Water Quality Financing Administration

Purpose and Mission  

The mission of the Maryland Water Quality Financing Administration (MWQFA) is to provide state and federal financial assistance in the form of low interest rate loans, loan forgiveness, and grant funding for eligible water quality, drinking water, and stormwater management capital projects. 

Eligible types of projects include:
  • Sanitary Sewer and Wastewater Treatment 
  • Drinking Water Infrastructure and Source Water Protection
  • Nonpoint Source Pollution and Watershed Restoration 
  • Septic System Upgr​ades and Sewer Connections
  • Stormwater Management and Flood Mitigation 

MWQFA administers the loan and grant programs described below:  


Financial Program


Water Quality Revolving Loan Program (WQRLF)

Provides low-interest loans to local governments to finance wastewater treatment plant upgrades, nonpoint source pollution control projects, and other water quality and public health improvement projects.

Drinking Water Revolving Loan Program (DWRLF)

Provides low-interest loans to local governments to finance water supply improvements and drinking water infrastructure upgrades.

Water Supply Assistance Grant Program

Helps communities meet their water supply and infrastructure needs.

Bay Restoration Fund - Wastewater Grant Program 

  • ENR upgrade at major or minor wastewater treatment plants.
  • Improvements to existing wastewater conveyance systems.
  • Sewer extensions to connect homes on septic systems to a BNR/ENR wastewater treatment plant.
  • Nutrient-reducing BAT shared community septic systems. 
  • Stormwater (MS4) projects by local governments with a system of charges through a local stormwater or resilience enterprise fund.
  • Flood mitigation and resilience and watershed restoration projects.

Bay Restoration Fund - Septic System Upgrade Program

Upgrades of existing septic systems to best available technology and sewer connections for nitrogen reduction to aquifers and the Bay.

Linked Deposit Program

Credit support for private nonpoint source pollution control, watershed protection, and drinking water supply and infrastructure projects.

Both loan programs receive federal funding from the United States Environmental Protection Agency (EPA) and offer below market interest rate state and federal loans to eligible borrowers.

MWQFA is authorized to issue revenue bonds subject to approval of the State Board of Public Works and Secretary of the Maryland Department of the Environment.  Bonds issued by MWQFA do not constitute a debt or the full faith and credit pledge of the State or any political subdivision.  The bonds are paid solely from MWQFA revenues as pledged under bond indenture for each of the above Funds.

MWQFA works very closely with MDE’s Engineering and Capital Projects Program (ECPP, formerly the Water Quality Infrastructure Program).  ECPP is responsible for management of water quality, drinking water, and stormwater and flood mitigation capital projects to protect public health and water quality.



Federal FY2020/State FY2022 Funding Documents

Federal FY2019/State FY2021 Funding Documents

For Septic Grants:
Associated Documents:

Maryland Forest Financing Implementation Tool (FFIT)
The Maryland Forest Financing Implementation Tool (FFIT), is a calculator designed to assist local governments, land trusts, and other watershed partners in planning and underwriting forestry efforts for water quality benefits. The video shows how FFIT can be used to review different implementation scenarios, evaluate how much a forestry project would cost, estimate how many MS4 credits and environmental co-benefits can be achieved. The slides in the video and a user guide are also below.
For additional information​, please contact (410) 537-3119


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