Federally Supported Projects and Programs for Wastewater, Drinking Water, and Water Supply Infrastructure

Congressional research reportAug 12, 2026

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Federally Supported Projects and Programs

for Wastewater, Drinking Water, and Water

Supply Infrastructure

Updated August 12, 2026

Congressional Research Service

https://crsreports.congress.gov

R46471

SUMMARY

Federally Supported Projects and Programs for

Wastewater, Drinking Water, and Water

Supply Infrastructure

For decades, Congress has authorized, modified, and funded federal programs to help

communities address water supply and water infrastructure needs. Departments and agencies that

administer these assistance programs include the Bureau of Reclamation (Reclamation), the U.S.

Army Corps of Engineers (USACE), the U.S. Department of Agriculture (USDA), the

Environmental Protection Agency (EPA), the Department of Housing and Urban Development

(HUD), and the Department of Commerce’s Economic Development Administration (EDA).

R46471

August 12, 2026

Jonathan L. Ramseur,

Coordinator

Specialist in Environmental

Policy

In general, Congress has utilized two approaches to authorization and funding: individual project authorization and program

authorization. Reclamation and USACE administer a number of individual projects pursuant to direct authorizations from

Congress. Other agencies administer programs with standing authorizations that establish funding eligibility criteria. As a

practical matter, individual project authorizations generally must be funded each year and provide no guarantee of predictable

assistance over time. Although the authorized programs are not guaranteed to receive annual appropriations, in recent years

Congress has generally provided some level of annual appropriations to the water infrastructure programs identified in this

report.

The federal agencies responsible for administering water-related projects and programs undertake these activities pursuant to

wide-ranging missions with varying scopes. For example, EPA’s authorities relate to protecting public health and the

environment, whereas HUD and EDA focus on community and economic development. Some agencies’ activities are

national in scope (e.g., USDA and EPA), while others are regionally focused (e.g., Reclamation’s programs and projects,

which are limited to the 17 “reclamation states” in the West). Some focus primarily on urban areas (HUD), whereas others

concentrate mainly on rural areas (USDA).

Federal funding for these programs and projects varies greatly and continues to compete with many other programs that are

supported by discretionary spending. Some of these programs have received supplemental appropriations, such as the funds

provided in the 2021 Infrastructure Investment and Jobs Act (IIJA; P.L. 117-58), the American Relief Act (P.L. 118-158),

and the FY2025 reconciliation act (P.L. 119-21). FY2026 appropriations highlights include

•

$746 million for capitalization grants to states under EPA’s Clean Water State Revolving Fund (SRF)

program, and $411 million for EPA’s Drinking Water SRF program; $893 million for wastewater

infrastructure, and $715 million for drinking water infrastructure through community project

funding/congressionally directed spending (IIJA provided an additional $2.6 billion for each SRF

program);

•

$3 billion for EPA’s Drinking Water SRF program for lead service line replacement and related activities;

•

$370 million for loan subsidies and grants for USDA’s rural water and waste disposal programs to, in part,

support $1 billion in loan authority for direct loans and guaranteed loans;

•

$3.3 billion for HUD’s Community Development Block Grant (CDBG) program (water and wastewater

projects are among many eligible uses);

•

$1.5 billion in supplemental funding (P.L. 118-158) for EDA disaster economic recovery efforts, which

may include, but are not limited to, water supply or wastewater projects;

•

$360 million for USACE environmental infrastructure projects; and

$72 million for subsidy costs for the EPA-administered Water Infrastructure Finance and Innovation Act

(WIFIA) program, allowing the agency to provide credit assistance of about $6.5 billion;

$63 million for Reclamation water storage projects, $212 million for Reclamation rural water projects, and

$176 million for Reclamation’s Title XVI reclamation/recycling projects.

For FY2027, the Trump Administration’s discretionary budget request proposed to reduce or eliminate funding for a number

of water infrastructure programs identified in this report.

Congressional Research Service

Federally Supported Water Projects and Programs

Contents

Introduction ..................................................................................................................................... 1

Department of the Interior ............................................................................................................. 12

Bureau of Reclamation ............................................................................................................ 12

“Traditional” Multipurpose Reclamation Projects ............................................................ 13

WIIN Act Water Storage Projects ..................................................................................... 15

Rural Water Supply Projects ............................................................................................. 17

Title XVI Projects ............................................................................................................. 18

Desalination Projects ........................................................................................................ 21

Department of Defense .................................................................................................................. 22

U.S. Army Corps of Engineers (USACE) Civil Works ........................................................... 22

USACE Civil Works Projects ........................................................................................... 22

USACE Assistance for Nonfederal Projects ..................................................................... 24

Storage of M&I Water at Multipurpose USACE Reservoirs ............................................ 25

Environmental Infrastructure Assistance .......................................................................... 27

Department of Agriculture ............................................................................................................. 29

Rural Utilities Service (Water and Waste Disposal Programs) ............................................... 29

Natural Resources Conservation Service ................................................................................ 31

Watershed and Flood Prevention Operations .................................................................... 32

Small Watershed Rehabilitation ........................................................................................ 34

Environmental Protection Agency ................................................................................................. 35

Clean Water State Revolving Fund Loan Program ................................................................. 35

Drinking Water State Revolving Fund Loan Program ............................................................ 38

Water Infrastructure Finance and Innovation Act Program ..................................................... 42

Other EPA Water Infrastructure Funding Programs ................................................................ 44

Sewer Overflow and Stormwater Grant Program ............................................................. 44

Technical Assistance for Rural, Small, and Tribal Wastewater Systems .......................... 45

Technical Assistance for Small, Rural, and Tribal Drinking Water Systems .................... 46

Small and Disadvantaged Communities Drinking Water Grant Program ......................... 47

Lead Reduction Projects Grant Program .......................................................................... 48

Small Water System Resilience and Sustainability Grant Program .................................. 49

Midsize and Large Drinking Water System Infrastructure Resilience and

Sustainability Program................................................................................................... 50

Department of Housing and Urban Development ......................................................................... 51

Community Development Block Grants ................................................................................. 51

CDBG Section 108 Loan Guarantees...................................................................................... 53

Department of Commerce ............................................................................................................. 55

Economic Development Administration Public Works Program ............................................ 55

Economic Development Administration Economic Adjustment Assistance Program ............ 58

Tables

Table 1. Wastewater, Drinking Water, and Water Supply Infrastructure: Federal Funding

for Projects and Programs ............................................................................................................ 3

Congressional Research Service

Federally Supported Water Projects and Programs

Contacts

Author Information........................................................................................................................ 62

Congressional Research Service

Federally Supported Water Projects and Programs

Introduction

This report provides background and funding information on water infrastructure projects,

including those involving wastewater and drinking water, and water supply projects traditionally

funded by the federal government. The report also discusses federal funding programs that

provide assistance to communities to support these types of projects and related, eligible

activities.

For decades, Congress has authorized, modified, and funded federal programs and projects to

help communities address water supply and water infrastructure needs. The approaches and

statutory frameworks supporting water infrastructure vary. For example, the Department of the

Interior (DOI) Bureau of Reclamation (Reclamation) and the Department of Defense’s U.S. Army

Corps of Engineers (USACE) administer a number of individual projects that require direct,

individual project authorizations from Congress prior to being eligible to receive appropriations.1

Other agencies administer programs with standing authorizations that establish eligibility criteria

rather than identify specific projects. Although these authorized programs are not guaranteed to

receive annual appropriations, Congress has generally provided some level of annual

appropriations in recent years to the water infrastructure programs identified in this report.

Agencies administering such programs covered in this report include

•

the U.S. Department of Agriculture (USDA),

the Environmental Protection Agency (EPA),

the Department of Housing and Urban Development (HUD), and

the Department of Commerce’s Economic Development Administration (EDA).

In addition, the projects and programs differ due to the varied scopes and missions of the

implementing agencies. For example, the statutory requirements for EPA-administered programs

generally focus on protecting public health and the environment. The EDA and HUD programs

focus on economic and community development. Further, the scope of the specific programs and

authorized projects discussed in this report—while all address either water supply or wastewater

and drinking water infrastructure to some degree—differ in other respects. Some are national in

scope (e.g., USDA and EPA), while others are regionally focused (e.g., Reclamation’s programs

and projects). Some focus primarily on urban areas (HUD), whereas others concentrate mainly on

rural areas (USDA).

For each of the projects and programs discussed, this report describes their purposes, financing

mechanisms, eligibility requirements, recent funding, and statutory/regulatory authority. The

report does not address special projects and programs aimed specifically at assisting Indian tribes,

Alaska Native villages, colonias,2 or other regional programs, such as those associated

exclusively with the Appalachian region or U.S. territories.

This report focuses on programs that support drinking water and wastewater infrastructure

projects and also municipal and industrial (M&I) water supply projects and activities. This report

generally does not address water projects and programs for irrigation, flood control,

1 For Reclamation, this also includes some projects that must be submitted to, and approved by, Congress prior to

funding (but no direct authorization is required). Department of Defense is currently also using the secondary title

Department of War under Executive Order 14347 on “Restoring the United States Department of War,” dated

September 5, 2025, which President Trump signed on September 6, 2025.

2 Colonias are typically rural, unincorporated communities or housing developments near the U.S.-Mexico border that

lack some or all basic infrastructure, including plumbing and public water and sewer.

Congressional Research Service

Federally Supported Water Projects and Programs

hydroelectricity, and recreation. However, in some cases (noted below), a federal program or

agency (e.g., Reclamation and USDA) may primarily support one or more of these other

objectives while providing some support for M&I activities, even if only incidentally.

Other federal authorities (e.g., ones administered by Reclamation and USACE) may be available

to assist with the provision of emergency water and wastewater needs, such as improving access

to water supplies during a drought. Such authorities are generally not discussed in this report.3

Table 1 summarizes financial and other key elements of the projects and program activities

discussed in this report. As indicated in the table, the level and scope of federal funding for these

programs and projects varies greatly. Congressional funding for the water programs continues to

compete with many other federal programs supported by discretionary spending. Stakeholders

and others continue to call for increased funding for these programs.

As Table 1 indicates, the Administration’s FY2027 discretionary budget request proposed to

reduce or eliminate funding for a number of water infrastructure programs.4

3 These programs are not discussed further in this report except for the Emergency Community Water Assistance

Grants administered by the U.S. Department of Agriculture (USDA). For more information, see CRS Report R46911,

Drought in the United States: Science, Policy, and Selected Federal Authorities, coordinated by Charles V. Stern and

Eva Lipiec.

4 For more information on the difference between discretionary and mandatory spending, see CRS In Focus IF13124,

Distinguishing Between Discretionary and Mandatory Spending, by Megan S. Lynch.

Congressional Research Service

Table 1. Wastewater, Drinking Water, and Water Supply Infrastructure:

Federal Funding for Projects and Programs

Federal/

Nonfederal Cost

Agency and Projects

or Program

Project/

Program Purposes

Type of Financial

Assistance

DOI Bureau of

Reclamationa

Multipurpose projects,

which may include

some municipal and

industrial (M&I)

activities

De facto 40- to 50year loan

0%/100%, with

interest for M&I

uses

Not applicable

P.L. 119-74: $1.627

billion

DOI Bureau of

Reclamation Water

Infrastructure

Improvements for

the Nation (WIIN)

Act Water Storage

Projects

Multipurpose projects,

which may include

some M&I activities

Direct funding for the

federal share of costs,

with the reimbursable

share of these costs

subject to repayment

(i.e., de facto loans)

50%/50% for

federal projects;

25%/75% for

nonfederal

projects

Not applicable

P.L. 119-74: $62.5

million

—

DOI Bureau of

Reclamation (Title

XVI, P.L. 102-575)b

Wastewater

reclamation and reuse,c

which may include

some M&I activities

De facto grant

Up to 25%/75%;

dollar limits may

apply

Not readily available

P.L. 119-74: $13.0

million

IIJA: $160.6 million

—

DOI Bureau of

Reclamation Rural

Water Supplyd

Indian and non-Indian

rural water supply

De facto grant, plus

loan

Non-Indian

projects: range

from 75%/25% to

80%/20%; Indian

projects: 100%/0%

Not applicable

P.L. 119-74: $119.5

million

IIJA: $92.0 million

DOI Bureau of

Reclamation

Desalination Project

Construction

Brackish and seawater

desalination, which may

include some M&I

activities

Grant

Up to 25%/75%;

dollar limits may

apply

Not readily available

P.L. 119-74: $6.7 million

IIJA: $79.9 million

CRS-3

Average Amount of

Assistance

FY2026 Enacted

Fundinga

FY2027

President

Funding

Request

$1.275 billion

$31.3 million

—

Federal/

Nonfederal Cost

Agency and Projects

or Program

Project/

Program Purposes

Type of Financial

Assistance

USACE

Multipurpose

Reservoirs with

Storage for M&I

Water

Reservoirs may provide

M&I water storage

through permanent or

temporary storage

agreements

Upfront federal

financing of reservoirs;

M&I storage is repaid

through fees collected

from nonfederal

entities

0%/100%, with

interest

Not applicable

$6.0 million

—

USACE

Environmental

Infrastructure

Assistance

Assistance is typically

for public drinking

water and wastewater

infrastructure and

source water

protection and

development

Technical/planning and

design services or

grants; design and

construction services

or grants

75%/25% generally;

some authorities

are 65%/35%

Varies (see report

text for details)

P.L. 119-74: $359.6

million

—

USDA Rural Utilities

Service (RUS),

Circuit Rider

Program

Technical assistance to

help those operating

rural water systems to

overcome day-to-day

management, financial,

and technical issues

Cooperative

agreement awarded to

the National Rural

Water Association to

provide technical

assistance to entities

that own and operate

rural water systems

100%/0%

Not applicable

P.L. 119-37, Division B:

$23.9 million

USDA RUS,

Emergency

Community Water

Assistance Grant

Program

Assistance to rural

communities to prepare

for, or recover from,

disasters that may affect

the availability of clean

drinking water

Grants to eligible

entities to help rural

communities facing a

major decline in water

quality or quantity

100%/0% (cost

share is

encouraged)

Up to $150,000 for

water transmission

line grants

Up $1.0 million for

water source grants

P.L. 119-37, Division B:

$7.0 million

CRS-4

Average Amount of

Assistance

FY2026 Enacted

Fundinga

FY2027

President

Funding

Request

$24.0 million

—

Agency and Projects

or Program

Project/

Program Purposes

Type of Financial

Assistance

USDA RUS, Rural

Decentralized

Water Systems

Grant Program

Assistance for the

construction, service,

or refurbishment of

individually owned wells

and decentralized

wastewater systems

(typically septic tanks)

Grants to eligible

entities that provide

loans and subgrants to

homeowners for

projects

USDA RUS,

Revolving Funds for

Financing Water

and Wastewater

Projects Program

Assistance to eligible

entities create revolving

loan funds (i.e., loan

funds that are

replenished by loan

repayment). Loan funds

support rural water and

waste disposal projects.

USDA RUS, Water

and Waste Disposal

Loan and Grant

Program

USDA RUS, Water

and Waste Disposal

Loan Guarantee

Program

CRS-5

Federal/

Nonfederal Cost

FY2027

President

Funding

Request

Average Amount of

Assistance

FY2026 Enacted

Fundinga

Grants to eligible

entities: 90%/10%

Loans and

subgrants for

household

projects: 100%/0%

Loans up to $15,000

per household

P.L. 119-37, Division B:

$5.0 million

—

Grants to eligible

entities to set up

revolving funds to

provide loans for rural

community water and

wastewater projects

Grants for

revolving loan

funds: 80%/20%

Loans for rural

community

projects: 100%/0%

Loans up to $200,000

per borrower

P.L. 119-37, Division B:

$1.0 million

—

Assistance to acquire,

construct, or improve

rural drinking water,

storm water, and waste

disposal systems

Loans and grants to

eligible entities to

support projects in

rural communities

Loans: 100%/0%

Grants: Federal

share is variable

depending on

income of the

rural community

Not readily available

P.L. 119-37, Division B:

$47.6 loan subsidy (to

support $1.0 billion

loan authority); $140.0

million (competitive

grants); $110.5 million

(CPF/CDS)

$58.5 loan

subsidy (to

support $816.9

million loan

authority); $100.0

million

(competitive

grants); $0 for

CPF/CDS

Assistance to acquire,

construct, or improve

rural drinking water,

storm water, and waste

disposal systems

Loan guarantees to

eligible entities to

support projects in

rural communities

100%/0%

Not readily available

P.L. 119-37, Division B:

No loan subsidy needed

to support $50.0

million loan authority

No loan subsidy

needed to

support $50.0

million loan

authority

Federal/

Nonfederal Cost

Average Amount of

Assistance

FY2026 Enacted

Fundinga

FY2027

President

Funding

Request

Agency and Projects

or Program

Project/

Program Purposes

Type of Financial

Assistance

USDA RUS, Water

and Waste Disposal

Technical Assistance

and Training

Program

Technical assistance to

rural communities to

identify and evaluate

solutions to water and

waste disposal issues,

and apply for loans and

grants

Grants to eligible

entities that provide

technical assistance

100%/0%

Not readily available

P.L. 119-37, Division B:

$35.0 million

—

USDA Watershed

and Flood

Prevention

Operations Program

Multiple activities,

including municipal or

industrial water supply,

but must generally

include flood control

measures

Project grants and

technical advisory

services

100%/0%

Varies according

to purpose of

improvement

activity

Not applicable

P.L. 119-21 and P.L.

