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

Changes from August 2, 2022 to September 29, 2023

This page shows textual changes in the document between the two versions indicated in the dates above. Textual matter removed in the later version is indicated with ~~red strikethrough~~ and textual matter added in the later version is indicated with blue.

Federally Supported Projects and Programs for ~~August 2, 2022~~September 29, 2023
Wastewater, Drinking Water, and Water
Jonathan L. Ramseur,
Supply Infrastructure
Coordinator
Specialist in Environmental Specialist in Environmental
For decades, Congress has authorized For decades, Congress has authorized, modified, and funded ~~and modified~~ federal programs to help federal programs to help ~~communities~~
Policy Policy
communities address water supply and water infrastructure needs, including both wastewater and address water supply and water infrastructure needs, including both wastewater and ~~drinking~~

drinking water. Departments and agencies that administer water. Departments and agencies that administer ~~this~~these assistance assistance programs include the Bureau of include the Bureau of
Reclamation (Reclamation), the U.S. Army Corps of Engineers (USACE), the Reclamation (Reclamation), the U.S. Army Corps of Engineers (USACE), the ~~Department of~~

Department of Agriculture (USDA), the U.S. Environmental Protection Agency (EPA), the Department of Agriculture (USDA), the U.S. Environmental Protection Agency (EPA), the Department of
Housing and Urban Development (HUD), and the Department of Commerce’s Economic Development Administration Housing and Urban Development (HUD), and the Department of Commerce’s Economic Development Administration
~~(EDA).~~
~~These agencies administer these programs in multiple ways. In terms of funding mechanisms, some projects developed or~~
~~assisted by Reclamation and USACE are funded through direct, individual project authorizations from Congress. Other~~
~~agencies administer programs with standing authorizations that establish eligibility criteria rather than identify specific~~
~~projects. (Reclamation and USACE also administer some programs.) A key practical difference is that with individual project~~
~~authorizations, there is no predictable assistance or even guarantee of funding after a project is authorized, because funding~~
~~must be secured each year in the congressional appropriations process. The programs, on the other hand, have~~(EDA). There are generally 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 eligibility criteria rather than identify specific projects. As a practical matter, individual project authorizations generally must be funded each year and provide no guarantee of funding or predictable assistance over time. By comparison, the authorized programs generally provide a relatively consistent source of funding for a range of eligible activities and recipients. Although these authorized programs are not guaranteed to receive annual appropriations, in recent years Congress has generally provided ~~generally~~
~~received~~ some level of annual 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. ~~appropriations and have set program criteria and processes by which eligible parties can seek~~
~~funding.~~
~~In terms of scope and mission, the primary responsibilities of the federal agencies discussed in this report cover a wide range.~~
For example, EPA’s authorities relate to protecting public health and the For example, EPA’s authorities relate to protecting public health and the ~~environment. The~~environment, whereas the EDA and HUD focus on EDA and HUD focus on
community and economic development. community and economic development. ~~Likewise, the specific programs differ in several respects. Some~~Some agencies’ activities are national in scope 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 (e.g., USDA and EPA), while others are regionally focused (e.g., Reclamation’s programs and projects, which are limited to
~~the 17 arid and semiarid~~ the 17 “reclamation states” in the West). Some focus primarily on urban areas (HUD), whereas others “reclamation states” in the West). Some focus primarily on urban areas (HUD), whereas others
concentrate mainly on rural areas (USDA). concentrate mainly on rural areas (USDA).
Federal funding for these programs and projects varies greatly. Congressional funding for the water supply and wastewater Federal funding for these programs and projects varies greatly. Congressional funding for the water supply and wastewater
and drinking water programs continues to compete with many other programs that are supported by discretionary spending. and drinking water programs continues to compete with many other programs that are supported by discretionary spending.
Some of these programs have received supplemental appropriations, such as Some of these programs have received supplemental appropriations, such as the funds provided in the 2021 Infrastructure Investment provided in the 2021 Infrastructure Investment
and Jobs Act (IIJA; P.L. 117-58). and Jobs Act (IIJA; P.L. 117-58). ~~Stakeholders and others continue to call for increased appropriations for these programs.~~
~~FY2022~~FY2023 appropriations highlights include the following: appropriations highlights include the following:
~~ $728.3~~• $775.8 million for capitalization grants to states under EPA’s million for capitalization grants to states under EPA’s ~~State Revolving Fund (SRF) loan program~~
~~for drinking water systems and $1.195 billion for EPA’s SRF program for wastewater projects; IIJA~~
~~provided an additional $1.902 billion and $1.902 billion for each program, respectively; $397.8 million for~~
~~drinking water infrastructure and $443.6 million for wastewater infrastructure provided by~~clean water state revolving fund (SRF) program and $516.9 million for EPA’s drinking SRF program; and $863.1 million for wastewater infrastructure and $609.3 million for drinking water infrastructure through “community “community
project funding/congressionally directed spendingproject funding/congressionally directed spending~~,” which some refer to as “earmarks”;~~
~~ $3 billion (provided by IIJA)~~ ”; IIJA provided $2.202 billion for each SRF program; • $3.0 billion for EPA’s drinking water SRF program for lead service line replacement and for EPA’s drinking water SRF program for lead service line replacement and
related activities; related activities;
~~ $63.5~~• $68.0 million for subsidy costs for the EPA-administered Water Infrastructure Finance and Innovation Act million for subsidy costs for the EPA-administered Water Infrastructure Finance and Innovation Act
(WIFIA) program, allowing the agency to provide credit assistance (WIFIA) program, allowing the agency to provide credit assistance ~~for drinking water and wastewater~~
~~infrastructure projects, not to exceed~~up to $12.5 billion; $12.5 billion;
~~ $490~~• $430.0 million for grants, $1.4 billion in direct loan authority, and $50 million for grants, $1.4 billion in direct loan authority, and $50.0 million for guaranteed loan million for guaranteed loan ~~authority~~
authority for USDA’s rural water and waste disposal program; for USDA’s rural water and waste disposal program;
• $3.3 billion for HUD’s Community Development Block Grant (CDBG) program (water and wastewater $3.3 billion for HUD’s Community Development Block Grant (CDBG) program (water and wastewater
projects are among many eligible uses); projects are among many eligible uses);
~~ $158~~• $161.0 million for EDA’s Public Works and Economic Adjustment Assistance programs (water and million for EDA’s Public Works and Economic Adjustment Assistance programs (water and
wastewater projects are among many eligible uses); wastewater projects are among many eligible uses);
~~Congressional Research Service~~

~~Federally Supported Water Projects and Programs~~

~~ $292 million for USACE environmental infrastructure projects, of which $200 million was from the IIJA~~
~~and $92 million was from community project funding or congressionally directed spending requests;~~
~~ $327~~• $168.5 million for USACE environmental infrastructure projects; • $327.0 million for Reclamation water storage projects million for Reclamation water storage projects~~, of which $210 million was from the IIJA and $117~~
~~million was from annual appropriations;~~
~~ $420~~; $248.0 million for Reclamation rural water million for Reclamation rural water construction projects from the IIJA and $construction projects from the IIJA and $15125.3 million from annual million from annual
appropriations; and appropriations; and
• $298 $298.0 million for Reclamation’s Title XVI reclamation/recycling projects million for Reclamation’s Title XVI reclamation/recycling projects~~, of which $245 million was from~~
~~the IIJA and $53 million was annual appropriations.~~

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Contacts
Author Information ........................................................................................................................ 5460

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Introduction
This report provides background and funding information on water infrastructure projects, This report provides background and funding information on water infrastructure projects,
including wastewater and drinking water, and water supply projects traditionally funded by the including 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 federal government. The report also discusses federal funding programs that provide assistance to
communities to support these types of projects and related, eligible activities. communities to support these types of projects and related, eligible activities.
For decades, Congress has authorized For decades, Congress has authorized, modified, and funded ~~and modified~~ federal programs federal programs and projects to to help communities help communities
address water supply and water infrastructure needs. The address water supply and water infrastructure needs. The ~~agencies that administer these programs~~
~~differ in multiple ways. For example, the funding mechanisms illustrate a key practical~~
~~difference: Projects constructed or assisted by~~approaches and statutory frameworks supporting water infrastructure vary. For example, the Department of the Interior (DOI) Bureau of the Department of the Interior (DOI) Bureau of
Reclamation (Reclamation) and the U.S. Army Corps of Engineers (USACE) Reclamation (Reclamation) and the U.S. Army Corps of Engineers (USACE) ~~often~~administer a number of individual projects pursuant to direct authorizations from Congress. These projects require direct, require direct,
individual project authorizations from Congress prior to 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. ~~being eligible to receive appropriations.1~~
~~Under this funding mechanism, there is no predictable assistance or guarantee of funding after~~
~~Congress authorizes a project, because funding must be secured each year in the congressional~~
~~appropriations process.~~
~~In contrast, programs with standing programmatic authorizations generally have specific funding~~
~~criteria and provide a process under which eligible applicants seek funding.~~ Agencies Agencies
administering such programs covered in this report include administering such programs covered in this report include
• the Department of Agriculture (USDA), the Department of Agriculture (USDA),
• the Environmental Protection Agency (EPA), the Environmental Protection Agency (EPA),
• the Department of Housing and Urban Development (HUD), and the Department of Housing and Urban Development (HUD), and
• the Department of Commerce’s Economic Development Administration (EDA). the Department of Commerce’s Economic Development Administration (EDA).
In In ~~terms of scope and mission, the primary responsibilities of the federal agencies discussed in~~
~~this report cover a wide range. For example, EPA’s statutory requirements~~ 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 generally focus on
protecting public health and the environment. The EDA and HUD protecting public health and the environment. The EDA and HUD programs focus on community and focus on community and
economic development. economic development. ~~Likewise, the specific programs~~Further, the scope of the specific programs and authorized projects discussed in this report—while all discussed in this report—while all
address either water supply or wastewater and drinking water infrastructure to some degree—address either water supply or wastewater and drinking water infrastructure to some degree—
differ in differ in ~~important~~other respects. Some are national in scope (e.g., USDA and EPA), while others are 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 regionally focused (e.g., Reclamation’s programs and projects). Some focus primarily on urban
areas (HUD), whereas others concentrate mainly on rural areas (USDA). areas (HUD), whereas others concentrate mainly on rural areas (USDA).
For each of the projects and programs discussed, this report describes For each of the projects and programs discussed, this report describes their purposes, financing purposes, financing
mechanisms, eligibility requirements, recent funding, and statutory/regulatory authority. The mechanisms, eligibility requirements, recent funding, and statutory/regulatory authority. The
report does not address special projects and programs aimed specifically at assisting Indian tribes, report does not address special projects and programs aimed specifically at assisting Indian tribes,
Alaska Native Villages, Alaska Native Villages, ~~and~~ colonias2 ,2 or other regional programs, such as those associated or other regional programs, such as those associated
exclusively with the Appalachian region or U.S. territories. exclusively with the Appalachian region or U.S. territories.
This report focuses on programs that support drinking water and wastewater infrastructure 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 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, generally does not address water projects and programs for irrigation, flood control,
hydroelectricity, and recreation. However, in some cases (noted below), a federal program or hydroelectricity, and recreation. However, in some cases (noted below), a federal program or

1 For Reclamation, this also includes some projects that must be submitted to, and approved by, Congress prior to 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). For more information, see below section, funding (but no direct authorization is required). For more information, see below section, “Bureau of Reclamation.”
2 2 Colonias are typically rural, unincorporated communities or housing developments near the U.S.-Mexico border that 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. lack some or all basic infrastructure, including plumbing and public water and sewer.
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agency (e.g., Reclamation and USDA) may primarily support one or more of these other 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. objectives while providing some support for M&I activities, even if only incidentally.
Other federal authorities (e.g., Other federal authorities (e.g., ~~those of~~ones administered by Reclamation and USACE) may be available to assist with Reclamation and USACE) may be available to assist with
the provision of emergency water and wastewater needs, such as improving access to water 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 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 summarizes financial and other key elements of the projects and program activities
discussed in this report. As indicated in the table, discussed in this report. As indicated in the table, the level and scope of federal funding for the programs and projects federal funding for the programs and projects
discussed in this report varies greatly. Congressional funding for the water discussed in this report varies greatly. Congressional funding for the water programs~~programs discussed in~~
~~this report~~ continues to compete with many other federal programs supported by discretionary continues to compete with many other federal programs supported by discretionary
spending. Stakeholders and others continue to call for increased funding for these programs. spending. Stakeholders and others continue to call for increased funding for these programs.
While Congress has maintained or increased federal support in recent years for some traditional While Congress has maintained or increased federal support in recent years for some traditional
financing tools—project grants, formula grants, capitalization grants, direct and guaranteed financing tools—project grants, formula grants, capitalization grants, direct and guaranteed
loans—policymakers have also considered alternative financing approaches and options to loans—policymakers have also considered alternative financing approaches and options to
encourage private-sector investments and public-private partnerships (e.g., thencourage private-sector investments and public-private partnerships (e.g., the Water
Infrastructure Finance and Innovation Act Program). . Some supporters of these approaches see Some supporters of these approaches see
them as options to supplement or complement, them as options to supplement or complement, ~~but not replace~~without replacing, traditional financing tools. In , traditional financing tools. In
addition, in recent years, Congress has revised some existing programs and authorized new grant addition, in recent years, Congress has revised some existing programs and authorized new grant
programs in an effort to target water infrastructure needs of small and disadvantaged programs in an effort to target water infrastructure needs of small and disadvantaged
communities. communities.

