Senate begins reauthorization process for State Revolving Fund programs and other water infrastructure programs

Key Takeaways

On July 13, leaders of the U.S. Senate Environment and Public Works (EPW) Committee released the text of its Water Resources Development Act of 2026 (WRDA 2026). In addition to reauthorizing major projects through the U.S. Army of Corps of Engineers (Army Corps), the bipartisan legislation would reauthorize the Clean Water and Drinking Water State Revolving Fund (SRF) programs.

In a win for counties, the bill would authorize $14 billion over four years for the Clean Water SRF (CWSRF) and $16.5 over five years for the Drinking Water SRF (DWSRF). It would also reauthorize U.S. Army Corps of Engineers projects and programs and extend other water infrastructure programs that support counties. NACo supports WRDA 2026 and urges Congress to swiftly consider and pass the legislation. Without Congressional action, the authorizations for the SRF programs and other water infrastructure programs will expire on September 30, 2026.  

Background

Senate EPW, which has jurisdiction over Army Corps projects and many water infrastructure programs, has combined 2026 WRDA bill with drinking water and clean water program reauthorizations into a single bill.

The biennial Water Resources Development Act advances county interests related to ports, inland waterways, levees, dams, wetlands, watersheds and coastal restoration by authorizing programs and projects overseen by the U.S. Army Corps. Congress has passed bipartisan WRDA legislation in a biennial cycle since 2014. Passing WRDA on a biennial basis provides critical stability and certainty that counties need to meet water infrastructure needs while also supporting the safety, environment and economic development of their communities.  

While WRDA is the primary authorizing legislation for the Army Corps, CWSRF and DWSRF are administered by the U.S. Environmental Protection Agency (EPA). The SRFs provide affordable loans and financial assistance to projects that improve environmental and drinking water quality. As owners, maintainers and operators of wastewater, storm and drinking water infrastructure, counties rely on the SRF programs to meet water quality standards and provide reliable services for residents. The SRFs are particularly important for rural counties and small water systems which may be unable to finance projects otherwise.  

The SRFs were last authorized by the Infrastructure Investment and Jobs Act (IIJA; P.L. 117-58), which invested $43.4 billion into the SRFs in addition to funding from annual appropriations. Despite this historic investment, the need for sustained federal investment in water infrastructure continues. According to recent EPA estimates, $1.2 trillion is needed to keep drinking water, wastewater and stormwater infrastructure in compliance with federal water quality standards through 2040.

NACo’s advocacy

NACo engaged continuously with congressional leaders and urged them to authorize the SRFs at a level consistent with needed investment. On January 30, 2026, NACo sent a letter to members of the EPW Committee and House lawmakers asking for an authorization at IIJA levels or higher.

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NACo also joined local-government coalition partners to advocate for reauthorization of the SRFs and other water infrastructure program in letters to House and Senate committee leadership.

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NACo additionally called for Congress to maintain its 2-year WRDA reauthorization cycle by passing a WRDA bill during the 119th Congress.

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State Revolving Fund provisions

WRDA 2026 would extend authorization for the CWSRF and DWSRF until the end of Fiscal Year (FY) 2030. It would reauthorize the CSWRF at $14 billion over five years and the DWSRF at $16.5 billion over four years. These funding levels extend those authorized by IIJA and are in line with NACo’s advocacy.

The IIJA separated some funding for the DWSRF into supplemental accounts reserved for projects that conduct lead service line replacement and emerging contaminants. The Senate’s WRDA 2026 would not continue that framework but would add eligibilities for both lead service line replacement and per- and polyfluoroalkyl substances (PFOS/PFAS) projects to the DWSRF. The bill also adds eligibilities for projects that improve drinking water quality while addressing wildfire risk.  

The legislation would also add emerging contaminants as an eligible project use for the CWSRF and reauthorize the program at $14 billion over FYs 2027-2030, with an annual funding level of $3.5 billion. The legislation would continue needed investment in county-owned water infrastructure, although it would not continue IIJA’s advanced appropriations.

Other provisions

WRDA 2026 would reauthorize the Water Infrastructure Financing Innovation Act (WIFIA) program at $65 million annually through FY 2030. The WIFIA program offers affordable credit and financing to public water systems. It was previously authorized at only $50 million annually.

The legislation would also reauthorize the Great Lake Restoration Initiative at $475 million annually for FYs 2027-2030, in line with previous funding levels. It also extends other regional and geographic watershed programs.

The bill also proposes to establish a new grant to support digital infrastructure technology for small and rural public water systems, funded at $15 million annually for FYs 2027-2030.

Next steps

Senate EPW announced a markup of the legislation for July 15. NACo endorses this legislation and urges Congress to act quickly to prevent the SRFs from expiring and to maintain the biennial WRDA authorization cycle. The House previously introduced its own WRDA 2026 bill (H.R. 9497), although it does not extend authorization for the SRFs and other water infrastructure programs.