Clean Water State Revolving Fund Grant

Clean Water State Revolving Fund Grant

Status: ACTIVE
Funder: Texas Water Development Board (TWDB)
Last Updated: January 27, 2026

Summary

The Clean Water State Revolving Fund (CWSRF) in Texas offers low-cost financing for various pollution control projects, including wastewater and stormwater management. With over $460 million allocated for Fiscal Year 2024, this program supports the planning, design, and construction of essential infrastructure. Key features include below-market interest rates, principal forgiveness for disadvantaged communities, and funding for urgent projects. CWSRF is vital for enhancing water quality and environmental sustainability in Texas communities.

Overview

Clean Water State Revolving Fund The CWSRF assists communities by providing low-cost financing for a wide range of wastewater, stormwater, reuse, and other pollution control projects. Recent streamlining of the program provides year-round funding as projects are included in the CWSRF Intended Use Plan. Through Fiscal Year 2020, the program has committed approximately $10 billion for projects across Texas. What can the program do for you? The Clean Water State Revolving Fund, authorized by the Clean Water Act, provides low-cost financial assistance for planning, acquisition, design, and construction of wastewater, reuse, and stormwater infrastructure. What types of projects can I use the loan funding for? Financial assistance from the CWSRF can be utilized for: Create or improve wastewater treatment facilities, reuse/recycle facilities, and collection systems Purchase existing wastewater treatment plants Purchase land necessary for construction of an eligible project Manage, reduce, treat, or recapture stormwater or subsurface drainage water Nonpoint source pollution control projects Estuary management projects Implement green projects (pursuant to EPA guidance) Develop and implement watershed pilot projects Disaster recovery Increase the security of POTWs Water meters as a water conservation measure Pay for other costs necessary to secure and issue debt Are loans or grants offered? Below market interest rate loans, 0% loans and principal forgiveness (similar to grants) are offered in the State Revolving Fund (SRF) Intended Use Plan (IUP). The interest rate on loans will be a percentage reduction from the Thomson Reuters Municipal Market Data (MMD) rate adjusted for yield to maturity that is applicable to the entity's rating, with non-rated entities using the Baa rate, as follows: Equivalency projects: 35% reductionNon-Equivalency projects: 30% reduction 0% loans are available on a limited basis to eligible small/rural disadvantaged communities, urgent need projects and for preparation of Asset Management Plans. Principal forgiveness is available on a limited basis to eligible applicants. Disadvantaged communities: The amount of principal forgiveness for a regular disadvantaged project (up to 70%) is dependent on the annual median household income (AMHI) and household cost factor (HCF) for the project area. Small/rural disadvantaged communities: Entities qualified as a disadvantaged community and that additionally meet the definition of either a small community (serve a population of 10,000 or fewer) or a rural project (see definition in the IUP) are eligible for up to 100% principal forgiveness ($1,000,000 maximum). Very small systems: Projects that serve a population of 1,000 or fewer are eligible for up to 100% principal forgiveness ($400,000 maximum). Green projects: Entities may receive subsidized green funding (up to 15% forgiveness) if their project has eligible components that total 30% of the project's total cost. Urgent need projects: If a project is determined to be of urgent need, the applicant may qualify for 100% principal forgiveness ($500,000 maximum unless a disadvantaged community, then up to $800,000 maximum). The project must not be for replacement of facilities that have failed because they exceeded their useful life or failed due to lack of adequate maintenance. What phases of the project are eligible for funding? The CWSRF provides financial assistance for planning, acquisition, design and construction of your wastewater, reuse, and/or stormwater project. How much funding is available? Whether you are seeking financial assistance for smaller projects or large-scale capital improvement projects, the CWSRF program is an excellent fit for your system's needs. For State Fiscal Year 2024, at least $460 Million is available under the CWSRF program for all financing options including $55 Million in principal forgiveness. This funding consists of the annual appropriations from the CWSRF capitalization grant funds and the supplemental appropriations from the Infrastructure Investment and Jobs Act of 2021 (IIJA).

Eligibility

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