3 These programs are not discussed further in this report except for the Emergency Community Water Assistance 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. The emergency programs are summarized in CRS Report Grants administered by the U.S. Department of Agriculture. The emergency programs are summarized in CRS Report
R43408, R43408, Emergency Water Assistance During Drought: Federal Non-Agricultural Programs, by Nicole T. Carter, , by Nicole T. Carter,
Tadlock Cowan, and Joanna Barrett. Tadlock Cowan, and Joanna Barrett.
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Table 1. Wastewater, Drinking Water, and Water Supply Infrastructure:
Federal Funding for Projects and Programs
Agency and
Project/
Type of
Federal/
Average FY2023 Enacted Fundinga FY2024 President Funding~~Average~~
Projects or
Program
Financial
Nonfederal Cost
~~Amount of~~
~~FY2022 Enacted~~
~~FY2023 President Funding~~Amount of Request and FY2024 IIJA
Program
Purposes
Assistance
Share
Assistance
~~Fundinga~~
~~Request~~
~~USDOI Bureau~~Enacted DOI Bureau of
Multipurpose Multipurpose
De facto 40-50 De facto 40-50
0%/100%, with 0%/100%, with
Not applicable Not applicable
~~Not readily available~~
~~Not readily available~~
~~of Reclamation~~$1.93 billion $1.45 billion Reclamationb
projects, which may projects, which may
year loan year loan
interest for M&I interest for M&I
~~Total agency approps. are~~
~~Total agency approps. request~~
~~include some M&I~~
~~uses~~
~~$1.9 bil ion in current gross~~
~~is $1.41 bil ion~~
~~activities~~
~~discretionary authority~~

~~USDOI Bureau~~
include some uses municipal and industrial (M&I) activities DOI Bureau of Multipurpose Multipurpose
Direct funding for 50%/50% for federal Not applicable Direct funding for 50%/50% for federal Not applicable
~~P.L. 117-103: $117 mil ion~~
~~Request: $0~~
~~of Reclamation~~
~~projects, which may~~
~~the federal share~~
~~projects; 25%/75%~~
~~P.L. 117-58: $210 mil ion~~
~~FY2023 Enacted (P.L. 117-58):~~$134.0 million — Reclamation projects, which may the federal share projects; 25%/75%
Water
include some M&I include some M&I
of costs, with the of costs, with the
for nonfederal for nonfederal
Infrastructure
activities activities
reimbursable reimbursable
projects projects
~~$95 mil ion~~
Improvements
share of these share of these
for the Nation
costs subject to costs subject to
(WIIN) Act
repayment (i.e., repayment (i.e.,
Water Storage
de facto loans) de facto loans)
Projects
~~USDOI~~DOI Bureau
of Wastewater Wastewater
De facto grant De facto grant
Up to 25%/75%; Up to 25%/75%;
Not readily Not readily
~~P.L. 117-103: $53 mil ion~~
~~Request: $4.0 mil ion~~
of $60.0 million $4.0 million Reclamation
reclamation and reclamation and
~~dol ar~~dollar limits may limits may
available available
~~P.L. 117-58: $245 mil ion~~
~~FY2023 Enacted (P.L. 117-58):~~
(Title XVI, , P.L.
~~reu~~sereuse,c which may which may
apply apply

102-575)b
include some M&I include some M&I
~~$150 mil ion~~
activities activities

~~USDOI~~ DOI Bureau
of Indian and non- Indian and non-
De facto grant, De facto grant,
Non-Indian Non-Indian
Not applicable Not applicable
~~P.L. 117-103: $130.2 mil ion~~
~~Request: $63.0 mil ion~~
of $125.3 million $57.8 million Reclamation
Indian rural water Indian rural water
plus loan plus loan
projects: range projects: range
from (see report text (see report text
~~P.L. 117-58: $420.0 mil ion~~
~~FY2023 Enacted (P.L. 117-58):~~
Rural Water
supply supply
~~from~~ 75%/25% to 75%/25% to
for detail) for detail)
~~Supply~~Supp ly IIJA: IIJA: b
80%/20%; Indian 80%/20%; Indian
~~$248.0 mil ion~~
~~projects: 100%/0%~~
~~USDOI Bureau~~
projects: 100%/0% $248.0 million $108.0 million DOI Bureau of Brackish and Brackish and
Grant Grant
Up to 25%/75%; Up to 25%/75%;
Not readily Not readily
~~P.L. 117-103: $10.5 mil ion~~
~~Request: $0~~
of $12.0 million — Reclamation
seawater seawater
~~dol ar~~dollar limits may limits may
available available
~~P.L. 117-58: $15 mil ion~~
~~FY2023 Enacted (P.L. 117-58):~~
Desalination
desalination, which desalination, which
apply apply
Project
may include some may include some
~~$20 mil ion~~
Construction
M&I activities M&I activities
CRS-3 CRS-3

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Agency and
Project/
~~Type of~~ Type of
Federal/
Average
~~FY2023~~ FY2023 Enacted Fundinga FY2024 President Funding
Projects or
Program
Financial
Nonfederal Cost
~~Amount of~~
~~FY2022 Enacted~~
~~Fundinga~~
~~Request~~Amount of Request and FY2024 IIJA
Program
Purposes
Assistance
Share
Assistance
Enacted USACE
Reservoirs may Reservoirs may
Upfront federal Upfront federal
0%/100%, with 0%/100%, with
Not applicable Not applicable
~~P.L. 117-103: $6 mil ion~~
~~$5 mil ion~~$7.0 million $25.0 million
Multipurpose
provide M&I water provide M&I water
financing of financing of
interest interest
Reservoirs with
storage through storage through
reservoirs; M&I reservoirs; M&I
Storage for M&I
permanent or permanent or
storage is repaid storage is repaid
Waterb
temporary storage temporary storage
through fees through fees
agreements agreements
~~col ected~~collected from from
nonfederal nonfederal
entities entities
USACE
Assistance is typically Technical/planning 75%/25% generally; Assistance is typically Technical/planning 75%/25% generally;
Varies (see Varies (see
~~P.L. 117-103: $86.5 mil ion~~
~~None~~$148.5 milliond $5.0 million
Environmental
for public drinking for public drinking
and design and design
some authorities some authorities
report text for report text for
~~from Community Project~~
Infrastructure
water and water and
services or services or
are 65%/35% are 65%/35%
detail) detail)
~~Funding/Congressionally~~
Assistance
wastewater wastewater
grants; design and grants; design and
~~Directed Spending~~P.L. 117-180: infrastructure and construction $20.0 million source water services or grants protection and development USDA Rural Municipal water Loans and grants Up to 75%/25% for Not readily Direct loans: $3.0 million loan Direct loans: $155.0 million loan Utilities Service, supply and to eligible entities grants available subsidy to support $1.42 billion subsidy to support $1.61 billion in Water and treatment, 0%/100% for loans in loan authority loan authority Waste Disposal wastewater facilities, Loan guarantees: No loan Loan guarantees: No loan subsidy Program and waste disposal subsidy needed to support needed to support $500.0 million in $50.0 million in loan authority loan authority Grants: $430.0 million Grants: $538.0 million USDA Rural Construction, Grants to private 100%/0% Loans up to Grants: $5.0 million Grants: $5.0 million Utilities Service, refurbishing, and nonprofit $15,000 per Rural servicing of individual organizations for household Decentralized household water the purpose of Water Systems well systems and providing loans Program decentralized and subgrants to wastewater systems eligible individuals USDA Rural For water treatment, Grants for public 100%/0% Water source Grants: $15.0 million Grants: $15.0 million Utilities Service, storage, or or private grants up to $1.0 Emergency distribution projects nonprofit entities million Community to secure adequate CRS-4 link to page 13 link to page 13 link to page 13 link to page 14 Agency and Project/ Type of Federal/ Average FY2023 Enacted Fundinga FY2024 President Funding Projects or Program Financial Nonfederal Cost Amount of Request and FY2024 IIJA Program Purposes Assistance Share Assistance Enacted Water quantities of safe Water Assistance water transmission line Grants grants up to $150,000 USDA Multiple activities but Project grants and 100%/0% Not applicable $75.0 million (discretionary) $175.0 million (discretionary) Watershed and must generally technical advisory Varies according to $50.0 million (mandatory) $50.0 million (mandatory) Flood Prevention include flood control services purpose of Operations measures $20.6 million in community improvement Program project funding/congressionally activity directed spending (CPF/CDS) USDA Small Dam rehabilitation Project grants and 100%/0% Not applicable $2.0 million $10.0 million Watershed technical advisory Varies according to Rehabilitation services purpose of Program improvement activity EPA, Clean Municipal Grants to states 80%/20% for grants Average $775.8 million for capitalization $1.639 billion for capitalization grants Water State wastewater to capitalize loan to states to capitalization grants Revolving Fund treatment, funds capitalize SRFs grant to state: $863.1 million (CPF/CDS) (SRF) Loan stormwater IIJA: SRF loans made 0%/100%e (project $58.0 million Program infrastructure, and by states to local loans are repaid (FY2022)f $2.403 billion for capitalization grants other eligible project sponsors 100% to states) Average Infrastructure Investment and $225.0 million for emerging projects and assistance from Jobs Act (IIJA): contaminants activities States required to provide a SRF: $4.8 million $2.202 billion for capitalization minimum level of (FY2021)g grants additional $100.0 million for emerging subsidization (e.g., contaminants principal forgiveness) and authorized to provide further subsidization CRS-5 link to page 13 link to page 13 link to page 14 link to page 14 link to page 14 Agency and Project/ Type of Federal/ Average FY2023 Enacted Fundinga FY2024 President Funding Projects or Program Financial Nonfederal Cost Amount of Request and FY2024 IIJA Program Purposes Assistance Share Assistance Enacted EPA, Drinking Public water supply Grants to states 80%/20% for grants Average $516.9 million for capitalization Request: Capitalization grants $1.126 Water State projects needed to to capitalize loan to states to capitalization grants billion Revolving Fund meet federal drinking funds capitalize SRFs grant to state: $609.3 million (CPF/CDS) (SRF) Loan water standards and SRF loans made 0%/100%e (project $45.1 million Program to address serious IIJA: by states to local loans are repaid (through health risks project sponsors 100% to states) FY2022)h IIJA: $2.403 billion for capitalization grants States required to Average $2.202 billion for capitalization $3.0 billion for lead service line (LSL) provide a assistance from grants replacement minimum level of SRF: $2.8 million $3.0 billion for lead service line $800.0 million for emerging additional (FY2022) (LSL) replacement contaminants subsidization (e.g., $800.0 million for emerging principal contaminants forgiveness) and authorized to provide further subsidization EPA, Water Wastewater and Loans or loan In general, WIFIA $174.0 million $68.0 million to cover subsidy $71.9 million to cover subsidy costs; Infrastructure drinking water guarantees funding cannot (average of 88
~~infrastructure and~~
~~construction~~
~~(CPF/CDS) and $13.0 mil ion~~
~~source water~~
~~services or grants~~
~~in additional funding~~
~~protection and~~
~~P.L. 117-58: $200.0 mil ion~~
~~development~~
~~USDA Rural~~
~~Municipal water~~
~~Loans and grants~~
~~Up to 75%/25% for~~
~~Grants~~
~~Grants: $490 mil ion~~
~~Grants: $511.9 mil ion~~
~~Utilities Service,~~
~~supply and~~
~~to eligible entities~~
~~grants~~
~~(FY2019): $1.3~~
~~Direct loans:~~
~~Direct loans: $1.54 bil ion loan~~
~~Water and~~
~~treatment,~~
~~0%/100% for loans~~
~~mil ion~~
~~$1.4 bil ion loan authority;~~
~~authority; $26.499 mil ion loan~~
~~Waste Disposal~~
~~wastewater facilities,~~
~~Direct loans:~~
~~$0 loan subsidy~~
~~subsidy~~
~~Program~~
~~and waste disposal~~
~~$2.3 mil ion~~
~~Guaranteed loans: $50~~
~~Guaranteed loans: $50 mil ion loan~~
~~Guaranteed~~
~~mil ion loan authority;~~
~~authority; $0 loan subsidy~~
~~loans: $1.4~~
~~$45,000 loan subsidy~~
~~mil ion~~
~~USDA Rural~~
~~Construction,~~
~~Grants to private~~
~~100%/0%~~
~~Loans and~~
~~$5 mil ion~~
~~$5 mil ion~~
~~Utilities Service,~~
~~refurbishing, and~~
~~nonprofit~~
~~subgrants are~~
~~Rural~~
~~servicing of individual~~
~~organizations for~~
~~limited to~~
~~Decentralized~~
~~household water~~
~~the purpose of~~
~~$15,000 per well~~
~~Water Systems~~
~~well systems and~~
~~providing loans~~
~~or wastewater~~
~~Program~~
~~decentralized~~
~~and subgrants to~~
~~system~~
~~wastewater systems~~
~~eligible individuals~~
~~CRS-4~~

