Several Minnesota state agencies announced in late January that submissions for water infrastructure improvement projects are being accepted for placement on one of two 2027 Project Priority Lists (PPLs). The lists, which help identify projects ready for future funding and development, are for the Clean Water State Revolving Fund (CWSRF) and the Drinking Water State Revolving Fund (DWSRF).
The Minnesota Public Facilities Authority (MPFA), in partnership with the Minnesota Department of Health (MDH) and Pollution Control Agency (MPCA), oversees several infrastructure funding programs for improving the state’s water systems. The state revolving funds—CWSRF and DWSRF—are the largest, offering grants and below-market interest loans for water and wastewater improvement projects.
Additional programs include the Lead Service Line Replacement Program, Small Community Wastewater Treatment Program, Point Source Implementation Grants and Water Infrastructure Fund grants.
All programs include funding from the 2021 Infrastructure Investment and Jobs Act (IIJA), which provides low-interest loans and principal forgiveness grants based on certain criteria including lead service line replacement and emerging contaminant treatment.
Once a project is placed on the appropriate PPL, it becomes eligible for MPFA funding programs. The lists evaluate and score submissions based on environmental and public health factors to direct resources toward communities facing the most pressing infrastructure challenges.
The CWSRF and DWSRF PPLs cover a five-year construction horizon, meaning projects are expected to be ready for construction to begin within five years. To secure funding in any given fiscal year, project sponsors must separately apply for placement on an Intended Use Plan (IUP), and local governments need to file new IUP applications each cycle unless their projects carried over from the previous year’s approved list.
The CWSRF covers wastewater and stormwater collection and treatment system projects. Funding supports municipal infrastructure investments that contribute to water quality benefits but is not available for privately owned systems.
The DWSRF supports public drinking water system improvements such as water mains, wells, water treatment plants, water towers and lead service line replacements. Projects that expand water systems to accommodate future growth or add fire suppression infrastructure are not eligible.
Lead service line replacement projects are eligible under both funds, however, with grant funding available for replacing privately owned service line portions as well. Public water systems must apply on behalf of property owners for these privately owned replacements.
The 2025 legislature also authorized emerging contaminant grants of up to 50% principal forgiveness, with a maximum of $3 million, for wastewater projects addressing substances such as PFAS, pharmaceuticals and microplastics.
The deadline for Clean Water PPL submissions to MPCA is March 6. The deadline for Drinking Water PPL submissions to MDH is March 13. The deadline for Intended Use Plan requests to MPFA is June 5, 2026, with online applications opening in May.
Photo by Steve Johnson from Pexels
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