U.S. House begins reauthorization process for Drinking Water State Revolving Fund program

Key Takeaways

On August 27, leaders on the U.S. House Committee on Energy and Commerce announced the beginning of the reauthorization process for the Drinking Water State Revolving Fund (DWSRF) by circulating a discussion draft of the Safe Drinking Water Infrastructure Improvement Act of 2026. The discussion draft would reauthorize the DWSRF through fiscal year (FY) 2031 and authorize $1.126 billion annually for the program.

Counties are owners, operators and regulators of public drinking water systems and use the DWSRF to access affordable financing and uphold federal water quality standards. Introducing reauthorization legislation is an important first step to ensure the program continues to serve counties and residents prior to its expiration on September 30, 2026. NACo has engaged congressional leaders throughout the reauthorization process and urges Congress to reauthorize and fund the DWSRF program.

Read the discussion draft

DWSRF Reauthorization

Administered by the U.S. Environmental Protection Agency (EPA), the DWSRF provides affordable financing and other fiscal tools for county-owned water systems and other public water agencies to achieve water quality standards set by the Safe Drinking Water Act (P.L. 93-523). The program was last reauthorized by the Infrastructure Investment and Jobs Act (IIJA; P.L. 117-58). In addition to funding provided through annual appropriations, IIJA included supplemental funding of more than $40 billion over five years for the program, including $19 billion dedicated to addressing lead pipes and emerging contaminants. IIJA expires on September 30, 2026, and Congress must act to preserve the DWSRF program.

The bill would authorize $1.126 billion per year for the DWSRF program along with reauthorizations for several other EPA water programs. It would otherwise make no changes to the program’s requirements or eligibilities. It would not preserve the dedicated accounts for emerging contaminants or lead service line replacements. NACo sent several letters to congressional leaders urging them to reauthorize the program and has continuously engaged stakeholders about the importance of the DWSRF to counties.

County Impacts

As owners, operators and regulators of drinking water systems, counties frequently utilize the affordable financing and other fiscal tools provided by the DWSRF to support essential drinking water quality projects to better serve residents. The program is a highly successful, longstanding source of funding, particularly for smaller and rural water systems which may not have access to traditional financing. 

The introduction of the bill is an important first step in the reauthorization process. A separate program, the Clean Water State Revolving Fund (CWSRF), finances projects that support environmental and wastewater quality projects under the Clean Water Act. It falls under the jurisdiction of the U.S. House Committee on Transportation and Infrastructure and is not included in the Safe Drinking Water Infrastructure Investment Act.

Next Steps

The Subcommittee on the Environment held a hearing on the draft legislation on September 3, but the bill has yet to be formally introduced by the committee’s leaders. At the hearing, the committee also discussed draft legislation to require data centers to pay for any water infrastructure upgrades they require. That bill – the Water Cost Accountability Act of 2026 – would prohibit public water systems from passing on the cost of providing service for data centers to ratepayers. NACo will continue to monitor the legislation’s advancement and urge congressional action before the program expires.

A reauthorization bill for the CWSRF has not yet been introduced, although the U.S. Senate has included extensions of both the DWSRF and CWSRF in its Water Resources Development Act of 2026 (S. 4949).