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Pennsylvania unveils record-breaking $560M in awards for local water systems

January 29, 2026

Pennsylvania is committing $559.4 million through PENNVEST to fund water infrastructure projects that will improve drinking water, wastewater, stormwater systems, and pollution mitigation across the Commonwealth. The funding will support three dozen projects spanning 25 counties, including lead service line removal, modernization of aging systems, and efforts to protect public health and the environment. 

PENNVEST, the Pennsylvania Infrastructure Investment Authority, is a state authority that provides low-cost, flexible financing for water and sewer projects using a combination of federal and state funds. The agency’s primary investment goals include replacing lead service lines to protect public health, upgrading treatment plants and water lines for reliability and compliance, addressing emerging contaminants like PFAS and improving systems to mitigate flooding and environmental impact. 

This single round of investments is a mix of state voter-approved funds, Growing Greener funds, Marcellus Legacy funds, federal Infrastructure Investment & Jobs Act dollars, EPA Clean Water Act and Safe Drinking Water Act support, and recycled PENNVEST loan repayments. 

The largest single award directs $149.1 million to a wastewater treatment upgrade at Philadelphia’s Northeast Water Pollution Control Plant. Work includes aeration systems, secondary treatment processes, and the replacement of aging infrastructure like force mains. Officials say this project will boost long-term reliability for Pennsylvania’s most populous city. 

Central Pennsylvania will receive $120 million through Capital Region Water for a multiphase overhaul of wastewater infrastructure. The project involves rehabilitating large treatment tanks at a facility in Swatara Township and making system-wide upgrades designed to reduce sewage overflows and help the system operate more efficiently. Officials say the work will improve wastewater treatment for communities across central Pennsylvania and safeguard drinking water, improving public health. 

Beyond the largest awards, PENNVEST funding also supports a range of smaller but targeted initiatives across the state. In western Pennsylvania, Pittsburgh and the Wilkinsburg-Penn Joint Water Authority are receiving a combined more than $40 million to replace lead service lines. In central Pennsylvania, Highland Sewer and Water Authority and Conemaugh Township are receiving nearly $17 million combined for water system expansions and meter upgrades. In southeastern Pennsylvania, projects in Montgomery and Chester counties will focus on PFAS removal and drinking water treatment improvements. 

PENNVEST says some of the projects being called grants are actually principal-forgiveness loans, meaning repayment is not required. Others are long-term loans that function similarly to bond financing. 


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