Sequestration Affecting Clean Water Programs

As previously anticipated, on March 1 automatic spending cuts known as sequestration went into effect as required by the Budget Control Act of 2011 (BCA). These cuts likely will mean a $74.9 million decrease to the Clean Water State Revolving Fund (CWSRF), putting it at $1.393 billion.  In addition, the Build America Bond Program is experiencing federal cuts and the tax exempt status of municipal bonds is at risk. Taken together, these financing issues could prove problematic for clean water agencies. The BCA mandated automatic cuts of $1.2 trillion to most discretionary and non-discretionary programs over 10 years.  Majorities in both the House and Senate voted on the agreement in August 2011, which included the threat of sequestration as a[…]