IIJA Expanded DWSRF Funding, But Demand Outpaces Available Dollars
The Infrastructure Investment and Jobs Act (IIJA) delivered a large federal investment in drinking water infrastructure, substantially increasing Drinking Water State Revolving Fund (DWSRF) capitalization grants over FFY22—FFY26. These additional resources have provided states with significant opportunities to finance critical drinking water infrastructure, including lead service line replacement (LSLR), emerging contaminants (EC), water treatment, and other system improvements.
But has this increase in SRF funding kept pace with the demand from communities seeking assistance?
As part of EPIC’s DWSRF Funding Tracker, we analyze Intended Use Plans (IUPs), associated project lists, and other program documents across 15 focus states to better understand how DWSRF programs operate and identify opportunities to improve access to funding. Using these data, we compared project demand—represented by the total cost of projects included on each state's comprehensive project list—to the funding available for projects during the first four IIJA years and a pre-IIJA comparison year (typically SFY22—SFY26).

