Healey-Driscoll Administration Awards $1.24 Billion in Loans and Grants to Fund Wastewater and Drinking Water Infrastructure Projects

Healey-Driscoll Administration Awards $1.24 Billion in Loans and Grants to Fund Wastewater and Drinking Water Infrastructure Projects 

BOSTON — The Healey-Driscoll Administration today announced that 67 projects across Massachusetts are eligible to receive approximately $1.24 billion in low-interest-rate loans to fund construction to improve water quality, upgrade or replace aging drinking water and wastewater infrastructure and cut treatment plant energy use and costs. 

“Our administration is committed to delivering support for our communities to make sure Massachusetts continues to have the cleanest drinking water in the country,” said Governor Maura Healey. “These funds help cities and towns upgrade wastewater and drinking water infrastructure at an affordable cost, while ensuring residents across the state have access to safe and clean water.”  

“State Revolving Funds are critical to helping communities meet the needs of their residents,” said Lieutenant Governor Kim Driscoll. “The State Revolving Fund helps ease the burden on municipal budgets by supporting financing and helping communities cut energy costs. By modernizing critical water infrastructure, we are stimulating the economy with construction jobs and protecting public health.” 

“These projects are critical to the health and wellbeing of everyone here in Massachusetts,” said Treasurer Deborah B. Goldberg, Chair of the Massachusetts Clean Water Trust. “The grant funding and low-interest rate loans from the Trust helps cities and towns to finance cost-effective projects, especially in our most vulnerable communities.” 

The State Revolving Fund (SRF) financing is administered by the Massachusetts Clean Water Trust and finances projects implemented by cities and towns, regional water supply and wastewater treatment districts, and the Massachusetts Water Resources Authority (MWRA). The projects include 35 clean water construction projects totaling approximately $858 million and 32 drinking water construction projects totaling approximately $293 million. Communities offered SRF financing in this round must decide to move forward with the project by June 30, 2025, and secure local funding authority. 

“As our climate gets warmer, drier conditions mean we have less drinking water supplies available,” said Energy and Environmental Affairs Secretary Rebecca Tepper. “Warmer air leads to heavier bursts of precipitation causing flooding, which results in an increase of contaminants in our water supply. This round of funding is meeting the moment we are in by financing projects that address emerging contaminants and manage our drinking water in a changing climate.” 

“Massachusetts has some of the oldest housing stock and water infrastructure in the nation and lead service lines remain a threat to public health, particularly for young children,” said MassDEP Commissioner Bonnie Heiple. “Every dollar of these funds helps us to meet our core mission to provide clean and safe water for everyone.” 

Nearly $162 million will be used to provide loan forgiveness for eligible projects. Loan forgiveness is awarded to renewable energy projects and for projects in communities that meet the affordability criteria established by the Massachusetts Clean Water Trust. The affordability criteria factors in per capita income, unemployment rate and population trends. 

The SRF is composed of two programs that have provided more than $9.6 billion to Massachusetts projects: the Clean Water Fund, first capitalized in 1989; and the Drinking Water Fund, which began operation in 1999. Find more information on the two SRF programs. 

This year, the Clean Water SRF provides $885.8 million in financing for clean water projects across Massachusetts. Approximately $480 million will finance 26 new construction projects and $377 million will be allocated towards financing 10 previously approved multi-year projects. Additionally, $3 million has been allocated to the emergency set-aside account, $5 million will be directed to the Community Septic Management Program to remediate failed septic systems in participating communities, and $15 million has been set-aside to finance planning and PFAS design projects. 

The Drinking Water SRF provides $364 million in financing for drinking water projects. Approximately $123 million will finance 13 new construction projects and approximately $170 million will be allocated towards financing 19 previously approved multi-year projects. Additionally, $5 million will fund an emergency set-aside account, $10 million has been set-aside to finance planning and PFAS design projects, and $39.5 million has been set-aside to finance lead service line replacement projects. 

Massachusetts awards subsidized infrastructure financing under the SRF, which is administered by the Trust – a joint effort of MassDEP, the Executive Office of Administration and Finance and the State Treasurer’s Office. 

To be eligible for Clean Water or Drinking Water SRF loans, municipalities, wastewater districts and water suppliers filed applications with MassDEP last year demonstrating that proposed projects offer significant public health or water quality benefits, have local funding authorization, and demonstrate that there is a commitment on the borrower’s part to file a timely loan application. The projects on the 2025 SRF list must now file loan applications and receive MassDEP approval to obtain funding.