The Safe Drinking Water Act (SDWA) requires that the Environmental Protection Agency (EPA) examine the needs for infrastructure improvements at public water systems in the United States and use this information to develop a formula to distribute Drinking Water State Revolving Funds (DWSRF) capitalization grants to states. The DWSRF is a financial assistance program to help water systems and states to achieve the health protection objectives of the SDWA.
Congress appropriates funding for the DWSRF and EPA then awards capitalization grants to each state for their DWSRF based upon the results of the most recent Drinking Water Infrastructure Needs Survey and Assessment. The state provides a 20 percent match.