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~~Agency and~~
~~Project/~~
~~Type of~~
~~Federal/~~
~~Average~~
~~FY2023 President Funding~~
~~Projects or~~
~~Program~~
~~Financial~~
~~Nonfederal Cost~~
~~Amount of~~
~~FY2022 Enacted~~
~~Fundinga~~
~~Request~~
~~Program~~
~~Purposes~~
~~Assistance~~
~~Share~~
~~Assistance~~
~~USDA Rural~~
~~For water treatment, Grants for public~~
~~100%/0%~~
~~Maximum grant~~
~~$15 mil ion~~
~~$15 mil ion~~
~~Utilities Service,~~
~~storage, or~~
~~or private~~
~~award is~~
~~Emergency~~
~~distribution projects~~
~~nonprofit entities~~
~~$1,000,000~~
~~Community~~
~~to secure adequate~~
~~Water~~
~~quantities of safe~~
~~Assistance~~
~~water~~
~~Grants~~
~~USDA~~
~~Multiple activities but Project grants and 100%/0%~~
~~Not applicable~~
~~$650 mil ion ($100 mil ion~~
~~$175 mil ion ($125 mil ion~~
~~Watershed and~~
~~must generally~~
~~technical advisory~~
~~Varies according to~~
~~discretionary, $50 mil ion~~
~~discretionary, $50 mil ion~~
~~Flood Prevention~~
~~include flood control~~
~~services~~
~~purpose of~~
~~mandatory, and $500 mil ion~~
~~mandatory)~~
~~Operations~~
~~measures~~
~~improvement~~
~~from IIJA)~~
~~Program~~
~~activity~~
~~USDA Small~~
~~Dam rehabilitation~~
~~Project grants and 100%/0%~~
~~Not applicable~~
~~$119 mil ion ($1 mil ion~~
~~$10 mil ion~~
~~Watershed~~
~~technical advisory~~
~~Varies according to~~
~~discretionary, $118 mil ion~~
~~Rehabilitation~~
~~services~~
~~purpose of~~
~~from P.L. 117-58)~~
~~Program~~
~~improvement~~
~~activity~~
~~EPA, Clean~~
~~Municipal~~
~~Grants to states~~
~~80%/20% for grants~~
~~Average~~
~~P.L. 117-103:~~
~~Request: Capitalization grants~~
~~Water State~~
~~wastewater~~
~~to capitalize loan~~
~~to states to~~
~~capitalization~~

~~$1.639 bil ion~~

~~Capitalization grants:~~
~~Revolving Fund~~
~~treatment,~~
~~funds~~
~~capitalize SRFs~~
~~grant to state:~~
~~$1.195 bil ion~~

~~(SRF) Loan~~
~~stormwater~~
~~SRF loans made~~
~~0%/100%d (project~~
~~$58 mil ion~~
~~Program~~
~~infrastructure, and~~

~~CPF/CDS items: $443.6 FY2023 Enacted (P.L. 117-58):~~
~~by states to local~~
~~loans are repaid~~
~~(FY2022)e~~
~~other eligible~~
~~mil ion~~
~~project sponsors~~
~~100% to states)~~
~~Average~~

~~Capitalization grants: $2.202~~
~~projects and~~
~~assistance from~~

~~bil ion~~
~~activities~~
~~States required to~~
~~provide a~~
~~SRF: $4.8 mil ion~~
~~P.L. 117-58:~~

~~Grants for emerging~~
~~minimum level of~~
~~(FY2021)f~~

~~contaminant projects: $225.0~~

~~Capitalization grants:~~
~~additional~~
~~$1.902 bil ion~~
~~mil ion~~
~~subsidization (e.g.,~~

~~Grants for emerging~~
~~principal~~
~~contaminant projects:~~
~~forgiveness) and~~
~~$100.0 mil ion~~
~~authorized to~~
~~provide further~~
~~subsidization~~
~~CRS-5~~

~~link to page 13 link to page 14 link to page 14 link to page 14 link to page 14~~
~~Agency and~~
~~Project/~~
~~Type of~~
~~Federal/~~
~~Average~~
~~FY2023 President Funding~~
~~Projects or~~
~~Program~~
~~Financial~~
~~Nonfederal Cost~~
~~Amount of~~
~~FY2022 Enacted~~
~~Fundinga~~
~~Request~~
~~Program~~
~~Purposes~~
~~Assistance~~
~~Share~~
~~Assistance~~
~~EPA, Drinking~~
~~Public water supply~~
~~Grants to states~~
~~80%/20% for grants~~
~~Average~~
~~P.L. 117-103:~~
~~Request: Capitalization grants~~
~~Water State~~
~~projects needed to~~
~~to capitalize loan~~
~~to states to~~
~~capitalization~~

~~$1.126 bil ion~~

~~Capitalization grants:~~
~~Revolving Fund~~
~~meet federal drinking~~
~~funds~~
~~capitalize SRFs~~
~~grant to state:~~
~~$728.3 mil ion~~

~~(SRF) Loan~~
~~water standards and~~
~~SRF loans made~~
~~0%/100%d (project~~
~~$45.1 mil ion~~
~~Program~~
~~to address serious~~

~~FY2023 Enacted (P.L. 117-58):~~
~~by states to local~~
~~loans are repaid~~
~~(through~~

~~CPF/CDS items:~~
~~health risks~~
~~$397.8 mil ion~~
~~project sponsors~~
~~100% to states)~~
~~FY2022)g~~

~~Capitalization grants: $2.202~~

~~bil ion~~
~~States required to~~
~~Average~~
~~provide a~~
~~assistance from~~
~~P.L. 117-58:~~

~~Capitalization grants for lead~~
~~minimum level of~~
~~SRF: $2.79~~

~~service line replacement~~

~~Capitalization grants:~~
~~additional~~
~~mil ion (FY2021)~~
~~$1.902 bil ion~~
~~projects: $3.0 bil ion~~
~~subsidization (e.g.,~~



~~Capitalization grants for~~

~~Grants for emerging~~
~~principal~~
~~lead service line~~
~~contaminant projects: $800.0~~
~~forgiveness) and~~
~~replacement projects:~~
~~mil ion~~
~~authorized to~~
~~$3.0 bil ion~~
~~provide further~~
~~subsidization~~

~~Grants for emerging~~
~~contaminant projects:~~
~~$800.0 mil ion~~
~~EPA, Water~~
~~Wastewater and~~
~~Loans or loan~~
~~In general, WIFIA~~
~~$174 mil ion~~
~~$63.5 mil ion to cover~~
~~$72 mil ion to cover subsidy costs;~~
~~Infrastructure~~
~~drinking water~~
~~guarantees~~
~~funding cannot~~
~~(average of 88~~
~~subsidy costs; authorized to~~
costs; authorized to provide no authorized to provide no more than authorized to provide no more than
Finance and
projects with costs projects with costs
exceed 49% of exceed 49% of
closed loan closed loans)h
~~provide no~~ i more than $12.5 more than $12.5
~~$8 bil ion~~billion in $12.5 billion in credit assistance in credit assistance
Innovation Act
of $20 of $20 ~~mil ion~~.0 million or or
project costs project costs
~~bil ion in~~ credit assistance credit assistance
(WIFIA)
larger (or $5 larger (or $5 ~~mil ion~~.0
Program
million for rural areas) for rural areas)
EPA, Sewer
Sewer overflow or Sewer overflow or
Grants to states, Grants to states,
55%/45% 55%/45%
~~No assistance~~
~~$43 mil ion~~
~~$280 mil ion~~Not availablej $50.0 million $280.0 million
Overflow and
stormwater stormwater
which make which make
~~provided to datei~~
Stormwater
infrastructure infrastructure
grants to grants to
Grant Program
projects, with projects, with
municipalities municipalities
priority for priority for
financially distressed financially distressed
communities communities
CRS-6 CRS-6

link to page 13 link to page 14 link to page 14 link to page 13 link to page 14 link to page 14 ~~link to page 14~~
Agency and
Project/
Type of
Federal/
Average
~~FY2023~~ FY2023 Enacted Fundinga FY2024 President Funding
Projects or
Program
Financial
Nonfederal Cost
~~Amount of~~
~~FY2022 Enacted~~
~~Fundinga~~
~~Request~~Amount of Request and FY2024 IIJA
Program
Purposes
Assistance
Share
Assistance
Enacted EPA, Technical
Assist rural, small, Assist rural, small,
Grants to Grants to
100%/0% 100%/0%
EPA awarded EPA awarded ~~$4 $20 mil ion~~
~~$18 mil ion~~ $27.0 million $18.0 million
Assistance for
and tribal publicly and tribal publicly
qualified qualified
~~mil ion grants to~~$4.0 million
Rural, Small, and
owned treatment owned treatment
nonprofits to nonprofits to
~~three entities in~~grants to three
Tribal
works and works and
provide technical provide technical
~~202~~1jentities in 2021k
Wastewater
decentralized decentralized
assistance assistance
Systems
wastewater wastewater
treatment systems treatment systems
to comply with the to comply with the
Clean Water Act Clean Water Act
and apply for and apply for
financing from the financing from the
clean water SRF clean water SRF
EPA, Technical
Assist public water Assist public water
Grants to Grants to
100%/0% 100%/0%
~~FY2021~~FY2022 awards awards
$ $~~22 mil ion~~
$026.0 million —
Assistance for
systems and systems and
qualified qualified
were made to were made to
Rural, Small, and
particularly small particularly small
nonprofits to nonprofits to
two entities, two entities,
Tribal Drinking
systems (serving 25- systems (serving 25-
provide technical provide technical
average grant average grant
Water Systems
10,000 customers) 10,000 customers)
assistance assistance
amount was amount was
with with ~~SDWA~~
~~$10.3 mil ionk~~
Safe Drinking $12.4 millionl Water Act (SDWA) compliance compliance
EPA, Small and
Drinking water Drinking water
Grants to states Grants to states
55%/45% for grants 55%/45% for grants
Appropriations Appropriations
~~P.L. 117-103:~~
~~Request: $80.0 mil ion~~$30.2 million $80.0 million
Disadvantaged
projects needed to projects needed to
on behalf of an on behalf of an
(EPA may waive (EPA may waive
distributed distributed
~~$27.2 mil ion~~
~~FY2023 Enacted (P.L. 117-58):~~
Communities
meet federal drinking meet federal drinking
underserved underserved
match under certain match under certain
noncompetitively noncompetitively
Drinking Water
water standards, water standards,
community, public community, public
circumstances) circumstances)
to states to states~~. State~~
~~P.L. 117-58:~~
~~$1.0 bil ion for grants to address~~
~~Grant Program~~
~~household water~~
~~water systems,~~
~~amount averaged~~
~~$1.0 bil ion for grants to~~
~~emerging contaminants~~
~~quality testing,~~
~~tribal water~~
~~$612,000~~
~~address emerging~~ Grant Program household water water systems, quality testing, tribal water
assistance that assistance that
systems systems
~~through FY2021l~~
~~contaminants~~
benefits a benefits a
community on a per-community on a per-
household basis household basis
CRS-7 CRS-7

