PFAS Grants and Loans (Massachusetts)

PFAS Grants and Loans (Massachusetts) is sponsored by Massachusetts Department of Environmental Protection (MassDEP). MassDEP offers grant and loan programs to assist Public Water Suppliers in Massachusetts with addressing PFAS in drinking water.

MMA urges MassDEP to reconsider the sunsetting of 0% interest loans for PFAS remediation projects using state revolving funds - Massachusetts Municipal Association (MMA) MMA urges MassDEP to reconsider the sunsetting of 0% interest loans for PFAS remediation projects using state revolving funds --> Kaitlyn Connors, Director, Division of Water Investment Massachusetts Department of Environmental Protection 100 Cambridge St.

, Suite 900 On behalf of the 351 cities and towns of the Commonwealth, the Massachusetts Municipal Association writes to express concern regarding the 2026 Draft Intended Use Plans (IUPs) for the Clean Water State Revolving Fund (CWSRF) and Drinking Water State Revolving Fund (DWSRF) programs.

First, we are grateful to the Massachusetts Department of Environmental Protection and the Massachusetts Clean Water Trust teams for their work to prepare the Draft IUPs for 2026. We appreciate the ongoing efforts to communicate with and support municipalities in our shared goals to protect public health, reduce environmental pollution, and ensure reliable service for residents and customers.

As you know, SRF programs are a lifeline for Massachusetts municipalities and their public water systems as they finance critical public infrastructure projects. Utilizing state and federal funding, these programs represent a long-lasting partnership between local, state, and federal governments.

The CWSRF and DWSRF have been key in meeting federal and state water quality standards, promoting safe drinking water, managing wastewater, stormwater and watershed needs, and addressing climate impacts in our communities. The loans provided by the SRFs have been especially helpful to mitigate the impacts of emerging contaminants such as per- and polyfluoroalkyl substances, or PFAS.

It is with this context in mind that we express our strong concerns with the decision to sunset the zero percent interest loan program for PFAS remediation projects , detailed within the 2026 Draft CWSRF and DWSRF IUPs.

As local leaders work to comply with existing state regulations on PFAS chemicals and prepare for federal PFAS regulations set to take effect in the coming years, this decision to end zero percent interest for these projects is a bitter pill to swallow. Noted in the Draft IUPs, this pilot program for eligible PFAS remediation projects has been incredibly meaningful and widely used.

While we recognize the various financial pressures that have contributed to this decision, some far beyond the state’s control, the sunsetting of zero percent interest for these mitigation projects without a clear alternative to sufficiently compensate for this change is ill advised. For local governments and their public water systems, the decision to sunset zero percent interest comes at a very precarious time.

Costs are rising across nearly all aspects of municipal government. When combined with the inability of local governments to raise sufficient funds to cover these cost escalations, this fiscal instability can result in cut services, delayed projects, and deferred maintenance. This “ perfect storm ” threatens an increasing distrust in public services, including for public water and sewer.

At the same time, the timing of this decision by MassDEP and the Trust stands to reduce the level of trust applicants have with this program. Announced through the Draft IUPs, this departure from zero percent interest came after cities and towns had started the process to build community buy-in for loans under this 2026 funding cycle.

Obtaining local approval for any project, let alone borrowing for a multi-million dollar project, is a difficult, involved, and sometimes contentious process.

When one of the most critical aspects to borrowing — the interest rate — changes midway through the project solicitation, evaluation and scoring processes, local leaders attempting to pitch this investment to their residents are forced to go back to their community to seek approval for borrowing levels far beyond what was expected.

In summary, we recognize the intention of MassDEP and the Trust to stretch limited dollars to cover more projects, address reduced state funding capacity, and to attempt to patch the eventual loss of federal funding infusion that the 2021 Infrastructure Investment and Jobs Act brought to SRF programs nationwide.

However, with the funding needs of municipal governments and public water systems pressured by continued and increasing regulatory requirements, we strongly urge you to reconsider the sunsetting of zero percent interest loans for PFAS remediation projects and to find alternative solutions.

If you have any questions or desire further information, please do not hesitate to have your office contact me or MMA Senior Legislative Analyst Josie Ahlberg at any time.

MMA Executive Director and CEO Energy and the Environment Energy Efficiency and Renewables Federal Environment and Energy Issues Open Space and Conservation Solid Waste and Recycling Wastewater and Stormwater Fees and Non-Tax Revenues Financing Long-Term Liabilities State and Federal Budgets State and Federal Revenues Municipal and Regional Administration Local Government Administration Marijuana (zoning and regulation) Procurement and Construction Public Records and Open Meetings Personnel and Labor Relations Health Care and Insurance Workplace Anti-Discrimination Public Works, Transportation and Public Utilities Transportation Infrastructure See also the MMA Policy Committee for this issue