Author: Tony Rassias - Deputy Director of Accounts
The Division of Local Services (DLS) has distributed FY2026 Sewer Rate Relief awards from the Commonwealth Sewer Rate Relief Fund, established in 1993 under the provisions of Massachusetts General Laws c. 29, §2Z. This year, funds totaling $1.5 million were awarded to 28 Massachusetts governmental entities to mitigate sewer rate increases due to debt service obligations for qualified sewer construction projects.
DLS issued the annual program announcement and application form as Bul-2025-9 in December of 2025. January 20, 2026 was stipulated as the requested date for submission of completed applications. Applications were processed by DLS and the Department of Environmental Protection (MassDEP). DLS through the Bureau of Accounts (BOA) processed the application in consultation with DEP; BOA examined debt schedules for prior-approved and/or new projects and determined debt service eligibility while DEP confirmed if a new project and/or prior approved project did not participate in the Massachusetts State Revolving Fund loan program administered by MassDEP and the Massachusetts Clean Water Trust (MCWT).
Projects receiving state grants are ineligible and certain other projects have their eligibility defined in §2Z. The Sewer Rate Relief Fund is distributed on the same pro-rata basis to all eligible applicants. This percentage is then applied to the total eligible debt service of each applicant to calculate the award.
Awards are legally capped at 20% of eligible debt service, but for many years, the distribution has been based on the amount appropriated by the Legislature. For FY2026, applications listing 176 project loans and debt service were approved and grants were awarded to:
- Massachusetts Water Resources Authority (MWRA), $1,234,567
- 2 local Water and Sewer Commissions for a total of $70,599
- 2 Sewer Districts for a total of $10,468 and
- 23 cities and towns for a total of $184,366
Since FY94, the sewer rate relief program has distributed over $523 million to governmental entities throughout Massachusetts. The program’s sole source of funding is from an annual appropriation in the State budget. Except for fiscal years when the program was not funded, the appropriation has ranged from a high of $58,600,000 in FY2002 to a low of $500,000 in FY2012 and FY2017. FY2026 award recipients are posted here.
Helpful Resources
City & Town is brought to you by:
Editor: Dan Bertrand
Editorial Board: Tracy Callahan, Sean Cronin, Janie Dretler, Emily Izzo, Christopher Ketchen, Paula King, Jen McAllister, Jessica Sizer and Tony Rassias
| Date published: | May 7, 2026 |
|---|