants will be referred to as regular or base funding.
- Applicants can compete for general CWFP Principal Forgiveness and CWFP Priority PF, with the remainder of their project costs being covered by a regular CWFP subsidized loan.
- Applicants can compete for general SDWLP Principal Forgiveness, with the remainder of their project costs being covered by a regular SDWLP subsidized loan.
CWFP Supplemental Cap Grant
Total Principal Forgiveness Year 1 CWFP Supplemental $48,116,000 $23,576,840 Year 2 CWFP Supplemental $56,351,000 $27,611,990 Year 3 CWFP Supplemental $61,481,000 $30,125,690 The BIL mandates that 49% of funds provided through the CWSRF Supplemental capitalization grant be provided as additional subsidy.
Uses
Funding will primarily address municipal wastewater treatment and collection system infrastructure projects that will achieve or maintain compliance with Wisconsin Pollutant Discharge Elimination System (WPDES) permits. Water quality-related urban storm water and urban nonpoint source runoff projects are also eligible. No project eligibility changes are planned.
Timing
Year 1 of BIL CWSRF Supplemental Funding was incorporated into the regular CWFP funding cycle for SFY 2023. The same approach is planned for each of the following years of BIL funding.
CWFP Emerging Contaminants (EC) Cap Grant
* Estimated Total Principal Forgiveness Year 1 CWFP Emerging Contaminants $2,527,000 $2,527,000 Year 2 CWFP Emerging Contaminants $5,749,000 $5,749,000 Year 3 CWFP Emerging Contaminants* $5,749,000 $5,749,000 The BIL requires that 100% of the Clean Water Emerging Contaminants (EC) capitalization grant, minus any set-asides, be provided as additional subsidy. In addition, reallocated funds will be available from states that did not use all, or any, of their BIL Clean Water EC cap grants. The EC funds are reallocated two years after the initial appropriation.
Uses
Funding will focus on water quality projects that will reduce/eliminate any detectable levels of any PFAS contaminant compound for which a surface water quality standard or recommended Wisconsin Department of Health Services groundwater standard exists. Eligible and ineligible emerging contaminant project types are listed in the corresponding state fiscal year CWFP intended use plan.
- Applicants can compete for general CWFP Principal Forgiveness, CWFP Priority PF, and Emerging Contaminants PF, with the remainder of their project costs being covered by a regular CWFP subsidized loan.
Timing
Year 1 of BIL CWSRF EC Funding was incorporated into the regular CWFP funding cycle for SFY 2024. A similar approach is planned for each of the following years of BIL funding.
SDWLP Supplemental Cap Grant
Total Principal Forgiveness Year 1 SDWLP Supplemental $30,666,000 $15,026,340 Year 2 SDWLP Supplemental $36,053,000 $17,665,970 Year 3 SDWLP Supplemental $39,358,000 $19,285,420 The BIL mandates that 49% of funds provided through the DWSRF Supplemental capitalization grant must be provided as additional subsidy.
Uses
Funding will primarily address public drinking water system and infrastructure projects that will achieve or maintain compliance with Safe Drinking Water Act (SDWA) requirements and focus on public health needs. No project eligibility changes are planned.
Timing
Year 1 of BIL DWSRF Supplemental Funding was incorporated into the regular SDWLP funding cycle for SFY 2023. The same approach is planned for each of the following years of BIL funding.
SDWLP Emerging Contaminants (EC) Cap Grant
Total Principal Forgiveness Year 1 SDWLP Emerging Contaminants $12,877,000 $12,877,000 Year 2 SDWLP Emerging Contaminants $13,082,000 $13,082,000 Year 3 SDWLP Emerging Contaminants $13,082,000 $12,733,326 The BIL requires that 100% of the Drinking Water Emerging Contaminants (EC) capitalization grant, minus any set-asides, be provided as additional subsidy. In addition, reallocated funds will be available from states that did not use all, or any, of their BIL Drinking Water EC cap grants. The EC funds are reallocated two years after the initial appropriation.
Uses
Funding will focus on water system projects that will reduce/eliminate any detectable levels of any PFAS contaminant compound included in any recommended Wisconsin Department of Health Services standards and/or Wisconsin DNR maximum contaminant levels in the water system. Eligible and ineligible emerging contaminant project types are listed in the corresponding state fiscal year SDWLP intended use plan.
- Applicants can compete for general SDWLP Principal Forgiveness, Emerging Contaminants PF, and the Small and Disadvantaged Communities program for Emerging Contaminants (EC-SDC) grant funding, with the remainder of their project costs being covered by a regular SDWLP subsidized loan. There is no separate application for EC-SDC grant funding.
Timing
Year 1 of BIL DWSRF EC Funding was incorporated into the regular SDWLP funding cycle for SFY 2023. A similar approach is planned for each of the following years of BIL funding.
SDWLP Lead Service Line (LSL) Replacements Cap Grant
Total Principal Forgiveness Loans/Set-Asides Year 1 SDWLP LSL Replacements $48,319,000 $23,676,310 $24,642,690 Year 2 SDWLP LSL Replacements $81,203,000 $39,789,470 $41,413,530 Year 3 SDWLP LSL Replacements $83,278,000 $40,806,220 $42,471,780 The BIL requires that exactly 49% of the Lead Service Line (LSL) Replacement capitalization grant be awarded as principal forgiveness with the remaining 51% of the funds to be utilized for set-asides and loans. In addition, reallocated funds will be available from states that did not use all, or any, of their BIL LSL Replacement cap grants. The LSL funds are reallocated two years after the initial appropriation and should continue for two years beyond federal fiscal year 2026.
Uses
Funding will focus on lead service line replacements (both public and private) and related LSL inventory work. Eligible and ineligible LSL project types are listed in the corresponding state fiscal year SDWLP intended use plan.
The BIL requires the LSL PF to be awarded to disadvantaged communities and census tracts. All other applicants will be eligible for loan funds only and all loan funding from the BIL LSL capitalization grant will be made available at 0.25% interest for all eligible project costs. In a change from SFY 2024, the LSL projects are not eligible for general SDWLP PF.
- Applicants can compete for LSL Principal Forgiveness, with the remainder of their project costs being covered by loan funds.
Timing
Years 1 & 2 of BIL DWSRF LSL Funding were incorporated into the regular SDWLP funding cycle for SFY 2024. A similar approach is planned for each of the following years of BIL funding.
Federal Requirements
BIL Signage Requirement
The BIL Signage Requirement requires projects designated as federal equivalency and projects that receive principal forgiveness to install a physical sign at the construction site which displays the official Investing in America emblem. For details, including how to comply and design the sign, see the BIL Signage webpage.
BABA Requirement
The Build America, Buy America (BABA) Act requires projects designated as federal equivalency, lead service line projects, and emerging contaminants projects to use iron, steel, manufactured products, and construction materials that are produced in the United States. For details, including how to comply and approved waivers, see the BABA webpage.
Stay Informed
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Contact information
Clean Water Fund Program (CWFP) coordinator: Lisa Bushby
Safe Drinking Water Loan Program (SDWLP) coordinator: Noah Balgooyen
SDWLP Lead Service Line (LSL) Replacement Program specialist: Kate Leja-Brennan
CWFP and SDWLP Emerging Contaminants (EC) Programs specialist: Ryan Atkinson