119-37: $17.6 million

for grants and $32.4

million for CPF/CDS

(discretionary)

$150.0 million

(mandatory)

$0 (discretionary)

$150.0 million

(mandatory)

USDA Small

Watershed

Rehabilitation

Program

Dam rehabilitation

Project grants and

technical advisory

services

100%/0%

Varies according

to purpose of

improvement

activity

Not applicable

P.L. 119-37: $3.0 million

—

EPA, Clean Water

State Revolving

Fund (SRF) Loan

Program

Municipal wastewater

treatment, stormwater

infrastructure, and

other eligible projects

and activities

Grants to states to

capitalize loan funds

SRF loans made by

states to local project

sponsors

States must provide a

minimum level of

additional

subsidization (e.g.,

principal forgiveness)

and may provide

further subsidization

80%/20% for

grants to states to

capitalize SRFs

0%/100%e (project

loans are repaid

100% to states)

Average Amount of

Assistance

FY2026 Enacted

Fundinga

Average capitalization

grant to states and

territories: $113.9

million (through

FY2026)h

Average assistance

from SRF to local

recipients: $4.1 million

(FY2025)

P.L. 119-74: $410.7

million for capitalization

grants

$715.4 million

(CPF/CDS)

FY2027

President

Funding

Request

$150.0 million for

capitalization

grants

IIJA: $2.603 billion for

capitalization grants

$3.0 billion for lead

service line (LSL)

replacement

$800.0 million for

emerging contaminants

EPA, Water

Infrastructure

Finance and

Innovation Act

(WIFIA) Program

Wastewater and

drinking water projects

with costs of $20.0

million or larger (or

$5.0 million for rural

areas)

Loans or loan

guarantees

In general, WIFIA

funding cannot

exceed 49% of

project costs

$155.0 million

(average of 154 closed

loans)i

P.L. 119-74: $72.3

million (including $7.6

million for

administrative

expenses)

$7.8 million for

administrative

expenses

EPA, Sewer

Overflow and

Stormwater Grant

Program

Sewer overflow or

stormwater

infrastructure projects,

with priority for

financially distressed

communities

Grants to states,

which make grants to

municipalities

55%/45%

Average allotment to

states and territories

in FY2026 was

$725,000j

P.L. 119-74: $41.0

million

$41.0 million

CRS-7

Federal/

Nonfederal Cost

Agency and Projects

or Program

Project/

Program Purposes

Type of Financial

Assistance

EPA, Technical

Assistance for Rural,

Small, and Tribal

Wastewater

Systems

Assist rural, small, and

tribal publicly owned

treatment works and

decentralized

wastewater treatment

systems to comply with

the Clean Water Act

and apply for financing

from the Clean Water

SRF

Grants to qualified

nonprofits to provide

technical assistance

100%/0%

EPA awarded $49.0

million to 6

organizations in 2025k

P.L. 119-74: $25.5

million

EPA, Technical

Assistance for Rural,

Small, and Tribal

Drinking Water

Systems

Assist public water

systems and particularly

small systems (serving

25-10,000 customers)

with Safe Drinking

Water Act (SDWA)

compliance

Grants to qualified

nonprofits to provide

technical assistance

100%/0%

For FY2025, EPA

awarded an average

grant amount of $8.6

million to 3 entitiesl

P.L. 119-74: $26.0

million

—

EPA, Small and

Disadvantaged

Communities

Drinking Water

Grant Program

Drinking water projects

needed to meet federal

drinking water

standards, household

water quality testing,

assistance that benefits

a community on a perhousehold basis

Grants to states on

behalf of an

underserved

community, public

water systems, tribal

water systems

55%/45% for

grants (EPA may

waive match under

certain

circumstances)

Appropriations

distributed

noncompetitively to

states

P.L. 119-74: $28.5

million

$20 million

EPA, Lead

Reduction Projects

Grant Program

Drinking water projects

and activities to reduce

lead in drinking water;

replacement of LSLs;

corrosion control

activities

Grants to community

water systems, tribal

water systems, states,

schools, and

municipalities

80%/20% for

grants (EPA may

waive match under

certain

circumstances)

For FY2025, EPA

awarded an average of

$6.5 million to grant

recipientsm

P.L. 119-74: $22.0

million

CRS-8

Average Amount of

Assistance

FY2026 Enacted

Fundinga

FY2027

President

Funding

Request

$10.0 million

IIJA: $1.0 billion for

emerging contaminants

$20 million

Agency and Projects

or Program

Project/

Program Purposes

Type of Financial

Assistance

EPA, Small Water

Systems Resilience

and Sustainability

Grant Program

Projects that increase

water use efficiency,

enhance water supply

through watershed

management or

desalination, and

increase energy

efficiency in the

conveyance or

treatment of drinking

water

Grants to community

water systems, tribal

water systems, states

EPA, Midsize and

Large Water

Systems Resilience

and Sustainability

Grant Program

Projects include water

conservation,

desalination

construction, and

watershed management

activities, among others

HUD, Community

Development Block

Grant Programp

Multipurpose

community

development projects;

may include water and

waste disposal

CRS-9

Federal/

Nonfederal Cost

FY2027

President

Funding

Request

Average Amount of

Assistance

FY2026 Enacted

Fundinga

90%/10% for

grants (EPA may

waive match under

certain

circumstances)

For FY2023, EPA

awarded an average of

$2.3 million to grant

recipientsn

P.L. 119-74: $6.5 million

$16.5 million

50% of grants for

water systems serving

10,000 or more to

100,000 individuals,

and 50% for systems

serving more than

100,000 individuals

100%/0%

No assistance

provided to dateo

P.L. 119-74: $2.3 million

$2.3 million

Formula grants, 70%

of which are reserved

for urban areas, 30%

for state grants

100%/0%

Entitlement formula

grants: $2.1 million;

average award to state

programs: $20.0

million (for subawards to

communities) in

FY2024

P.L. 119-75: $3.3 billion

—

Federal/

Nonfederal Cost

Average Amount of

Assistance

FY2026 Enacted

Fundinga

FY2027

President

Funding

Request

Agency and Projects

or Program

Project/

Program Purposes

Type of Financial

Assistance

Commerce, EDA,

Economic

Adjustment

Assistance (EAA)q

Multipurpose economic

development projects;

may include water and

sewer

Project grants

Generally,

60%/40%

$650,000 (FY2025)

P.L. 119-74: Congress

directed EDA to

allocate $39.5 million to

EAA

The President’s

FY2027 budget

requested to

eliminate funding

for the EDA

programs and

requested $20

million for “an

orderly closeout

of EDA”r

Commerce, EDA,

Public Works

Multipurpose economic

development projects;

may include water and

sewer

Project grants

Generally,

60%/40%

$1.4 million (FY2025)

P.L. 119-74: Congress

directed EDA to

allocate $100.0 million

to Public Works

The President’s

FY2027 budget

requested to

eliminate funding

for the EDA

programs and

requested $20

million for “an

orderly closeout

of EDA”r

Source: CRS.

Notes: An em dash (—) indicates that the President did not make a funding request; IIJA = Infrastructure Investment and Jobs Act (P.L. 117-58); DOI = Department of

the Interior; USACE = U.S. Army Corps of Engineers; HUD = Department of Housing and Urban Development; EDA = Economic Development Administration;

CPF/CDS = Community Project Funding/Congressionally Directed Spending.

a. In some cases, funding amounts may address other objectives within a given project or program.

b. These projects must generally be authorized by Congress prior to construction. Municipal water supply is not the primary purpose of these projects. IIJA funding for

Title XVI reflects all funding for these projects under that legislation, including both regular and “large-scale” projects.

c. Title XVI supports what is generally considered water reuse and reclamation. Reclamation is treatment of wastewater or other impaired surface water (e.g.,

seawater) or groundwater (e.g., groundwater with high levels of contaminants, such as arsenic or salts) to make it usable or reusable for nonpotable or indirect

potable use (e.g., potable use after storage and recovery, such as after groundwater recharge). Reuse connotes planned beneficial use (e.g., landscape watering,

agricultural irrigation, and industrial cooling) of treated municipal wastewater.

d. These projects must generally be authorized by Congress prior to construction.

CRS-10

CRS-11

This ratio does not account for additional subsidization. Under certain conditions, states may provide additional subsidization, including principal forgiveness,

negative interest loans, or a combination. In addition, appropriations acts in recent years have required states to use minimum percentages of their allotted funds to

provide additional subsidization, including grants.

This figure is based on FY2026 allotments to states and territories from the Commerce, Justice, Science; Energy and Water Development; and Interior and

Environment Appropriations Act, 2026 (P.L. 119-74), and IIJA (P.L. 117-58). See U.S. Environmental Protection Agency (EPA) Memorandum from Jessica Kramer to

Water Division Directors, “Fiscal Year 2026 Allotments for the State Revolving Fund Provisions of the Infrastructure Investment and Jobs Act and Base Program

Funding,” April 14, 2026, Attachment I, https://www.epa.gov/system/files/documents/2026-04/fy-2026-joint-srf-allotments-memorandum.pdf.

This figure is based on FY2023 total dollars of annual assistance provided ($8.8 billion) and total number of assistance agreements (1,682) from the Clean Water

State Revolving Fund (CWSRF) National Information Management System, “National Report,” https://www.epa.gov/cwsrf/clean-water-state-revolving-fund-cwsrfnational-information-management-system-reports. As of the date of this report, the data in the national report contain information through FY2023.

“Average annual capitalization grant” includes emergency supplemental appropriations provided by IIJA (P.L. 117-58) directed toward specific project purposes (e.g.,

lead service line replacement). EPA, “Annual Allotment of Federal Funds for States, Tribes, and Territories,” https://www.epa.gov/dwsrf/annual-allotment-federalfunds-states-tribes-and-territories.

EPA, “WIFIA Closed Loans,” as of July 8, 2026, https://www.epa.gov/wifia/wifia-closed-loans.

Memorandum from Raffael Stein, Director, EPA Water Infrastructure Division, to Regional Water Division Directors, “Allocation of Federal Fiscal Year 2025 &

2026 Funding for the Sewer Overflow and Stormwater Reuse Municipal Grant Program,” April 27, 2026, https://www.epa.gov/system/files/documents/2026-04/osgfy25-fy26-allocation-memo.pdf.

For more information, see EPA, “Training and Technical Assistance (TA) Program for Rural, Small, and Tribal Wastewater Systems,” https://www.epa.gov/small-andrural-wastewater-systems/training-and-technical-assistance-ta-program-rural-small-and.

For more information, see EPA, “Training and Technical Assistance to Improve Water Quality and Enable Small Public Water Systems to Provide Safe Drinking

Water,” https://www.epa.gov/dwcapacity/training-and-technical-assistance-improve-water-quality-and-enable-small-public-water-0.

EPA, “WIIN Grant: Reduction in Lead Exposure Via Drinking Water,” https://www.epa.gov/dwcapacity/wiin-grant-reducing-lead-drinking-water#recentfunding.

For more information, see EPA, “Drinking Water System Infrastructure Resilience and Sustainability,” https://www.epa.gov/dwcapacity/drinking-water-systeminfrastructure-resilience-and-sustainability#funding2.

For more information, see EPA, “Midsize and Large Drinking Water System Infrastructure Resilience and Sustainability Program,” https://www.epa.gov/dwcapacity/

midsize-and-large-drinking-water-system-infrastructure-resilience-and-sustainability#available%20funding.

Community Development Block Grant (CDBG) figures in this table do not include Community Development Fund set-asides.

The totals for the EAA program do not include supplemental appropriations or annual appropriations directed to the Assistance to Indigenous Communities,

Assistance to Coal Communities (ACC), or other Assistance to Energy Communities initiatives.

OMB, Appendix—Budget of the U.S. Government FY2027, https://www.whitehouse.gov/wp-content/uploads/2026/04/com_fy2027.pdf#page=4sd.

Federally Supported Water Projects and Programs

Department of the Interior5

Bureau of Reclamation6

The Bureau of Reclamation (Reclamation) was established to implement the Reclamation Act of

1902, which authorized the construction of water works to provide water for irrigation in arid and

semiarid western states.7 Reclamation owns and manages 491 dams and 296 reservoirs, which are

capable of storing 140 million acre-feet of water.8 These facilities serve approximately 10 million

acres of irrigated farmland and 31 million municipal and industrial (M&I) customers throughout

the West.

Historically, Reclamation primarily supports M&I water supplies as part of larger, multipurpose

federal reclamation projects serving irrigation, flood control, power supply, and recreation

purposes. However, it has constructed few such projects in recent years. Since 1980, Congress

has individually authorized construction of several “rural water supply” projects that have also

served these purposes. Further, since 1992 Congress has also authorized nonfederal participation

in reclamation wastewater and reuse/recycling projects. These projects, discussed below, are

known as Title XVI projects because they were first authorized in 1992 under Title XVI of P.L.

102-575.

Congress has in the past decade expanded Reclamation’s involvement in other types of

nonfederal water supply projects. In the 2016 Water Infrastructure Improvements for the Nation

Act (WIIN Act; P.L. 114-322), Congress added authority for Reclamation to support nonfederal

construction of brackish and seawater desalination projects and added new authority for

Reclamation to support water storage project construction (generally referred to here as “WIIN

Act water storage projects”) on a cost-shared basis, including construction of nonfederal water

storage projects. Each of these areas is discussed below. In P.L. 117-169 (popularly known as the

Inflation Reduction Act, or IRA), Congress appropriated $550.0 million for Reclamation to

provide up to 100% of the cost for water projects where the primary purpose is to provide

domestic water supplies to disadvantaged communities or households (see text box below).

5 This section was prepared by Charles V. Stern, Specialist in Natural Resources Policy, Resources, Science, and

Industry Division, and Anna E. Normand, Specialist in Natural Resources Policy in the Resources, Science, and

Industry Division.

6 For more information on Bureau of Reclamation (Reclamation) water supply authorities and activities, see CRS

Report R46303, Bureau of Reclamation: History, Authorities, and Issues for Congress, by Charles V. Stern and Anna

E. Normand.

7 Reclamation is generally authorized to construct projects only in the 17 western states (Arizona, California, Colorado,

Idaho, Kansas, Montana, Nebraska, Nevada, New Mexico, North Dakota, Oklahoma, Oregon, South Dakota, Texas,

Utah, Washington, and Wyoming) unless otherwise directed by Congress. For example, in 1986, Congress authorized

Reclamation to also work in U.S. territories (P.L. 99-396), and Section 8501(1) of P.L. 116-9 authorized Reclamation

to provide grants for water efficiency improvements in Hawaii and Alaska, in addition to other authorized areas.

8 Bureau of Reclamation, “About Us – Fact Sheet,” accessed August 12, 2026, https://www.usbr.gov/main/about/

fact.html.

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Bureau of Reclamation’s Disadvantaged Community

Domestic Water Supply Projects9

Section 50231 of P.L. 117-169, commonly referred to as the Inflation Reduction Act, appropriated $550.0 million,

available through FY2031, for the Bureau of Reclamation (Reclamation) to provide up to 100% of the cost for the

planning, design, and/or construction of water projects where the primary purpose is to provide domestic water

supplies to disadvantaged communities or households in a Reclamation state or territory (43 U.S.C. §391). The

funding mechanism may be via grants, contracts, or financial assistance agreements at a cost share determined by

the Commissioner of Reclamation. Utilizing Section 50231, Reclamation reported that it had committed $222

million in funding for domestic water supply projects as of March 2026. This includes funding to assist tribes under

a new Tribal Domestic Water Supplies Program for tribes in Reclamation states, and a new Territorial Domestic

Water Supply Program for the U.S. territories of American Samoa, Guam, the Commonwealth of the Northern

Mariana Islands, and the U.S. Virgin Islands. In addition, Reclamation has supported some eligible proposals for

WaterSMART Planning and Project Design Grants and WaterSMART Drought Resiliency Projects above the usual

50% federal cost share.

Historically, Reclamation constructed projects with federal funds, then established a repayment

schedule based on the amount of total construction costs allocated to specific project purposes.

Reclamation project authorizations typically require 100% repayment, with interest, for the M&I

portion of water supply facilities, which makes Reclamation assistance a de facto long-term

loan.10 A similar arrangement is required for the federal portion of WIIN Act water storage

projects. For M&I projects under rural water, Title XVI, desalination, and disadvantaged

community domestic water supply authorities, Congress has established terms providing some or

all federal funding for projects on a nonreimbursable basis.

