Notice2025-21446
Notice of Funding Availability for Credit Assistance Under the Water Infrastructure Finance and Innovation Act (WIFIA) Program
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Published
November 28, 2025
Issuing agencies
Environmental Protection Agency
Abstract
The purpose of this notice of funding availability (NOFA) is to solicit letters of interest (LOIs) from prospective borrowers seeking credit assistance from the U.S. Environmental Protection Agency (EPA) under the Water Infrastructure Finance and Innovation Act (WIFIA) program. EPA estimates that it may lend approximately $6.5 billion to help finance $13 billion in water infrastructure investment.
Full Text
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<title>Federal Register, Volume 90 Issue 227 (Friday, November 28, 2025)</title>
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[Federal Register Volume 90, Number 227 (Friday, November 28, 2025)]
[Notices]
[Pages 54671-54675]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-21446]
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ENVIRONMENTAL PROTECTION AGENCY
[FRL 12913-01-OW]
Notice of Funding Availability for Credit Assistance Under the
Water Infrastructure Finance and Innovation Act (WIFIA) Program
AGENCY: Environmental Protection Agency (EPA).
ACTION: Notice of funding availability.
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SUMMARY: The purpose of this notice of funding availability (NOFA) is
to solicit letters of interest (LOIs) from prospective borrowers
seeking credit assistance from the U.S. Environmental Protection Agency
(EPA) under the Water Infrastructure Finance and Innovation Act (WIFIA)
program. EPA estimates that it may lend approximately $6.5 billion to
help finance $13 billion in water infrastructure investment.
DATES: LOIs submitted on or after December 29, 2025 will be reviewed
using the scoring criteria outlined in this NOFA.
ADDRESSES: Prospective borrowers should submit all LOIs electronically
via EPA's SharePoint site. To be granted
[[Page 54672]]
access to the SharePoint site, prospective borrowers should contact
<a href="/cdn-cgi/l/email-protection#54233d323d35143124357a333b22"><span class="__cf_email__" data-cfemail="f5829c939c94b5908594db929a83">[email protected]</span></a> and request a link to the SharePoint site, where they can
securely upload their LOIs and then email <a href="/cdn-cgi/l/email-protection#d7a0beb1beb697b2a7b6f9b0b8a1"><span class="__cf_email__" data-cfemail="ed9a848b848cad889d8cc38a829b">[email protected]</span></a> once the
complete LOI package has been uploaded to the SharePoint site. EPA will
notify prospective borrowers that their LOI has been received via a
confirmation email.
Prospective borrowers can access additional information, including
the WIFIA program handbook and application materials, on the WIFIA
website: <a href="https://www.epa.gov/wifia/">https://www.epa.gov/wifia/</a>.
FOR FURTHER INFORMATION CONTACT: Dallas Shattuck, Office of Water,
Environmental Protection Agency; telephone number: (202) 564-0972; or
email: <a href="/cdn-cgi/l/email-protection#c2b1aaa3b6b6b7a1a9eca6a3aeaea3b182a7b2a3eca5adb4"><span class="__cf_email__" data-cfemail="1a69727b6e6e6f7971347e7b76767b695a7f6a7b347d756c">[email protected]</span></a> (preferred).
SUPPLEMENTARY INFORMATION:
Table of Contents
I. Background
II. Program Funding
III. Eligibility Requirements
IV. Budgetary Scoring Determination for Non-Federal Projects
V. Type and Amount of Credit Assistance
VI. Letters of Interest and Applications
VII. Cost
VIII. Selection Criteria
IX. Federal Requirements
X. Opportunities to Learn More About the WIFIA Program
I. Background
Congress enacted the Water Infrastructure Finance and Innovation
Act (WIFIA) as part of the Water Resources Reform and Development Act
of 2014 (WRRDA). Codified at 33 U.S.C. 3901-3915, WIFIA authorizes a
Federal credit program for water infrastructure projects to be
administered by EPA. WIFIA authorizes EPA to provide Federal credit
assistance in the form of secured (direct) loans or loan guarantees for
eligible water infrastructure projects.
