FEDERAL FUNDING
Since the SRFs were established, Congress has provided annual federal funding in the form a capitalization grant to provide subsidized loans to build water infrastructure now and grow a permanent pool of revolving funds to meet the never-ending need to repair, rehabilitate and modernize aging infrastructure.
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Troubling Trend
Over the last three years, Congress has diverted $3.73 billion in annual federal funding (45%) from fiscally responsible state-run loan programs for water infrastructure to create a massive new federal grant program for congressional earmarks at the U.S. Environmental Protection Agency (EPA). Most states are losing federal funding for water infrastructure because congressional earmarks don’t offset cuts to annual federal funding for the SRFs. Since earmarks returned in 2022, 33 states have experienced a net loss in annual federal funding (funding for SRFs plus congressional earmarks). ​
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2025 Appropriations
On Friday, June 28, the U.S. House of Representatives’ Appropriations Subcommittee on Interior, Environment and Related Agencies voted, 7 – 4, to advance the 2025 appropriations bill for the U.S. Environmental Protection Agency (EPA), which includes funding for the Clean Water and Drinking Water State Revolving Funds (SRFs) and congressional earmarks funded by the SRF capitalization grants. The full Appropriations Committee will vote on the bill on Tuesday, July 9.
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The Infrastructure Investment and Jobs Act reauthorized the Clean Water and Drinking Water State Revolving Funds (SRFs) at $3.25 billion, each, for fiscal year 2025. Below are estimated allotments to states if the SRFs are fully funded.
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2024 Appropriations​
​Congress maintained topline annual federal funding for the SRF capitalization grants for fiscal year 2024 but diverted more than half of federal funding - $1.419 billion - from SRFs in 40 states to pay for congressional earmarks 10 states.​
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