“Traditional” Multipurpose Reclamation Projects11

Reclamation undertakes “traditional” reclamation projects (i.e., projects authorized under the

structure laid out in the Reclamation Act of 1902 and related laws) at the explicit direction of

Congress. Local project sponsors may approach Reclamation or Congress with proposals for

project construction and funding. However, except where blanket feasibility study authorizations

exist (e.g., certain program areas described below), specific project feasibility studies must first

be authorized by Congress.12 Once a feasibility study is completed, congressional authorization is

typically sought prior to a request for construction appropriations.13 Because there is no

9 The sources for this text box are Reclamation Reports on Inflation Reduction Act, July 11, 2025; Reclamation,

“Tribal Domestic Water Supplies Program,” https://www.usbr.gov/native/programs/DomesticWaterprogram.html;

Reclamation, Territorial Domestic Water Supply Projects Financial Assistance Request for Proposals, February 2026,

https://www.usbr.gov/international/DWSP/

RFP_Territorial%20Domestic%20Water%20Supplies%20Program_Phase%202.pdf; DOI, “Biden-Harris

Administration Delivers $147 Million from Investing in America Agenda for Drought Resiliency and Water Supply

Reliability Across the West,” May 6, 2024, https://www.doi.gov/pressreleases/biden-harris-administration-delivers147-million-investing-america-agenda-drought.

10 Repayment obligations are typically spread over a 40- or 50-year repayment term. In contrast to municipal and

industrial (M&I) repayment, Reclamation-built irrigation facilities are generally repaid without interest over similar

time periods.

11 This section discusses “traditional” authority for Reclamation to construct water resources projects. Reclamation also

has a similar (but separate) authority to construct new surface water storage projects under Section 4007 of the Water

Infrastructure Improvements for the Nation Act (WIIN Act; P.L. 114-322). For more information about how this

authority differs from Reclamation’s traditional construction authority, see CRS In Focus IF10626, Reclamation Water

Storage Projects: Section 4007 of the Water Infrastructure Improvements for the Nation (WIIN) Act, by Charles V.

Stern.

12 See Section 8 of the Federal Water Project Recreation Act of 1965 (P.L. 89-72; 16 U.S.C. §460l-19).

13 Section 9(a) of the Reclamation Project Act of 1939 (53 Stat. 1193; 43 U.S.C. §485h(a)) provides that, if the

(continued...)

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“program” per se, there are no general eligibility or program criteria for selecting large,

multipurpose projects. Rather, Congress relies on information provided in feasibility studies,

including cost-benefit, engineering, and environmental analyses and policy considerations. While

Reclamation maintains almost 200 of these projects throughout the country, it has constructed few

new reclamation projects in recent years.

Project Purposes

Individual authorization statutes establish project purposes. Generally, M&I projects are part of

larger, multipurpose projects such as those built for irrigation water supply, flood control, and

hydropower purposes.

Financing or Funding Mechanism

Projects are financed and constructed up front by the federal government. Costs for M&I portions

of such projects are generally considered reimbursable to the government and are thus scheduled

to be repaid in full, with interest, over extended terms. Irrigation districts must also repay their

share of project benefits, but such payments are not subject to interest charges. Other water

supply costs, such as costs for fish and wildlife enhancement, are considered nonreimbursable

pursuant to federal law, and repayment is not required.

Eligibility Requirements

Generally, local governments and organizations, such as irrigation, water, or conservation

districts, may approach Reclamation and/or Congress for project support. All construction project

funding must be appropriated by Congress. As noted earlier, Reclamation works only on projects

located in the 17 western states (32 Stat. 388; 43 U.S.C. §§391 et seq.) unless otherwise

specifically authorized.

Recent Federal Funding

Funding information for the M&I portions of multipurpose reclamation projects is not readily

available. Total discretionary Reclamation appropriations (gross current authority for all

Reclamation projects and programs, not including permanent funding) for FY2026 were $1.63

billion.

For FY2027, the President requested $1.28 billion for Reclamation.14

Statutory and Regulatory Authority

Reclamation generally carries out its water supply activities in 17 western states as authorized by

the Reclamation Act of 1902, as amended (32 Stat. 388; 43 U.S.C. §§391 et seq.), as well as

through hundreds of individual project authorization statutes.

Secretary of the Interior finds that the allocable benefits of the project equal or outweigh anticipated costs, then the

project shall be deemed authorized. Even so, the Secretary of the Interior has first sought congressional approval for

large construction projects in recent decades. In any case, Congress would need to provide appropriations for any new

project construction.

14 These amounts include funding requests for Rural Water and Title XVI programs, discussed below.

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WIIN Act Water Storage Projects15

Congress enacted new authority for Reclamation to support surface and groundwater storage

projects (i.e., authority apart from the aforementioned “traditional” project authority) under

Section 4007 of the WIIN Act.16 Congress authorized $335.0 million in discretionary

appropriations for these projects and approved a different approach than the traditional

reclamation law process of federal project study and construction with full, up-front federal

funding for individual projects.

Funding for water storage projects under Section 4007 is available for two primary project types.

Federally owned storage projects (surface water storage projects to which the United States holds

title, and which were authorized to be constructed pursuant to reclamation law and regulations)

may be no more than 50% federally funded. State-led storage projects (surface water or

groundwater storage projects constructed, operated, and maintained by states or political

subdivisions) may be no more than 25% federally funded. Prior to the WIIN Act, Congress had

not authorized Reclamation to fund state-led water storage projects.

Before projects can receive federal support under the WIIN Act authority, several milestones must

be met. The Secretary of the Interior must find that the project is feasible and provides benefits

proportionate to the federal government’s cost share, and project sponsors must agree to pay their

portion of project costs up front. Appropriations under the Section 4007 authority are available to

individual projects only after the Secretary transmits a list of recommended projects and funding

levels to Congress and Congress designates those projects by name in an enacted appropriations

act.17

Any project that meets the aforementioned criteria is eligible for funding allocations by

Reclamation. However, Congress also stipulated that in order to move forward, the Secretary

must find projects feasible by January 1, 2021.18 As of May 2026, Reclamation had recommended

funding for 13 projects in three states; Reclamation also recommended 8 of these projects for

construction prior to the aforementioned WIIN Act deadline. These projects are eligible for

construction funding moving forward.

Project Purposes

Congress did not specify purposes for WIIN Act water storage projects, only that a project must

be feasible and have federal benefits “in accordance with the reclamation laws.”19 To date,

projects receiving funding under this authority are expected to provide benefits related to

agricultural irrigation and/or M&I uses, among other things.

Financing or Funding Mechanism

Water storage projects determined by Reclamation to be eligible under Section 4007 of the WIIN

Act may receive direct, up-front federal funding in amounts recommended by Reclamation and

approved by Congress, subject to the WIIN Act’s authorized cost shares (i.e., 50% for federal

15 For more on this authority, see CRS In Focus IF10626, Reclamation Water Storage Projects: Section 4007 of the

Water Infrastructure Improvements for the Nation (WIIN) Act, by Charles V. Stern; and CRS Report R47987, Bureau

of Reclamation Support for Water Storage Projects, by Charles V. Stern.

16 43 U.S.C. §390b note.

17 For more information, see P.L. 114-322, §4007(a) and (b).

18 P.L. 114-322, §4007(i).

19 P.L. 114-322, §4007(b)(3)(A), §4007(c)(2)(B)(i).

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projects, 25% for nonfederal projects). Similar to the “traditional” multipurpose federal

reclamation projects discussed above, the federal share for WIIN Act storage projects is subject to

a cost allocation by Reclamation during the study process that determines which portions of the

federal cost share are reimbursable and nonreimbursable. Reimbursable costs, which include the

portions of benefits estimated to accrue to M&I agricultural water supplies, must be repaid by

project sponsors over a 40-year period (with interest for M&I water supply benefits, and without

interest for agricultural irrigation benefits). Nonreimbursable costs, such as water supplies for fish

and wildlife purposes and flood control, are considered federal benefits and do not have to be

repaid.

Eligibility Requirements

Eligible projects must be located in the 17 western states and territories authorized in reclamation

law and may include federal projects—projects to which the United States holds title and were

authorized and constructed pursuant to reclamation laws. “State-led” projects—projects

constructed, operated, and maintained by any state, department of a state, subdivision of a state,

or public agency organized pursuant to state law—are also eligible for funding under this

section.20

Recent Federal Funding

Similar to funding for traditional reclamation projects, there is no funding breakdown available

for the M&I portions of WIIN Act water storage projects. Congress included $62.5 million for

WIIN Act Section 4007 projects in P.L. 119-74.

The President requested no funding for these projects in the FY2026 budget request.

Apart from regular appropriations, Congress has also made supplemental appropriations for

Reclamation water storage projects, including Section 4007 projects. Congress appropriated

$1.05 billion for water storage projects from FY2022 to FY2026 in the Infrastructure Investment

and Jobs Act (IIJA; P.L. 117-58), and Reclamation allocated $1.029 billion in funding for these

projects in FY2022-FY2026 IIJA spend plans.21 In the 119th Congress, the FY2025 reconciliation

law commonly known as the One Big Beautiful Bill Act (P.L. 119-21) appropriated another $1.0

billion for projects that would increase the capacity of existing Reclamation surface water storage

facilities, including Section 4007 projects. The Administration allocated $889 million in this

funding in 2026.22

Statutory and Regulatory Authority

Water storage projects are authorized under Subtitle J, Section 4007, of the WIIN Act (130 Stat.

1863-1866, 43 U.S.C. §390b note).

20 P.L. 114-322, §4007(a)(1)-(2).

21 FY2022-FY2025 Reclamation Infrastructure Investment and Jobs Act (IIJA) spend plans are available at

https://www.usbr.gov/bil/2022-spendplan.html.

22 Reclamation, “Interior Announces $889 Million Investment in Western Water Infrastructure Through President

Trump’s One Big Beautiful Bill,” press release, March 17, 2026, https://www.doi.gov/pressreleases/interior-announces889-million-investment-western-water-infrastructure-through.

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Rural Water Supply Projects23

Similar to its traditional multipurpose projects, Reclamation has undertaken individual rural water

projects, largely at the explicit direction of Congress. In lieu of the project-based approach to

authorizing new rural water projects, Congress authorized a rural water supply program in the

Reclamation Rural Water Supply Act of 2006 (Title I of P.L. 109-451; 42 U.S.C. §§2401 et seq.).

Under the program, Reclamation was authorized to work with rural communities and Indian

tribes to identify M&I water needs and options to address such needs through appraisal

investigations and, in some cases, feasibility studies. In 2008, Reclamation published an interim

final rule establishing future program criteria.24 According to Reclamation, between 2006 and

2016, it used this authority to study approximately 22 projects to varying extents. It did not

recommend any projects for construction, as authorized by Congress. No projects have been

constructed under this authority, which expired at the end of FY2016 and has not been renewed.

Congress continues to provide funding for previously authorized rural water projects and those

authorized thereafter.25

Project Purposes

Individual authorization statutes have established rural water project purposes. Some rural water

project authorizations meet obligations under Indian water settlements or otherwise provide

benefits to Indian tribes.

Financing or Funding Mechanism

Projects are generally cost-shared between the federal government and local sponsors. The federal

government pays up to 100% of the cost of Indian rural water supply projects, including operation

and maintenance, and the federal cost share for current nontribal projects ranges from 75% to

80%. Reclamation requests and distributes funding from Congress generally based on

prioritization criteria aimed to reflect both the priorities identified in the statutes that authorized

individual projects and the goals of the Reclamation Rural Water Supply Act of 2006.

Eligibility Requirements

Local governments and organizations such as water and conservation districts or associations,

including tribes, may approach Reclamation and/or Congress for project support. Currently, all

construction project funding must be authorized at the project level and appropriated by

Congress. As noted earlier, Reclamation works only on projects located in the 17 western states

(32 Stat. 388; 43 U.S.C. §§391 et seq.) unless specifically authorized by Congress.

Reclamation previously published an interim final rule (43 C.F.R. Part 404) that established

criteria for developing new rural supply projects.26 However, the authority for the program has

See also CRS Report R46308, Bureau of Reclamation Rural Water Projects, by Anna E. Normand.

24 43 C.F.R. Part 404.

25 The Clean Water for Rural Communities Act (§1110 of Title XI of Division FF of P.L. 116-260) directed the

Secretary of the Interior to enter into a cooperative agreement to provide assistance at a 65% federal cost share for the

planning, design, and construction of the Musselshell-Judith Rural Water System and authorized appropriations at

$56.7 million subject to cost indexing for the 2014 cost estimate of the feasibility report. The act also authorized $5.0

million for reviewing the Dry-Redwater Regional Water Authority System submitted to Reclamation on September 1,

2010, and for completing any additional work to ensure the study complied with Reclamation’s feasibility standards.

Congress has appropriated funding for the Musselshell-Judith Rural Water System.

26 DOI, “Reclamation Rural Water Supply Program,” 73 Federal Register 67782, November 17, 2008,

http://edocket.access.gpo.gov/2008/pdf/E8-26584.pdf.

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since expired, and Congress last authorized a project in 2009.27 The rule does not apply to

previously authorized or newly authorized projects. As previously stated, ongoing rural water

construction activities are limited to individually authorized projects.

Recent Federal Funding

For FY2026, the explanatory statement accompanying the Energy and Water Development and

Related Agencies Appropriations Act, 2026 (Division B of P.L. 119-74) directed Water and

Related Resources Account appropriations for the following individual rural water projects:28

•

$17.5 million for the Mni Wiconi Project,

$14.3 million for rural water activities at the Garrison Diversion Unit,

$10.7 million for Eastern New Mexico Water Supply—Ute Reservoir, and

$2.0 million for the Mid-Dakota Rural Water Project.

The explanatory statement also directed $75.0 million for construction of rural water projects for

Reclamation to allocate in a spend plan. Reclamation allocated $50.0 million for the Eastern

North Dakota Alternate Water Supply project part of the Pick-Sloan Missouri Basin Program and

$25.0 million for construction at the Eastern New Mexico Water Supply Project.29 Reclamation’s

IIJA spend plan indicates $92.0 million for FY2026.30

Therefore, the total FY2026 allocation for rural water supply projects is $211.5 million.

For FY2027, the President requested $31.3 million for tribal rural water O&M requirements at the

Mni Wiconi Project ($17.3 million) and Garrison Diversion Unit ($14 million).31

Statutory and Regulatory Authority

The Rural Water Supply Program was authorized by the Reclamation Rural Water Supply Act of

2006. This programmatic authority expired at the end of FY2016 and has not been renewed.

Construction and operations and maintenance are ongoing for several geographically specific

projects that were authorized under various individual acts.

Title XVI Projects

Title XVI of the Reclamation Projects Authorization and Adjustment Act of 1992 (P.L. 102-575)

directs the Secretary of the Interior to develop a program to “investigate and identify”

opportunities to reclaim and reuse wastewater and naturally impaired ground and surface water.

Water reclaimed via Title XVI projects is primarily used for M&I water supply (nonpotable and

27 DOI, “Reclamation Rural Water Supply Program,” 73 Federal Register 67778-67791, November 17, 2008,

http://edocket.access.gpo.gov/2008/pdf/E8-26584.pdf. Under the rule, priority was given to domestic, residential, and

municipal uses. Communities or groups of communities with populations under 50,000 were also eligible. The use of

water for commercial irrigation purposes was not allowed.

28 Funding levels for operations of the Mni Wiconi Project, rural water activities at the Garrison Diversion Unit, and the

Mid-Dakota Rural Water Project were as requested in the President’s budget request. Funding for the Eastern New

Mexico Water Supply—Ute Reservoir was included as a congressional directed spending request.

29 Reclamation, Bureau of Reclamation FY 2026 Additional Funding Allocation Recommendations,

https://www.usbr.gov/budget/2026/FY-2026-BOR-Spend-Plan-Distribution-Additional-Funds.pdf.

30 Reclamation, Infrastructure Investment and Jobs Act (IIJA) Annual Spend Plan 2026, https://www.usbr.gov/foia/

docs/bor-infrastructure-investment-jobs-act/archive/docs/spendplan-2026/FY-2026-Reclamation-BIL-Spend-Plan.pdf.

31 Reclamation, Budget Justifications and Performance Information Fiscal Year 2027, https://www.doi.gov/sites/

default/files/documents/2026-05/fy2027greenbookusbr.pdf.

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indirect potable purposes only). Other uses include irrigation supply, groundwater recharge, fish

and wildlife enhancement, and outdoor recreation.

The original Title XVI legislation authorized construction of five reclamation wastewater projects

and six wastewater and groundwater recycling/reclamation studies. The act has been amended on

multiple occasions, resulting in a total of 53 projects individually authorized for construction.

Amendments to Title XVI enacted in the WIIN Act made changes to the program, including

authorizing the Secretary of the Interior to accept and review nonfederal feasibility studies for

potential planning, design, and construction projects.32 The WIIN Act also authorized a

competitive grant program for construction of projects approved under this authority.33

In IIJA, Congress further amended the Title XVI authority and created a new category of “largescale” Title XVI projects, defined as projects with total costs in excess of $500.0 million.34 In

contrast to “regular” Title XVI projects (which are generally limited to the lesser of $20.0 million

or 25% federal cost share), projects under this section are entitled to a federal cost share of 25%

of project costs, with no dollar cap on federal support. As a result, Reclamation currently supports

three types of water reuse and recycling projects: congressionally authorized Title XVI projects;

WIIN Act Title XVI projects, and large-scale water reuse/recycling projects.

