EPA Announces $40 Million WIFIA Loan to Expand Wastewater Services in Northeastern Nebraska

EPA Announces $40 Million WIFIA Loan to Expand Wastewater Services in Northeastern Nebraska

June 5, 2026

WASHINGTON - Today, U.S. Environmental Protection announced a $40 million Water Infrastructure Finance and Innovation Act (WIFIA) loan for South Sioux City, Nebraska, to support upgrades and expansions to its wastewater treatment facility. This loan will help the city install new systems to treat wastewater, reducing costs for residents and businesses while protecting local waterbodies.

"Small and rural communities are the backbone of America, and it is a priority for EPA that they have access to clean, safe, and reliable drinking water and wastewater services," said EPA Assistant Administrator for Water Jess Kramer. "Congratulations to South Sioux City, Nebraska for securing this $40 million WIFIA Loan! This is just the beginning of a partnership that will reduce water bills, improve quality of life, protect the Missouri River, and advance economic opportunity for the region."

"This project will increase capacity and certainty around wastewater services and advance economic opportunities for northeast Nebraska," said EPA Region 7 Administrator Jim Macy. "Treating wastewater with a modern facility that can grow with the community means greater local control for households and businesses."

South Sioux City will use WIFIA financing for its Wastewater Treatment Facility Expansion Project, which will directly provide wastewater services to residential and commercial customers rather than transporting wastewater to a neighboring city for treatment. This project includes the planning, design, and construction of the expansions that are ultimately expected to reduce operating costs. The city will also collect and sell biogas to a nearby natural gas facility, which will offset rate increases and create affordable energy.

Assistant Administrator Kramer announced the South Sioux City loan during a virtual press conference along with officials from the State of Nebraska and the city.

"Water, and water infrastructure that ensures its quality, are critical to Nebraska's prosperity. Wastewater sanitation stands out as one of the most transformative, lifesaving public health innovations in over a century," said Nebraska Governor Jim Pillen. "I am grateful for this tremendous investment by our federal partners and honored to be part of announcing these federal resources coming to our state."

"Securing these funds will allow South Sioux City to make needed upgrades and expand their wastewater treatment plant," said Senator Pete Ricketts. "I have toured this facility. As Governor and now as Senator, I have supported South Sioux City's efforts. This $40 million granted under the Water Infrastructure Finance and Innovation Act (WIFIA) is a continuation of that support."

"Infrastructure shapes our daily lives, and few elements are more vital than water systems. I appreciate the administration's collaboration with South Sioux City on this project, which will bring lasting benefits to families, businesses, and the entire community," said U.S. Congressman Adrian Smith.

"I am truly thankful for the cooperation of the federal government, State of Nebraska, and the City of South Sioux City in working together to provide a basic wastewater service for our existing and ever-expanding community," said South Sioux City Mayor Rod Koch. "We are grateful for our partnership in seeing this to success."

"It is remarkable of what can be accomplished when federal, state, and local officials work together to solve a wastewater issue that affects so many citizens and industries," said South Sioux City Administrator Lance Hedquist. "Thanks to all for this outstanding unified effort."

EPA's WIFIA program provides a powerful financial tool that can significantly accelerate investments in water infrastructure to protect human health and the environment while saving communities millions of dollars. South Sioux City is a small community with a population of 14,000 and was able to finance over 60% of the total project costs with this WIFIA loan. EPA's WIFIA program provides flexibility for the city to spread loan payments gradually over time to reduce impacts on wastewater bills. EPA's WIFIA loan will save the city $15 million over the life of the loan.

Since issuing its first loan in 2018, EPA's WIFIA program has announced $24 billion in financing for water infrastructure projects that are strengthening drinking water, wastewater, and stormwater infrastructure while creating over 170,000 jobs. Through its flexible financing features and competitive interest rates, WIFIA helps communities save money, and even accelerate water infrastructure investments.

WIFIA has approximately $11 billion in flexible financing available to support additional water infrastructure projects across the country, including in small communities and rural America where WIFIA can finance up to 80% of project costs. Additionally, the agency's State WIFIA program has approximately $3 billion available for loans to State infrastructure financing authorities. EPA is currently accepting letters of interest for funding through WIFIA and State WIFIA.

Learn more about EPA's WIFIA Program and water infrastructure investments, including how to submit a letter of interest.

Background   

Established by the Water Infrastructure Finance and Innovation Act of 2014, the WIFIA program is a federal loan program administered by EPA. The WIFIA program aims to accelerate investment in the nation's water infrastructure by providing long-term, low-cost supplemental credit assistance for regionally and nationally significant projects. The WIFIA program has an active pipeline of pending applications for projects that will result in billions of dollars in water infrastructure investment and thousands of jobs.