Wisconsin Department of Natural Resources Highlights Importance of State Revolving Fund Programs for Clean, Safe Water

Strategic Insights -

The Wisconsin Department of Natural Resources (DNR) emphasized the significance of the State Revolving Fund programs during a recent meeting of the Natural Resources Board. These programs provide financial assistance to municipalities across Wisconsin for drinking water, wastewater, and stormwater infrastructure projects that safeguard public health and water quality. Since 1991, the State Revolving Fund has allocated over $7.3 billion in aid to Wisconsin municipalities for more than 2,000 projects.

Key Takeaways:

  • The State Revolving Fund combines federal, state, and repayments from previous loans to offer low-interest loans and principal forgiveness to eligible applicants, with funds becoming available for new loans as repayments are made.
  • Demand for State Revolving Fund loans and principal forgiveness has surged in recent years due to increased funding and amounts of principal forgiveness available through the Bipartisan Infrastructure Law, which is expected to continue through 2027.
  • The 2025-27 Wisconsin state budget raises borrowing for the State Revolving Fund by $731.6 million to secure federal clean water and safe drinking water capitalization grants and address local communities' demand over the next four years.
  • The Safe Drinking Water Loan Program provides subsidized loans to municipalities for public drinking water systems and infrastructure projects to improve drinking water quality, with recent funding used for projects such as removing lead service lines and addressing PFAS contamination.
  • The Clean Water Fund Program offers loans for publicly owned wastewater treatment and collection system infrastructure projects, including compliance with Wisconsin Pollution Discharge Elimination System permits, with a notable example in Dodge County where the program helped the Burnett Sanitary District address its aging lagoon system.

Statistics:

  • Over $7.3 billion in financial assistance has been provided to Wisconsin municipalities through the State Revolving Fund since 1991 for more than 2,000 projects.
  • Demand for State Revolving Fund loans and principal forgiveness is expected to remain strong through 2027 due to the Bipartisan Infrastructure Law.
  • The 2025-27 Wisconsin state budget increases borrowing for the State Revolving Fund by $731.6 million.
  • The Safe Drinking Water Loan Program has funded projects to remove over 2,700 public and private lead service lines in South Milwaukee and address PFAS contamination in West Bend.
  • The Clean Water Fund Program has provided aid to various municipalities, including the Burnett Sanitary District in Dodge County.

Sources:

  • News release from the Wisconsin Department of Natural Resources on October 22, 2025.