Project Purposes

The general purpose of Title XVI projects is to provide supplemental water supplies by

recycling/reusing agricultural drainage water, wastewater, brackish surface and groundwater, and

other sources of contaminated water. Projects may be permanent or for demonstration purposes.

Financing or Funding Mechanism

Title XVI projects are funded through grants that are available only to authorized projects (i.e.,

projects with individual authorizations from Congress or approved by the Administration and

Congress pursuant to the WIIN Act). Title XVI project construction costs are shared by the

federal government and a local project sponsor or sponsors. The federal share is nonreimbursable

and is generally limited to the lesser of $20.0 million (1996 dollars) or 25% of total project

costs.35 The exception is large-scale water reuse and recycling projects funded pursuant to IIJA,

which are eligible to receive up to 25% of project costs, with no comparable cost cap.

Eligibility Requirements

Similar to other Reclamation activities, the Title XVI water reclamation and wastewater recycling

program is limited to projects and studies in the 17 western states, unless otherwise specified.36

Prior to enactment of the WIIN Act, Administration requests for construction funding had

generally been limited to individual congressionally authorized projects where (1) an appraisal

32 These guidelines were published in Reclamation, Reclamation Manual Directive and Standard WTR 11-01, February

8, 2017, https://www.usbr.gov/recman/wtr/wtr11-01.pdf.

33 While selection criteria for WIIN Act grants have generally been the same as those for “traditional” Reclamation

projects, the two groups of projects are typically allocated funding amounts separately by Congress, and Reclamation

solicits grant proposals for each category separately.

34 See Title IX, §40905 of P.L. 117-58.

35 The exceptions are individually authorized projects where Congress authorized costs shares that differ from this

amount, and large-scale water recycling and reuse projects receiving support under IIJA (authorized to receive up to

25% of total costs, with no dollar cap).

36 For example, Congress has authorized three projects for construction in Hawaii (P.L. 109-70).

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investigation and feasibility study had been completed and approved by the Secretary, (2) the

Secretary determined that the project sponsor was capable of funding the nonfederal share of

project costs, and (3) the local sponsor entered into a cost-share agreement with Reclamation. The

WIIN Act provided DOI with additional authority to accept nonfederal feasibility studies and to

approve and consider these projects for construction funding if they meet Title XVI program

criteria.37 These criteria require that (1) the study comply with federal laws and regulations

applicable to water reuse and recycling studies, and (2) the project is technically and financially

feasible and provides a federal benefit in accordance with Reclamation laws. The WIIN Act

authority has essentially rendered unnecessary the prior practice of obtaining specific

authorizations for individual Title XVI projects before Reclamation can pursue funding, although

Congress may still choose to authorize individual projects where it wishes to alter the terms for

federal support.

Over time, Reclamation has issued and revised multiple documents outlining evaluation criteria

for prioritizing Title XVI projects. Reclamation posted the most recent evaluation criteria for Title

XVI projects in March 2018.38

Recent Federal Funding

Total appropriations for the Title XVI program in FY2026 under P.L. 119-74 were $4.0 million.

Reclamation also allocated $539.0 million in IIJA funding for Title XVI projects in FY2022FY2025 IIJA spend plans, plus an additional $441.0 million for large-scale Title XVI projects in

FY2022-FY2025 IIJA spend plans.39

For FY2027, the President’s budget request did not include funds for Title XVI projects.

Statutory and Regulatory Authority

The original statutory authority for the Reclamation wastewater and reuse program is the

Reclamation Wastewater and Groundwater Study and Facilities Act, Title XVI of P.L. 102-575, as

amended (43 U.S.C. §§390h et seq.). Other statutes that authorized individual Title XVI projects

include the Reclamation Recycling and Water Conservation Act of 1996 (P.L. 104-266); the

Oregon Public Land Transfer and Protection Act of 1998 (P.L. 105-321); the 1999 Water

Resources Development Act (WRDA; P.L. 106-53, §595); the Consolidated Appropriations Act,

2001 (P.L. 106-554, Division B, §106); a bill amending the Reclamation Wastewater and

Groundwater Study and Facilities Act (P.L. 107-344); the Consolidated Appropriations

Resolution, 2003 (P.L. 108-7, Division D, §211); the Emergency Wartime Supplemental

Appropriations Act of 2003 (P.L. 108-11); the Irvine Basin Surface and Groundwater

Improvement Act of 2003 (P.L. 108-233); the Williamson County Water Recycling Act of 2004

(P.L. 108-316); the Hawaii Water Resources Act of 2005 (P.L. 109-70); the Consolidated

Appropriations Act, 2008 (P.L. 110-161); the Consolidated Natural Resources Act of 2009 (P.L.

110-229); and the Omnibus Public Land Management Act of 2009 (P.L. 111-11, Title IX, Subtitle

B). Programmatic authority for Reclamation to approve studies and grant funding for individual

Title XVI projects was provided in the WIIN Act (P.L. 114-322, Title III, Subtitle J) and IIJA (P.L.

117-58).

37 See generally P.L. 114-322, §4009(c).

38 Reclamation, Title XVI Water Reclamation and Reuse Program, Updated Evaluation Criteria for Review and

Comment, March 2018, https://www.usbr.gov/watersmart/title/docs/2018/Title%20XVI-Evaluation-CriteriaReview.pdf.

39 FY2022-FY2025 Reclamation IIJA spend plans are available at https://www.usbr.gov/bil/2022-spendplan.html.

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Desalination Projects

Desalination projects develop and supplement water supplies through the treatment of ocean or

brackish water. Water supplies created by desalination projects are primarily used for M&I and

irrigation water supply, but they may also be used for other purposes. Congress authorized the

Secretary of the Interior, through Reclamation, to support nonfederal construction of ocean or

brackish water desalination projects in Section 4009(a) of the WIIN Act. Similar to

congressionally authorized Title XVI projects, this funding is awarded as grants to projects with a

completed feasibility study that has been submitted to Reclamation and that meets all of the

requirements in Reclamation’s Directive and Standard for feasibility study review of Title XVI

and Desalination Projects.40

Project Purposes

The general purpose of desalination construction projects is to provide supplemental water

supplies by treating seawater or brackish water. Projects may be permanent or for demonstration

purposes.41

Financing or Funding Mechanism

Desalination projects are funded through grants, which are available only to projects that have

submitted a feasibility study to Reclamation. Project construction costs are shared by the federal

government and a local project sponsor or sponsors. The maximum federal share is 25% of total

project costs; thus, nonfederal sponsors must be capable of funding 75% of project costs.42 These

costs may be made available through cash, costs contributed by the applicant, or third-party inkind contributions. Other federal funding may not be counted toward the required nonfederal cost

share, unless the statute authorizing a program stipulates that it may be made available for

matching cost-share requirements.

Eligibility Requirements

Like other Reclamation activities, support for nonfederal desalination projects is limited to

nonfederally owned and operated projects and studies in the 17 western United States or

territories identified in the Reclamation Act of 1902, as amended. Projects must meet several

other requirements, including having completed feasibility studies that have been submitted to

Reclamation and that meet all of the requirements in Reclamation’s Directive and Standard for

feasibility study review of Title XVI and Desalination Projects.43 Projects must also be included

in a state-approved plan or, as an alternative, be requested by the governor of the state in which it

is located. The sponsor of any project in a western state that meets the aforementioned criteria

may be eligible to apply for grants under this authority.

40 Reclamation, Title XVI Water Reclamation and Reuse Program and Desalination Construction Program Feasibility

Study Review Process, Reclamation Manual, WTR 11-01, October 18, 2019, https://www.usbr.gov/recman/wtr/wtr1101.pdf.

41 See generally P.L. 114-322, §4009(a).

42 Cost shares and other requirements under this section were established administratively. For more information, see

Reclamation, “WaterSMART: Desalination,” https://www.usbr.gov/watersmart/desalination/index.html.

43 Reclamation, Title XVI Water Reclamation and Reuse Program and Desalination Construction Program Feasibility

Study Review Process, Reclamation Manual, WTR 11-01, October 18, 2019, https://www.usbr.gov/recman/wtr/wtr1101.pdf.

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Several types of projects are not eligible for funding under this authority, including projects with

water reuse and recycling components (some of which may be eligible for funding from the

aforementioned Title XVI program), research and/or demonstration projects, and operations,

maintenance, and repair projects.

Recent Federal Funding

Grants for desalination project construction are funded through Reclamation’s research and

development program for desalination and water purification; total FY2026 appropriations for

that program under P.L. 119-74 were $6.7 million. Congress also appropriated $250.0 million for

these projects in IIJA from FY2022 to FY2026. Reclamation allocated $245.0 million for

desalination projects in FY2022-FY2026 IIJA spend plans.

For FY2027, the President requested no funding for the desalination research and development

program.

Statutory and Regulatory Authority

Desalination projects were authorized under the Water Desalination Act of 1996 (P.L. 104-298, as

amended by Section 4009(a) of Title II, Subtitle J, of the WIIN Act, P.L. 114-322).

Department of Defense44

U.S. Army Corps of Engineers (USACE) Civil Works

USACE Civil Works Projects

Storage at USACE Authorized and Constructed Reservoirs

As part of its civil works activities, USACE constructs and operates water resource projects

throughout the country. USACE civil works projects and authorities are concentrated on three

principal missions—navigation, flood risk management, and aquatic ecosystem restoration. Some

USACE activities may support M&I water supply storage (e.g., for agricultural use or M&I use),

hydroelectric generation, fish and wildlife, and recreation, in addition to addressing one or more

of the three principal missions. The most common way that USACE infrastructure supports M&I

water supply is through providing storage of M&I water at a USACE reservoir.45 M&I water

supply is generally not a USACE reservoir’s or a USACE project’s primary purpose.46 These

projects are discussed further under the heading “Storage of M&I Water at Multipurpose USACE

Reservoirs.”

44 This section was prepared by Anna E. Normand, Specialist in Natural Resources Policy in the Resources, Science,

and Industry Division, and Nicole T. Carter, Specialist in Natural Resources Policy in the Resources, Science, and

Industry Division.

45 Congress has established that construction costs associated with the M&I water supply components of USACE

reservoirs are 100% nonfederal and 0% federal (33 U.S.C. §2213(c)(2)).

46 USACE developed a document in response to congressional direction to provide the authorizing committees a report

on benefits and consequences of including water supply and water conservation as a primary mission of USACE

projects. See USACE, Water Resources Development Act of 2020: Section 221: Study on Water Supply and Water

Conservation at Water Resources Development Projects, August 2023, https://usace.contentdm.oclc.org/utils/getfile/

collection/p16021coll5/id/37142.

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Congress passed the Grace F. Napolitano Priority for Water Supply, Water Conservation, and

Drought Resiliency Act of 2024, as Title I, Subtitle B, of Division A of P.L. 118-272, the Thomas

R. Carper Water Resources Development Act of 2024 (WRDA 2024). The water supply

provisions of the act include a declaration of U.S. policy for USACE to maximize opportunities

for water supply and conservation measures and drought resilience efforts at and in the operation

of the agency’s water resource projects. The act also directs the Secretary of the Army to give full

consideration to requests and proposals by nonfederal sponsors for USACE to use its authorities

to further such measures and efforts in alignment with the authorized purposes of the agency’s

projects. WRDA 2024 also authorized USACE to conduct certain single-purpose water supply

feasibility studies, among other provisions.47 How implementation of the act may affect USACE

water supply activities remains to be seen.

Specific Projects

In addition to USACE operating the Washington Aqueduct and associated reservoirs which

transport and treat drinking water for Washington, DC, and parts of northern Virginia, Congress

has authorized two USACE civil works projects to have significant water supply components.

Both projects are located in Arkansas and address groundwater overdraft: the Grand Prairie Area

Demonstration Project and the Bayou Meto Basin Project. These projects received USACE

funding most recently in FY2026 at $16.0 million and $12.0 million, respectively; they were not

funded in FY2025. These three specific projects are not discussed further in this report.

Study and Construction Authority

In Section 155 of the WRDA of 2020 (Division AA of the Consolidated Appropriations Act,

2021, P.L. 116-260; 33 U.S.C. §2347c), Congress authorized USACE to carry out small water

storage projects, including for water supply.48 In Section 8108 of the WRDA of 2022 (Title

LXXXI of Division H of P.L. 117-263; 33 U.S.C. §2357), Congress authorized USACE to

perform up to 10 feasibility studies (at 90% federal cost and 10% nonfederal cost) on managed

aquifer recharge projects in drought-prone or water-scarce areas.49 No projects appear to have

47 WRDA 2024’s Section 1201(a) included five single-purpose water supply feasibility studies (which were in

Michigan, New Mexico, Oklahoma, Tennessee, and Texas/Oklahoma) and a feasibility study for “alternate water

supply” in Pennsylvania. Additionally, WRDA 2024’s Section 1201(b) authorized a study of modifications to a

USACE dam in California to include “water supply recharge and storage,” as well as improved flood risk management.

Section 1208 directed USACE to study whether to include water supply as a purpose for a USACE project in the

Colorado River Basin within Arizona, if such a study is requested by the project’s nonfederal sponsors or the Governor

of Arizona (if there is no nonfederal sponsor). Section 1229 also authorized a USACE study, in coordination with

relevant federal and state agencies and nonfederal interests, on water supply, availability, drought resilience, aquifer

recharge, and causes of aquifer depletion, for those regions overlying the Ogallala Aquifer. These WRDA 2024 studies

were not funded in FY2025 or in 2026 and are not discussed further in this report.

48 The provision provides various criteria for the maximum size of the storage projects and other specific project and

program requirements (e.g., federal project costs are limited to $65.0 million; M&I costs are 100% nonfederal). The

water storage capacity of a project under the program is to be not less than 2,000 acre-feet and not more than 30,000

acre-feet. The Assistant Secretary of the Army for Civil Works (ASACW) implementation guidance for the Section

155 program indicates that the policy of USACE not conducting single-purpose water supply studies is superseded for

purposes of this program. Memorandum from Michael L. O’Connor, ASACW, to Commanding General, USACE,

“Implementation Guidance for Section 155 of the Water Resources Development Act of 2020, Small Water Storage

Projects,” April 25, 2022, https://usace.contentdm.oclc.org/utils/getfile/collection/p16021coll5/id/35987.

49 The ASACW released implementation guidance for this provision; it indicates that the managed aquifer recharge

portion of a study undertaken pursuant to this authority uses the 10% nonfederal cost share and that construction costs

follow existing USACE cost sharing for water supply set out at 33 U.S.C. §2213, which is 100% nonfederal for M&I

water supply and 35% nonfederal for agricultural water supply. Assistant Secretary of the Army (Civil Works),

(continued...)

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been funded under these two authorities; these two authorities are not discussed further in this

report.

USACE Assistance for Nonfederal Projects

Environmental Infrastructure (EI) Assistance

At the direction of Congress, USACE also provides assistance for municipal EI, which typically

consists of assistance with municipal drinking water and wastewater infrastructure projects and

municipal source water protection and development. These authorities are discussed further under

the heading “Environmental Infrastructure Assistance.”

USACE Credit Assistance Program

The Water Infrastructure Finance and Innovation Act of 2014 (WIFIA) authorizes USACE and

EPA to provide credit assistance—loans or loan guarantees—for a broad range of water projects.50

USACE’s program is known as Corps Water Infrastructure Financing Program (CWIFP) to

differentiate it from EPA’s WIFIA program. The program is authorized to offer long-term, lowcost loans with flexible repayment options for creditworthy nonfederal borrowers. Various state,

local, and tribal government entities and various private entities (e.g., corporations, partnerships,

and trusts) that are publicly sponsored are eligible for CWIFP loans.51

In December 2021, Congress created an account—the Water Infrastructure Finance and

Innovation Program (WIFIP)—for USACE to implement its WIFIA authority. From FY2021

through FY2023, Congress provided USACE with a total of $81.0 million for credit assistance, as

well as funding for program administration. Congress has limited the available appropriations for

credit assistance to nonfederal dam safety projects (based on dam ownership information in the

National Inventory of Dams).52 Dam safety projects can include work to upgrade, repair, and

maintain a dam, and can include dam removals.53 USACE identifies selection criteria for its

CWIFP credit assistance, including the extent to which the project is nationally or regionally

significant in generating public benefits (e.g., water quality and quantity, including aquifer

recharge, and protection of drinking water, including source water protection). In fall 2023,

USACE solicited preliminary applications from prospective borrowers seeking credit assistance

under CWIFP for nonfederal dam safety projects.54 After evaluating the preliminary applications

for the support available through FY2023, USACE in September 2024 invited 18 prospective

Memorandum from Jaime A. Pinkham, Acting ASACW, to Commanding General, USACE, “Implementation

Guidance for Section 8108(b) of the Water Resources Development Act of 2022, Managed Aquifer Recharge

Feasibility Studies,” January 17, 2025, https://usace.contentdm.oclc.org/utils/getfile/collection/p16021coll5/id/38410.

