A faucet pouring water.

Illinois EPA opens $41M grant program for water infrastructure projects

September 11, 2025

The Illinois Environmental Protection Agency (EPA) announced nearly $41 million in grant funding to help small water systems address PFAS and manganese in drinking and source water. Sourced from the EPA’s Emerging Contaminants in Small or Disadvantaged Communities Grant program, individual awards may reach $15 million per project.

Both Per- and Polyfluoroalkyl Substances (PFAS) and excess manganese pose serious health risks to water supplies. PFAS have been linked to cancers, immune suppression, hormonal disruption, developmental issues and mental health effects. Manganese, while essential in small amounts, can become neurotoxic at elevated levels, causing motor and cognitive impairments.

Funding comes from the State and Tribal Assistance Grant program, created in 1992. The current federal EPA funds will be administered by the Illinois EPA.

To be eligible, applicants must be Illinois community water supplies enrolled in the Public Water Supply Loan Program. They must serve communities of fewer than 10,000 residents or qualify as disadvantaged. Applicants must submit required paperwork and meet GATA prequalification standards. The application window is open through Aug. 31, 2026.

Currently, fourteen communities are currently preapproved pending the acceptance of existing bids.

Eligible expenses may include design engineering, construction engineering, construction costs and reporting incurred after Jan. 1, 2025. Projects must advertise for bids by June 1, 2026. Payment depends on an approved project evaluation report.


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