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Water and Wastewater Funding Sources

View a list of financial assistance programs for water and wastewater projects.

Texas Water Development Board (TWDB) Funding Sources

The Clean Water State Revolving Fund (CWSRF) Exit the TCEQ provides loans for wastewater-related projects at interest rates lower than those offered by commercial markets. Projects include treatment facilities, collection systems, stormwater and nonpoint source pollution control and estuary management. The program also provides additional subsidies, in the form of principal forgiveness, for applicants meeting certain program criteria, such as disadvantaged communities or green infrastructure.

The Drinking Water State Revolving Fund (DWSRF) Exit the TCEQ provides loans for drinking water projects at interest rates lower than those offered by commercial markets. Projects include treatment facilities, distribution systems, consolidation, and source water protection. The program also provides additional subsidies, in the form of principal forgiveness, for applicants meeting certain program criteria, such as disadvantaged communities, green infrastructure, very small systems, or urgent need.

The Texas Water Development Fund (TWDF) Exit the TCEQ also known as the "D" Fund is a streamlined, state loan program. The program includes loans for water supply, conservation, water quality enhancement, wastewater collection and treatment, flood control, and municipal solid waste. The flexibility of this program allows the TWDB to fund projects with both water and wastewater-related purposes in one loan while offering low-interest rates.

The Economically Distressed Areas Program (EDAP) Exit the TCEQ provides financial assistance in the form of loans and grants for water and wastewater services to economically distressed areas where services do not exist or existing systems do not meet state standards. The program also includes measures to prevent future substandard development by requiring Model Subdivision Rules.

The Rural Water Assistance Fund (RWAF) Exit the TCEQ provides small rural water utilities with low-cost financing for water and wastewater construction projects. The TWDB offers attractive interest rate loans with long-term finance options. In addition, entities, such as water supply corporations, who generally utilize taxable financing are able to access lower interest rate loans through the program.

The State Participation Program (SPP) Exit the TCEQ enables the TWDB to assume a temporary ownership interest in a regional project, allowing facilities to be "right sized" for future demand. The project sponsor then repurchases the TWDB’s interest in the project under a payment schedule that allows for the deferral of principal and interest payments.

The State Water Implementation Fund for Texas (SWIFT) Exit the TCEQ provides funding for projects in the state water plan with flexible financing options to fit a wide variety of projects. The program offers loans with subsidized interest rates, deferred loans, and Board Participation (which works similar to the State Participation program described above). Abridged applications for SWIFT assistance will be accepted 1-2 times per year. Projects will be prioritized according to Abridged Application data, and projects that rank within the program’s funding capacity will be invited to submit full applications.

Texas Water Development Board Contact List Exit the TCEQ — contact list for the Texas Water Development Board's financial assistance programs by region.

Texas Water Infrastructure Coordination Committee (TWICC)

The Texas Water Infrastructure Coordination Committee (TWICC) Exit the TCEQ is comprised of state and federal funding agencies, technical assistance providers, water and waste water trade organizations, and regulatory agencies.  The purpose of the TWICC is to identify and develop solutions to water and wastewater infrastructure compliance issues and to seek affordable, sustainable and innovative funding strategies for the protection of public health and the efficient use of government resources in Texas. 

Additional funding information can be found in RG-220 Resources for Texas Water and Wastewater Utilities