EPA State Revolving Funds: CWSRF and DWSRF Basics for Water Projects
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How we wrote this: A plain-English summary of EPA's CWSRF and DWSRF program pages, checked October 29, 2026. General information, not legal or audit advice; your award terms and agency guidance control.
How the SRFs work
EPA gives capitalization grants to all 50 states and Puerto Rico. States add a 20 percent match. Each state then runs its own revolving fund, which works like an infrastructure bank: it makes low-interest loans, and repayments fund new loans.
You apply to your state's SRF program, not to EPA.
| Clean Water SRF (CWSRF) | Drinking Water SRF (DWSRF) | |
|---|---|---|
| Created by | 1987 Clean Water Act amendments | 1996 Safe Drinking Water Act amendments |
| Funds | Wastewater, stormwater, nonpoint source, water reuse and other projects (11 eligibility categories) | Drinking water system infrastructure, such as treatment and storage tanks |
| How projects are picked | State priorities | States rank projects on a Project Priority List |
Loan terms
Per EPA, for both funds:
- terms may not exceed 30 years or the project's useful life;
- interest is at or below market, including interest-free;
- an SRF may buy or refinance local debt, or provide guarantees or insurance.
Extra help for small and disadvantaged communities
States can customize terms. Both SRFs can give additional subsidization, such as principal forgiveness, grants or negative-interest loans. The DWSRF requires states to prioritize systems most in need under state affordability criteria. States may take set-asides from DWSRF grants for state programs.
Getting started
- Find your state's CWSRF or DWSRF office, and get on its intended use plan and priority list.
- Line up engineering reports and match or local funding.
- Federal funds bring federal requirements. Plan for allowable costs and the Single Audit.