The WIFIA program's mission is to accelerate investment in our
nation's water, wastewater, and stormwater infrastructure by providing
long-term, low-cost, supplemental credit assistance under customized
terms to creditworthy water infrastructure projects of national and
regional significance. For this NOFA, the WIFIA program is implementing
five key priorities that align with the WIFIA statute and EPA's
``Powering the Great American Comeback'' Initiative:
A. Providing Safe Drinking Water and Improving Water Quality
To further EPA's mission, projects should protect human health and/
or the environment. Project types are wide-ranging and include, but are
not limited to, projects that: improve water quality, support
compliance with drinking water standards and wastewater permit
requirements, reduce stormwater runoff, modernize aging water
infrastructure, address PFAS and other emerging contaminants, and
remove lead service lines. This priority aligns with the WIFIA statute
at 33 U.S.C. 3907(b)(2)(F)(ii) (Selection Criteria Category: Project
Impact (ii)--``Helps maintain or protect the environment''), and EPA's
``Powering the Great American Comeback'' Initiative--Pillar 1: Clean
Air, Land, and Water for Every American.
B. Pursuing Energy Independence, Exploration, Development, or
Production
EPA encourages the submission of projects that serve populations in
regions impacted by significant energy exploration, development, or
production. These projects can help communities pursue energy
independence and lower energy costs for communities. This priority
aligns with the WIFIA statute at 33 U.S.C. 3907(b)(2)(G) (Selection
Criteria Category: Project Impact (iii)--``Energy exploration,
development, or production areas'') and EPA's ``Powering the Great
American Comeback'' Initiative--Pillar 2: Restore American Energy
Dominance.
C. Advancing Local, Regional, and State Water Priorities
Localities, regions, and states understand their specific water
challenges and priorities. EPA will partner with localities, regions,
and states across the country to advance durable water infrastructure
projects that address the critical needs of all communities, especially
for small and rural communities. This priority aligns with the WIFIA
statute at 33 U.S.C. 3907(b)(2)(I) (Selection Criteria Category:
Project Impact (v)--``Identified municipal, state, or regional
priorities'') and EPA's ``Powering the Great American Comeback''
Initiative--Pillar 3: Permitting Reform, Cooperative Federalism, and
Cross-Agency Partnership.
D. Supporting Water Sector Innovation
EPA is prioritizing projects that incorporate new or innovative
technology, which can play a significant role in helping states,
tribes, and communities ensure the provision of clean, safe, and
reliable water supplies. In particular, water reuse technology solves a
variety of water challenges, such as expanding water resources to
support economic development (e.g., artificial intelligence data
centers) and alleviating the effects of drought. Other examples of new
or innovative technology include, but are not limited to, desalination
and cybersecurity enhancements. This priority aligns with the WIFIA
statute at 33 U.S.C. 3907(b)(2)(D) (Selection Criteria Category:
Project Impact (vi)--``New or innovative approaches'') and EPA's
``Powering the Great American Comeback'' Initiative--Pillar 4: Make the
United States the Artificial Intelligence Capital of the World.
E. Promoting Economic Growth for American Industries
Reliable water infrastructure not only benefits residents, but also
companies that depend on water resources to maintain and expand
operations. Without durable water supplies, American industries,
including the automotive, electronic, mining, and artificial
intelligence sectors, cannot thrive. EPA encourages prospective
borrowers to demonstrate how projects will generate economic and public
benefits, such as supporting international commerce, increasing
domestic manufacturing, or accelerating economic growth. This priority
aligns with the WIFIA statute at 33 U.S.C. 3907(b)(2)(A)(iv) (Selection
Criteria Category: Project Impact (i)--``Generation of economic and
public benefits'') and EPA's ``Powering the Great American Comeback''
Initiative--Pillar 5: Protecting and Bringing Back American Auto Jobs.
II. Program Funding
A. WIFIA Program Appropriation
Congress appropriated $59.6 million in funding to cover the subsidy
cost of providing WIFIA credit assistance. EPA estimates this
appropriation will allow the Agency to provide approximately $6.5
billion \1\ in long-term, low-cost financing to water infrastructure
projects and accelerate approximately $13 billion in infrastructure
investment around the country.