50 WIFIA 2014, Title V, Subtitle C, of P.L. 113-121; 33 U.S.C. §§3901-3914, as amended by P.L. 115-270.

51 33 U.S.C. §3907(a)(4).

52 Congress authorized USACE’s program for a broader set of activities than have been funded (33 U.S.C. §3905).

Congress authorized USACE to provide credit assistance for water resource projects, such as flood control, hurricane

and storm damage reduction; aquatic ecosystem restoration; and navigation; and multipurpose projects that are

supported by USACE and the Environmental Protection Agency (EPA) WIFIA authorities (e.g., drinking water,

wastewater, desalination, managed aquifer recharge, and/or stormwater system improvements).

53 An eligible dam safety project must also be a project for flood damage reduction, hurricane and storm damage

reduction, environmental restoration, coastal or inland harbor navigation improvement, or inland and intracoastal

waterways navigation improvement that the Secretary of the Army determines is technically sound, economically

justified, and environmentally acceptable.

54 USACE, Department of Defense, “Notice of Funding Availability for Applications for Credit Assistance Under the

Corps Water Infrastructure Financing Program,” 88 Federal Register 64892-64897, September 20, 2023.

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borrowers to complete their applications for an estimated almost $3.2 billion in loans. The Trump

Administration’s request for FY2026 and FY2027 did not include funds for the WIFIP account.

In FY2026 (and each of FY2024 and FY2025), the WIFIP account was funded at $7.2 million;

$5.0 million is for program administration, and $2.2 million is to WIFIP for credit assistance for

nonfederal dam safety and levee projects. Given the program’s current focus on nonfederal dam

safety and levee projects, CWIFP is not discussed further in this report.55

Storage of M&I Water at Multipurpose USACE Reservoirs

A total of 136 USACE reservoirs have roughly 9.8 million acre-feet of storage designated for

M&I water.56 Most of this water was allocated to M&I purposes when the projects were

constructed. Around 0.9 million acre-feet of this storage space has been assigned to M&I use

from existing USACE reservoirs using USACE’s general water supply authorities.57 The storage

of M&I water at USACE reservoirs, as discussed below, is subject to availability of storage space,

and the associated costs are 100% a nonfederal responsibility.58 For its projects, USACE policy is

that the agency does not acquire water rights for either M&I or agricultural water supply and

conservation purposes. Rather, the water user is responsible for securing water rights.

In addition to the WRDA 2024 direction and authorities previously discussed, Congress has given

USACE limited general authority for M&I water supply under two statutes:

1. The Water Supply Act of 1958 authorized USACE (and Reclamation) to

recommend economically justified M&I water supply storage space in new or

existing reservoirs.59

2. The Flood Control Act of 1944 authorizes USACE to provide, through temporary

agreements, surplus water from USACE reservoirs.60 Surplus water contracts

have generally been limited to five-year terms with options to extend.

Pursuant to these statutes, the agency can enter into agreements with nonfederal entities for water

supply storage.

While much of USACE’s water supply activities are conducted using the above general

authorities, Congress has also at times authorized M&I water supply activities at specific USACE

projects, principally USACE reservoirs.

Project Purposes

As previously noted, Congress authorized USACE to allocate a portion of its multipurpose

reservoirs for permanent M&I storage or to provide M&I water from USACE reservoirs under

55 For more information on USACE’s program, see CRS Insight IN12021, Corps Water Infrastructure Financing

Program (CWIFP), by Nicole T. Carter. For more information on the EPA WIFIA program, see “Water Infrastructure

Finance and Innovation Act Program” in the EPA portion of the report.

56 U.S. Army Engineer Institute for Water Resources, FY 2016 Municipal, Industrial, and Irrigation Water Supply

Database Report, 2017-R-02, Alexandria, VA, June 2017, p. 6, https://publibrary.planusace.us/#/document/e71cd9b9faff-4d63-8d42-8ee1baa3cc7f.

57 U.S. Army Engineer Institute for Water Resources, FY 2016 Municipal, Industrial, and Irrigation Water Supply

Database Report, 2017-R-02, Alexandria, VA, June 2017, p. 8.

58 33 U.S.C. §2213(c)(2).

59 43 U.S.C. §390b.

60 33 U.S.C. §708.

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temporary agreements for surplus water.61 Under these authorities, USACE delivers water if it is

available and if delivery does not substantially affect other authorized purposes.

Financing or Funding Mechanism

Most agreements for new M&I water supply storage are associated with existing USACE

reservoirs. USACE policy generally is to obtain full payment of M&I allocated costs from

nonfederal entities prior to or during construction.62

Eligibility Requirements

For USACE’s water supply activities conducted using the above general authorities, nonfederal

entities can contact USACE directly about pursuing water supply activities under the general

authorities. Otherwise, nonfederal entities may submit a proposal to add or adjust water supply

aspects of specific USACE projects through an annual public proposal submission process;63

Congress may draw from these proposals when developing USACE authorization legislation.

For new USACE projects with M&I water supply, existing law and agency policy require that the

water supply allocation for anticipated demand at any project not exceed 30% of the total

estimated construction cost.64 Congress has enacted occasional exceptions to USACE’s general

authority, which is generally limited to storage of water supply at existing projects that does not

“seriously affect” other project purposes.65

Recent Federal Funding

USACE primarily uses annual appropriations for administration of its water supply authorities.

From FY2025 annual appropriations, USACE planned to use $6.5 million for USACE’s costs for

implementing its reservoir-related water supply authorities.66 Information on the amount of

USACE’s FY2026 annual appropriations that is planned for implementing its reservoir-related

water supply authorities is not publicly available.

For FY2027, the President’s budget request did not include funds for USACE’s water supply

implementation costs.67

61 43 U.S.C. §390b; 33 U.S.C. §708.

62 USACE, Policy for Conducting Civil Works Planning Studies, Engineer Regulation (ER) 1105-2-103, November

2023, p. 77. For more on payments for reallocation to M&I at existing USACE projects, see ER 1105-2-103, p. 78.

63 For more information, see CRS Insight IN11118, U.S. Army Corps of Engineers: Section 7001 Report on Future

Studies and Projects, by Anna E. Normand.

64 43 U.S.C. §390b; USACE, Policy for Conducting Civil Works Planning Studies, ER 1105-2-103, p. 77.

65 43 U.S.C. §390b(e).

66 This does not include such costs for projects in the explanatory statement funded from prior unobligated IIJA

appropriations.

67 USACE, Fiscal Year 2025: Civil Works Budget of the U.S. Army Corps of Engineers, March 2024, p. 6,

https://usace.contentdm.oclc.org/utils/getfile/collection/p16021coll6/id/2476.

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Statutory Authority

Statutory authority is provided in the Water Supply Act of 1958 (Title III, 72 Stat. 320, as

amended; 43 U.S.C. §390b),68 the Flood Control Act of 1944 (§6, 58 Stat. 890, as amended, 33

U.S.C. §708), and project-specific authorities in WRDAs or similar legislation.

Environmental Infrastructure Assistance

Project Purpose

Since 1992, Congress has enacted more than 600 authorizations allowing USACE to provide

designated communities, counties, and states with design and construction assistance for drinking

water and wastewater infrastructure (including treatment and distribution/collection facilities),

source water protection and development, and other nonfederal projects. This assistance is known

as environmental infrastructure (EI) assistance.69 The authorizations of federal appropriations for

these activities have varied widely, from $0.1 million for a water monitoring station to $1.1

billion for a seven-state EI program.

Financing or Funding Mechanism

Under most USACE EI assistance authorizations, federal assistance typically requires a 75%

federal and 25% nonfederal cost share. Congress typically provides the federal portion in annual

Energy and Water Development Appropriations acts.70 How USACE and nonfederal financing is

managed varies according to the specifics of the authorization. USACE is authorized to perform

design and/or construction work with appropriated funds and, generally for programmatic

authorities, may use appropriated funds to reimburse nonfederal sponsors for work they perform.

Eligibility Requirements

Because EI assistance activities are not part of a national USACE program per se, there are no

general eligibility criteria. Most USACE EI authorities specify a specific geographic location

(e.g., a city, county, or state) and a type of project (e.g., municipal drinking water) as the principal

eligibility requirements. Consequently, USACE evaluates an activity’s eligibility by identifying

whether there is an authorization for the geographic area of the activity and whether the type of

activity is eligible under that authorization. Based on a review of enacted legislation likely to

include EI assistance authorities, CRS identified authorized EI assistance in at least 46 states, the

District of Columbia, Guam, Puerto Rico, the U.S. Virgin Islands, and the Northern Mariana

Islands. CRS did not identify authorities for EI assistance in Iowa, Maine, Nebraska, Rhode

Island, and other U.S. territories. Because this assistance is not associated with traditional

USACE water resources projects, it is not subject to USACE planning requirements (e.g., a

benefit-cost analysis is not performed); however, other federal laws apply to EI assistance,

including the National Environmental Policy Act (42 U.S.C. §§4321 et seq).

68 For information on USACE’s civil works program, see USACE, “Missions: Civil Works,”

https://www.usace.army.mil/Missions/Civil-Works/. For more information on the process associated with USACE

water resources projects, see CRS Report R47946, Process for U.S. Army Corps of Engineers (USACE) Projects, by

Nicole T. Carter and Anna E. Normand.

69 For more information, see CRS Report R47162, Overview of U.S. Army Corps of Engineers Environmental

Infrastructure (EI) Assistance, by Anna E. Normand.

70 In addition, the IIJA and American Relief Act (P.L. 118-158) provided appropriations for EI assistance.

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Recent Federal Funding

Historically, only a portion of the authorized USACE EI activities have received appropriations.

Congress typically funds EI assistance through USACE’s Construction account in Energy and

Water Development and Related Agencies annual appropriations acts. For FY2026, the

explanatory statement accompanying the Energy and Water Development and Related Agencies

Appropriations Act, 2026 (Division B of P.L. 119-74) directed $344 million to EI assistance

authorities. The explanatory statement also directed $14 million for EI assistance that USACE

allocated to projects in a subsequent work plan.71

Presidential budget requests typically do not include funding for EI assistance, with an exception

for FY2024. For FY2027, the President did not request funding for EI assistance.72

Statutory Authority

Prior to 1992, USACE was generally not widely involved with municipal drinking water

treatment and distribution and wastewater collection and treatment. The agency is now authorized

to contribute to more than 600 EI projects and programs. A WRDA or similar legislation is the

typical legislative vehicle for USACE authorizations. Beginning with WRDA 1992 (P.L. 102580), Congress has authorized USACE to assist local interests with planning, design, and

construction assistance for EI projects. Subsequent USACE authorization acts have included new

EI assistance activities and raised the authorized funding ceilings for previously authorized

projects. Most recently, WRDA 2024 (Division A of P.L. 118-272) provided a combined increase

in authorization of appropriations of $5.4 billion for these authorities. In WRDAs, Congress has

also authorized various processes to deauthorize existing authorities meeting certain criteria.73 In

two instances, these processes have resulted in the deauthorization of EI assistance authorities.

Pursuant to Section 301 of WRDA 2020 (Division AA of P.L. 116-260; 33 U.S.C. §579d-2), as

amended, USACE published on May 21, 2026, a Federal Register notice titled “Proposed

Deauthorization of Water Resources Projects.”74 The accompanying list includes around 180 EI

assistance authorities.75

71 USACE, Army Civil Works Program, FY2026 Work Plan—Construction, https://usace.contentdm.oclc.org/utils/

getfile/collection/p16021coll6/id/2575.

USACE, Fiscal Year 2027: Civil Works Budget of the U.S. Army Corps of Engineers, April 2026,

https://usace.contentdm.oclc.org/utils/getfile/collection/p16021coll6/id/2574.

73 While EI assistance authorities have been deauthorized through processes established by Congress and implemented

by the Secretary of the Army, CRS did not identify any enacted provisions where Congress in statute deauthorized

specific EI assistance authorities.

74 USACE, “Proposed Deauthorization of Water Resources Projects,” 91 Federal Register 98, May 21, 2026.

75 USACE, Proposed List for Deauthorization Federal Register Docket ID No. COE-2026-0034,

https://usace.contentdm.oclc.org/utils/getfile/collection/p16021coll5/id/38480. Although neither the statute nor the

Federal Register is explicit that the projects on the final list are automatically deauthorized once the list is submitted to

the House Committee on Transportation and Infrastructure and the Committee on Environment and Public Works and it

is published in the Federal Register, that is a working assumption given no other guidance.

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Department of Agriculture

Rural Utilities Service (Water and Waste Disposal Programs)76

The USDA Rural Utilities Service (RUS) administers a variety of water and waste disposal77

programs that provide grants, loans, loan guarantees, and technical assistance to support drinking

water, sanitary sewer, and storm drainage facilities in rural communities. These programs help

rural communities construct, repair, and expand their water and waste disposal systems. Technical

assistance programs help rural communities identify solutions to water and waste disposal

challenges they are facing. One way these programs support rural communities is helping them

apply for state and federal grants and loans. In FY2025, RUS obligated $1.545 billion for 637

water and waste disposal projects.78

Program Purpose

The RUS water and waste disposal programs support the development, storage, and treatment of

drinking water and the disposal of wastewater in rural areas.79 Eligible projects can include

drinking water facilities, sanitary sewers, and stormwater drainage and disposal facilities. Funds

may be used for installation, repair, improvement, or expansion of rural water facilities, including

costs of distribution lines and well-pumping facilities.

USDA is required to use 3% to 5% of the water and waste grants appropriation to make grants to

qualified nonprofits to provide technical assistance and training to help communities identify

solutions to water and waste problems, prepare applications for grants and loans, and improve

operation and maintenance of existing water and waste disposal facilities in rural areas.80

Financing or Funding Mechanism

USDA supports water and waste disposal projects through direct loans, guaranteed loans, grants,

and technical assistance. USDA provides loans and grants for water and waste disposal projects

that are to serve the “most financially needy communities.”81

The Circuit Rider Program provides technical assistance to rural water systems that are

experiencing day-to-day operational, financial, or management issues. Public bodies with legal

authority to own and operate the water facility in question are eligible to receive technical

assistance. USDA RUS has contracted with the National Rural Water Association to provide

technical assistance through a network of state-based water experts known as “Circuit Riders.”

The Emergency Community Water Assistance Program provides grants to eligible communities to

help them prepare for, or recover from, an emergency that threatens the availability of safe,

76 This section was prepared by Lisa S. Benson, Specialist in Agricultural Policy, Resources, Science, and Industry

Division.

77 The programs’ official titles contain “Waste Disposal,” but the vast majority of the waste disposal projects are for

wastewater infrastructure. A small amount of funding, typically less than 1%, goes to technical assistance related to

solid waste management, although Congress authorizes annual appropriations for solid waste management grants.

78 USDA, Office of Budget and Program Analysis, 2027 USDA Explanatory Notes—Rural Utilities Service, Table

RUS-82 - 2025 Financial and Performance Data for WEP Programs (thousands of dollars), https://www.usda.gov/sites/

default/files/documents/FY-2027-Chapter-33-RUS.pdf.

79 7 U.S.C. §1926.

80 7 U.S.C. §1926(a)(14)(C), Rural Water and Wastewater Technical Assistance Training Programs.

81 7 C.F.R. §1780.2.

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reliable drinking water. Eligible entities include public bodies, nonprofit organizations, and

federally recognized tribes. Emergencies include natural disasters such as droughts or hurricanes

and man-made disasters such as chemical spills. A federal disaster declaration is not required.

The Revolving Funds for Financing Water and Wastewater Projects Program (Revolving Fund

Program) provides grants to nonprofit organizations and government entities to establish

revolving loan funds that finance projects that improve water and waste disposal systems in rural

areas. Eligible rural areas are areas with 10,000 or fewer residents.

The Rural Decentralized Water Systems Grant Program provides grants to nonprofits and tribes

to establish revolving loan funds for homeowners. Homeowners can use the loans to construct,

refurbish, or service household water well and septic systems. Terms for the loans include a 1%

fixed interest rate, a 20-year maximum term, and a $15,000 maximum loan per household.

Homeowners need to be in rural areas, which are defined as areas or towns of 50,000 residents or

fewer.

The Water and Waste Disposal Loan and Grant Program provides loans and grants for projects

that build or enhance clean and reliable drinking water systems, sanitary sewage disposal

systems, and storm water drainage to households and businesses in eligible rural areas. Eligible

rural areas are areas with 10,000 or fewer residents.

The Water and Waste Disposal Loan Guarantee Program provides loan guarantees for projects

that build or enhance clean and reliable drinking water systems, sanitary sewage disposal

systems, and storm water drainage to households and businesses in eligible rural areas. Eligible

rural areas are areas with 10,000 or fewer residents. RUS guarantees loans issued through eligible

banks, credit unions, and other lenders so that these entities can issue loans to qualified

borrowers.

The Water and Waste Disposal Technical Assistance and Training Program provides grants to

nonprofit organizations for projects that help local communities identify and evaluate water

issues. Eligible rural areas are areas with 10,000 or fewer residents.

