Water Infrastructure Funding

The longer we wait to tackle deteriorating infrastructure, the more difficult and expensive the remedy will be. NUCA must help lawmakers understand the scope of our infrastructure needs, as well as the economic benefits of investing in solutions. NUCA is working to secure strong funding for existing programs that support infrastructure and explore other innovative policies to help states and localities address their water needs.
 

Information Resources on Water Infrastructure

Congressional Research Service: Infrastructure Investment and Jobs Act (IIJA)-- Drinking Water and Wastewater Infrastructure (R46892) (PDF)
This January 2022 report discusses the drinking water and wastewater infrastructure provisions in IIJA. Drinking water and wastewater-relevant provisions of the act include several aspects fully described in this CRS publication, including emergency supplemental appropriations.

CIFA: Congress Cuts Funding For Water Infrastructure To Pay For Earmarks
Since 2022, Congress has cut $2.3 billion or 42% in annual federal funding for state SRF projects to pay for Congressional earmarks. The Council of Infrastructure Funding Authorities's website describes the destructive effects of earmark grants versus long-term State Revolving Fund loans.

White House: State-by-State Fact Sheets On Core Infrastructure Bill Program Impact
As part of its advocacy for the summer 2021 bipartisan core infrastructure bill, the White House prepared state-by-state analyses of new resources that highway, water, and broadband projects can expect from the $1.2 trillion package. NUCA supported this bill and the resource levels for our industry's programs and projects.

ASCE: State-by-State Analysis Of Core Infrastructure Bill Benefits
The Infrastructure Investment and Jobs Act (IIJA) provides significant new funding to improve the condition of infrastructure systems across the country. The engineering association ASCE has created links to help the public learn how your state stands to benefit from the U.S. House passing the IIJA.

NRDC: Go Back to the Well: States and the Federal Government Are Neglecting a Key Funding Source for Water Infrastructure
This 2018 NRDC report describes actions that federal and state governments could take to generate more funding for water infrastructure through State Revolving Funds (SRFs). There are a wealth of program statistics contained in the analysis.

The Economic Benefits of Investing in Water Infrastructure (PDF)
This 2017 study by the Value of Water Campaign reviews the projected capital needs of water, wastewater, and stormwater utilities, and estimates the associated economic benefits that would be realized if the nation chose to make these investments. The study also provides information about federal spending on water infrastructure projects in recent decades.

Congressional Research Service: Private Activity Bonds (PAB) - An Introduction (RL31457)  (PDF)
Today, the federal tax code allows state and local governments to use tax-exempt bonds to finance certain projects that would be considered private activities. These bonds are known as Private Activity Bonds (or Exempt Facility Bonds). This January 2022 CRS report describes the private activities that can be financed with tax-exempt bonds are called “qualified private activities.” Congress uses an annual state volume cap to limit the amount of tax-exempt bond financing generally and restricts the types of qualified private activities that would qualify for tax-exempt financing to selected projects defined in the tax code. Drinking water and sewer projects are eligible for these bonds, but there is currently a limit on how much can be financed annually using these bonds. These caps and restrictions artificially reduce the amount of resources available to states and municipalities for their local infrastructure needs. Lifting the cap on PABs will infuse hundreds of millions in private capital into water and wastewater projects.