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\1\ This estimated loan volume is provided for reference only.
Consistent with the Federal Credit Reform Act of 1990 and the
requirements of the Office of Management and Budget, the actual
subsidy cost of providing credit assistance is based on individual
project characteristics and calculated on a project-by-project
basis. Thus, actual lending capacity may vary.
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B. Funding Availability Period
LOIs may be submitted by prospective borrowers and will be reviewed
by EPA on a rolling basis. LOIs shall be submitted using the LOI form
found at <a href="https://www.epa.gov/wifia">https://www.epa.gov/wifia</a>. LOIs will be
[[Page 54673]]
reviewed based on the scoring guide applicable at the time of
submission. The publication of this NOFA does not impact LOIs
previously submitted to EPA, which continue to be reviewed based on the
applicable requirements at the time of submission.
LOIs submitted on or after December 29, 2025, will be reviewed
using the scoring criteria outlined in this NOFA. This NOFA provides
guidance on all WIFIA funding authority available, including funding
from previous years. Any funding authority not obligated in the fiscal
year for which it is authorized remains available for obligation in
subsequent years.
III. Eligibility Requirements
The WIFIA statute and implementing rules provide eligibility
requirements for prospective borrowers, projects, and project costs. In
general, the WIFIA program can provide loans to public and private
borrowers for a wide variety of water infrastructure projects. Detailed
information on WIFIA eligibility requirements for prospective
borrowers, projects, and project costs can be found in the WIFIA
program handbook at <a href="https://www.epa.gov/wifia/wifia-program-handbook">https://www.epa.gov/wifia/wifia-program-handbook</a>.
A. Eligible Applicants
Prospective borrowers must be an eligible entity to receive WIFIA
credit assistance. Eligible entities include: corporations,
partnerships, joint ventures and trusts; state, local, and tribal
governments; and state infrastructure financing authorities.
Public sponsorship is required for projects undertaken by an entity
that is not a state or local government or agency or instrumentality of
a state or local government, or a tribal government or consortium of
tribal governments.
B. Eligible Projects
The WIFIA statute authorizes EPA to provide credit assistance for a
wide variety of creditworthy drinking water, wastewater, and stormwater
infrastructure projects. The non-exhaustive list below includes several
examples of projects eligible for WIFIA credit assistance. For detailed
project eligibility information, review the WIFIA program handbook at
<a href="https://www.epa.gov/wifia/wifia-program-handbook">https://www.epa.gov/wifia/wifia-program-handbook</a>.
<bullet> A wide range of wastewater, stormwater, and nonpoint
source projects that are eligible under the Clean Water State Revolving
Fund (CWSRF). More detailed CWSRF eligibility information can be found
at <a href="https://www.epa.gov/cwsrf">https://www.epa.gov/cwsrf</a>;
<bullet> A wide range of drinking water infrastructure projects--
including treatment, transmission and distribution, source, storage,
consolidation/partnerships, and the creation of new systems--that are
eligible under the Drinking Water State Revolving Fund (DWSRF). More
detailed DWSRF eligibility information can be found at <a href="https://www.epa.gov/dwsrf">https://www.epa.gov/dwsrf</a>;
<bullet> Repair, rehabilitation, or replacement of drinking water,
wastewater, or stormwater infrastructure;
<bullet> Enhanced energy efficiency in the operation of a public
water system or publicly owned treatment works;
<bullet> Desalination, aquifer storage and recovery, water
recycling, or other projects to provide an alternative water supply and
reduce aquifer depletion;
<bullet> Drought prevention, reduction, or mitigation projects;
<bullet> Acquisition of real property or an interest in real
property, in certain circumstances;
<bullet> A combination of drinking water and wastewater projects
submitted by a state infrastructure financing authority; and
<bullet> A combination of eligible projects, secured by a common
security pledge, for which a single entity, or a combination of
eligible entities, submits a single application.