link to page 13 link to page 13 ~~link to page 14 link to page 14 link to page 14 link to page 14~~ link to page 14 link to page 14
Agency and
~~Project/~~ Project/
Type of
Federal/
Average
~~FY2023~~ FY2023 Enacted Fundinga FY2024 President Funding
Projects or
Program
Financial
Nonfederal Cost
~~Amount of~~
~~FY2022 Enacted~~
~~Fundinga~~
~~Request~~Amount of Request and FY2024 IIJA
Program
Purposes
Assistance
Share
Assistance
Enacted EPA, Lead
Drinking water Drinking water
Grants to Grants to
80%/20% for grants 80%/20% for grants
~~Lead service line~~
~~$22.0 mil ion~~
~~$182.0 mil ion~~EPA awarded an $25.0 million $182.0 million
Reduction
projects and projects and
community water community water
(EPA may waive (EPA may waive
~~grants awarded~~average of $4.7
Projects Grant
activities to reduce activities to reduce
systems, tribal systems, tribal
match under certain match under certain
~~to three entities~~million to grant
Program
lead in drinking lead in drinking
water systems, water systems,
circumstances) circumstances)
~~in 2020 averaged~~recipientsm
water; replacement water; replacement
states, schools, states, schools,
~~$5.7 mil ion; lead~~
~~of lead service lines;~~
~~and municipalities~~
~~removal grants~~
~~corrosion control~~
~~awarded to~~
~~activities~~
~~seven schools~~
~~and child care~~
~~centers averaged~~
~~$3.3 mil ionm~~
~~HUD,~~
~~Multipurpose~~
~~Formula grants,~~
~~100%/0%~~
~~Entitlement~~
~~$3.300 bil ion~~
~~$3.607 bil ion~~
~~Community~~
~~community~~
~~70% of which are~~
~~formula grants:~~
~~Development~~
~~development~~
~~reserved for~~
~~$2.1 mil ion;~~
~~Block Grant~~
~~projects; may include~~
~~urban areas, 30%~~
~~average award~~
Programn
~~water and waste~~
~~for state grants~~
~~to state~~
~~disposal~~
~~programs: $20~~
~~mil ion (for~~
~~subawards to~~
~~communities) in~~
~~FY2021~~
~~Commerce,~~
~~Multipurpose~~
~~Project grants~~
~~Generally 50%/50%~~
~~Average Public~~
~~$120.5 mil ion~~of lead service lines; and municipalities corrosion control activities EPA, Small Projects that Grants to 90%/10% for grants No assistance $7.0 million $25.0 million Water Systems increase water use community water (EPA may waive provided to date Resilience and efficiency, enhance systems, tribal match under certain Sustainability water supply water systems, circumstances) Grant Program through watershed states management or desalination, and increase energy efficiency in the conveyance or treatment of drinking water EPA, Midsize and Projects include 50% of grants for 100%/0% No assistance $5.0 million $50.0 million Large Water water conservation, water systems provided to date Systems desalination serving 10,000 or Resilience and construction, and more to 100,000 Sustainability watershed individuals, and Grant Program management 50% for systems activities, among serving more than others 100,000 individuals CRS-8 link to page 13 link to page 14 link to page 14 Agency and Project/ Type of Federal/ Average FY2023 Enacted Fundinga FY2024 President Funding Projects or Program Financial Nonfederal Cost Amount of Request and FY2024 IIJA Program Purposes Assistance Share Assistance Enacted HUD, Multipurpose Formula grants, 100%/0% Entitlement $3.3 billion $3.3 billion Community community 70% of which are formula grants: Development development reserved for $2.1 million; Block Grant projects; may include urban areas, 30% average award to Programn water and waste for state grants state programs: disposal $20.0 million (for subawards to communities) in FY2021 Commerce, Multipurpose Project grants Generally 50%/50% Average Public $121.5 million allocated for the $100.0 million ~~allocated for~~
~~$124 mil ion~~ requested for the requested for the
EDA, Public
economic economic
Works grant Works grant
~~the~~ Public Works program Public Works program
and Public Works program and $ Public Works program and $4833.0
Works and
development development
$1.4 $1.4 ~~mil ion;~~
~~and $37.5 mil ion for the~~
~~mil ion for the EAA programq~~million; $39.5 million for the EAA million for the EAA program
Economic
projects; may include projects; may include
average EAA average EAA
~~EAA programp~~program
Adjustment
water and sewer water and sewer
grant $650,000 grant $650,000
Assistance
( (~~FY2020~~FY2023) )
(EAA)o
Source: CRS. CRS.
a. Notes: A “—” indicates that the President did not make a funding request. a. Unless otherwise noted, FY2023 funding provided in P.L. 117-328. In some cases, funding amounts may address other objectives. In some cases, funding amounts may address other objectives.
b. These projects must generally be authorized by Congress prior to construction. Municipal water supply is not the primary purpose of these projects. b. These projects must generally be authorized by Congress prior to construction. Municipal water supply is not the primary purpose of these 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., 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 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
~~CRS-8~~

potable use (e.g., potable use after storage and recovery, such as after groundwater recharge). Reuse connotes planned beneficial use (e.g., landscape watering, 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. agricultural irrigation, and industrial cooling) of treated municipal wastewater.
d. d. P.L. 117-328 Division D provided $130.5 million. Division N provided $18.0 million. e. This ratio does not account for additional subsidization. Under certain conditions, states may provide additional subsidization, including principal forgiveness, 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 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. provide additional subsidization, including grants.
e. f. Based on FY2022 allotments to states from appropriations in P.L. 117-103 (EPA, “Annual Allotment of Federal Funds,” FY2022 table, Based on FY2022 allotments to states from appropriations in P.L. 117-103 (EPA, “Annual Allotment of Federal Funds,” FY2022 table, at https://www.epa.gov/cwsrf/https://www.epa.gov/cwsrf/
clean-water-state-revolving-fund-cwsrf-allotments-federal-funds-states); and FY2022 allotment to states from supplemental appropriations in P.L. 117-53 (EPA, clean-water-state-revolving-fund-cwsrf-allotments-federal-funds-states); and FY2022 allotment to states from supplemental appropriations in P.L. 117-53 (EPA,
“Memorandum: Implementation of the Clean Water and Drinking Water State Revolving Fund Provisions of the Bipartisan Infrastructure Law,Memorandum: Implementation of the Clean Water and Drinking Water State Revolving Fund Provisions of the Bipartisan Infrastructure Law,” March 8, 2022, March 8, 2022,
at https://www.epa.gov/system/files/documents/2022-03/combined_srf-implementation-memo_final_03.2022.pdf). https://www.epa.gov/system/files/documents/2022-03/combined_srf-implementation-memo_final_03.2022.pdf).
f.
CRS-9 g. Based on total Based on total ~~dol ars~~dollars of annual assistance provided and total number of assistance agreements from CWSRF National Information Management System, of annual assistance provided and total number of assistance agreements from CWSRF National Information Management System, “National National
Report,Report,” at https://www.epa.gov/cwsrf/clean-water-state-revolving-fund-cwsrf-national-information-management-system-reports. https://www.epa.gov/cwsrf/clean-water-state-revolving-fund-cwsrf-national-information-management-system-reports.
g. h. “Average annual capitalization grant” includes emergency supplemental appropriations provided by the Infrastructure Investment and Jobs Act (IIJA; P.L. 117-58) “Average annual capitalization grant” includes emergency supplemental appropriations provided by the Infrastructure Investment and Jobs Act (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,” directed toward specific project purposes (e.g., lead service line replacement). EPA, “Annual Allotment of Federal Funds for States, Tribes, and Territories,”
at https://www.epa.gov/dwsrf/annual-allotment-federal-funds-states-tribes-and-territories. https://www.epa.gov/dwsrf/annual-allotment-federal-funds-states-tribes-and-territories.
h. i. Based on 88 closed loans, totaling $15.3 Based on 88 closed loans, totaling $15.3 ~~bil ion~~billion. EPA, “WIFIA Closed Loans,” . EPA, “WIFIA Closed Loans,” at https://www.epa.gov/wifia/wifia-closed-loans. https://www.epa.gov/wifia/wifia-closed-loans.
i.
j. In November 2022, EPA announced the availability of FY2022 funding and invited states to apply for grants to support eligible projects. In August 2023, EPA announced the availability of FY2023 funding. For more information, see EPA, “Sewer Overflow and Stormwater Reuse Municipal Grants Program,” For more information, see EPA, “Sewer Overflow and Stormwater Reuse Municipal Grants Program,” at https://www.epa.gov/cwsrf/sewer-overflow-and-stormwater-https://www.epa.gov/cwsrf/sewer-overflow-and-stormwater-
reuse-municipal-grants-program. reuse-municipal-grants-program.
j.
k. For more information, see EPA, For more information, see EPA, “Technical Assistance for Treatment Works,Technical Assistance for Treatment Works,” at https://www.epa.gov/small-and-rural-wastewater-systems/technical-assistance- https://www.epa.gov/small-and-rural-wastewater-systems/technical-assistance-
treatment-works. treatment-works.
k. l. EPA, “EPA Selects Recipients for $EPA, “EPA Selects Recipients for $~~21.7 Mil ion to Support Clean, Safe Water for Rural Communities” May 18, 2022, https://www.epa.gov/dwcapacity/training-and-~~
~~technical-assistance-small-systems-funding.~~
l.
~~For more information, see EPA, “WIIN Grant: Assistance for Small and Disadvantaged Communities Drinking Water Grant,” https://www.epa.gov/dwcapacity/wiin-~~
~~grant-assistance-small-and-disadvantaged-communities-drinking-water-grant.~~
25.7 Million in Technical Assistance Funding to Help Rural Communities Access Clean Water” May 18, 2023, at https://www.epa.gov/newsreleases/epa-selects-recipients-257-million-technical-assistance-funding-help-rural-communities. m. EPA, “WIIN Grant: Reduction in Lead Exposure Via Drinking Water,” m. EPA, “WIIN Grant: Reduction in Lead Exposure Via Drinking Water,” at https://www.epa.gov/dwcapacity/wiin-grant-reduction-lead-exposure-drinking-water. https://www.epa.gov/dwcapacity/wiin-grant-reduction-lead-exposure-drinking-water.
n. n. ~~CDBG~~Community Development Block Grant (CDBG) figures in this table do not include Community Development Fund set-asides. figures in this table do not include Community Development Fund set-asides.
o. The totals for the EAA program do not include supplemental appropriations or annual appropriations directed to the Assistance to Coal Communities (ACC)o. The totals for the EAA program do not include supplemental appropriations or annual appropriations directed to the Assistance to Coal Communities (ACC) ~~and~~
~~the~~ , the Assistance to Nuclear Closure Communities (NCC), and Assistance to Biomass Closure Communities (BCC) initiatives. CRS-10~~Assistance to Nuclear Closure Communities (NCC) initiatives.~~
~~p. Explanatory statement accompanying the Consolidated Appropriations Act, 2022 (P.L. 117-103), Congressional Record (pp. H1772-H1773), March 9, 2022,~~
~~https://www.congress.gov/117/crec/2022/03/09/168/42/CREC-2022-03-09-bk3.pdf.~~
~~q. EDA, FY2023 Congressional Budget Justification, pp. 25, 59, https://www.commerce.gov/sites/default/files/2022-03/FY2023-EDA-Congressional-Budget-~~
~~Submission.pdf.~~

~~CRS-9~~

Federally Supported Water Projects and Programs

Department of the Interior4
Bureau of Reclamation5
The Bureau of Reclamation was established to implement the Reclamation Act of 1902, which The Bureau of Reclamation was established to implement the Reclamation Act of 1902, which
authorized the construction of water works to provide water for irrigation in arid western states.6 authorized the construction of water works to provide water for irrigation in arid western states.6
Reclamation owns and manages 475 dams and 337 reservoirs, which are capable of storing 245 Reclamation owns and manages 475 dams and 337 reservoirs, which are capable of storing 245
million acre-feet of water.7 These facilities serve approximately 31 million people, delivering a million acre-feet of water.7 These facilities serve approximately 31 million people, delivering a
total of approximately 28.5 million acre-feet8 of water annually in nondrought years. Of this total of approximately 28.5 million acre-feet8 of water annually in nondrought years. Of this
amount, M&I water deliveries total approximately 2.8 million acre-feet annually and have more amount, M&I water deliveries total approximately 2.8 million acre-feet annually and have more
than doubled since 1970. than doubled since 1970.
Historically, Reclamation primarily supports M&I water supplies as part of larger, multipurpose Historically, Reclamation primarily supports M&I water supplies as part of larger, multipurpose
federal reclamation projects serving irrigation, flood control, power supply, and recreation 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 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 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 served these purposes. Further, since 1992 Congress has also authorized nonfederal participation
in reclamation wastewater and reuse/recycling projects. These projects, discussed below, are 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. known as Title XVI projects because they were first authorized in 1992 under Title XVI of P.L.
102-575. 102-575.
Congress has recently expanded Reclamation’s involvement in other types of nonfederal water Congress has recently expanded Reclamation’s involvement in other types of nonfederal water
supply projects. In the 2016 Water Infrastructure Improvements for the Nation Act (WIIN Act; 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 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 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 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. projects”) on a cost-shared basis, including construction of nonfederal water storage projects.
Each of these areas is discussed below. Each of these areas is discussed below.
~~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.9~~
~~A similar arrangement is required for the federal portion of WIIN Act water storage projects. For~~

