EPA Names Indiana Finance Authority Water Financing Model

The federal agency recognized the state's infrastructure financing program for excellence in administering State Revolving Fund loans.

Updated on Nov. 4, 2026 in Utilities

Screen-print poster illustration of nested steel water-main pipes of varying diameters on a concrete pad, in mustard, teal, cream, and rust. — The EPA named the Indiana Finance Authority a national model for water infrastructure financing, citing its pooled State Revolving Fund loans totaling $877.5 million over the past fiscal year. AI Illustration. Upload story photo >

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The U.S. Environmental Protection Agency named the Indiana Finance Authority a national model for water infrastructure financing through its new State Excellence Recognition Program. The IFA closed 82 low-interest State Revolving Fund loans totaling $877.5 million in the fiscal year ending June 30.

Why it matters

The recognition comes as states across the country grapple with the cost of aging water systems. Indiana's pooled loan program lets communities borrow at the state's AAA credit rating, securing rates well below those most municipalities could obtain independently.

Indiana's State Revolving Fund delivered a 480% federal return on investment, and the IFA's 82 loans totaling $877.5 million are estimated to save communities $659 million in interest. The report does not explain the methodology behind the return or savings figures.

The players

Indiana Finance Authority

The state agency that administers Indiana's State Revolving Fund, pooled loan program, and Residential Infrastructure Fund, and that received the EPA recognition.

U.S. Environmental Protection Agency

The federal agency that created the State Excellence Recognition Program and named the IFA a national model for water infrastructure financing.

Moody's Ratings

One of the three major credit-rating agencies that confirmed Indiana's AAA rating in a June report.

The details

The IFA's pooled loan program allows communities to borrow at the state's AAA credit rating, a rating Moody's Ratings confirmed in a June report and that Indiana has held from all three major agencies since 2010. The authority also reported more than $25 million in Residential Infrastructure Fund loans this year to Arcadia, Attica, Austin, Elkhart, Fort Wayne and Terre Haute, and more than $10.7 million in Brownfields Program awards.

2010: Indiana began maintaining AAA ratings from all three major credit-rating agencies.
2024: The first Residential Infrastructure Fund loans closed.
June 30: The IFA's fiscal year closed with 82 SRF loans.
June 2026: Moody's Ratings confirmed Indiana's AAA credit rating.
September 2026: Dan Huge was honored at the Bond Buyer Infrastructure Conference.

Market Landscape

The State Revolving Fund program, created under the Clean Water Act, funds state-administered water infrastructure loans, and Indiana's recognition places its IFA among the program's standard-setters. The source does not describe how other states' programs compare on the same measures.

Communities borrowing through Indiana's pooled loan program can access rates tied to the state's AAA rating rather than their own credit profiles. Residents served by these water and housing infrastructure projects may see the lower borrowing costs reflected in local utility planning, though the source does not specify rate effects.

The takeaway

Strong state credit ratings can lower the cost of local infrastructure borrowing, which is one reason aging water systems may be financed more affordably where state programs pool community loans. Communities weighing similar options can look at whether their state offers pooled borrowing.