By Valerie Volcovici

WASHINGTON, (Reuters) – The U.S. Environmental Protection Agency released more than $7 billion Thursday to states and tribes for the purpose of upgrading drinking and wastewater systems. This was the first allocation of funds to clean water that was authorized in the bipartisan infrastructure legislation signed into law last month.

It is one of the $44 billion worth clean water funds, which will be spread over five year through a federal state partnership program. After months of negotiations, President Joe Biden signed the $1 trillion infrastructure bill on November 15.

The $1 trillion infrastructure investment is what the EPA calls the “single largest U.S. investment ever in water infrastructure.”

More than half of $7.4 Billion in state funding revolving funds that the agency is distributing to states for 2022, will be made available to eligible communities as loans or grants. This will make access easier for rural and urban areas that have been underserved.

“Billions of dollars are about to start flowing to states and it is critical that EPA partners with states, Tribes, and territories to ensure the benefits of these investments are delivered in the most equitable way,” said EPA Administrator Michael Regan.

He demanded that the money is used to correct “longstanding environmental and economic inequalities across America.”

EPA Assistant Administrator Radhika Fox will soon issue national program guidance from the EPA’s Office of Water to help agencies best use the billions that will become available.

SRFs provide federal financing at a low cost that can be used by many states for their infrastructure investments. But, SRFs have been widely used over the years, but poor and vulnerable communities have struggled to access their fair share. Regan stated that he hopes the bill’s new money flow will address these disparities.

California, Texas and New York are the three largest states. They will be receiving the greatest share of SRF funds.