C. Eligible Costs
Eligible project costs are costs associated with the following
activities:
(i) Development-phase activities, including planning, feasibility
analysis (including any related analysis necessary to carry out an
eligible project), revenue forecasting, environmental review,
permitting, preliminary engineering and design work, and other
preconstruction activities;
(ii) Construction, reconstruction, rehabilitation, and replacement
activities;
(iii) The acquisition of real property or an interest in real
property (including water rights, land relating to the project, and
improvements to land), environmental mitigation, construction
contingencies and acquisition of equipment; and
(iv) Capitalized interest necessary to meet market requirements,
reasonably required reserve funds, capital issuance expenses, and other
carrying costs during construction. Capitalized interest on WIFIA
credit assistance may not be included as an eligible project cost.
IV. Budgetary Scoring Determination for Non-Federal Projects
To comply with Public Law 116-260, a project selected for WIFIA
financing will be assessed using two initial screening questions and
sixteen scoring factors. These questions will help the Office of
Management and Budget (OMB) determine compliance with budgetary scoring
rules, a process that will be conducted in parallel to EPA's LOI
evaluation process outlined in this NOFA. The questions may be found in
Federal Register publication titled ``Water Infrastructure Finance and
Innovation Act Program (WIFIA) Criteria Pursuant to the Further
Consolidated Appropriations Act, 2020'' (85 FR 39189, June 30, 2020).
EPA encourages project applicants to review the scoring criteria and
provide sufficient information in the LOI or as an attachment to the
LOI to facilitate EPA and OMB review of the prospective project
considering the scoring criteria.
V. Type and Amount of Credit Assistance
Under this NOFA, EPA will provide credit assistance in the form of
direct loans or loan guarantees. Each prospective borrower should list
the estimated total capital costs of the project broken down by
activity type.
A. Minimum Project Costs
Projects must have eligible costs that are reasonably anticipated
to be equal to or exceed $20 million, or for small communities (serving
not more than 25,000 individuals), project costs that are reasonably
anticipated to equal or exceed $5 million.
B. Maximum Amount of WIFIA Credit Assistance
The maximum amount of WIFIA credit assistance to a project is 49
percent of eligible project costs in almost all instances. For small
communities who face significant water infrastructure challenges and
economic or administrative hardship accessing funding and financing,
the WIFIA program may provide credit assistance up to a maximum of 80
percent of eligible project costs.
C. Appropriation Set-Aside for Small Communities
EPA will endeavor to use 15 percent of its budget authority for
small communities. Recognizing the need that exists in both small and
large communities to invest in infrastructure, the WIFIA statute
requires that EPA set aside 15 percent of the budget authority
appropriated each year for small communities, defined as systems that
[[Page 54674]]
serve a population of 25,000 or less. Of the funds set aside, any
amount not obligated by June 1 of the fiscal year for which budget
authority is set aside may be used for any size community.
VI. Letters of Interest and Applications
Each prospective borrower will be required to submit an LOI and, if
invited, an application to EPA to be considered for approval. This
section describes the LOI submission and application submission.
A. Letter of Interest (LOI)
Prospective borrowers seeking a WIFIA loan must submit an LOI
describing the project fundamentals and addressing the WIFIA selection
criteria. Prospective borrowers can find more information on the LOI at
<a href="https://www.epa.gov/wifia">https://www.epa.gov/wifia</a>.
The primary purpose of the LOI is to provide adequate information
to EPA to: (i) determine the eligibility of the prospective borrower
and the prospective project, (ii) perform a preliminary
creditworthiness assessment, (iii) perform a preliminary engineering
feasibility assessment, and (iv) evaluate the project against the
selection criteria. Based on its review of the information provided in
the LOI, EPA will invite prospective borrowers to submit applications
for their projects. Prospective borrowers are encouraged to review the
WIFIA program handbook at <a href="https://www.epa.gov/wifia/wifia-program-handbook">https://www.epa.gov/wifia/wifia-program-handbook</a> to help create the best justification possible for the project
and a cohesive and comprehensive LOI submittal.
