Good news for small communities seeking funding from the Water Infrastructure Finance and Innovation Act (WIFIA). The U.S. Environmental Protection Agency (USEPA) announced it will waive fees for small communities that apply for WIFIA loans in fiscal years 2026 and 2027.
Application & Credit Processing Fees
The WIFIA program charges fees to loan applicants to reimburse the Federal government for costs incurred with processing and underwriting WIFIA loans. The application fee for small communities is $25,000. The separate credit processing fee, currently averaging approximately $156,000 per loan, will be waived for Fiscal Years 2026 and 2027, subject to WIFIA’s program requirements and available administrative funds. The change means small communities with populations of 25,000 or fewer can save almost $200,000 by avoiding application and credit processing fees when applying for a WIFIA loan.
The USEPA says the WIFIA program currently has approximately $11 billion in financing available to support water infrastructure projects across the country, including in small and rural communities where WIFIA can finance up to 80% of project costs. USEPA is currently accepting letters of interest.
State Programs May Offer Better Terms
“This is welcome news,” says Ryan Graf, AE2S Nexus Senior Consultant. “However, even with the fee waiver, WIFIA may not be the right solution for all projects. State programs have right of first refusal and often may provide better financing terms.” Learn more about the WIFIA Program and water infrastructure investments, including how to submit a letter of interest on the USEPA website. Reach out to Ryan Graf to discuss your project specifics to determine what is the best funding fit for your situation.