The Healey-Driscoll Administration has announced a major investment in the state’s water infrastructure, making approximately $1.24 billion in low-interest loans available for 67 projects across Massachusetts. These funds aim to enhance water quality, overhaul aging drinking water and wastewater systems, and reduce energy usage and costs at treatment facilities.
Governor Maura Healey highlighted the significance of the initiative, stating, “Our administration is focused on helping communities across Massachusetts maintain access to the cleanest drinking water possible. This funding allows towns and cities to make vital infrastructure upgrades without placing a heavy burden on local budgets.”
Lieutenant Governor Kim Driscoll echoed this sentiment, emphasizing the broader impact of the investment. “The State Revolving Fund is a crucial tool for local governments,” she said. “It helps finance critical improvements while lowering long-term costs and creating construction jobs that boost the economy. These upgrades are essential for protecting public health and addressing long-term energy efficiency.”
The Massachusetts Clean Water Trust will administer the financing through the State Revolving Fund (SRF), a key resource for municipalities, regional water districts, and the Massachusetts Water Resources Authority (MWRA). The loan package includes roughly $858 million for 35 clean water construction projects and approximately $293 million for 32 drinking water system upgrades. Local governments have until June 30, 2025, to confirm participation and secure local funding approval.
State Treasurer Deborah B. Goldberg, who chairs the Clean Water Trust, stressed the importance of the initiative, particularly for underserved areas. “This funding is vital to protecting public health across the Commonwealth, especially in vulnerable communities. The combination of grants and low-interest loans helps towns tackle these projects affordably and effectively,” Goldberg said.
As Massachusetts faces the growing challenges of climate change, Energy and Environmental Affairs Secretary Rebecca Tepper underscored the need for modern water systems. “Hotter temperatures and reduced rainfall are straining our water supply, while intense storms are increasing pollution risks,” she said. “This funding supports innovative projects that tackle these emerging threats and help ensure safe drinking water in a changing climate.”
MassDEP Commissioner Bonnie Heiple pointed to the age of the state’s infrastructure as another key driver behind the initiative. “With some of the oldest water systems in the country, we still have lead service lines that threaten public health,” she said. “Every dollar invested brings us closer to providing safe, reliable water for every resident—especially young children who are most at risk.”
In addition to loans, nearly $162 million will go toward loan forgiveness for renewable energy initiatives and projects in communities that meet the Clean Water Trust’s affordability criteria. These criteria take into account factors like income levels, unemployment rates, and local population shifts.
The SRF has already financed more than $9.6 billion in water-related projects across Massachusetts since the creation of the Clean Water Fund in 1989 and the Drinking Water Fund in 1999. For 2025, the Clean Water SRF will offer $885.8 million in funding, including $480 million for 26 new projects and $377 million for ongoing multi-year initiatives. There’s also an allocation of $3 million for emergency projects, $5 million for septic system upgrades, and $15 million focused on PFAS contamination planning and design.
On the drinking water side, the SRF is distributing $364 million in total funding: $123 million for 13 new projects, $170 million for 19 existing projects, $5 million for emergency needs, $10 million for PFAS-related work, and $39.5 million dedicated to replacing outdated lead service lines.
The SRF program is a collaborative effort involving the Massachusetts Department of Environmental Protection (MassDEP), the Executive Office of Administration and Finance, and the State Treasurer’s Office. To qualify, municipalities submitted proposals last year outlining the public health benefits and financial readiness of each project. Projects approved on the 2025 priority list must now submit formal loan applications to MassDEP to access funding.