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). 4 This section was prepared by Charles V. Stern, Specialist in Natural Resources Policy, Resources, Science, and 4 This section was prepared by Charles V. Stern, Specialist in Natural Resources Policy, Resources, Science, and
Industry Division; and Anna E. Normand, Analyst in Natural Resources Policy, Resources, Science, and Industry Industry Division; and Anna E. Normand, Analyst in Natural Resources Policy, Resources, Science, and Industry
Division. Division.
5 For more information on Bureau of Reclamation water supply authorities and activities, see CRS Report R46303, 5 For more information on Bureau of 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. , by Charles V. Stern and Anna E. Normand.
6 Reclamation is generally authorized to construct projects only in the 17 western states (Arizona, California, Colorado, 6 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, 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 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 in 2005 to construct three water reuse facilities in Hawaii Reclamation to also work in U.S. territories (P.L. 99-396) and in 2005 to construct three water reuse facilities in Hawaii
(P.L. 109-70). (P.L. 109-70).
7 U.S. Department of the Interior, 7 U.S. Department of the Interior, Budget Justifications and Performance Information, Fiscal Year 2016: Bureau of
Reclamation, February 2015, p. 2, , February 2015, p. 2, at http://www.usbr.gov/budget/2016/FY16_Budget_Justifications.pdf. http://www.usbr.gov/budget/2016/FY16_Budget_Justifications.pdf.
8 An acre-foot is the amount of water needed to cover one acre of land one foot deep, or 325,851 gallons. 8 An acre-foot is the amount of water needed to cover one acre of land one foot deep, or 325,851 gallons.
~~9 Repayment obligations are typically spread over a 40- or 50-year repayment term. In contrast to M&I repayment,~~
~~Reclamation-built irrigation facilities are generally repaid without interest over similar time periods.~~
~~Congressional Research Service~~

10

~~Federally Supported Water Projects and Programs~~

~~M&I projects under rural water, Title XVI, and desalination~~ Congressional Research Service 11 Federally Supported Water Projects and Programs Bureau of Reclamation’s Disadvantaged Community Domestic Water Supply Projects IRA Section 50231 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. The Commissioner of Reclamation is to establish and adopt criteria to identify applicable disadvantaged communities or households that do not have reliable access to domestic water supplies 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. On May 9, 2023, Reclamation announced the agency was making $5.5 million available to the U.S. territories of American Samoa, Guam, the Commonwealth of the Northern Mariana Islands, and the U.S. Virgin Islands for projects that will provide domestic water supplies to communities or households that do not have reliable access to potable water.9 As of June 2023, Reclamation has not released further information or guidance on how it will implement the IRA funding. 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 authorities, Congress has established
terms providing some or all federal funding for projects on a nonreimbursable basis. terms providing some or all federal funding for projects on a nonreimbursable basis.
“Traditional” Multipurpose Reclamation ~~Projects10~~Projects11
Reclamation undertakes “traditional” reclamation projects (i.e., projects authorized under the 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 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 Congress. Local project sponsors may approach Reclamation or Congress with proposals for
project construction and funding. However, except where blanket feasibility study authorizations 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 exist (e.g., certain program areas described below), specific project feasibility studies must first
be authorized by Congress.be authorized by Congress.1112 Once a feasibility study is completed, congressional authorization is Once a feasibility study is completed, congressional authorization is
typically sought prior to a request for construction appropriations.typically sought prior to a request for construction appropriations.1213 Because there is no Because there is no
“program” per se, there are no general eligibility or program criteria for selecting large, “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, multipurpose projects. Rather, Congress relies on information provided in feasibility studies,
including cost-benefit, engineering, and environmental analyses and policy considerations. While 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, and costs for M&I~~
~~portions of such projects are generally considered reimbursable 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~~

10 9 Bureau of Reclamation, “Biden-Harris Administration Announces $5.5 Million Investment in Domestic Water Supplies for U.S. Territories,” May 9, 2023, at https://www.usbr.gov/newsroom/news-release/4513. 10 Repayment obligations are typically spread over a 40- or 50-year repayment term. In contrast to 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 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 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 (P.L. 114-322). For more information about how this authority differs Infrastructure Improvements for the Nation Act (P.L. 114-322). For more information about how this authority differs
from Reclamation’s traditional construction authority, see CRS In Focus IF10626, 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. , by Charles V. Stern.
1112 See Section 8 of the Federal Water Project Recreation Act of 1965 (P.L. 89-72, 16 U.S.C. §460 See Section 8 of the Federal Water Project Recreation Act of 1965 (P.L. 89-72, 16 U.S.C. §460l-19). -19).
1213 Section 9(a) of the Reclamation Project Act of 1939 (53 Stat. 1193; 43 U.S.C. §485h(a)) provides that, if the Section 9(a) of the Reclamation Project Act of 1939 (53 Stat. 1193; 43 U.S.C. §485h(a)) provides that, if the
Secretary of the Interior finds that the allocable benefits of the project equal or outweigh anticipated costs, then the 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 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 large construction projects in recent decades. In any case, Congress would need to provide appropriations for any new
project construction. project construction.
Congressional Research Service Congressional Research Service

1112 Federally Supported Water Projects and Programs 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

~~Federally Supported Water Projects and Programs~~

in the 17 western states (32 Stat. 388; 43 U.S.C. §in the 17 western states (32 Stat. 388; 43 U.S.C. §§391 et seq.) unless otherwise specifically 391 et seq.) unless otherwise specifically
authorized. authorized.
Recent Federal Funding
Funding information for the M&I portions of multipurpose reclamation projects is not readily Funding information for the M&I portions of multipurpose reclamation projects is not readily
available. Total discretionary Reclamation appropriations (gross current authority, not including available. Total discretionary Reclamation appropriations (gross current authority, not including
permanent funding) for permanent funding) for ~~FY2022~~FY2023 were $1. were $1.9093 billion. The total billion. The total ~~FY2023~~FY2024 budget request for budget request for
Reclamation was $1.Reclamation was $1.4145 billion. billion.1314
Statutory and Regulatory Authority
Reclamation generally carries out its water supply activities in 17 western states as authorized by 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. §the Reclamation Act of 1902, as amended (32 Stat. 388; 43 U.S.C. §§391 et seq.), as well as 391 et seq.), as well as
through hundreds of individual project authorization statutes. through hundreds of individual project authorization statutes.
WIIN Act Water Storage ~~Projects14~~Projects15
Congress enacted new authority for Reclamation to support surface and groundwater storage Congress enacted new authority for Reclamation to support surface and groundwater storage
projects (i.e., authority apart from the aforementioned “traditional” project authority) under projects (i.e., authority apart from the aforementioned “traditional” project authority) under
Section 4007 of the WIIN Act.Section 4007 of the WIIN Act.1516 Congress authorized $335 Congress authorized $335.0 million in discretionary appropriations million in discretionary appropriations
for these projects, and approved a different approach than the traditional for these projects, and approved a different approach than the traditional 14 These amounts include funding requests for Rural Water and Title XVI programs, discussed below. 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. 16 43 U.S.C. §390b note. Congressional Research Service 13 Federally Supported Water Projects and Programs reclamation law process reclamation law process
of federal project study and construction with full, up-front federal funding for individual of federal project study and construction with full, up-front federal funding for individual
projects. projects.
Funding for water storage projects under Section 4007 is available for two primary project types. 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 (surface water storage projects to which the United States holds
title and which were authorized to be constructed pursuant to reclamation law and regulations) title and which were authorized to be constructed pursuant to reclamation law and regulations)
may be no more than 50% federally funded. may be no more than 50% federally funded. State-led storage projects (surface water or (surface water or
groundwater storage projects constructed, operated, and maintained by states or political 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 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. not authorized Reclamation to fund state-led water storage projects.
Before projects can receive federal support under the WIIN Act authority, several milestones must 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 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 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 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 individual projects only after the Secretary transmits a list of recommended projects and funding
levels to Congresslevels to Congress, and Congress designates those projects by name in an enacted appropriations and Congress designates those projects by name in an enacted appropriations
act.act.1617
Any project that meets the aforementioned criteria is eligible for funding allocations by 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 Reclamation. However, Congress also stipulated that in order to move forward, the Secretary
must find projects feasible by January 1, 2021.must find projects feasible by January 1, 2021.1718 As of June As of June ~~2022~~2023, Reclamation had recommended ~~, Reclamation had recommended~~

~~13 These amounts include funding requests for Rural Water and Title XVI programs, discussed below.~~
~~14 For more on this authority, see CRS In Focus IF10626,~~ ~~Reclamation Water Storage Projects: Section 4007 of the~~
~~Water Infrastructure Improvements for the Nation Act, by Charles V. Stern.~~
~~15 43 U.S.C. §390b note.~~
~~16 For more information, see §4007(a) and (b) of P.L. 114-322.~~
~~17 P.L. 114-322, §4007(i).~~
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~~Federally Supported Water Projects and Programs~~

~~for~~ funding for 13 projects in three states; Reclamation also recommended 8 of these projects for funding for 13 projects in three states; Reclamation also recommended 8 of these projects for
construction prior to the aforementioned WIIN Act deadlineconstruction 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 Congress did not specify purposes for WIIN Act water storage projects, only that a project is
must be feasible and feasible and ~~has~~have federal benefits “in accordance with the reclamation laws.” federal benefits “in accordance with the reclamation laws.”19 To date, projects To date, projects
receiving funding under this authority are expected to provide benefits related to agricultural receiving funding under this authority are expected to provide benefits related to agricultural
irrigation and/or M&I uses, among other things. 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 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 Act may receive direct, up-front federal funding in amounts recommended by Reclamation and
approved by Congress, approved by Congress, ~~pursuant~~subject to the WIIN Act’s authorized cost shares (i.e., 50% for federal to the WIIN Act’s authorized cost shares (i.e., 50% for federal
projects, 25% for nonfederal projects). Similar to the “traditional” multipurpose federal 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 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 a cost allocation by Reclamation during the study process that determines ~~what~~which portions of the portions of the
federal cost share are reimbursable and nonreimbursable. Reimbursable costs, which include 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 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 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 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 and wildlife purposes and flood control, are considered federal benefits and do not have to be
repaid. repaid.
17 For more information, see §4007(a) and (b) of P.L. 114-322. 18 P.L. 114-322, §4007(i). 19 P.L. 114-322, §4007(b)(3)(A), §4007(c)(2)(B)(i). Congressional Research Service 14 Federally Supported Water Projects and Programs Eligibility Requirements ~~Eligibility Requirements~~
Eligible projects must be located in the 17 western states and territories authorized in reclamation 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 law and may include federal projects—projects to which the United States holds title and were
authorized and constructed pursuant to reclamation lawsauthorized and constructed pursuant to reclamation laws~~—as well as “state~~. “State-led” projects—-led” projects—
projects constructed, operated, and maintained by any state, department of a state, subdivision of projects constructed, operated, and maintained by any state, department of a state, subdivision of
a state, or public agency organized pursuant to state lawa 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 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 enacted $for the M&I portions of WIIN Act water storage projects. Congress enacted $~~117~~134.0 million in million in
~~FY2022~~FY2023 discretionary funding for WIIN Act water storage projects in P.L. 117-103. Congress also discretionary funding for WIIN Act water storage projects in P.L. 117-103. Congress also
appropriated $1.05 billion for these projects over the FY2022-FY2026 time period in the IIJA appropriated $1.05 billion for these projects over the FY2022-FY2026 time period in the IIJA
(P.L. 117-58). Reclamation allocated $210(P.L. 117-58). Reclamation allocated $210.0 million in IIJA funding to be obligated on these million in IIJA funding to be obligated on these
projects in its FY2022 IIJA spend plan.projects in its FY2022 IIJA spend plan.1821 The Administration requested no funding for these The Administration requested no funding for these
projects in its projects in its ~~FY2023~~FY2024 budget request, but budget request, but it recommended allocation of another $95 recommended allocation of another $95.0 million in IIJA million in IIJA
~~funding for these projects in its FY2023 IIJA spend plan.19~~

