Cities warn of water infrastructure funding cliff as IIJA programs near expiration
(UI) - Municipal leaders and water industry organizations are urging Congress to reauthorize key federal water infrastructure programs before enhanced funding provided through the Infrastructure Investment and Jobs Act (IIJA) expires Sept. 30.
The National League of Cities (NLC) and other stakeholders are calling on lawmakers to maintain funding for the Clean Water State Revolving Fund (CWSRF) and Drinking Water State Revolving Fund (DWSRF), which support drinking water, wastewater and stormwater infrastructure projects nationwide. According to Smart Cities Dive, the groups are also seeking continued funding for programs addressing PFAS contamination, lead service line replacement and technical assistance for utilities.
The push comes as communities face mounting infrastructure needs. According to EPA assessments, drinking water systems will require an estimated $625 billion in investments over the next 20 years, while wastewater and stormwater systems will need approximately $630 billion to maintain and modernize infrastructure and meet regulatory requirements.
Industry groups have warned that expiration of IIJA's supplemental funding, combined with proposed reductions to federal water infrastructure programs in the fiscal year 2027 budget, could create a significant funding gap for utilities planning capital improvement projects. The NLC has called on Congress to preserve the enhanced funding levels established under the 2021 infrastructure law, Smart Cities Dive reported.
Congress is expected to consider multiple water infrastructure measures in the coming months, including potential reauthorization of EPA water programs and the Water Resources Development Act. Water sector advocates say timely action will be critical to avoid disruptions to project funding and long-term infrastructure planning.
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