Drinking Water State Revolving Loan Fund


The Drinking Water State Revolving Loan Fund (“DWSRLF”) is operated in partnership with the New Mexico Environment Department (“NMED”) to provide low-cost financing for the construction of and improvements to drinking water facilities throughout New Mexico in order to protect drinking water quality and the public health. This federally funded program, managed by the NMFA on behalf of the State of New Mexico, is funded through a federal capitalization grant of approximately $8 million annually. The State is required to match the federal grant by 20 percent. The primary use of the funding is for 0% or .01% loans to drinking water systems to fund vital water quality projects.

Community water systems and nonprofit non-community water systems are eligible to apply for DWSRLF funding. Projects that protect drinking water quality and public health are eligible for the DWSRLF, including new and replacement water sources, treatment, transmission and distribution lines, storage, supervisory control and data acquisition (SCADA) systems, and infrastructure to interconnect or regionalize water systems. In addition to funding costs needed for project construction, the DWSRLF can also finance planning, design and associated pre-project costs, and land acquisition needed for locating project components.

Program Priorities:

  • protection of public health;
  • compliance with drinking water standards; and
  • affordable access to drinking water.

To ensure the success of the program, NMFA and NMED partner to provide technical, managerial and financial assistance to water systems as well as low-cost loans.



FY2024 DWSRF December Base and BIL General Supplemental Priority List with Comprehensive
FY2024 DWSRF December BIL Lead Service Line Replacement Priority List with Comprehensive
FY2024 DWSRF December BIL Emerging Contaminants Priority List with Comprehensive
DWSRLF Application Overview and FAQs
SFY 2024 DWSRF Intended Use Plan - Final
DWSRLF Loan Management Policies


Applicants:  Municipal and community water systems

Projects:  Water infrastructure and equipment

Terms:  Loans of up to 30 years at fixed, below-market interest rates

  • Disadvantaged public entities:  0%
  • Community water systems: .01%
  • Non-profit water systems: 3%

Other:  Water systems operated by public entities may be eligible to receive additional subsidies such as principal forgiveness, subject to funding availability.

For more information about the Drinking Water State Revolving Loan Fund, please email DW@nmfa.net.