~~18 Bureau of Reclamation, Implementation of the Bipartisan Infrastructure Law, FY2022 Spend Plan,~~
~~https://www.usbr.gov/bil/docs/spendplan-2022/Consolidated-Reclamation-BIL-Spend-Plan-2022-With-DS-RW-~~
~~AI.pdf. Hereinafter “FY2022 Reclamation Bipartisan Infrastructure Law Spend Plan.”~~
~~19 Bureau of Reclamation, Implementation of the Bipartisan Infrastructure Law, FY2023 Spend Plan,~~
~~https://www.usbr.gov/bil/docs/spendplan-2023/FY-2023-Reclamation-BIL-Spend-Plan.pdf. Hereinafter “FY2023~~
~~Reclamation Bipartisan Infrastructure Law Spend Plan.”~~
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funding for these projects in its FY2023 IIJA spend plan.22 Statutory and Regulatory Authority
Subtitle J, Section 4007 Water Infrastructure Improvements for the Nation Act (130 Stat. 1863-Subtitle J, Section 4007 Water Infrastructure Improvements for the Nation Act (130 Stat. 1863-
1866, 43 U.S.C. §390b note). 1866, 43 U.S.C. §390b note).
Rural Water Supply ~~Projects20~~Projects23
Similar to its traditional multipurpose projects, Reclamation has undertaken individual rural water Similar to its traditional multipurpose projects, Reclamation has undertaken individual rural water
projectsprojects, largely at the explicit direction of Congress. In largely at the explicit direction of Congress. In ~~most cases, Congress has prioritized~~
~~appropriations for already-authorized projects rather than fund new rural water construction~~
~~projects.~~
In lieu of the project-based approach to authorizing new rural water projects, lieu of the project-based approach to authorizing new rural water projects, ~~in 2006~~ Congress Congress
authorized a rural water supply program authorized a rural water supply program ~~(P.L. 109-451).~~ 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 Under the program, Reclamation was
authorized to work with rural communities and Indian tribes to identify M&I water needs and 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 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 studies. In 2008, Reclamation published an interim final rule establishing future program
criteria.criteria.2124 According to Reclamation, between 2006 and 2016, it used this authority to study 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, 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 as authorized by Congress. No projects have been constructed under this authority, which expired
at the end of FY2016 and has not been renewed.at the end of FY2016 and has not been renewed. ~~However,~~ Congress continues to provide funding Congress continues to provide funding
for previously authorized rural water projectsfor previously authorized rural water projects~~, and~~ . In addition, in the Clean Water for Rural Communities Act in the Clean Water for Rural Communities Act
~~(Division FF, Title XI, §1110, of P.L. 116-260), Congress authorized another~~(Division FF, Title XI, §1110, of P.L. 116-260), 20 P.L. 114-322, §4007(a)(1)-(2). 21 Bureau of Reclamation, Implementation of the Bipartisan Infrastructure Law, FY2022 Spend Plan, at https://www.usbr.gov/bil/docs/spendplan-2022/Consolidated-Reclamation-BIL-Spend-Plan-2022-With-DS-RW-AI.pdf. Hereinafter “FY2022 Reclamation Bipartisan Infrastructure Law Spend Plan.” 22 Bureau of Reclamation, Implementation of the Bipartisan Infrastructure Law, FY2023 Spend Plan, at https://www.usbr.gov/bil/docs/spendplan-2023/FY-2023-Reclamation-BIL-Spend-Plan.pdf. Hereinafter “FY2023 Reclamation Bipartisan Infrastructure Law Spend Plan.” 23 See also CRS Report R46308, Bureau of Reclamation Rural Water Projects, by Anna E. Normand. 24 43 C.F.R. §404. Congressional Research Service 15 Federally Supported Water Projects and Programs Congress authorized a new rural water project, rural water project,
the Musselshell-Judith Rural Water System, and the review of the Dry-Redwater Regional Water the Musselshell-Judith Rural Water System, and the review of the Dry-Redwater Regional Water
Authority System.Authority System.2225
Project Purposes
Individual authorization statutes have established rural water project purposes. Some rural water Individual authorization statutes have established rural water project purposes. Some rural water
project authorizations meet obligations under Indian water settlements or otherwise provide project authorizations meet obligations under Indian water settlements or otherwise provide
benefits to Indian tribes. benefits to Indian tribes.
Financing or Funding Mechanism
Projects are generally cost shared between the federal government and local sponsors. The federal 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, and the federal cost government pays up to 100% of the cost of Indian rural water supply projects, and the federal cost
share for current nontribal projects ranges from 75% to 80%. Reclamation requests and 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 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 the priorities identified in the statutes that authorized individual projects and the goals of the
Reclamation Rural Water Supply Act of 2006. Eligibility Requirements ~~Rural Water Supply Act of 2006.~~

~~20 See also CRS Report R46308, Bureau of Reclamation Rural Water Projects, by Anna E. Normand.~~
~~21 43 C.F.R. §404.~~
~~22 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.~~
~~Congressional Research Service~~

14

~~Federally Supported Water Projects and Programs~~

~~Eligibility Requirements~~
Local governments and organizations such as water and conservation districts or associations, 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 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 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 Congress. As noted earlier, Reclamation works only on projects located in the 17 western states
(32 Stat. 388; 43 U.S.C. §(32 Stat. 388; 43 U.S.C. §§391 et seq.) unless specifically authorized by Congress. 391 et seq.) unless specifically authorized by Congress.
Reclamation previously published an interim final rule (43 C.F.R. Part 404) that established Reclamation previously published an interim final rule (43 C.F.R. Part 404) that established
criteria for developing new rural supply projects.criteria for developing new rural supply projects.26 However, the authority for the program has However, the authority for the program has
since expired, and Congress last authorized a project in 2009.since expired, and Congress last authorized a project in 2009.2327 The rule does not apply to The rule does not apply to
previously authorized projects. As previously stated, ongoing rural water construction activities previously authorized projects. As previously stated, ongoing rural water construction activities
are limited to ongoing, previously authorized projects. are limited to ongoing, previously authorized projects.
Recent Federal Funding
Enacted funding for rural water supply projects in Enacted funding for rural water supply projects in ~~FY2022~~FY2023 was $ was $~~130.2~~125.3 million from the million from the
Consolidated Appropriations ActConsolidated Appropriations Act, 2023, and $ and $~~420~~248.0 million from the IIJA. .0 million from the IIJA. ~~This~~The amount provided in the amount provided in the
Consolidated Appropriations ActConsolidated Appropriations Act, 2023, included funding for included funding for ~~two projects~~one project above the President’s budget above the President’s budget
request that request that ~~were~~was requested as congressionally directed spending ($ requested as congressionally directed spending ($~~9.6 million for Eastern New~~
~~Mexico Water Supply and $12.7~~12.0 million for Lewis and Clark Rural Water System) and $ million for Lewis and Clark Rural Water System) and $1550.0 .0
~~million in additional funding for rural water that Reclamation distributed in its spend plan.24~~
~~Reclamation released a FY2022 spend plan for the IIJA funding that details the allocation among~~
~~six projects.25 For FY2023, the Administration’s spend plan for IIJA funding includes $248.0~~
~~million for rural water supply projects, and the budget proposal requested $63.3 million for five~~
~~ongoing authorized rural water projects.26~~
~~Statutory and Regulatory Authority~~
~~The Rural Water Supply Program was authorized by the Rural Water Supply Act of 2006 (P.L.~~
~~109-451, Title I; 120 Stat. 3345; 43 U.S.C. §§2401-2408 note). 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”~~

23million in additional funding for rural water 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. 26 73 Federal Register 67782, November 17, 2008. 27 Department of the Interior, “Reclamation Rural Water Supply Program,” 73 Department of the Interior, “Reclamation Rural Water Supply Program,” 73 Federal Register 67778-67791, 67778-67791,
November 7, 2008, November 7, 2008, at http://edocket.access.gpo.gov/2008/pdf/E8-26584.pdf. Under the rule, priority was given to 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 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. also eligible. The use of water for commercial irrigation purposes was not allowed.
~~24 See “Explanatory Statement Accompanying H.R. 2471, Consolidated Appropriations Act, 2022,”~~ ~~Congressional~~
~~Record, vol. 168, part 42-III (March 9, 2022), pp. H2320-H2321, https://www.congress.gov/117/crec/2022/03/09/168/~~
~~42/CREC-2022-03-09-bk3.pdf; and Bureau of Reclamation, FY2022 Additional Funding for Ongoing Work,~~
~~https://www.usbr.gov/budget/2022/fy2022-Spendplan/FY2022DistributionofAdditionalFundsforOngoingWork.pdf.~~
~~25 Bureau of Reclamation, Bureau of Reclamation Implementation of the Bipartisan Infrastructure Law, FY 2022 Spend~~
~~Plan, https://www.usbr.gov/bil/2022-spendplan.html.~~
~~26 Bureau of Reclamation, Bureau of Reclamation Implementation of the Bipartisan Infrastructure Law, FY 2023 Spend~~
~~Plan, https://www.usbr.gov/bil/2022-spendplan.html.~~
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Congressional Research Service 16 Federally Supported Water Projects and Programs projects that Reclamation distributed in its spend plan.28 Reclamation released an FY2023 spend plan for the IIJA funding that details the allocation among seven projects.29 For FY2023, the Administration’s spend plan for IIJA funding includes $108.0 million for rural water supply projects. The FY2024 budget proposal requested $57.8 million for six ongoing authorized rural water projects.30 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. 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 Water reclaimed via Title XVI projects is primarily used for M&I water supply (nonpotable and
indirect potable purposes only). Other uses include irrigation supply, groundwater recharge, fish indirect potable purposes only). Other uses include irrigation supply, groundwater recharge, fish
and wildlife enhancement, and wildlife enhancement, orand outdoor recreation. outdoor recreation.
The original Title XVI legislation authorized construction of five reclamation wastewater projects 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 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. 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 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 authorizing the Secretary of the Interior to accept and review nonfederal feasibility studies for
potential planning, design, and construction projects.potential planning, design, and construction projects.2731 The WIIN Act also authorized a The WIIN Act also authorized a
competitive grant program for construction of projects approved under this authority.competitive grant program for construction of projects approved under this authority.2832
In the IIJA, Congress further amended the Title XVI authority and created a new category of In the IIJA, Congress further amended the Title XVI authority and created a new category of
“large-scale” Title XVI projects, defined as projects with total costs in excess of $500“large-scale” Title XVI projects, defined as projects with total costs in excess of $500.0 million. million.2933
In contrast to “regular” Title XVI projects (which are generally limited to the lesser of $20In 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 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 of 25% of project costs, with no dollar cap on federal support. As a result, Reclamation currently
28 See “Explanatory Statement Accompanying H.R. 2471, Consolidated Appropriations Act, 2022,” Congressional Record, vol. 168, part 42-III (March 9, 2022), pp. H2320-H2321, at https://www.congress.gov/117/crec/2022/03/09/168/42/CREC-2022-03-09-bk3.pdf; and Bureau of Reclamation, FY2022 Additional Funding for Ongoing Work, at https://www.usbr.gov/budget/2022/fy2022-Spendplan/FY2022DistributionofAdditionalFundsforOngoingWork.pdf. 29 Bureau of Reclamation, “Bureau of Reclamation Implementation of the Bipartisan Infrastructure Law, Addendum to FY2023 Spend Plan: Rural Water,” March 2, 2023, at https://www.usbr.gov/bil/docs/spendplan-2023/Reclamation-BIL-Spend-Plan-Addendum-Rural-Water-03-02-23.pdf.pdf. 30 Bureau of Reclamation, “Bureau of Reclamation Implementation of the Bipartisan Infrastructure Law, Annual Spend Plan Update, FY2024 Submission,” at https://www.usbr.gov/bil/docs/spendplan-2024/FY-2024-Reclamation-BIL-Spend-Plan.pdf. 31 These guidelines were published in Bureau of Reclamation, Reclamation Manual Directive and Standard WTR 11-01, February 8, 2017, at https://www.usbr.gov/recman/wtr/wtr11-01.pdf. 32 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. 33 See Title IX, §40905 of P.L. 117-58. Congressional Research Service 17 Federally Supported Water Projects and Programs supports three types of water reuse and recycling projects: congressionally authorized Title XVI 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. 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 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 recycling/reusing agricultural drainage water, wastewater, brackish surface and groundwater, and
other sources of contaminated water. Projects may be permanent or for demonstration purposes. 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., 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 projects with individual authorizations from Congress or approved by the Administration and
Congress pursuant to the WIIN ActCongress pursuant to the WIIN Act ~~and/or the IIJA~~). Title XVI project construction costs are ). Title XVI project construction costs are
shared by the federal government and a local project sponsor or sponsors. The federal share is 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 $20nonreimbursable, and is generally limited to the lesser of $20.0 million (1996 dollars) or 25% of million (1996 dollars) or 25% of
total project costs.total project costs.3034 The exception is large-scale water reuse and recycling projects funded The exception is large-scale water reuse and recycling projects funded
pursuant to the IIJA, which are eligible to receive up to 25% of project costs, with no comparable pursuant to the IIJA, which are eligible to receive up to 25% of project costs, with no comparable
~~cost cap.~~