Prospective borrowers must utilize the WIFIA LOI form and follow
the guidelines contained on the WIFIA program website: <a href="https://www.epa.gov/wifia">https://www.epa.gov/wifia</a>. Prospective borrowers should provide the LOI and any
attachments as Microsoft Word documents or searchable PDF files,
whenever possible, to facilitate EPA's review. Additionally,
prospective borrowers must ensure that financial information, including
the pro forma financial statement, is in a formula-based Microsoft
Excel document. Prospective borrowers should provide sufficient detail
about the project for EPA's review. EPA will notify a prospective
borrower if its project is deemed ineligible as described in section
III of this document or if additional information is needed to assess
the LOI package.
B. Application
After EPA concludes its evaluation of a complete LOI package, a
selection committee will invite the prospective borrower to apply based
on review and scoring, as applicable, of the selection criteria and
satisfaction of the eligibility requirements. The selection committee
may choose to combine multiple LOIs or separate projects from a
prospective borrower based on the creditworthiness review and may offer
an alternative amount of WIFIA assistance than requested in the LOI.
Final applications should be received by EPA within 365 days of the
invitation to apply, but EPA may extend the deadline on a case-by-case
basis if the LOI schedule signals additional time may be needed.
An invitation to apply for WIFIA credit assistance does not
guarantee EPA's approval, which remains subject to a project's
continued eligibility, including creditworthiness, the successful
negotiation of terms acceptable to EPA, and the availability of funds
at the time at which all necessary recommendations and evaluations have
been completed. However, the purpose of EPA's LOI review is to pre-
screen prospective borrowers to the extent practicable. It is expected
that EPA will only invite prospective borrowers to apply if it
anticipates that those prospective borrowers are able to obtain WIFIA
credit assistance. Detailed information needs for the application are
listed in the application form at <a href="https://www.epa.gov/wifia">https://www.epa.gov/wifia</a> and
described in the WIFIA program handbook.
VII. Cost
There is no cost to submit an LOI. For information about
application, closing, and post-closing costs, please refer to the WIFIA
program handbook.
VIII. Selection Criteria
This section specifies the criteria and process that EPA will use
to evaluate LOIs and award applications for WIFIA assistance.
EPA will evaluate and select proposed projects described in the
LOIs using the selection criteria established in the statute and
regulation, and the Administration priorities identified in section I
of this document. EPA's priorities reflect water sector challenges that
require innovative tools to assist borrowers in managing and adapting
to our most pressing public health and environmental challenges. These
priorities are reflected in the scoring methodology of the selection
criteria below and described in greater detail in the WIFIA program
handbook.
The WIFIA selection criteria are divided into three categories:
Project Readiness, Borrower Creditworthiness, and Project Impact. Each
LOI will be evaluated for the extent to which the project satisfies the
criteria listed below for each category. To satisfy the overall
category review, it is not necessary to satisfy all criteria for each
category. For the Project Impact category, WIFIA staff will score LOIs
based on the points indicated below and compare the cumulative score
received to a minimum scoring threshold. All projects that satisfy
category-level review for all three categories, including exceeding the
minimum scoring threshold, will be selected for funding, assuming
sufficient funds are still available. The criteria are as follows:
Project Readiness
(i) The readiness of the project to proceed toward development,
including a demonstration by the obligor that there is a reasonable
expectation that the contracting process for construction of the
project can commence by not later than 90 days after the date on which
a Federal credit instrument is obligated for the project under WIFIA.
33 U.S.C. 3907(b)(2)(J).
(ii) Preliminary engineering feasibility analysis. 33 U.S.C.
3907(a)(2); 33 U.S.C. 3907(a)(6).
Borrower Creditworthiness
(i) The likelihood that assistance under WIFIA would enable the
project to proceed at an earlier date than the project would otherwise
be able to proceed. 33 U.S.C. 3907(b)(2)(C).
(ii) The extent to which the project financing plan includes public
or private financing in addition to assistance under WIFIA. 33 U.S.C.
3907(b)(2)(B).
(iii) The extent to which assistance under WIFIA reduces the
contribution of Federal assistance to the project. 33 U.S.C.
3907(b)(2)(K).
