Water Infrastructure Funding
Water Infrastructure Funding
We are at a pivotal moment for the future of our nation’s water systems. With decades of progress at risk and essential federal programs facing steep cuts, now is the time for policymakers, advocates, and communities to come together to ensure continued access to safe, affordable, and resilient water infrastructure. This page highlights how we can protect programs that help communities thrive. Sustained federal investment is not just necessary, it's smart.
Federal Cuts, Local Consequences
Across the country, the systems that deliver clean drinking water and treat wastewater are aging and the resources needed to maintain them are struggling to keep up. For decades, federal programs like the State Revolving Funds (SRFs) and the Water Infrastructure Finance and Innovation Act (WIFIA) have helped communities upgrade and expand their water infrastructure. But now, that support is in jeopardy.
Congress is currently considering making cuts to these cornerstone programs, potentially reducing SRF funding or scaling back WIFIA. If enacted, these cuts would shift the financial burden to local governments and ratepayers, many of whom are already struggling to afford essential services.
Without continued federal investment, communities across the country could face delays in critical repairs, rising costs, and increased threats to public health, safety, and the environment.
How WIFIA and SRFs Work
Programs like WIFIA and SRFs are strategic financing tools that help communities do more with less.
WIFIA and SRFs are a great example of efficient, impactful federal-local partnership for the benefit of local communities and the country.
The Programs
- WIFIA provides low-interest, long-term loans, not grants. Communities must repay the funds, but the favorable terms make large infrastructure projects more affordable and financially viable.
- SRFs are state-managed loan programs that use a mix of federal and state dollars. As communities repay their loans, the funds are recycled to support future projects, making them self-sustaining over time.
What They Do
- Leverage local investment: federal dollars attract additional funding from bonds, private capital, and state sources.
- Reduce the cost of borrowing, saving communities and ratepayers money.
- Enable projects that wouldn’t otherwise be possible, especially in small or disadvantaged communities.
By The Numbers
$ 2.7 B
Amount of federal dollars appropriated to SRFs for Fiscal Year 2025
$ 72 M
Amount of federal dollars appropriated to WIFIA for Fiscal Year 2025
$ 625 B
EPA’s estimate of drinking water infrastructure investment needed over next 20 years
$ 5 B
Total utilities have saved since WIFIA’s inception
25 %
Average reduction in project costs with WIFIA financing
38 %
Portion of DWSRF funds that have gone to water systems serving 10,000 people of fewer
Real Stories, Real Impact
Keep Funds Flowing: How SRFs overhauled an outdated wastewater system in Colorado
When the Security Sanitation District southwest of Colorado Springs set out to update its wastewater treatment plant, it had been 30 years since the last update.
Read More
Federal WIFIA loan fortifies Florida Keys’ water resilience
The Florida Keys Aqueduct Authority (FKAA) is significantly enhancing the resilience and reliability of its drinking water system, thanks to a substantial $147 million Water Infrastructure Finance and Innovation Act (WIFIA) loan from the U.S. Environmental Protection Agency (EPA).
Read Now
WIFIA key to launching Utah drinking water project
Construction is underway on one of the largest investments in water infrastructure improvement in the history of Ogden City, Utah, thanks in part to a $42.6 million loan from the federal Water Infrastructure Finance and Innovation Act (WIFIA).
Read Now
Share Your Story
Has your utility benefited from federal infrastructure funding? If AWWA can feature your project in its advocacy efforts, please fill out this form.
Hear About More Water Infrastructure Projects
Curt Czarnecki of Kenosha Water Utility explains how Wisconsin’s SRF funding enabled their lead service line replacement project, an important step in protecting public health.
Monica Wallis from Destin Water Users shares how SRF funding helped bring a new elevated water tank to life, strengthening infrastructure in their Florida community.
Cynthia Lane of Southwest Metropolitan Water & Sanitation District (CO) describes how a Clean Water SRF loan supported the replacement of a critical gravity sewer line in their community.
Joe Lanzafame of New London Public Utilities (CT) outlines their lead service line replacement program and the essential role of federal and state funding in making it possible.
Brett Fritzler from the Village of Gurnee Water Utility (IL) reflects on how federal support has enabled key infrastructure upgrades that benefit their entire community.
Jason Palmer shares how a major SRF investment is powering a $51 million wastewater treatment project in Green River, Wyoming.
Technical Resources
Reports
2025 State of the Water Industry Executive Summary Report
Read the Report
Clean Water and Drinking Water State Revolving Fund Programs, Survey of Fiscal Sustainability Plan and Asset Management Requirements
Read the Report
Buried No Longer: Confronting America’s Water Infrastructure Challenge
Download the Report
Advertisement
Events With a Focus on Infrastructure
See All Events
Related Resources
AWWA Utility Benchmarking
Utility managers can use the data and analyses in this report to determine how their utility’s performance compares to the water or wastewater industry in six areas of operations: Organizational Development, Business Operations, Customer Relations, Water Operations, Wastewater Operations, and Historical Trends.
Read More
Understanding the Build America, Buy America Act
The Build America, Buy America Act, or BABA, brought new domestic procurement requirements to US drinking water and wastewater systems that receive federal funding for infrastructure projects. To implement financial assistance programs and develop compliance guidelines, federal agencies take their cue from the US Office of Management and Budget’s (OMB’s) BABA interpretation and guidance.
Read the Article
Fluid Financing of Water Utility Infrastructure With WIFIA
The Water Infrastructure Finance and Innovation Act (WIFIA) is a US Environmental Protection Agency finance program that has gained bipartisan support over its decade of existence. WIFIA is designed to accelerate nationally or regionally significant infrastructure projects by providing low-interest loans for water projects.
Read the Article
Create a Transformative Future With Federal Funding, Financial Planning
In the United States, government leaders have a unique opportunity to use unprecedented federal funds to have a lasting influence on their communities. State and local governments are receiving American Rescue Plan Act (ARPA) funds to help coronavirus relief and economic recovery efforts. In addition, the 2021 Infrastructure Investment and Jobs Act (IIJA) represents a significant infusion of federal funding for public works infrastructure across various industries. Both acts offer a path to help fund infrastructure needs that provide multigenerational benefits. The major difference between the two acts is that ARPA is an automatic distribution of funds, whereas IIJA requires an application.
Read the Article
Advertisement