Eligibility Requirements

The entities eligible for funding differ by program. For most programs, eligible entities include

public bodies (such as municipalities, counties, and other political subdivisions of a state),

nonprofit organizations, and federally recognized tribes. To be eligible for assistance, the

applicants must be unable to get financing for the proposed projects from their own resources or

through commercial credit at reasonable rates and terms.82

Statutory and Regulatory Authority

Statutory authority for the water and waste disposal loan and grant programs, water technical

assistance, and other rural water assistance programs is Sections 306, 306A, and 306E of the

Consolidated Farm and Rural Development Act, as amended (ConAct; P.L. 87-128, 7 U.S.C.

§1926, 7 U.S.C. §1926a, 7 U.S.C. §1926e).

Regulations for these programs are codified at Title 7, Parts 1779-1780, of the Code of Federal

Regulations.83

82 7 C.F.R. §1780.7(d).

83 For additional information on RUS water and environmental programs, see USDA, “Water & Waste Disposal Loan

& Grant Program,” https://www.rd.usda.gov/programs-services/water-waste-disposal-loan-grant-program.

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Recent Federal Funding

Congress provided appropriations for FY2026 for the RUS water and waste disposal programs

through the Continuing Appropriations, Agriculture, Legislative Branch, Military Construction

and Veterans Affairs, and Extensions Act, 2026 (Division B, P.L. 119-37). Congress provided the

following funding for the RUS programs for FY2026:

•

Circuit Rider Program: $23.9 million;

Emergency Community Water Assistance Grant Program: $7.0 million;

Revolving Fund Program: $1.0 million;

Rural Decentralized Water Systems Grant Program: $5.0 million;

Water and Waste Disposal Loan and Grant Program: $140.0 million for

competitive grants, $110.5 million for community project

funding/congressionally directed spending (CPF/CDS), a loan subsidy of $47.6

million to support $1.0 billion in direct loan authority;

Water and Waste Disposal Loan Guarantee Program: No loan subsidy needed to

support $50.0 million in guaranteed loan authority; and

Water and Waste Disposal Technical Assistance and Training Program: $35.0

million.

For FY2027, the Administration requested the following funding for the RUS water and waste

disposal programs:

•

Circuit Rider Program: $24.0 million;

Emergency Community Water Assistance Grant Program: $0;

Revolving Fund Program: $0;

Rural Decentralized Water Systems Grant Program: $0;

Water and Waste Disposal Loan and Grant Program: $100.0 million for

competitive grants and $58 million loan subsidy to support $816.9 million in

direct loan authority;

Water and Waste Disposal Loan Guarantee Program: No loan subsidy needed to

support $50.0 million in guaranteed loan authority; and

Water and Waste Disposal Technical Assistance and Training Program: $0.

Natural Resources Conservation Service84

The USDA provides assistance for watershed activities under four closely related authorities that

are administered by the Natural Resources Conservation Service (NRCS). The Watershed and

Flood Prevention Operations Program (WFPO) consists of two authorities—P.L. 83-566 and P.L.

78-534. Projects funded under these authorities are referred to as “P.L. 566” and “P.L. 534”

projects, respectively. These authorize NRCS to provide technical and financial assistance to state

and local organizations to plan and install measures to prevent erosion, sedimentation, and flood

damage and to conserve, develop, and utilize land and water resources. Dams constructed under

the WFPO program may also be eligible to receive assistance under the Small Watershed

84 This section was prepared by Megan Stubbs, Specialist in Agricultural Conservation and Natural Resources Policy,

Resources, Science, and Industry Division.

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Rehabilitation Program. The fourth authority is a watershed emergency program that is not

discussed in this report.85

Watershed and Flood Prevention Operations

The WFPO program consists of projects built under two authorities—the Watershed Protection

and Flood Prevention Act of 1954 (P.L. 83-566) and the Flood Control Act of 1944 (P.L. 78-534).

The majority of the projects have been built pursuant to the authority of P.L. 83-566 (and are

referred to as “P.L. 566” projects). This law authorizes the chief of the NRCS to approve

construction of smaller projects (defined below), while statute indicates that appropriations for

larger projects shall not be made unless plans have received congressional committee approval.

Eleven specific projects were authorized by P.L. 78-534 (referred to as “P.L. 534” projects). They

are much larger and more expensive than P.L. 566 projects. In total, the P.L. 534 projects

encompass almost 37.9 million acres and are divided into component projects in sub-watersheds.

As of June 2026, there had been a total of 2,530 WFPO projects in all 50 states and Puerto Rico.86

Program Purpose

The purpose of the WFPO program is to provide technical and financial assistance to states and

local organizations to plan and install watershed projects. Both P.L. 566 and P.L. 534 projects

have similar objectives and are implemented following similar procedures. Both project types

fund land treatment and nonstructural and structural facilities for flood prevention, erosion

reduction, agricultural water management, public recreation development, fish and wildlife

habitat development, and municipal or industrial water supplies. Structural measures can include

dams, levees, canals, and pumping stations. Local sponsors agree to operate and maintain

completed projects.

Financing or Funding Mechanism

USDA provides partial project grants plus technical advisory services. Financing for water

projects under the WFPO program varies depending on project purposes. The federal government

pays all costs related to construction for flood control purposes only. Costs for nonagricultural

water supply must be repaid by local organizations. However, up to 50% of costs for land,

easements, and rights-of-way allocated to public fish and wildlife and recreational developments

may be paid with program funds. Additionally, sponsors may apply for RUS Water and Waste

Program loans to finance the local share of project costs. Participating state and local

organizations pay all operation and maintenance costs.87

Eligibility Requirements

P.L. 566 projects are sometimes referred to as “small watershed projects” because no project may

exceed 250,000 acres and no structure may exceed more than 12,500 acre-feet of floodwater

85 The Emergency Watershed Protection (EWP) program is used to restore the natural functions of a watershed after a

natural disaster has occurred and to minimize the risks to property and life posed by floods by purchasing easements on

flood plains. For more information on the EWP program, see CRS Report R42854, Emergency Assistance for

Agricultural Land Rehabilitation, by Megan Stubbs.

86 Personal communication with USDA, Office of Congressional Relations, June 1, 2026.

87 For additional information on financing requirements, see USDA, NRCS, “Watershed Programs—Sponsor Guide,”

https://www.nrcs.usda.gov/sites/default/files/2022-08/Sponsor%20Guide.pdf.

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detention capacity or 25,000 acre-feet of total capacity.88 For projects that need an estimated

federal contribution of more than $25.0 million for construction or include a storage structure

with a capacity in excess of 2,500 acre-feet, the statute includes a provision that no appropriations

are to be provided unless the plan is approved by the Senate and House Agriculture Committees.89

Statute states that for a single structure with a capacity in excess of 4,000 acre-feet, no

appropriations are to be provided unless the plan (including the plan for the structure) is approved

by the Senate Environment and Public Works Committee and the House Transportation and

Infrastructure Committee.90 There are no population or community income-level limits on

applications for P.L. 566 projects, but at least 20% of the total benefits of the project must directly

relate to agriculture (including rural communities).91

Recent Federal Funding

The FY2026 Agriculture, Rural Development, Food and Drug Administration, and Related

Agencies Appropriations Act (P.L. 119-37, Division B, Title II) provided WFPO with $50.0

million. Of the $50.0 million, $32.4 million (64.8%) is directed to CPF/CDS projects. Of the

remaining funds, $10.0 million is directed to projects that are multibenefit irrigation

modernization projects and activities that increase fish or wildlife habitat, reduce drought impact,

improve water quality or instream flow, or provide off-channel renewable energy production.

For FY2027, the President’s budget request did not include funding for the WFPO program.92

In addition to discretionary funding through appropriations, the 2018 farm bill permanently

authorized $50.0 million annually from mandatory sources.93 In 2025, the budget reconciliation

act (P.L. 119-21) increased the mandatory funding authority to $150.0 million annually. This

mandatory funding will be available unless otherwise amended by Congress. Mandatory funds

are authorized for P.L. 566 projects as well as rehabilitation work under the Small Watershed

Rehabilitation Program.

Statutory and Regulatory Authorities

The WFPO program consists of two authorities: the Flood Control Act of 1944, P.L. 78-534, as

amended, 58 Stat. 905 (33 U.S.C. §701b-1); and the Watershed Protection and Flood Prevention

Act of 1954, P.L. 83-566, as amended, 68 Stat. 666 (16 U.S.C. §§1001-1008). Regulations are

codified at Title 7, Part 622, of the Code of Federal Regulations.94

88 The enacted FY2026 appropriation included a policy provision that waives the 250,000-acre project limit when the

project’s primary purpose is something other than flood prevention (including structural and land treatment measures).

89 16 U.S.C. §1002.

90 16 U.S.C. §1002.

91 16 U.S.C. §1002.

92 USDA, 2027 USDA Explanatory Notes—Natural Resources Conservation Service, https://www.obpa.usda.gov/

explan_notes.html.

93 The 2018 farm bill authorizes mandatory funding from the Commodity Credit Corporation, a government-owned

entity that finances programs supporting U.S. agriculture. For more information, see CRS Report R44606, The

Commodity Credit Corporation (CCC), by Megan Stubbs.

94 For information on the program, see NRCS, “Watershed and Flood Prevention Operations (WFPO) Program,”

https://www.nrcs.usda.gov/programs-initiatives/watershed-and-flood-prevention-operations-wfpo-program.

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Small Watershed Rehabilitation

Some of the oldest P.L. 566 projects that have exceeded their design life (dams were constructed

starting in 1948) need rehabilitation work to continue to protect public health and safety by

reducing any possibility of dam failure and to meet changing resource needs. By the end of 2025,

6,782 watershed dams had reached the end of their designed lifespans. In response to this

concern, Congress created a dam rehabilitation program, known as the Small Watershed

Rehabilitation Program, in Section 313 of the Grain Standards and Warehouse Improvement Act

of 2000 (P.L. 106-472), which revised the WFPO program. In FY2025, NRCS allocated over $30

million to 112 dam projects. Of these projects, 50 are in the assessment phase, 19 are in the

planning phase, 5 are in the design phase, and 18 are in the construction phase.95

Program Purpose

The purpose of rehabilitation is to extend the service life of the dams and bring them into

compliance with applicable safety and performance standards or to decommission the dams, so

they no longer pose a threat to life and property.

Financing or Funding Mechanism

Partial project grants, plus provision of technical advisory services, are provided. NRCS may

provide 65% of the total rehabilitation costs but no more than 100% of the actual construction

cost and is prohibited from funding operation and maintenance expense. Rehabilitation projects

also provide an opportunity to modify projects to provide additional benefits, including municipal

water supplies. Local watershed project sponsors provide 35% of the cost of a rehabilitation

project and obtain needed land rights and permits. The source of these funds varies from state to

state and may include bonds, local taxing authority, state appropriations, or in-kind technical

services.96

Eligibility Requirements

Only dams constructed under the P.L. 83-566 authority, the Resource Conservation and

Development program, and pilot watershed projects from 1953 are eligible for assistance under

the Small Watershed Rehabilitation Program.97

Recent Federal Funding

The Small Watershed Rehabilitation Program has discretionary funding authority of up to $85.0

million annually through the end of FY2026.98 Congress appropriated $3.0 million for FY2026,

$2.0 million more than provided in FY2025.

95 Personal communication with USDA, Office of Congressional Relations, June 1, 2026.

96 For additional information on financing requirements, see USDA, NRCS, “Watershed Programs—Sponsor Guide,”

https://www.nrcs.usda.gov/sites/default/files/2022-08/Sponsor%20Guide.pdf.

97 16 U.S.C. §1012.

98 The program is authorized through omnibus farm bills, most recently the 2018 farm bill (P.L. 115-334). Congress

enacted three one-year extensions (P.L. 118-22, Division B, §102; P.L. 118-158, Division D, §4101; and P.L. 119-37,

Division E, §5002) of farm bill authorizations through FY2026 and crop year 2026, which includes the Small

Watershed Rehabilitation Program’s discretionary funding authority. For additional information on farm bill expiration

and extension, see CRS In Focus IF12047, Farm Bill Primer: Overview and Status, by Megan Stubbs and Jim Monke.

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For FY2027, the President’s budget request did not include funds for the program, stating that

mandatory funding is available to support watershed projects.99

The $150.0 million in annual mandatory funding authorized for WFPO may also be used for

rehabilitation work under the Small Watershed Rehabilitation Program.100

Statutory and Regulatory Authorities

The Small Watershed Rehabilitation Program is authorized by the Watershed Protection and

Flood Prevention Act of 1954, P.L. 83-566, as amended by Section 313 of the Grain Standards

and Warehouse Improvement Act of 2000, P.L. 106-472, 114 Stat. 2077 (16 U.S.C. §1012).

Regulations are codified at Title 7, Part 622, of the Code of Federal Regulations.101

Environmental Protection Agency

Clean Water State Revolving Fund Loan Program102

In 1987, Congress amended the Clean Water Act (CWA)103 to establish the Clean Water State

Revolving Fund (CWSRF) program.104 The CWSRF program is a federal and state partnership:

all 50 states, plus Puerto Rico, implement their own program.105 EPA receives annual

appropriations to support the CWSRF program and distributes grants to the states based on a

CWA statutory formula.106 States provide matching funds equal to 20% of the federal grant to

capitalize their revolving loan funds and use their funds primarily to provide loans to cities and

other eligible recipients. Over the long term, the loan programs are intended to be sustained

through repayment of loans to states, thus creating a continuing source of assistance for other

communities. According to the most recent estimate by EPA and states (published in 2024 and

based on data from 2022), an additional $630.1 billion nationwide is needed over the next 20

years for all types of projects eligible for funding through the CWSRF program.107

99 2027 USDA Explanatory Notes—Natural Resources Conservation Service.

100 For additional information, see CRS Report R45698, Agricultural Conservation in the 2018 Farm Bill, by Megan

Stubbs.

101 For information on the program, see NRCS, “Watershed Rehabilitation Program,” https://www.nrcs.usda.gov/

programs-initiatives/watershed-rehabilitation.

102 This section was prepared by Jonathan L. Ramseur, Specialist in Environmental Policy, Resources, Science, and

Industry Division.

103 Although the statute is commonly referred to as the Clean Water Act, the official statutory name is the Federal

Water Pollution Control Act (P.L. 92-500), as amended, codified at Title 33, Sections 1251 et seq., of the U.S. Code.

104 Prior to 1989 (when the CWSRF program became effective), EPA states used their annual allotment to make grants

to cities and other eligible recipients.

105 U.S. territories, Indian tribes, and the District of Columbia receive grants from EPA under separate CWA

authorities.

106 For more information, see CRS Report RL31073, Allocation of Wastewater Treatment Assistance: Background and

Formula History, by Jonathan L. Ramseur.

107 EPA, 2022 Clean Watersheds Needs Survey, 2024, https://www.epa.gov/cwns/clean-watersheds-needs-surveycwns-2022-report-and-data. The previous survey (issued in 2016 and based on 2012 data) estimated needs of $271.0

billion over an analogous time period. See EPA, Clean Watersheds Needs Survey 2012, 2016, https://www.epa.gov/

cwns/clean-watersheds-needs-survey-cwns-past-reports-and-data.

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Program Purpose

The CWSRF program provides assistance in constructing and upgrading publicly owned

municipal wastewater treatment plants and related equipment (including stormwater

infrastructure), implementing nonpoint pollution management programs, developing and

implementing management plans under the National Estuary Program, and supporting a range of

other eligible activities that were added to the program in 2014 and in subsequent amendments.

Financing or Funding Mechanism

EPA grants (from appropriated funds) and state matching funds help capitalize state CWSRF

programs. These programs may provide seven general types of financial assistance: making

loans; buying or refinancing existing local debt obligations; guaranteeing or purchasing insurance

for local debt obligations; guaranteeing CWSRF debt obligations (i.e., to be used as security for

leveraging the assets in the CWSRF); providing loan guarantees for local government revolving

funds; earning interest on fund accounts; and supporting reasonable costs of administering the

CWSRF.108 Loans are made at or below market interest rates, including zero-interest loans, as

determined by the state in negotiation with the applicant.

Although the CWSRF program is generally a loan program, states may (under certain conditions)

provide “additional subsidization”—such as principal forgiveness, negative-interest loans, or a

combination—to eligible entities that meet the state’s affordability criteria and for particular

projects, such as those that implement water or energy efficiency goals or mitigate stormwater

runoff. IIJA (P.L. 117-58) amended the CWSRF statutory provisions to direct states to use at least

10% of their capitalization grants for additional subsidization under certain conditions.109

Prior to the enactment of IIJA, appropriations acts in recent years have required states to use

minimum percentages of their allotted funds to provide additional subsidization. This trend began

with the American Recovery and Reinvestment Act of 2009 (P.L. 111-5), which required states to

use at least 50% of their funds for this purpose. Recent appropriations acts included an identical

condition, requiring 10% of the CWSRF grants be used “to provide additional subsidy to eligible

recipients in the form of forgiveness of principal, negative interest loans, or grants (or any

combination of these).”110 In an EPA memorandum from 2026, the agency reiterated its

interpretation that the appropriations act’s additional subsidization percentage is additive to the

10% floor in the CWA.111 Therefore, as long as these appropriations acts’ provisions continue,

states are effectively required to provide at least 20% of their annual financing as additional

subsidization.

