Ferguson Waterworks can help you understand how the Infrastructure and Jobs Act (IIJA) impacts project funding.
As the Infrastructure Investment and Jobs Act (IIJA), also referred to as the Bipartisan Infrastructure Legislation (BIL), takes center stage in the national spotlight, the federal government is improving and expanding access to precious resources. This is accomplished by allocating water, wastewater, stormwater, and related resiliency project funds.
Who can apply for IIJA Funding?
Local, state, tribal, and federal government entities can apply for IIJA. In addition, developers, engineering, and construction firms, among others, are eligible for IIJA funding.
Discover what’s in the Infrastructure Investment and Jobs Act for water projects, funds allocation and distribution, and how Ferguson Waterworks can help your utility or municipality access these funds.
To request assistance with IIJA funding for water infrastructure, contact Ferguson.
What is the 2021 Infrastructure Investment and Jobs Act (IIJA)?
The Bipartisan Infrastructure Bill passed in 2021 and includes new spending through 2026 to update infrastructure across the U.S. such as airports and rail, public transit, roads and bridges, broadband, and ports and waterways. Furthermore, billions are allocated for drinking water and wastewater infrastructure projects.
What is in the infrastructure bill for water?
When it comes to funding for water infrastructure projects, the IIJA includes $55 billion above the normal baseline of the Environmental Protection Agency (EPA) for fiscal years 22 through 26. Safe drinking water, clean water, and regional waters are included in federal funding for water infrastructure, as well as distributions for emerging contaminants, wastewater, and more.
Both utilities and municipalities can access IIJA funding for water infrastructure projects in a number of ways, such as through the Drinking Water State Revolving Fund (DWSRF), Clean Water State Revolving Fund (CWSRF), and FEMA Hazard Mitigation programs.
The IIJA funds available are still evolving as states go through the request process, however, there are two main buckets of funds for clean water and drinking water projects.
Summary of the BIL Funding:
| Program | FY22 | FY23 | FY24 | FY25 | FY26 | Total |
|---|---|---|---|---|---|---|
| CWSRF General Supplemental | $1.9B | $2.2B | $2.4B | $2.6B | $2.6B | $11.7B |
| CWSRF Emerging Contaminants | $100M | $225M | $225M | $225M | $225M | $1B |
| DWSRF General Supplemental | $1.9B | $2.2B | $2.4B | $2.6B | $2.6B | $11.7B |
| DWSRF Lead Service Line Replacement | $3B | $3B | $3B | $3B | $3B | $15B |
| DWSRF Emerging Contaminants | $800M | $800M | $800M | $800M | $800M | $4B |
The IIJA funding also includes a significantly expanded Buy American clause, American Iron and Steel (AIS) provision, and newly added Build America, Buy America (BABA) provisions, among others. Contact Ferguson Waterworks and discuss potential funding applications for your next project.
Clean Water SRF
Over five fiscal years, state revolving loan funds will receive billions through the Clean Water Act. This includes, for the first time, funds specifically addressing emerging contaminants in clean water SRFs. For the clean water general program, states must match 10% of annual capitalization in fiscal years 2022 and 2023, and 20% afterward. States may also provide additional subsidies to principal forgiveness loans and grants.
When applying for the emerging contaminants clean water funds, states do not have to match capitalization grants. Furthermore, 100% of each state’s allotment is for principal forgiveness or grants.
Drinking Water SRF
Similarly to the clean water funds, billions are available over five fiscal years for the DWSRF program. For the drinking water program, states can provide additional subsidization in certain cases and, with at least 6% of the annual grants, conditionally provide additional subsidization to eligible recipients.
Furthermore, when it comes to the drinking water general program, states must match 10% of annual capitalization for the first two fiscal years of 2022 and 2023, and 20% for the following three years.
However, the emerging contaminants funds in the drinking water program require 100% of state allotments in the form of principal forgiveness or grants, and states don’t have to match capitalization grants.
Wastewater SRF
Both clean water and drinking water funds include some wastewater SRF appropriations. Furthermore, there are additional programs specifically for wastewater. Such as grants regarding stormwater and sewer overflows; connecting to publicly owned treatment plants; pilot programs for wastewater efficiency; and more.
Water Infrastructure Finance and Innovation Act (WIFIA) Funding
The WIFIA program provides low-cost, flexible supplemental water infrastructure project loans. Local, state, tribal, and federal government entities, among others, are eligible. Applicable projects through this federal credit program include clean water and drinking water SRF, stormwater management, water recycling, and more.
Lead Service Line Replacement Program
With $3 billion annually appropriated over five years, the funds for lead service line replacements don’t require a state match. In addition, states must distribute 49% of the funds through grants or loans with principal forgiveness specially appropriated for disadvantaged and underserved communities.
Western Water Infrastructure and Water Reuse Projects
Over $8 billion in largely Bureau of Reclamation-managed funds provide competitive water and Western United States drought issues grants and loans. For example, water recycling and reuse, outdated water infrastructure, and water storage projects.
Building Resilient Infrastructure and Communities (BRIC) Program
FEMA provides communities and not-for-profits direct grants for cost-effective projects mitigating future natural disaster impacts. Applicants in federally recognized tribal governments and all 50 states and territories can apply for up to $1 million.
In addition, sub-applicants may apply for a national competition to receive a $50 million federal share. Furthermore, IIJA funds support SRF resiliency for mitigation projects.
Build America, Buy America - BABA
When it comes to infrastructure projects, Ferguson Waterworks can help you navigate the Build America, Buy America Act, also known as BABA. We can construct quotations and estimates in accordance with BABA domestic content requirements. Furthermore, we offer customer training so you can understand the ins and outs of this legislation – helping you prevent setbacks and miscalculations and plan for project success.
Ferguson Waterworks supports infrastructure bill water projects.
If you’re ready to create a better future for water in your municipality with IIJA water funding or other programs, then partner with Ferguson Waterworks. Our knowledgeable associates understand the unique challenges faced by municipalities and water authorities. Furthermore, we specialize in helping both public and private water agencies navigate strict tax codes and government requirements.
Contact Ferguson Waterworks today to discuss applying for water infrastructure funds, project management, quotation services, and more.
This webpage is for information purposes only. The information provided here should be evaluated and verified for individual project applications. Ferguson Enterprises, LLC does not represent or warrant that funds available through any of the programs discussed above will be available to support any particular project.
