Drinking Water State Revolving Fund
Forecasted
Drinking Water State Revolving Fund supports North Carolina public water supply systems with infrastructure improvements to address health risks, improve water quality, and strengthen resilience.
Funder: North Carolina Department of Environmental Quality
Due Dates (Anticipated): April 2027 (Spring cycle) | September 2027 (Fall cycle)
Funding Amounts: Low-interest loans up to $25 million per applicant per round, with limited principal forgiveness
Summary: Finances North Carolina drinking water infrastructure improvements that protect public health and improve water quality.
Key Information: All loans require Local Government Commission approval and a 2% closing fee that cannot be financed.
Description
The North Carolina Department of Environmental Quality’s Division of Water Infrastructure administers the Drinking Water State Revolving Fund (DWSRF). Created under the 1996 amendments to the Safe Drinking Water Act, the program provides below-market loans and limited principal forgiveness for public water supply infrastructure. Eligible work includes water sources, treatment facilities, storage, transmission and distribution systems, and consolidation of water systems.
The program targets systems with the greatest needs and projects with the greatest public health benefits. Priorities include addressing acute health risks, replacing failed or aging infrastructure, addressing emerging contaminants, consolidating nonviable systems, and improving resilience to natural hazards. Federal capitalization grants, state matching funds, and recycled loan repayments support the fund, including its base funding and Infrastructure Investment and Jobs Act General Supplemental funding.