~~27 These guidelines were published in Bureau of Reclamation,~~ ~~Reclamation Manual Directive and Standard WTR 11-~~
01~~, February 8, 2017, https://www.usbr.gov/recman/wtr/wtr11-01.pdf.~~
~~28 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.~~
~~29 See Title IX, §40905 of P.L. 117-58.~~
~~30 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 the IIJA (authorized to receive up to~~
~~25% of total costs, with no dollar cap).~~
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cost cap. Eligibility Requirements
Similar to other Reclamation activities, the Title XVI water reclamation and wastewater recycling 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.program is limited to projects and studies in the 17 western states, unless otherwise specified.31
~~Authorized recipients include “legally organized non-federal entities,” such as irrigation districts,~~
~~water districts, municipalities, and Indian tribes.~~ 35 Prior to enactment of the WIIN Act, Prior to enactment of the WIIN Act,
Administration requests for construction funding had generally been limited to Administration requests for construction funding had generally been limited to individual congressionally authorized projects where (1) projects where (1)
an appraisal investigation and feasibility study had been completed and approved by the an appraisal 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 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 nonfederal share of project costs, and (3) the local sponsor entered into a cost-share agreement
with Reclamation. The WIIN Act provided the Department of with Reclamation. The WIIN Act provided the Department of the Interior with additional authority to Interior with additional authority to
accept nonfederal feasibility studies and to approve and consider these projects for construction accept nonfederal feasibility studies and to approve and consider these projects for construction
funding if they meet Title XVI program criteria.funding if they meet Title XVI program criteria.36 These criteria require that (1) the study comply These criteria require that (1) the study comply
with federal laws and regulations applicable to water reuse and recycling studies, and (2) the 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 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 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 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 pursue funding, although Congress may still choose to authorize individual projects where it
wishes to alter the terms for federal support. wishes to alter the terms for federal support.
Over time, Reclamation has issued and revised multiple documents outlining evaluation criteria 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 for prioritizing Title XVI projects. Reclamation posted the most recent evaluation criteria for Title
XVI projects in March 2018.XVI projects in March 2018.32
~~Recent Federal Funding~~
~~The total regular appropriations for the Title XVI program in FY2022 was $53~~37 34 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 the IIJA (authorized to receive up to 25% of total costs, with no dollar cap). 35 For example, Congress has authorized three projects for construction in Hawaii (P.L. 109-70). 36 See generally P.L. 114-322, §4009(c). 37 Bureau of Reclamation, Title XVI Water Reclamation and Reuse Program, Updated Evaluation Criteria for Review and Comment, March 2018, at https://www.usbr.gov/watersmart/title/docs/2018/Title%20XVI-Evaluation-Criteria-Review.pdf. Congressional Research Service 18 Federally Supported Water Projects and Programs Recent Federal Funding The total regular appropriations for the Title XVI program in FY2023 was $60.0 million, with million, with $20.0 ~~$20~~
million of this funding designated as being available for WIIN Act-authorized projects. The million of this funding designated as being available for WIIN Act-authorized projects. The
Administration also allocated $240Administration also allocated $240.0 million in IIJA funding for Title XVI projects in its FY2022 million in IIJA funding for Title XVI projects in its FY2022
IIJA spend plan,IIJA spend plan,3338 and and it allocated an additional $150allocated an additional $150.0 million for “regular” projects and $50 million for “regular” projects and $50 .0 million million
for large-scale Title XVI projects in its FY2023 IIJA spend plan.for large-scale Title XVI projects in its FY2023 IIJA spend plan.3439 The Administration’s The Administration’s ~~FY2023~~
FY2024 budget request for all Title XVI projects was $budget request for all Title XVI projects was $54.0 million..0 million.40
Statutory and Regulatory Authority
The original statutory authority for the Reclamation wastewater and reuse program is the 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 Reclamation Wastewater and Groundwater Study and Facilities Act, Title XVI of P.L. 102-575, as
amended (43 U.S.C. §amended (43 U.S.C. §§390h et seq.). Other statutes that authorized individual Title XVI projects 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 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 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, 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 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 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 Resolution, 2003 (P.L. 108-7, Division D, §211); the Emergency Wartime Supplemental

~~31 For example, Congress has authorized three projects for construction in Hawaii (P.L. 109-70).~~
~~32 Bureau of 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-Criteria-~~
~~Review.pdf.~~
~~33 FY2022 Reclamation Bipartisan Infrastructure Law Spend Plan.~~
~~34 FY2023 Reclamation Bipartisan Infrastructure Law Spend Plan.~~
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Appropriations Act of 2003 (P.L. 108-11); the Irvine Basin Surface and Groundwater 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 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 (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. 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 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 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 the IIJA Title XVI projects was provided in the WIIN Act (P.L. 114-322, Title III, Subtitle J) and the IIJA
(P.L. 117-58). (P.L. 117-58).
Desalination Projects
Desalination projects develop and supplement water supplies through the treatment of ocean or 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 brackish water. Water supplies created by desalination projects are primarily used for M&I and
irrigation water supply, but irrigation water supply, but they may also be used for other purposes. Congress authorized the may also be used for other purposes. Congress authorized the
Secretary of the Interior, through Reclamation, to support nonfederal construction of ocean or 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 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 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 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 requirements in Reclamation’s Directive and Standard for feasibility study review of Title XVI
and Desalination Projects.and Desalination Projects.35
~~Project Purposes~~
41 38 FY2022 Reclamation Bipartisan Infrastructure Law Spend Plan. 39 FY2023 Reclamation Bipartisan Infrastructure Law Spend Plan. 40 Bureau of Reclamation, FY2024 Bureau of Reclamation Congressional Justification, at https://www.usbr.gov/budget/2024/FY-2024-Bureau-of-Reclamation-Budget-Justifications.pdf. 41 Bureau of Reclamation, Title XVI Water Reclamation and Reuse Program and Desalination Construction Program Feasibility Study Review Process, Reclamation Manual, WTR 11-01, October 18, 2019, at https://www.usbr.gov/recman/wtr/wtr11-01.pdf. Congressional Research Service 19 Federally Supported Water Projects and Programs Project Purposes The general purpose of desalination construction projects is to provide supplemental water 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 supplies by treating seawater or brackish water. Projects may be permanent or for demonstration
purposes.purposes.42
Financing or Funding Mechanism
Desalination projects are funded through grants, which are available only to projects that have 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 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 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.project costs; thus, nonfederal sponsors must be capable of funding 75% of project costs.43 These These
costs may be made available through cash, costs contributed by the applicant, or third-party in-costs may be made available through cash, costs contributed by the applicant, or third-party in-
kind contributions. Other federal funding may kind contributions. Other federal funding may not be counted toward the required nonfederal cost be counted toward the required nonfederal cost
share, unless the statute authorizing a program stipulates that it may be made available for share, unless the statute authorizing a program stipulates that it may be made available for
matching cost-share requirements. matching cost-share requirements.
Eligibility Requirements
Like other Reclamation activities, support for nonfederal desalination projects is limited to 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 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 territories identified in the Reclamation Act of 1902, as amended. Projects must meet several
other requirements, including havingother requirements, including having a completed feasibility completed feasibility ~~study~~studies that that ~~has~~have been submitted to been submitted to
Reclamation and that Reclamation and that ~~meets~~meet all of the requirements in Reclamation’s Directive and Standard for all of the requirements in Reclamation’s Directive and Standard for
feasibility study review of Title XVI and Desalination Projects.feasibility study review of Title XVI and Desalination Projects.3644 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 ~~Projects must also be included~~

~~35 Bureau of 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/wtr11-01.pdf.~~
36 Bureau of Reclamation, Title XVI Water Reclamation and Reuse Program and Desalination Construction Program
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~~Federally Supported Water Projects and Programs~~

~~in a state-approved plan or, as an alternative, be requested by the governor of the state in which it~~
~~is located~~. .
Several types of projects are not eligible for funding under this authority, including projects with 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 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, aforementioned Title XVI program), research and/or demonstration projects, and operations,
maintenance, and repair projects.maintenance, and repair projects. ~~The sponsor of any project in a western state that meets the~~
~~aforementioned criteria may be eligible to apply for grants under this authority.~~
Recent Federal Funding
Grants for desalination project construction are funded through Reclamation’s research and Grants for desalination project construction are funded through Reclamation’s research and
development program for desalination and water purification; total development program for desalination and water purification; total ~~FY2022~~FY2023 regular regular
appropriations for that program were $appropriations for that program were $2017.7 million, of which $ million, of which $~~10.5~~12.0 million was designated for million was designated for
grants under the WIIN Act authority. Congress also appropriated $250grants under the WIIN Act authority. Congress also appropriated $250.0 million for these projects million for these projects
in the IIJA over the FY2022-FY2026 period; Reclamation included $15in the IIJA over the FY2022-FY2026 period; Reclamation included $15.0 million for desalination million for desalination
projects in its FY2022 IIJA spend planprojects in its FY2022 IIJA spend plan, and $20 and $20.0 million for these projects in its FY2023 IIJA 42 See generally P.L. 114-322, §4009(a). 43 Cost-shares and other requirements under this section were established administratively. For more information, see Bureau of Reclamation, “WaterSMART: Desalination,” at https://www.usbr.gov/watersmart/desalination/index.html. 44 Bureau of Reclamation, Title XVI Water Reclamation and Reuse Program and Desalination Construction Program Feasibility Study Review Process, Reclamation Manual, WTR 11-01, October 18, 2019, at https://www.usbr.gov/recman/wtr/wtr11-01.pdf. Congressional Research Service 20 link to page 27 link to page 27 Federally Supported Water Projects and Programs spend plan.45 ~~million for these projects in its FY2023 IIJA~~
~~spend plan.37~~ The Administration did not request any funding for desalination construction The Administration did not request any funding for desalination construction
projects in its projects in its ~~FY2023~~FY2024 budget. budget.
Statutory and Regulatory Authority
Water Desalination Act of 1996, P.L. 104-298, as amended by Section 4009(a) of Title II, Subtitle 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. J of the WIIN Act, P.L. 114-322.
Department of ~~Defense38~~Defense46
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 As part of its civil works
activities, USACE operates water resource projects throughout the country. USACE civil works activities, USACE operates water resource projects throughout the country. USACE civil works
projects and authorities are concentrated on three principal missions—navigation, flood damage projects and authorities are concentrated on three principal missions—navigation, flood damage
reduction, and aquatic ecosystem restoration. Some USACE activities may also support M&I reduction, and aquatic ecosystem restoration. Some USACE activities may also support M&I
water supply storage, hydroelectric generation, fish and wildlife, and recreation. The most water supply storage, hydroelectric generation, fish and wildlife, and recreation. The most
common way that USACE infrastructure supports M&I water supply is through providing storage common way that USACE infrastructure supports M&I water supply is through providing storage
of M&I water at a USACE reservoir.of M&I water at a USACE reservoir.3947 M&I water supply is generally not a USACE reservoir’s or M&I water supply is generally not a USACE reservoir’s or

Feasibility Study Review Process, Reclamation Manual, WTR 11-01, October 18, 2019, https://www.usbr.gov/recman/
~~wtr/wtr11-01.pdf.~~
37project’s primary purpose.48 These projects are discussed further under the heading “Storage of Municipal and Industrial Water at Multipurpose USACE Reservoirs.” Specific Projects. 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 FY2022 at $13.0 million and $24.0 million, respectively. These specific projects are not discussed further in this report. Unfunded Construction Authority. In Section 155 of the Water Resources Development Act of 2020 (Division AA of P.L. 116-260), Congress authorized USACE to carry out small water 45 See FY2022 Reclamation Bipartisan Infrastructure Law Spend Plan and FY2023 Reclamation Bipartisan See FY2022 Reclamation Bipartisan Infrastructure Law Spend Plan and FY2023 Reclamation Bipartisan
Infrastructure Law Spend Plan. Infrastructure Law Spend Plan.
3846 This section was prepared by Anna E. Normand, Analyst in Natural Resources Policy, Resources, Science, and This section was prepared by Anna E. Normand, Analyst in Natural Resources Policy, Resources, Science, and
Industry Division; and Nicole Industry Division; and Nicole T. Carter, Specialist in Natural Resources Policy, Resources, Science, and Industry Carter, Specialist in Natural Resources Policy, Resources, Science, and Industry
Division. Division.
3947 Prior to the enactment of the WIIN Act (P.L. 114-322), U.S. Army Corps of Engineers (USACE) participated in Prior to the enactment of the WIIN Act (P.L. 114-322), U.S. Army Corps of Engineers (USACE) participated in
water conservation at its reservoirs in two ways. First, Congress had authorized specific USACE projects to have water water conservation at its reservoirs in two ways. First, Congress had authorized specific USACE projects to have water
conservation as a purpose for project operations. This allowed USACE to provide for seasonal M&I use of storage conservation as a purpose for project operations. This allowed USACE to provide for seasonal M&I use of storage
space at those USACE reservoirs. The use could be either as a direct withdrawal from the reservoir or for enhancing space at those USACE reservoirs. The use could be either as a direct withdrawal from the reservoir or for enhancing
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~~link to page 26 link to page 26 link to page 27~~ ~~Federally Supported Water Projects and Programs~~

