NACo sends letter urging reauthorization of Clean Water and Drinking Water State Revolving Funds
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Charlotte Mitchell Duyshart
Andrew Nober
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Key Takeaways
The Environmental Protection Agency (EPA) established the Clean Water and the Drinking Water State Revolving Funds (SRFs) programs to provide a predictable, long-term financing option for local drinking water and wastewater infrastructure projects. The SRFs were last reauthorized under the Infrastructure Investment and Jobs Act (IIJA) (P.L. 117-58) in 2021. The current authorization is set to expire on September 30, 2026.
The IIJA delivered a historic $43.4 billion investment for the SRF programs in addition to annual appropriations. However, there is still a substantial need for federal investment in water infrastructure in counties across the county.
Challenges facing counties
Counties play a critical role in water infrastructure delivery while facing significant fiscal constraints. Counties in 42 states have limited ability to raise property taxes despite property taxes serving as the primary revenue source for most county governments. This limits counties’ ability to finance large-scale water and wastewater infrastructure projects. County owned water systems must also comply with numerous unfunded federal mandates such as removing lead service lines and remediating per-and polyfluoroalkyl substances (PFAS).
The SRFs are an effective vehicle for federal investment in water infrastructure at the county level, especially for rural counties that face the greatest challenges accessing capital and financing major projects. The costs of water system maintenance and the compliance with unfunded federal mandates could make water less affordable for counties and individual ratepayers if SRF funding is not maintained.
Next steps
On January 30, NACo sent letters to all members of the U.S. Senate Environment and Public Works Committee and the U.S. House Transportation and Infrastructure Water Subcommittee explaining the challenges counties face in funding water infrastructure projects solely on local revenue. The letters urge members of Congress to reauthorize the SRFs at or above funding levels from the IIJA.
As Congress begins their work reauthorizing the water infrastructure programs in the IIJA, NACo will continue to work with Congressional leaders to secure reauthorization of the SRFs at IIJA funding levels to better meet the demands county-owned water and wastewater systems.
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