The U.S. Environmental Protection Agency announced it will waive key application fees for small communities seeking Water Infrastructure Finance and Innovation Act, or WIFIA, loans during fiscal years 2026 and 2027, a move the agency said will reduce financial barriers to improving drinking water and wastewater infrastructure.

Under the policy, communities with populations of 25,000 or fewer will not have to pay the $25,000 WIFIA application fee, a news release said. EPA also will waive the separate credit processing fee, which currently averages about $156,000 per loan, during fiscal years 2026 and 2027, subject to WIFIA program requirements and available administrative funding.

The combined fee waivers could save eligible communities nearly $200,000 when applying for financing through the federal loan program.

“Small and rural communities are the backbone of America, and it is a top priority at the Trump EPA to support access to clean, safe drinking water and wastewater services. Water infrastructure in these communities is essential to their public health, environmental protection and economic prosperity,” said EPA Assistant Administrator for Water Jess Kramer in the release. “EPA’s WIFIA program has $11 billion in flexible financing available to support water infrastructure projects. Our goal is to reduce barriers to access these resources, especially in our nation’s small and rural communities.”

The WIFIA program charges application and credit processing fees to reimburse the federal government for the costs of processing and underwriting loans. Although those costs can be financed as eligible project expenses, EPA said the fees have remained a significant obstacle for smaller communities pursuing funding.

The agency said the WIFIA program currently has about $11 billion in flexible financing available for water infrastructure projects nationwide. In small and rural communities, the program can finance up to 80% of eligible project costs. EPA is currently accepting letters of interest.

Established by the Water Infrastructure Finance and Innovation Act of 2014, the WIFIA program is a federal loan program administered by EPA. It provides long-term, low-cost supplemental credit assistance for regionally and nationally significant water infrastructure projects with the goal of accelerating investment in the nation's water systems.

According to EPA, the program has an active pipeline of pending applications that are expected to generate billions of dollars in water infrastructure investment and support thousands of jobs.

More information about the WIFIA program, water infrastructure investments and submitting a letter of interest is available at www.epa.gov/wifia.