This Spring marks a key opportunity for local leaders to influence federal legislation on water infrastructure and programs that support local efforts to build and improve local drinking water, wastewater and stormwater systems.
Legislation being developed now by three Congressional Committees—Senate Environment and Public Works, House Transportation and Infrastructure, and House Energy and Commerce—will shape federal investments in water infrastructure and set the course for cities, towns and villages to build community resilience, address long-standing capital improvement needs and make progress meeting regulatory requirements.
Here is what Congress needs to advance on water infrastructure – and how local leaders can play a key role.
Reauthorization of Water Infrastructure Funding and Financing Programs
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 (SRF) and the Drinking Water State Revolving Fund. In addition to traditional uses through the SRFs, there is specific funding for lead pipe replacement and addressing PFAS and other emerging contaminants.
While SRF funding for communities continues to be available for FY26, the authorization for these programs expires on Sept. 30, 2026. As water infrastructure needs and costs in communities continue to rise, NLC is advocating to make sure that communities have the resources they need to continue work on the projects in their communities.
As such, NLC is asking Congress to maintain the current authorization and appropriations amount from the infrastructure law in the next water bill. For the Clean Water SRF and Drinking Water SRF, this means an authorization level of $5.85 billion each.
The program authorization level is important because it sets the ceiling on the amount of funding that could be appropriated. Therefore, it’s important that the authorization level is set high enough to account for the needs of communities. Maintaining safe, reliable and affordable water services requires continued federal investment at levels comparable to IIJA’s scale.
Aside from these core water infrastructure financing programs, NLC supports reauthorization of grant and technical assistance programs that help communities address contamination from PFAS, replace lead pipes and support other water infrastructure needs and projects. Read NLC’s letter on reauthorization priorities and let your Members of Congress know the water projects that are essential to your community.
FY27 Water Infrastructure Program Appropriations
While the IIJA funding for water infrastructure is welcome by communities, it doesn’t come close to closing the investment needs gap. The U.S. Environmental Protection Agency’s 2022 Clean Watershed Needs Survey and 2023 Drinking Water Infrastructure Needs Survey found that wastewater, stormwater and drinking water systems will need an investment of more than $630 billion and $625 billion, respectively, over the next 20 years to keep up with regular infrastructure maintenance and stay compliant with federal laws.
However, the President’s FY27 budget request proposes cutting the essential water infrastructure programs that communities rely on, including a nearly 90 percent cut to the Clean Water and Drinking Water SRFs—from $2.7 billion in FY26 to $305 million in FY27. Similarly, the WIFIA program was proposed for cuts to just $8 million in administrative funding, a decrease of approximately $64.6 million.
It is critical for Congress to maintain full funding for water infrastructure programs in the FY27 budget. Without this funding, communities will struggle to make progress on local water infrastructure projects. Read NLC’s letter on FY27 water infrastructure appropriations and ask your Members of Congress to support funding at FY26 authorization levels.
Potential Fiscal Cliff on Water
The IIJA water infrastructure funding was designed to supplement—not replace—regular water appropriations, effectively quadrupling annual SRF funding from $2.7 billion (FY21 – annual appropriations) to approximately $11.4 billion (2022–2026 – IIJA funding plus annual appropriations).
With the expiration of the infrastructure law funding and the President’s proposed FY27 cuts to water infrastructure programs, cities and states are facing a potential funding cliff when it comes to meeting local needs on drinking water, wastewater and stormwater infrastructure.
Unless Congress acts, the potential fiscal cliff could make it more difficult for water systems to deliver safe, reliable and affordable drinking water and wastewater services in communities.
Water Resources Development Act
The Water Resources Development Act (WRDA) is legislation that is traditionally enacted on a biennial and bipartisan basis to authorize U.S. Army Corps projects and studies related to flood control, navigation and ecosystem restoration. The Senate Environment and Public Works Committee and the House Transportation and Infrastructure Committee solicited project requests from Members of Congress earlier this year and are in the process of developing legislation. While text hasn’t been released, the WRDA bill could become a vehicle for water infrastructure reauthorization legislation. Read NLC’s letter outlining WRDA priorities.
Communities Need Municipal Liability Protection for PFAS Contamination
Unrelated to water infrastructure program authorization, but a priority for communities nonetheless, is municipal liability protection for PFAS contamination. In 2024, EPA finalized a rule designating 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. H.R. 1267, the Water Systems PFAS Liability Protection Act, which NLC supports, meets this goal for water systems. Ask your Members of Congress to support a municipal liability exemption in any PFAS legislation.
Local voices are essential to the conversation and can shape the development of important legislation to improve our nation’s water infrastructure systems.
Learn more about Municipal Infrastructure Conditions in NLC’s 2026 Report
The 2026 Municipal Infrastructure Conditions (MIC) Survey provides a timely snapshot of how responding municipalities assess the condition of their infrastructure today—and how those conditions and priorities have changed since 2022.
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