The U.S. Environmental Protection Agency (EPA) will waive application and credit processing fees for eligible small communities applying for Water Infrastructure Finance and Innovation Act (WIFIA) loans during fiscal years 2026 and 2027, a move intended to expand access to funding for drinking water and wastewater infrastructure projects.

Under the policy, communities with populations of 25,000 or fewer will no longer pay the $25,000 WIFIA application fee or the credit processing fee, which EPA said averages approximately $156,000 per loan. Combined, the waived fees could save eligible applicants nearly $200,000.

EPA Assistant Administrator for Water Jess Kramer said the fee waivers are designed to reduce financial barriers for small and rural communities seeking to finance critical water infrastructure improvements.

The WIFIA program currently has approximately $11 billion in available financing and can cover up to 80% of eligible project costs for small and rural communities. EPA said the program offers long-term, low-cost financing for regionally and nationally significant drinking water, wastewater and stormwater projects.