Clean Water Current

(WASHINGTON-- May 2, 2025) Today, the White House released its Fiscal Year 2026 Budget Request, outlining proposed spending across the federal government. Concerningly, the Budget proposes a 55 percent reduction in U.S. EPA’s annual spending—a reduction that is only made possible by kneecapping the primary water infrastructure financing programs on which local utilities rely.

The Clean Water and Drinking Water State Revolving Funds (SRFs) help thousands of clean water utilities across the country complete projects that are integral to protecting public health and the environment. The SRFs revolve at the state level to provide local water utilities access to affordable financing, and are bolstered through annual federal investment that reflects the growing costs of providing clean and safe water and the need for continued reinvestment in our country’s core infrastructure.

Yet the Budget proposed today would cut the SRF’s annual funding by nearly 90 percent. NACWA strongly opposes these cuts. Now is the time to intensify investment in our country’s critical infrastructure, job creation, and economic growth—all of which depend on water.  

NACWA urges the White House to reconsider these proposed cuts and urges Congress to ensure that funding for these critical programs is not reduced. As NACWA made clear in testimony earlier this week before the Senate Environment & Public Works Committee, federal investment in water infrastructure is vital for communities nationwide. NACWA will continue to work with Congress and the Administration to underscore the fact that water infrastructure funding has always been a bipartisan priority, supporting rural and urban communities alike and spurring projects that benefit all communities and the private sector.

These proposed cuts would hit the pocketbooks of hard-working families that this Administration prioritizes through higher water and sewer rates at the most challenging time. Across the country, costs are rising. Communities are seeing escalating costs for the critical materials, goods, and services that help provide clean and safe water.  Water bills are rising to the point that many families, already faced with strained household budgets, must choose between paying their water bills, food, energy, and other critical services. America cannot afford to wait. 

Key programs like the SRFs exist to help communities to make needed investments more affordably. Through the SRFs, utilities work with their states to secure low-cost financing – a critical tool for utilities of all sizes. Access to the SRF can be especially important for small utilities serving communities with fewer customers to shoulder rising costs. The SRFs work in concert with other federal financing tools, including the Water Infrastructure Finance and Innovation Act (WIFIA) program, which is aimed at larger, more complex projects and borrowers.

The SRFs are an example of a highly successful federal, state, and local partnership that has worked well for decades – and which support states and local communities in meeting federal goals set through the Clean Water Act and Safe Drinking Water Act. NACWA strongly urges the White House to reconsider these cuts and take swift action to support greater investment in clean water.

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ABOUT NACWA
For over 50 years, the National Association of Clean Water Agencies (NACWA) has been the nation’s recognized leader in legislative, regulatory, legal, and communications advocacy on the full spectrum of clean water issues. NACWA represents public wastewater and stormwater agencies of all sizes nationwide. Our unique and growing network strengthens the advocacy voice for the public clean water sector and helps advance policies to provide affordable and sustainable clean water for all. Our vision is to advance sustainable and responsible policy initiatives that help to shape a strong and sustainable clean water future. For more information, visit us at www.nacwa.org.