(iv) The amount of budget authority required to fund the Federal
credit instrument made available under WIFIA. 33 U.S.C. 3907(b)(2)(E).
(v) Preliminary determination of prospective borrower and project
creditworthiness. 33 U.S.C. 3907(a)(1).
Project Impact
(i) 15 points: The extent to which the project is nationally or
regionally significant, with respect to the generation of economic and
public benefits, such as (1) the reduction of flood risk; (2) the
improvement of water quality and quantity, including aquifer recharge;
(3) the protection of drinking water, including source water
protection; and (4) the support of international commerce. 33 U.S.C.
3907(b)(2)(A).
(ii) 15 points: The extent to which the project (1) protects
against extreme weather events, such as floods or
[[Page 54675]]
hurricanes; or (2) helps maintain or protect the environment. 33 U.S.C.
3907(b)(2)(F).
(iii) 15 points: The extent to which the project serves regions
with significant energy exploration, development, or production areas.
33 U.S.C. 3907(b)(2)(G).
(iv) 10 points: The extent to which a project serves regions with
significant water resource challenges, including the need to address:
(1) water quality concerns in areas of regional, national, or
international significance; (2) water quantity concerns related to
groundwater, surface water, or other water sources; (3) significant
flood risk; (4) water resource challenges identified in existing
regional, state, or multistate agreements; or (5) water resources with
exceptional recreational value or ecological importance. 33 U.S.C.
3907(b)(2)(H).
(v) 10 points: The extent to which the project addresses identified
municipal, state, or regional priorities. 33 U.S.C. 3907(b)(2)(I).
(vi) 15 points: The extent to which the project uses new or
innovative approaches. 33 U.S.C. 3907(b)(2)(D).
(vii) 5 points: The extent to which the project addresses needs for
repair, rehabilitation or replacement of a treatment works, community
water system, or aging water distribution or wastewater collection
system. 40 CFR 35.10055(a)(12).
(viii) 5 points: The extent to which the project serves
economically stressed communities, or pockets of economically stressed
rate payers within otherwise non-economically stressed communities. 40
CFR 35.10055(a)(13).
(ix) 10 points: The extent to which the project reduces exposure to
lead in the nation's drinking water systems or addresses emergent
contaminants. 40 CFR 35.10055(b).
The scoring scales and guidance used to evaluate each project
against the selection criteria are available in the WIFIA program
handbook. Prospective borrowers considering WIFIA financing should
review the WIFIA program handbook and discuss how the project addresses
each of the selection criteria in the LOI submission.
IX. Federal Requirements
All projects receiving WIFIA assistance must comply with applicable
Federal requirements. Compliance with Federal requirements is not
required for submitting a letter of interest, being invited to apply
for a WIFIA loan, or submitting an application. The WIFIA program will
review selected projects for compliance with Federal requirements once
they have submitted an application. Additional information about
Federal compliance requirements is available in the WIFIA program
handbook and at <a href="https://www.epa.gov/wifia/wifia-federal-compliance-requirements">https://www.epa.gov/wifia/wifia-federal-compliance-requirements</a>.
X. Opportunities To Learn More About the WIFIA Program
EPA hosts regular outreach events and monthly office hours to
provide further information about submitting an LOI. The outreach
schedule and registration instructions can be found on the WIFIA
program website: <a href="http://www.epa.gov/wifia">www.epa.gov/wifia</a>.
Prospective borrowers with questions about the program or interest
in meeting with the WIFIA program staff may send a request to
<a href="/cdn-cgi/l/email-protection#f88f919e9199b89d8899d69f978e"><span class="__cf_email__" data-cfemail="a9dec0cfc0c8e9ccd9c887cec6df">[email protected]</span></a>. EPA will meet with all prospective borrowers interested
in discussing the program prior to submission of an LOI.
Authority: 33 U.S.C. 3901-3915; 40 CFR part 35.
Jessica L. Kramer,
Assistant Administrator.
[FR Doc. 2025-21446 Filed 11-26-25; 8:45 am]
BILLING CODE 6560-50-P
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This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.