All principal and interest payments on loans must be credited directly to the SRF, and loans are to

be repaid within 30 years of a project’s completion, not to exceed the project’s useful life. States

108 33 U.S.C. §1383(d).

109 For more information, see CRS Report R46892, Infrastructure Investment and Jobs Act (IIJA): Drinking Water and

Wastewater Infrastructure, by Elena H. Humphreys and Jonathan L. Ramseur.

110 For example, see the Consolidated Appropriations Act, 2024 (P.L. 118-42); the Consolidated Appropriations Act,

2023 (P.L. 117-328); and the Consolidated Appropriations Act, 2022 (P.L. 117-103).

111 Memorandum from Jessica Kramer, Assistant Administrator, EPA, to Water Division Directors, Regions I-X,

“Fiscal Year 2026 Allotments for the State Revolving Fund Provisions of the Infrastructure Investment and Jobs Act

and Base Program Funding,” April 14, 2026, https://www.epa.gov/system/files/documents/2026-04/fiscal-year-2026allotments-for-the-state-revolving-fund-provisions-of-the-infrastructure-investment-and-jobs-act-and-base-programfunding-memo.pdf.

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are required to ensure that CWSRF-funded projects use American iron and steel products and

apply the prevailing wage requirements of the Davis-Bacon Act.112

Eligibility Requirements

In general, eligible loan recipients for CWSRF assistance are any municipal, intermunicipal,

interstate, or state agency. Private utilities are not eligible to receive funds for construction of

wastewater treatment works and most other eligible activities, but in some cases, privately owned

projects are eligible for certain types of activities (e.g., decentralized wastewater treatment

projects; projects to manage, reduce, or treat stormwater; or development of watershed

management projects).

Projects or activities eligible for funding were initially those needed for constructing or upgrading

(and planning and designing) publicly owned municipal wastewater treatment plans. As defined

in Section 212 of the CWA, devices and systems used in the storage, treatment, recycling, and

reclamation of municipal sewage are eligible.113 These include construction or upgrading of

secondary or advanced treatment plants; construction of new collector sewers, interceptor sewers,

or storm sewers; and projects to correct existing problems of sewer system rehabilitation,

infiltration/inflow of sewer lines, and combined sewer overflows. Operation and maintenance are

not eligible activities. All funds in the CWSRF resulting from federal capitalization grants are

first to be used to assure compliance with enforceable deadlines, goals, and requirements of the

act, including municipal compliance.114 After satisfying the “first use” requirement, funds may be

used to implement other eligible uses. The statutory list of eligible activities initially included

nonpoint source management programs and estuary activities in approved State Nonpoint

Management Programs and estuarine Comprehensive Conservation and Management Plans,

respectively.115 The Water Resources Reform and Development Act of 2014 (WRRDA; P.L. 113121) amended the list of eligible projects by adding several types of projects and activities,

including

•

replacement of decentralized treatment systems (e.g., septic tanks),

energy-efficiency improvements at treatment works,

reuse and recycling of wastewater or stormwater, and

security improvements at treatment works.

In 2018, the America’s Water Infrastructure Act of 2018 (AWIA; P.L. 115-270) amended the list

of eligible activities to allow qualified nonprofits to provide assistance to certain individuals for

the repair or replacement of existing decentralized wastewater treatment systems or for the

connection of an individual household to a centralized publicly owned treatment works.

Recent Federal Funding

The FY2025 CWSRF appropriation included both supplemental appropriations from IIJA of

$2.603 billion (and $225.0 million for SRFs to address emerging contaminants) and regular

112 For more information, see U.S. Department of Labor, “Davis-Bacon and Related Acts,” https://www.dol.gov/whd/

govcontracts/dbra.htm.

113 33 U.S.C. §1292.

114 33 U.S.C. §1382(b)(5).

115 For a detailed breakdown of SRF funding by category that is updated annually, see EPA, Clean Water SRF Program

Information, National Summary, https://www.epa.gov/cwsrf/clean-water-state-revolving-fund-cwsrf-nationalinformation-management-system-reports.

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appropriations of $1.639 billion. Section 1101(a)(7) of the Full-Year Continuing Appropriations

and Extensions Act, 2025 (P.L. 119-4), provided EPA funding for FY2025 at FY2024 enacted

levels, with certain exceptions. FY2025 funding did not include CPF/CDS items.

For FY2026, CWSRF appropriation included both supplemental appropriations from IIJA of

$2.603 billion (and $225.0 million for SRFs to address emerging contaminants) and regular

appropriations of $1.639 billion (P.L. 119-74). A portion of the FY2026 regular appropriations

included CPF/CDS items, setting aside 48% ($892.8 million) of the FY2026 CWSRF

appropriation to CPF/CDS. The CPF/CDS funds are to be distributed directly to recipients,

instead of to states’ SRF programs. Thus, the reservation of funds effectively decreases the total

amount available for allotment as state capitalization grants.116

For FY2027, the President requested $155 million for the CWSRF program.117

Through a separate process, EPA provides direct grants for the District of Columbia, the U.S.

Virgin Islands, American Samoa, Guam, and the Commonwealth of the Northern Mariana

Islands.118 EPA also provides direct grants to Indian tribes.119 The funding for the District of

Columbia, U.S. territories, and Indian tribes is part of the SRF appropriations to EPA.

Statutory and Regulatory Authority

Statutory authority for the clean water SRF program is the CWA, as amended, Sections 601-609

(33 U.S.C. §§1381-1389). Regulations are codified at Title 40, Section 35.3100, of the Code of

Federal Regulations.

Drinking Water State Revolving Fund Loan Program120

The Safe Drinking Water Act (SDWA) requires public water systems to comply with federal

drinking water regulations promulgated by EPA.121 Through these regulations, EPA has set

standards to control the levels of 100 contaminants in drinking water, and more regulations are

under development. To help communities meet these federal mandates and to meet the act’s

public health objectives, Congress amended SDWA in 1996 to establish a Drinking Water State

Revolving Fund (DWSRF) loan program.122 The program is patterned closely after the CWSRF

and authorizes EPA to make grants to states to capitalize drinking water state revolving loan

funds. States use their DWSRFs to provide assistance to public water systems for infrastructure

and other drinking water projects.123 States may use a portion of their annual grants to administer

116 For more information, see CRS Report R47633, The Role of Earmarks in CWSRF and DWSRF Appropriations in

the 117th Congress, by Elena H. Humphreys; and CRS Report R48066, The Role of Earmarks in SRF Appropriations

in the 118th Congress, by Elena H. Humphreys.

117 EPA, Fiscal Year 2027 Justification of Appropriation Estimates for the Committee on Appropriations, EPA190R26002, April 2026, https://www.epa.gov/system/files/documents/2026-04/epa-fy27-congressionaljustification.pdf.

118 See 33 U.S.C. §1384 note.

119 See 33 U.S.C. §1377.

120 This section was prepared by Elena H. Humphreys, Specialist in Environmental Policy, Resources, Science, and

Industry Division.

121 See CRS Report RL31243, Safe Drinking Water Act (SDWA): A Summary of the Act and Its Major Requirements,

by Elena H. Humphreys.

122 P.L. 104-182.

123 Private, residential wells are not regulated under the SDWA and are generally not eligible for assistance through this

program.

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the DWSRF program and to implement other SDWA requirements.124 States must match 20% of

the federal capitalization grant.125

Each year, states are required to develop an “intended use plan” that includes a list of projects the

state intends to fund through the DWSRF.126 The law generally directs states to give funding

priority to projects that (1) address the most serious health risks; (2) are needed to ensure

compliance with SDWA regulations; and (3) assist systems “most in need on a per-household

basis, according to state affordability criteria.”127 The law also directs states to make available at

least 15% of their annual allotment to public water systems that serve 10,000 or fewer persons (to

the extent the funds can be obligated to eligible projects).128 Over the life of the program, roughly

70% of DWSRF assistance agreements and 35% of funds have gone to these smaller systems.129

Capitalization grants are allotted among the states according to the results of the most recent

quadrennial survey of the capital improvements needs of eligible water systems.130 Needs surveys

are prepared by EPA and the states, and the most recent survey (2023) indicates that public water

systems need to invest at least $625 billion (2021 dollars) in infrastructure improvements over 20

years ($31.25 billion annually) to ensure the provision of safe drinking water and compliance

with federal standards.131

Program Purpose

This state-administered program provides assistance for infrastructure projects and other

expenditures that facilitate compliance with federal drinking water regulations or that promote

public health protection. SDWA directs states to give funding priority to infrastructure projects

that are needed to achieve or maintain compliance with SDWA requirements, protect public

health, and assist systems with economic need. Further, states may use a portion of the

capitalization grant for specified purposes, including programs for protecting sources of drinking

water and improving the managerial and technical capacity of water systems.

Financing or Funding Mechanism

States may use the DWSRF to make low- or zero-interest loans to public water systems. Loan

recipients must generally repay the entire loan plus any interest to the state. DWSRFs may also be

used to buy or refinance local debt obligations, guarantee or purchase insurance for a local

obligation, provide revenue or security for payment of principal and interest on state revenue or

124 42 U.S.C. §300j-12(a)(2).

125 42 U.S.C. §300j-12(e).

126 42 U.S.C. §300j-12(b).

127 42 U.S.C. §300j-12(b)(3).

128 42 U.S.C. §300j-12(a)(2)(F).

129 Detailed national and state program data are available at EPA, “Drinking Water State Revolving Fund National

Information Management System Reports,” https://sdwis.epa.gov/ords/sfdw_pub/r/sfdw/owsrf_public/dw-statenational-report.

130 EPA, “EPA’s 7th Drinking Water Infrastructure Needs Survey and Assessment,” 2023, https://www.epa.gov/dwsrf/

epas-7th-drinking-water-infrastructure-needs-survey-and-assessment.

131 This estimate is not adjusted for inflation. EPA, 7th Drinking Water Infrastructure Needs Survey and Assessment,

April 2023, https://www.epa.gov/system/files/documents/2023-04/Final_FAQ_DWINSA_4.4.23.v1.pdf. For more

details, see CRS Report R47878, Drinking Water Infrastructure Needs: Background and Issues for Congress, by Elena

H. Humphreys.

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general obligation bonds if the proceeds of bond sale are deposited into the DWSRF, and earn

interest on DWSRF accounts.132

The statute authorizes states to use up to 35% of their annual DWSRF grants to provide additional

subsidies (e.g., principal forgiveness and negative-interest-rate loans) to help economically

disadvantaged communities of any size.133 The Commerce, Justice, Science; Energy and Water

Development; and Interior and Environment Appropriations Act, 2026 (P.L. 119-74) required

states to use 14% of their DWSRF capitalization grants for additional subsidization to eligible

recipients. In an EPA memorandum from 2026, the agency reiterated its interpretation that the

appropriations act’s additional subsidization percentage is additive to the SDWA additional

subsidization statutory floor of 12% for the DWSRF, meaning that states are required to dedicate

26% of their capitalization grant amounts to additional subsidization.134

Eligibility Requirements

Drinking water systems that are eligible to receive DWSRF assistance include community water

systems, whether publicly or privately owned, and not-for-profit noncommunity water systems.

Federally owned systems are not eligible to receive assistance from this program.135

Projects eligible for DWSRF assistance include (1) capital investments to rehabilitate or replace

infrastructure in order to continue providing the public with safe drinking water (e.g., storage

facilities and transmission and distribution pipes); (2) projects needed to address violations of

SDWA regulations (e.g., treatment facilities); and (3) project design and planning and associated

preconstruction activities.136 Assistance may also be available for construction of new wells to

replace contaminated wells, source water protection, land acquisition, security measures

(including infrastructure improvements), and consolidation of water supplies (e.g., in cases where

individual homes or public water systems have a water supply that is contaminated or a system is

unable to maintain compliance for financial or managerial reasons).137

Projects and activities not eligible for funding include projects primarily intended to serve future

growth or to provide fire protection, construction of dams or reservoirs (except reservoirs for

treated water), monitoring, and operation and maintenance. Ineligible systems include those that

lack the financial, technical, or managerial capacity to maintain SDWA compliance and systems

in significant noncompliance with any SDWA regulation (unless the project is likely to ensure

compliance).

132 42 U.S.C. §300j-12(a)(2).

133 SDWA, §1452(d)(2)(B) (42 U.S.C. §300j-12(d)(2)(B)) conditionally requires states to use at least 12% of their

capitalization grants to further subsidize DWSRF loans. A disadvantaged community is one in which the service area of

a public water system meets state-established affordability criteria. For more details, see CRS Report R47935, Changes

to the Drinking Water State Revolving Fund (DWSRF) Program, by Elena H. Humphreys.

134 Memorandum from Jessica Kramer, Assistant Administrator, EPA, to Water Division Directors, Regions I-X,

“Fiscal Year 2026 Allotments for the State Revolving Fund Provisions of the Infrastructure Investment and Jobs Act

135 42 U.S.C. §300j-12(a)(2)(A).

136 42 U.S.C. §300j-12(a)(2)(B).

137 For more information, see EPA’s website “DWSRF Eligibility Handbook” at https://www.epa.gov/dwsrf/dwsrfeligibility-handbook.

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Recent Federal Funding

For FY2025, two acts provided appropriations for the DWSRF program. IIJA (P.L. 117-58)

provided three appropriations for the DWSRF. It included $2.603 billion for the DWSRF

program, $3.000 billion through the DWSRF for lead service line replacement projects and

related activities, and $800.0 million through the DWSRF for grants to support projects to address

emerging contaminants with a focus on per- and polyfluoroalkyl substances (PFAS). Section

1101(a)(7) of the Full-Year Continuing Appropriations and Extensions Act, 2025 (P.L. 119-4)

provided EPA funding for FY2025 at FY2024 enacted levels, with certain exceptions. (For

FY2024, P.L. 118-42 provided $1.126 billion for the DWSRF. Of this total appropriation, $631.7

million was dedicated to earmarks and the remaining $494.4 million was for the DWSRF

program.) For FY2025, Section 1801(8) of P.L. 119-4 provided specific appropriations and did

not include CPF/CDS items that were provided in FY2024. Thus, for FY2025, P.L. 119-4

provided $1.126 billion for the DWSRF.

For FY2026, the Commerce, Justice, Science; Energy and Water Development; and Interior and

Environment Appropriations Act, 2026 (P.L. 119-74) provided $1.126 billion for the DWSRF. Of

this total appropriation, $715.4 million was dedicated to earmarks and the remaining $410.7

million was for the DWSRF program.

In addition, for FY2026, IIJA (P.L. 117-58) provided three appropriations for FY2026 of

1. $2.603 billion for the DWSRF program,

2. $3.000 billion through the DWSRF for lead service line replacement projects and

related activities,138 and

3. $800.0 million through the DWSRF for grants to support projects to address

emerging contaminants with a focus on PFAS.

For FY2027, the President requested $150.0 million for the DWSRF program.139

From FY1997 through FY2025, more than 23,188 projects received DWSRF financial assistance,

and 16,020 were completed.140

Statutory and Regulatory Authority

The statutory authority for the DWSRF program is the Safe Drinking Water Act Amendments of

1996 (P.L. 104-182, §1452, 42 U.S.C. §300j-12). Regulations are codified at Title 40, Section

35.3500, of the Code of Federal Regulations.141

138 For more information, see CRS Report R47717, Lead Service Lines (LSLs) Replacement: Funding Developments,

by Elena H. Humphreys.

139 EPA, Fiscal Year 2027 Justification of Appropriation Estimates for the Committee on Appropriations, EPA190R26002, April 2026, https://www.epa.gov/system/files/documents/2026-04/epa-fy27-congressionaljustification.pdf.

140 Detailed national and state program data are available at EPA, “State Revolving Fund Public Portal Home,”

https://sdwis.epa.gov/ords/sfdw_pub/r/sfdw/owsrf_public/home.

141 DWSRF program information, regulations, facts, and statistics are available at https://www.epa.gov/dwsrf.

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Water Infrastructure Finance and Innovation Act Program142

Localities are primarily responsible for providing water infrastructure services, which include

both drinking water and wastewater infrastructure. According to the most recent estimates by

states and EPA, funding needs for projects eligible for CWSRF or DWSRF funding—described in

the sections above (i.e., projects needed to address water quality and public health-related

problems or regulations)—total over $1.2 trillion over a 20-year period.143 However, many water

infrastructure capital needs are ineligible for assistance through the SRF programs or are too large

or otherwise not suited for those programs.

WIFIA authorizes EPA to provide credit assistance—secured (direct) loans or loan guarantees—

for a broad range of drinking water and wastewater projects.144 In contrast to SRF programs, EPA

provides credit assistance directly to eligible recipients. Thus far, EPA has provided credit

assistance in the form of secured loans.

