Funding Issues for Water Infrastructure Projects? Options Are More Abundant than Ever
The country’s water infrastructure has moved into high-priority status, and there is little reason for public officials not to move quickly to launch critical water-related projects that will improve resources, protect citizens, and prevent future destruction related to weather events.
In September 2022, the U.S. Environmental Protection Agency (EPA) announced the availability of $6.5 billion for Water Infrastructure Finance and Innovation Act (WIFIA) loans. The funding is intended to incentivize private sector funding, and the plan is to deliver a combined $13 billion in water infrastructure projects. The funding can be combined with revenue from a variety of sources, including private equity, revenue bonds, corporate debt, grants, and certain state financing options.
This year marks an important change for the WIFIA program. Its loans are available on a rolling basis and will be disbursed year-round. Recipients of the funding will also benefit from coverage under the AAA Treasury credit rating. This additional incentive provides long-term, low-cost loans for eligible water projects. The loans are scoped for projects exceeding $20 million, and they allow for flexible repayment plans. In some cases, the loans can extend up to 35 years after project completion.