As we head into 2026, there are several priorities on the federal horizon that can support local water infrastructure projects to improve drinking water, wastewater and stormwater management systems.
Here are six key points that NLC is advocating for on behalf of water infrastructure, along with ways local leaders can get involved.
1. Water Infrastructure Funding from IIJA Continues to be Available
The bipartisan Infrastructure Investment and Jobs Act (IIJA) allocates $50 billion over five years for water infrastructure (PDF), divided across five distinct pots under the Clean Water State Revolving Fund and the Drinking Water State Revolving Fund (SRF). In addition to traditional uses through the SRFs, there is specific funding for lead pipe replacement and addressing PFAS and other emerging contaminants.
The U.S. Environmental Protection Agency (EPA) is in the process of allocating the FY25 and FY26 amounts to states, which will, in turn, distribute them to communities. Moreover, due to the varying state timelines, some states may still be in the process of distributing FY24 funding to their communities.
It is essential to note that the IIJA allocates the highest level of funding for the traditional Clean Water and Drinking Water SRFs in FY25 and FY26, at $2.603 billion each per year.
Take Action: There is significant funding available to communities for water infrastructure projects. Local leaders should check with their state agencies on the timeline and process for applying for SRF funds.
2. FY26 Appropriations for Water Infrastructure Programs are Important
Aside from IIJA funding for water infrastructure, Congress is working on FY26 annual appropriations bills, with a current funding deadline of Jan. 30, 2026. The President’s budget request drastically cut funding to the SRFs and WIFIA program by nearly 90 percent.
It is critical for Congress to maintain full funding for water infrastructure programs, as authorized, in the FY26 budget. Without this funding, communities will struggle to make progress on local water infrastructure projects.
Take Action: Local leaders can ask their Members of Congress to fully fund water infrastructure projects in FY26.
3. Water Infrastructure Programs Need to be Reauthorized Beyond 2026
The authorization for water infrastructure programs expires on Sept. 30, 2026. Like surface transportation programs, the funding was authorized for five years through the IIJA. Congressional action is underway in both the House and Senate to reauthorize these programs when the IIJA expires.
NLC urges Congress to fully fund core water infrastructure financing programs like the Clean Water and Drinking Water State Revolving Funds and WIFIA, as well as targeted grant programs that support small and disadvantaged communities, support rural communities, help reduce lead in drinking water and the removal of PFAS and other emerging contaminants, promote resilience and sustainability within the water sector, assist with stormwater management and advance technology innovation within water systems and more. These foundational federal programs are essential to ensuring safe, reliable and affordable drinking water, wastewater and stormwater infrastructure in communities.
Take Action: Local leaders can let their Members of Congress know their local transportation and water infrastructure priorities and ask Congress to support infrastructure reauthorization.
4. Water Resources Development Act Process Beginning Soon in Congress
The Water Resources Development Act (WRDA) is legislation that is traditionally enacted on a biennial basis to authorize U.S. Army Corps projects and studies related to flood control, navigation and ecosystem restoration. Congress is on track to pass the next WRDA bill in 2026, and the House and Senate aim to begin the process. In January, the House Transportation and Infrastructure Committee and the Senate Environment and Public Works Committee are likely to open portals to accept project nominations.
Take Action: For communities with Army Corps projects, now is the time to reach out to your congressional delegation to inform them of your projects so that they can be submitted to the committee portals for consideration.
5. Administration Changes to Lead and Copper Rule and PFAS Drinking Water Regulation Possible and Potentially Forthcoming
In 2024, EPA finalized major rules related to lead and PFAS in drinking water. Both rules are currently being challenged in court, and separately, the Agency could make changes to the rules’ requirements.
With regard to the Lead and Copper Rule Improvements, in August, EPA said it will defend the regulation in court, but did not say if it would amend the rule, particularly the requirement for replacing all lead pipes in ten years. At the same time, EPA stated it would offer implementation flexibilities but has not expanded on what that means for communities.
With regard to the PFAS National Primary Drinking Water Regulation, in the spring EPA announced its intent to extend compliance deadlines for PFOA and PFOS and rescind regulations around the so-called Hazard Index for other PFAS chemicals.
To date, EPA has not published proposed rules on either item.
Take Action: Communities should continue to work toward compliance with both regulations, utilizing currently available funding from the SRFs and other programs. NLC developed resources on lead and PFAS to support compliance.
6. Communities Need Municipal Liability Protection for PFAS Contamination
In 2024, EPA finalized a rule that designated PFOA and PFOS as hazardous substances under the Comprehensive Environmental Response, Compensation and Liability Act (CERCLA or Superfund law). The rule has cost and legal liability implications for local governments by opening the door for third-party suits.
NLC is advocating for liability protection for municipal drinking water, wastewater and stormwater utilities, landfills and solid waste facilities, airports and fire departments — entities that are “passive receivers” of materials that contain PFAS chemicals and entities that were federally-mandated to use firefighting foam that contained PFAS. This language is essential to ensuring adherence to a “polluter pays” model, rather than shifting the financial burden onto communities and taxpayers.
In September, EPA announced that it would retain the CERCLA designation and put the onus on Congress to protect passive receivers from liability.
Take Action: Local leaders can ask their Members of Congress to support a municipal liability exemption in any PFAS legislation.
Reach Out to Congress
By letting your Members of Congress know your community’s priorities, projects and funding needs for improving your drinking water, wastewater and stormwater systems, local leaders will lay the groundwork for Congressional legislation that will keep those projects moving forward. With federal support, local leaders can continue to provide safe, clean and affordable water for residents and businesses, and build the water infrastructure systems that keep the American economy growing.
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