Section 4201 of AWIA (P.L. 115-270) amended WIFIA to authorize EPA to enter into agreements

with relevant federal agencies to administer and service loans that such agencies are authorized to

make.145 Section 4301 of AWIA directs EPA and Reclamation to enter into such an agreement. In

October 2019, EPA and Reclamation entered into a memorandum of understanding for

administering and servicing credit instruments. Under this agreement, EPA is responsible for

providing support in administering and servicing Reclamation federal credit instruments,

including determining project creditworthiness and loan terms, among other responsibilities.146

Program Purpose

WIFIA provides an additional source of financing for water infrastructure projects, including

projects eligible for CWSRF and DWSRF assistance. Some stakeholders have argued that the

clean water and drinking water SRF programs are structured in a way that makes them useful

primarily for smaller communities and smaller projects. The WIFIA program can provide credit

assistance to large water infrastructure projects that otherwise have difficulty obtaining financing.

Moreover, SRF funding is generally limited to projects that promote CWA or SDWA compliance

and other statutory objectives. WIFIA can provide capital at a low cost to the borrower because

Treasury rates are typically lower than traditional municipal bonds.

Financing or Funding Mechanism

In federal budgetary terms, WIFIA assistance has much less of an impact on federal spending

than a grant, which is not repaid to the U.S. Treasury. The volume of loans and other types of

142 This section was prepared by Jonathan L. Ramseur, Specialist in Environmental Policy, Resources, Science, and

Industry Division.

143 These estimates are not adjusted for inflation. EPA published its most recent estimate of capital needs for

wastewater infrastructure in 2024. See EPA, 2022 Clean Watersheds Needs Survey, 2024, https://www.epa.gov/cwns/

clean-watersheds-needs-survey-cwns-2022-report-and-data. EPA published its most recent survey of drinking water

needs in 2023. See EPA, 7th Drinking Water Infrastructure Needs Survey and Assessment, April 2023,

https://www.epa.gov/system/files/documents/2023-04/Final_FAQ_DWINSA_4.4.23.v1.pdf.

144 The Water Resources Reform and Development Act of 2014 established a five-year WIFIA pilot program. In 2018,

AWIA (P.L. 115-270) amended the WIFIA provisions to remove the pilot designation from the program. For more

details, see CRS Report R43315, Water Infrastructure Financing: The Water Infrastructure Finance and Innovation

Act (WIFIA) Program, by Jonathan L. Ramseur, Mary Tiemann, and Elena H. Humphreys.

145 33 U.S.C. §3909(g).

146 See EPA’s WIFIA website at https://www.epa.gov/wifia/mou-administering-and-servicing-federal-creditinstruments.

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Federally Supported Water Projects and Programs

credit assistance that the programs can provide is determined by the size of congressional

appropriations and calculation of the subsidy amount. WIFIA defines the subsidy amount as

follows:

The amount of budget authority sufficient to cover the estimated long-term cost to the

Federal Government of a Federal credit instrument, as calculated on a net present value

basis, excluding administrative costs and any incidental effects on governmental receipts

or outlays in accordance with the Federal Credit Reform Act of 1990 (2 U.S.C. §661 et

seq.).147

Although subsidy rates are project-specific, the Office of Management and Budget (OMB) listed

a 0.89% subsidy rate for WIFIA in FY2026.148 At this subsidy rate, $10.0 million in

appropriations could support direct loans totaling $890.0 million.149 Thus, one advantage of the

WIFIA program is that it can provide a large amount of credit assistance relative to the amount of

budget authority provided.

Eligibility Requirements

WIFIA credit assistance is available to state infrastructure financing authorities for a group of

projects and individual project sponsors, which may include

•

a corporation;

a partnership;

a joint venture;

a trust; or

a federal, state, local, or tribal government (or consortium of tribal governments).

Categories eligible for assistance by EPA include

•

wastewater treatment and community drinking water facilities;

enhanced energy efficiency of a public water system or wastewater treatment

works;

repair or rehabilitation of aging wastewater and drinking water systems;

desalination, water recycling, aquifer recharge, or development of alternative

water supplies to reduce aquifer depletion;

prevention, reduction, or mitigation of the effects of drought;150 or

a combination of eligible projects.

The act authorizes EPA to provide credit assistance for a range of wastewater and drinking water

projects. Generally, project costs must be $20.0 million or larger to be eligible for credit

147 33 U.S.C. §3901(13).

148 OMB, Budget of the U.S. Government, Federal Credit Supplement, 2026, Table 1, https://www.govinfo.gov/content/

pkg/BUDGET-2027-FCS/pdf/BUDGET-2027-FCS.pdf.

149 The subsidy rate, which is often expressed in percentage terms or as a ratio, largely determines the amount of credit

assistance that can be made available to project sponsors. For example, if a project’s subsidy rate is 10% and is the only

charge against available budget authority, a $20.0 million budgetary allocation could theoretically support a $200.0

million loan. A lower subsidy rate would support a larger loan amount.

150 The WIIN Act (P.L. 114-322) expanded WIFIA eligibility to include projects involving aquifer recharge;

development of alternative water supplies to reduce aquifer depletion; and prevention, reduction, or mitigation of the

effects of drought.

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Federally Supported Water Projects and Programs

assistance. For projects in less populous communities (defined by WIFIA as populations of

25,000 or fewer), project costs must be $5.0 million or more.151

To receive funding, a prospective borrower submits a letter of interest to EPA. The letter must

document project eligibility, financial creditworthiness, engineering feasibility, and alignment

with EPA’s policy priorities. From these submittals, the agency selects projects for funding.152 In

2023, EPA began to provide WIFIA program funding on an “ongoing basis” that allows for a

“rolling selection process.”153 Prior to this announcement, EPA provided funding on an annual

basis, with notices of funding in the Federal Register.

Recent Federal Funding

For FY2025, the Full-Year Continuing Appropriations and Extensions Act, 2025 (P.L. 119-4)

provided EPA funding for FY2025 at FY2024 enacted levels: $72.3 million for WIFIA (including

$7.6 million for administrative costs).

For FY2026, the Commerce, Justice, Science; Energy and Water Development; and Interior and

Environment Appropriations Act, 2026 (P.L. 119-74) provided $72.3 million for WIFIA

(including $7.6 million for administrative costs).

For FY2027, the President requested $7.8 million for EPA for administrative expenses to carry

out the WIFIA program.154

Statutory and Regulatory Authority

The statutory authority for the WIFIA program is WRRDA (P.L. 113-121, Title V, codified at 33

U.S.C. §§3901-3914). The Fixing America’s Surface Transportation Act (FAST Act; P.L. 114-94)

and AWIA amended WIFIA provisions in 2015 and 2018, respectively. EPA promulgated an

interim final rule for the program on December 19, 2016 (81 Federal Register 91822).

Regulations are codified at Title 40, Section 35.10000, of the Code of Federal Regulations.

Other EPA Water Infrastructure Funding Programs155

In recent WRDAs and in IIJA (P.L. 117-58), Congress has authorized several new drinking water

and wastewater infrastructure funding programs. These programs are discussed below.156

Sewer Overflow and Stormwater Grant Program

In 2000, the Consolidated Appropriations Act, 2001, authorized EPA to establish a new grant

program in the CWA to address overflows from municipal combined sewer systems and from

151 33 U.S.C. §3907(a).

152 For more up-to-date details of project selection, see EPA’s WIFIA website at https://www.epa.gov/wifia.

153 See EPA, “WIFIA Available Funding,” https://www.epa.gov/wifia/wifia-available-funding.

154 EPA, Fiscal Year 2027, Justification of Appropriation Estimates for the Committee on Appropriations, April 2026,

https://www.epa.gov/system/files/documents/2026-04/epa-fy27-congressional-justification.pdf.

155 This section was prepared by Elena H. Humphreys, Analyst in Environmental Policy, Resources, Science, and

Industry Division, and Jonathan L. Ramseur, Specialist in Environmental Policy, Resources, Science, and Industry

Division.

156 Other drinking water grant programs include the Voluntary Lead Testing in Drinking Water at Schools and Child

Care Program Grant Program (authorized in SDWA §1464(d), added by P.L. 114-322, §2107) and the Drinking Water

Fountain Replacement for Schools Grant Program (authorized in SDWA §1465, added by P.L. 115-270, §2006(b)).

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municipal separate sanitary sewers (“wet weather” projects).157 At that time, Congress authorized

annual appropriations of $750.0 million for FY2002 and FY2003, but the program never received

appropriations.

In 2018, AWIA Section 4106 amended the grant program by modifying the eligibility provisions

to include stormwater infrastructure, among other changes.158 In addition, AWIA reauthorized

appropriations for the grant program for $225.0 million for FY2019 and FY2020.159 IIJA

reauthorized appropriations for $280.0 million annually for FY2022 through FY2026.160

Under this program, EPA provides grants to states, which in turn provide sub-awards to eligible

entities. The grants to states are allocated based on a formula prepared by EPA.161 In April 2026,

EPA announced FY2025 and FY2026 grant funding, providing approximately $81 million to the

states and territories.162

Recent Federal Funding

For FY2025, the Full-Year Continuing Appropriations and Extensions Act, 2025 (P.L. 119-4)

provided EPA funding for FY2025 at FY2024 enacted levels—$41.0 million.

For FY2026, the Commerce, Justice, Science; Energy and Water Development; and Interior and

Environment Appropriations Act, 2026 (P.L. 119-74) provided $41.0 million for this program.

For FY2027, the President requested $41.0 million for this program.163

Statutory Authority

The statutory authority for this program is CWA Section 221 (codified at 33 U.S.C. §1301). The

Consolidated Appropriations Act, 2001 (P.L. 106-554) amended the CWA in 2000 to provide this

authority. CWA Section 221 was subsequently amended in 2018 by AWIA (P.L. 115-270).

Technical Assistance for Rural, Small, and Tribal Wastewater Systems

In 2018, AWIA amended the CWA (adding Section 104(b)(8)) to authorize EPA to make grants to

qualified nonprofits to provide technical assistance to help rural, small, and tribal publicly owned

treatment works and decentralized wastewater treatment systems to comply with the CWA and

apply for financing from the CWSRF.164 For this purpose, AWIA authorized appropriations of

$25.0 million per year for FY2019 through FY2023. IIJA reauthorized appropriations of $75.0

million per year for FY2022 through FY2026 to carry out grant programs in Section 104(b)(8), as

157 P.L. 106-554.

158 P.L. 115-270.

159 AWIA §4106.

160 IIJA §50204.

161

EPA, “State Formula Allocations for Sewer Overflow and Stormwater Reuse Grants,” 86 Federal Register 11287,

February 24, 2021, https://www.federalregister.gov/documents/2021/02/24/2021-03756/state-formula-allocations-forsewer-overflow-and-stormwater-reuse-grants.

162 Memorandum from Raffael Stein, Director, EPA Water Infrastructure Division, to Regional Water Division

Directors, “Allocation of Federal Fiscal Year 2025 & 2026 Funding for the Sewer Overflow and Stormwater Reuse

Municipal Grant Program,” April 27, 2026, https://www.epa.gov/system/files/documents/2026-04/osg-fy25-fy26allocation-memo.pdf.

163 EPA, Fiscal Year 2027, Justification of Appropriation Estimates for the Committee on Appropriations, April 2026,

https://www.epa.gov/system/files/documents/2026-04/epa-fy27-congressional-justification.pdf.

164 For more information, see EPA, “Technical Assistance for Treatment Works,” https://www.epa.gov/dwcapacity/

training-and-technical-assistance-small-systems-funding.

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well as Section 104(b)(3) and Section 104(g). These latter two programs have not received

appropriations in recent years.

Recent Federal Funding

For FY2025, the Full-Year Continuing Appropriations and Extensions Act, 2025 (P.L. 119-4)

provided EPA funding for FY2025 at FY2024 enacted levels—$25.5 million.

For FY2026, the Commerce, Justice, Science; Energy and Water Development; and Interior and

Environment Appropriations Act, 2026 (P.L. 119-74) provided $25.5 million.

For FY2027, the President requested $10.0 million for this program.165

Statutory Authority

The statutory authority for this technical assistance is CWA Section 104(b)(8) (codified at 33

U.S.C. §1254(b)(8)). This provision was added to the CWA in 2018 by AWIA (P.L. 115-270,

§4106).

Technical Assistance for Small, Rural, and Tribal Drinking Water Systems

Added in 1996, SDWA Section 1442(e) authorizes EPA and states to provide compliance

assistance to public water systems and particularly to small systems (serving 25-10,000

customers).166 Accounting for 91% of community water systems, these small systems frequently

lack both economies of scale and the financial, managerial, and technical capacity to meet

statutory requirements.

This technical assistance is intended to enable small systems to achieve and maintain compliance

with drinking water regulations. Assistance may include circuit-rider and multistate regional

technical assistance programs, training, and assistance in implementing regulations; source water

protection plans; monitoring plans; and water security enhancements. The WIIN Act (P.L. 114322) amended Section 1442 to specify that technical assistance grants to tribes may be used for

operator training and certification.

Recent Federal Funding

For FY2025, Section 1101(a)(7) of the Full-Year Continuing Appropriations and Extensions Act,

2025 (P.L. 119-4) generally provided EPA funding for FY2025 at FY2024 enacted levels—$26.0

million. For FY2026, the Commerce, Justice, Science; Energy and Water Development; and

Interior and Environment Appropriations Act, 2026 (P.L. 119-74) provided $26.0 million for this

grant program.167

For FY2027, the President’s budget request did not include funds for this program.

165 EPA, Fiscal Year 2027, Justification of Appropriation Estimates for the Committee on Appropriations, April 2026,

https://www.epa.gov/system/files/documents/2026-04/epa-fy27-congressional-justification.pdf.

166 42 U.S.C. §300j-1(e).

167 P.L. 119-74 also provides $3.45 million to EPA for grants to qualified nonprofits for technical assistance to private

well owners.

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Statutory Authority

The statutory authority for this technical assistance is SDWA Section 1442(e) (codified at 42

U.S.C. §300j-1(e)).

Small and Disadvantaged Communities Drinking Water Grant Program

In 2016, Congress amended SDWA to add a drinking water grant program to help assist

disadvantaged or small communities afford projects needed to comply with SDWA regulations.168

Eligible projects include investments needed for SDWA compliance, household water quality

testing, and assistance that benefits a community on a per-household basis.169 Eligible grant

recipients include public water systems or tribal water systems that serve a disadvantaged

community or a community of 10,000 or fewer individuals or a state on behalf of an underserved

community.170 For the purposes of this grant program, underserved community is defined to mean

“a political subdivision of a State that, as determined by the Administrator, has an inadequate

system for obtaining drinking water.”171 This grant program requires a cost share of no less than

10% of total project costs in the form of monetary funding, services, materials, supplies, or other

in‐kind services.172 EPA may waive this matching requirement if the grant recipient would

experience significant financial hardship from providing the nonfederal share.173

In April 2019, EPA announced the distribution of FY2018 and FY2019 funding for these grants

among the states and territories, using a formula similar to the DWSRF allotment formula, with a

2% allotment for tribes.174 EPA reports that states need to develop a list of fundable projects that

meet the grant program’s eligibility criteria to receive their allotment of funding.175 For FY2020,

EPA announced that the agency would distribute $20.0 million for public water systems serving

tribal communities.176 For FY2021 funding, EPA allotted $23.2 million among the states by using

“an algorithmic formula that includes factors for population below poverty, small water systems,

and underserved communities,” after reserving 10% of available funds for projects serving Indian

tribes and Alaska Native villages.177 For the FY2022 and FY2023 funding, EPA waived the 10%

statutory cost share and allotted $50.4 million among the states, after reserving $5.6 million for

168 P.L. 114-322.

169 42 U.S.C. §300j-19a(c).

170 42 U.S.C. §300j-19a(c).

171 42 U.S.C. §300j-19a(a)(2).

172 42 U.S.C. §300j-19a(h).

173 42 U.S.C. §300j-19a(h).

174 EPA, “Final Allotments of FY2018 and FY2019 Appropriations for the Assistance to Small and Disadvantaged

Communities Grants, Authorized Under Section 2104 of the Water Infrastructure Improvements for the Nation Act,”

April 29, 2019, https://www.epa.gov/sites/production/files/2019-04/documents/

wiin_2104_allotment_memo_april_2019.pdf.

175 EPA, Assistance for Small and Disadvantaged Communities Drinking Water Grant Program: Grant Implementation

Document, August 2019, https://www.epa.gov/sites/production/files/2019-08/documents/

assistance_for_small_and_disadvantaged_communities_grant_implementation_document_08_27_19.pdf.

176 EPA, “WIIN Act Section 2104: Assistance for Small and Disadvantaged Communities Tribal Grant Program,”

https://www.epa.gov/tribaldrinkingwater/wiin-act-section-2104-assistance-small-and-disadvantaged-communitiestribal.

177 EPA, “Final Allotments of FY2021 Appropriations for the Assistance to Small and Disadvantaged Communities

Grants, Authorized Under Section 2104 of the Water Infrastructure Improvements for the Nation Act,” July 27, 2021,

https://www.epa.gov/system/files/documents/2021

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