During the next few months, the House Appropriations Committee will start releasing legislative text for the 12 appropriation bills for Fiscal Year (FY) 2026 (Oct. 1, 2025 – Sept. 30, 2026). Congress must pass these by Sept. 30, 2025, to fund the government for FY 2026.  

President Trump’s budget proposal for Congress calls for cuts across agencies, including severe cuts for key programs at the U.S. Environmental Protection Agency (EPA). Proposed EPA funding in the President’s budget includes:  

• $155 million for the Clean Water State Revolving Fund (CWSRF) (a decrease of approximately $1.48 billion compared to FY 2025);  

• $150 million for the Drinking Water State Revolving Fund (DWSRF) (a decrease of approximately $976.1 million compared to FY 2025); and   

• $8 million for the Water Infrastructure Finance and Innovation Act (WIFIA) fund (a decrease of approximately $64.6 million compared to FY 2025).  

The Administration continues to justify these draconian cuts by highlighting past federal investment in water, stating that the role of the federal government in water infrastructure investment must shrink and that states must take more responsibility for funding water infrastructure.   

Federal lawmakers on both sides of the aisle have criticized the Administration’s proposed cuts. As a result, NACWA expects that the House and Senate Appropriations Committees’ Interior, Environment, and Related Agencies bills, which include EPA, will restore some of the cuts the Administration has proposed.

However, there is no guarantee that Congress will maintain sufficient levels of funding for important infrastructure programs like the CWSRF and WIFIA. NACWA continues to advocate against the Administration’s budget request and is working with Congress to highlight the need for these programs and underscore the fact that greater investment in water infrastructure ensures communities across the country have access to affordable, clean and safe water.  

House appropriators were originally scheduled to release and markup their bill in Subcommittee this week; however, this has been postponed and not yet rescheduled. Senate appropriators are will likely also mark up their bill later this summer.  

Numerous NACWA member utilities have already sent letters to their Congressional delegations advocating for sustained clean water funding, helping bolster support in Congress to reject the extreme cuts. NACWA thanks those utilities that have already engaged, but more outreach is needed.

It is critical for NACWA members to continue to weigh in with their members of Congress to oppose deep cuts to clean water funding. NACWA has provided an updated template letter to assist with this outreach. Additionally, NACWA encourages member agencies to invite their members of Congress to facility visits during the summer — when lawmakers usually spend more time in their home states and districts — to discuss federal water investment and other local priorities.    

Members with questions may contact Kaitlyn Montán, NACWA’s Director of Legislative Affairs.