EPA announces $610 million WIFIA loan to shift Illinois communities to Lake Michigan water source

The U.S. Environmental Protection Agency has announced a $610 million Water Infrastructure Finance and Innovation Act (WIFIA) loan to the Grand Prairie Water Commission, supporting a major regional effort to transition nearly 300,000 residents in northeastern Illinois from a declining groundwater aquifer to Lake Michigan.

The commission—serving the cities of Crest Hill and Joliet and the villages of Channahon, Minooka, Shorewood, and Romeoville—will use the financing to construct a 62-mile transmission system and upgrade related infrastructure as part of its Alternative Water Source Program.

“No American should worry about the reliability of their drinking water,” said EPA Assistant Administrator for Water Jess Kramer in a press release. “We are pleased that Grand Prairie Water Commission will use this investment to ensure its water customers have a stable and reliable source of drinking water for current and future generations.”

The project is designed to address long-term supply challenges tied to a declining aquifer while improving water reliability and quality by shifting to Lake Michigan as a primary source. Once complete, the new system will enable the commission’s member communities to meet future demand and support continued regional growth.

Local officials emphasized the importance of federal financing in advancing the project while maintaining affordability for ratepayers.

“We thank the USEPA for making this critical funding assistance available and helping to keep the program affordable for our member communities,” said Shorewood Mayor CC DeBold, GPWC Board of Commissioners Chair, in a press release. “Fueled by this investment, we look forward to continuing our progress toward delivery of a new, reliable water source by 2030.”

EPA noted that the WIFIA loan structure provides significant financial flexibility, including customized repayment schedules and the ability to defer principal payments for several years after construction. These features are expected to save the commission nearly $300 million over the life of the loan.

Since launching in 2018, the WIFIA program has announced more than $23 billion in financing for water infrastructure projects nationwide, supporting drinking water, wastewater, and stormwater improvements while helping communities reduce costs and accelerate project timelines.