~~project’s primary purpose.40 These projects are discussed further under the heading~~ ~~“Storage of~~
~~Municipal and Industrial Water at Multipurpose USACE Reservoirs.”~~
Specific Projects. Congress has authorized two USACE civil works projects to have significant
~~water supply components. Both 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 FY2022 at $13 million and $24 million, respectively.~~
~~These specific projects are not discussed further in this report.~~
Unfunded Construction Authority. In Section 155 of the Water Resources Development Act of
~~2020 (Division AA of P.L. 116-260), Congress authorized USACE to carry out small water~~
~~storage projects,41 including for water supply; the~~groundwater supplies (e.g., the USACE dam would release water in a way that would benefit passive or active groundwater recharge efforts). Second, according to USACE planning guidance, “project operations may be modified to enhance ground water replenishment, to increase downstream flows, or to otherwise enhance usage of projects for M&I purposes. Modifications must be consistent with authorized project purposes and law” (USACE, Planning Guidance Notebook, Engineer Regulation 1105-2-100, April 22, 2000, pp. 3-34). With WIIN Act Sections 1116, 1117, and 1118, Congress provided some general authority for USACE to operate reservoirs for “water conservation,” including groundwater recharge. 48 Congress in Section 221 of Division AA of P.L. 116-260 directed that USACE provide the authorizing committees within 18 months of enactment a report that analyzes the benefits and consequences of including water supply and water conservation as a primary mission of USACE in carrying out water resources development projects. Congressional Research Service 21 link to page 29 Federally Supported Water Projects and Programs storage projects,49 including for water supply. The authority has not been funded and is not authority has not been funded and is not
discussed further in this report. discussed further in this report.
USACE Assistance for Nonfederal Projects
Environmental Infrastructure Assistance. At the direction of Congress, USACE also provides At the direction of Congress, USACE also provides
assistance for municipal environmental infrastructure (EI), which typically consists of assistance assistance for municipal environmental infrastructure (EI), which typically consists of assistance
with municipal drinking water and wastewater infrastructure projects and municipal source water with municipal drinking water and wastewater infrastructure projects and municipal source water
protection and development. These authorities are discussed further under the heading protection and development. These authorities are discussed further under the heading
“Environmental Infrastructure Assistance.”
Upcoming USACE Credit Assistance Program. The Water Infrastructure Finance and The Water Infrastructure Finance and
Innovation Act Innovation Act ~~(WIFIA), as amended,~~of 2014 (WIFIA) authorizes USACE and EPA to provide credit assistance— authorizes USACE and EPA to provide credit assistance—
~~secured (direct)~~ loans or loan guarantees—for a broad range of water projects.loans or loan guarantees—for a broad range of water projects.42 50 USACE’s program is known as Corps Water Infrastructure Financing Program (CWIFP) to differentiate it from EPA’s WIFIA program. In December In December
2021, Congress created 2021, Congress created ~~a WIFIA~~an account for USACE to implement its WIFIA authority. account for USACE to implement its WIFIA authority. In
~~FY2021 and FY2022~~From FY2021 through FY2023, Congress provided USACE with a total of $81, Congress provided USACE with a total of $81.0 million for 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).51 Dam safety projects can include work to upgrade, repair, and maintain a dam, and can include dam removals.52 USACE identifies 12 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). USACE may be able to make up to $7.5 billion in loans with the appropriations available through FY2023. USACE’s final rule for the program went into effect on June 21, 2023. On September 20, 2023, USACE published a Notice of Funding Availability to solicit preliminary applications from prospective borrowers seeking credit assistance under CWIFP for nonfederal dam safety projects.53 The first loans are expected to close roughly two years later. The program’s loans are long-term, low-cost loans with flexible repayment options for creditworthy nonfederal borrowers. CWIFP-eligible entities include various state, local, and tribal government entities and various private entities (e.g., corporations, partnerships, and trusts) that are publicly sponsored.54 49~~credit assistance~~
~~and $15.4 million for program administration. The credit assistance was limited to nonfederal~~
~~dam safety projects.43 USACE has not begun providing WIFIA credit assistance; on June 10,~~
~~2022, in the Federal Register, USACE proposed a rule for the implementation of the USACE~~
~~credit assistance for nonfederal dam safety projects.44 USACE’s program is known as the Civil~~
~~Works Infrastructure Financing Program (CWIFP). CWIFP is not discussed further in this report.~~
For more information on USACE’s program, see CRS Insight IN11577, U.S. Army Corps of

~~groundwater supplies (e.g., the USACE dam would release water in a way that would benefit passive or active~~
~~groundwater recharge efforts). Second, according to USACE planning guidance, “project operations may be modified~~
~~to enhance ground water replenishment, to increase downstream flows, or to otherwise enhance usage of projects for~~
~~M&I purposes. Modifications must be consistent with authorized project purposes and law” (USACE,~~ ~~Planning~~
~~Guidance Notebook, Engineer Regulation 1105-2-100, April 22, 2000, pp. 3-34). With WIIN Act Sections 1116, 1117,~~
~~and 1118, Congress provided some general authority for USACE to operate reservoirs for “water conservation,”~~
~~including groundwater recharge.~~
~~40 Congress in Section 221 of Division AA of P.L. 116-260 directed that USACE provide the authorizing committees~~
~~within 18 months of enactment a report that analyzes the benefits and consequences of including water supply and~~
~~water conservation as a primary mission of USACE in carrying out water resources development projects.~~
41 The provision provides various criteria for the maximum size of the storage projects and other specific project and 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 $65program requirements (e.g., federal project costs are limited to $65.0 million; M&I costs are 100% nonfederal). million; M&I costs are 100% nonfederal).
~~42 P.L. 115-270~~50 WIFIA 2014, Title V, Subtitle C, of P.L. 113-121; 33 U.S.C. §§3901-3914; 33 U.S.C. §§3901-3914.
43, as amended by P.L. 115-270. 51 Congress authorized USACE’s program for a broader set of activities than have been funded. Congress authorized Congress authorized USACE’s program for a broader set of activities than have been funded. Congress authorized
USACE to provide USACE to provide ~~WIFIA support~~credit assistance for water resource projects, such as flood control, hurricane and storm damage for water resource projects, such as flood control, hurricane and storm damage
reductionreduction,; aquatic ecosystem restoration aquatic ecosystem restoration,; and navigation and navigation,; and multipurpose projects that are supported by USACE and and multipurpose projects that are supported by USACE and
the EPA WIFIA authorities (e.g., drinking water, wastewater, and/or stormwater system improvements). USACE’s the EPA WIFIA authorities (e.g., drinking water, wastewater, and/or stormwater system improvements). USACE’s
~~WIFIA~~ appropriations have been limited to nonfederal dam safetyappropriations have been limited to nonfederal dam safety projects. 52 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 determines is technically sound, economically justified, and environmentally acceptable. 53 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. 54 33 U.S.C. §3907(a)(4)).
~~44 U.S. Army Corps of Engineers, “Credit Assistance and Related Fees for Water Resources Infrastructure Projects,” 87~~
~~Federal Register~~ ~~35473-35489, 2022~~. .
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link to page link to page ~~43 link to page 43~~45 Federally Supported Water Projects and Programs

~~Engineers Civil Works~~Given the program’s current focus on nonfederal dam safety projects, CWIFP is not discussed further in this report. For more information on USACE’s program, see CRS Insight IN12021, Corps Water Infrastructure Financing Program (CWIFP)~~: Status and Issues. (~~. For more For more
information on the EPA WIFIA program, information on the EPA WIFIA program, ~~see~~ see “Water Infrastructure Finance and Innovation Act
Program” inin the EPA portion of the report. the EPA portion of the report.)
Storage of Municipal and Industrial Water at Multipurpose USACE Reservoirs
A total of 136 USACE reservoirs have roughly 9.8 million acre-feet of storage designated for A total of 136 USACE reservoirs have roughly 9.8 million acre-feet of storage designated for
M&I water.M&I water.55 Most of this water was allocated to M&I purposes when the projects were 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 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.from existing USACE reservoirs using USACE’s general water supply authorities.56 The storage of The storage of
M&I water at USACE reservoirs, as discussed below, is subject to availability of storage space, M&I water at USACE reservoirs, as discussed below, is subject to availability of storage space,
and the associated costs are 100% a local, nonfederal responsibility. For its projects, USACE and the associated costs are 100% a local, nonfederal responsibility. For its projects, USACE
policy is that the agency does not acquire water rights for either M&I or agricultural water supply 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. and conservation purposes. Rather, the water user is responsible for securing water rights.
Congress has given USACE limited general authority for M&I water supply under two different Congress has given USACE limited general authority for M&I water supply under two different
statutes: statutes:
1. The Water Supply Act of 1958 authorized USACE (and Reclamation) to 1. The Water Supply Act of 1958 authorized USACE (and Reclamation) to
recommend economically justified M&I water supply storage space in new or recommend economically justified M&I water supply storage space in new or
existing reservoirs.existing reservoirs.
57 2. The Flood Control Act of 1944 authorizes USACE to provide, through temporary 2. The Flood Control Act of 1944 authorizes USACE to provide, through temporary
agreements, surplus water from USACE reservoirs. agreements, surplus water from USACE reservoirs.58 Surplus water contracts have Surplus water contracts have
generally been limited to five-year terms with options to extend. 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 Pursuant to these statutes, the agency can enter into agreements with nonfederal entities for water
supply storage. supply storage.
While much of USACE’s water supply activities are conducted using the above general 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 authorities, Congress has also at times authorized M&I water supply activities at specific USACE
projects, principally USACE reservoirs. projects, principally USACE reservoirs.
Project Purposes
As previously noted, Congress authorized USACE to allocate a portion of its multipurpose 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 reservoirs for permanent M&I storage or to provide M&I water from USACE reservoirs under
temporary agreements for surplus water.temporary agreements for surplus water.59 Neither authority allows USACE to sell or allocate Neither authority allows USACE to sell or allocate
quantities of water. Instead, USACE M&I agreements are for space in a reservoirquantities of water. Instead, USACE M&I agreements are for space in a reservoir ~~and~~.60 They provide no provide no
guarantee of a fixed quantity of water to be delivered in a given year. Under these authorities, guarantee of a fixed quantity of water to be delivered in a given year. Under these authorities,
55 U.S. Army Engineer Institute for Water Resources (IWR), FY 2016 Municipal, Industrial, and Irrigation Water Supply Database Report, 2017-R-02, Alexandria, VA, June 2017, p. 6, at https://publibrary.planusace.us/#/document/e71cd9b9-faff-4d63-8d42-8ee1baa3cc7f. Hereinafter: “IWR FY 2016 Municipal, Industrial, and Irrigation Water Supply Database Report, 2017.” 56 IWR FY 2016 Municipal, Industrial, and Irrigation Water Supply Database Report, 2017. p. 8. 57 43 U.S.C. §390b. 58 33 U.S.C. §708. 59 43 U.S.C. §390b; 33 U.S.C. §708. 60 U.S. Army Corps of Engineers (USACE), Planning Guidance Notebook, ER 1105-2-100, April 22, 2000, p. 3-31. Hereinafter “USACE Planning Guidance Notebook.” Congressional Research Service 23 Federally Supported Water Projects and Programs USACE delivers water if it is available in the storage space and if delivery does not substantially USACE delivers water if it is available in the storage space and if delivery does not substantially
affect other authorized purposes. affect other authorized purposes.
Financing or Funding Mechanism
Most agreements for new M&I water supply storage are associated with existing USACE Most agreements for new M&I water supply storage are associated with existing USACE
reservoirs and require nonfederal entities to make annual payments for M&I water storage reservoirs and require nonfederal entities to make annual payments for M&I water storage
services at USACE reservoirs.services at USACE reservoirs.61 USACE construction projects are financed up front by the federal USACE construction projects are financed up front by the federal
government, and costs for M&I project purposes are repaid 100%, with interest, via long-term government, and costs for M&I project purposes are repaid 100%, with interest, via long-term
(typically 30 years) agreements,(typically 30 years) agreements,62 unless specified otherwise in law. The fees collected from unless specified otherwise in law. The fees collected from
nonfederal entities pursuant to water supply agreements are deposited into a general account at nonfederal entities pursuant to water supply agreements are deposited into a general account at
the U.S. Treasury. the U.S. Treasury.
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Eligibility Requirements
For USACE’s water supply activities conducted using the above general authorities, nonfederal 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 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 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 (for aspects of specific USACE projects through an annual public proposal submission process (for
more information, see CRS Insight IN11118, more information, see CRS Insight IN11118, Army Corps of Engineers: Section 7001 Report on
Future Studies and Projects, by Anna E. Normand). Congress has used submitted Section 7001 , by Anna E. Normand). Congress has used submitted Section 7001
proposals proposals ~~in identifying~~to identify activities to be authorized in USACE authorization legislation. activities to be authorized in USACE authorization legislation.
For new USACE projects with M&I water supply, existing law and agency policy require that (1) For new USACE projects with M&I water supply, existing law and agency policy require that (1)
water supply benefits and costs be equitably allocated among multiple purposes, (2) repayment by water supply benefits and costs be equitably allocated among multiple purposes, (2) repayment by
state or local interests be agreed to before construction, (3) the water supply allocation for state or local interests be agreed to before construction, (3) the water supply allocation for
anticipated demand at any project not exceed 30% of the total estimated cost, (4) repayment shall anticipated demand at any project not exceed 30% of the total estimated cost, (4) repayment shall
be either during construction (without interest) or over 30 years (with adjustable interest rates), be either during construction (without interest) or over 30 years (with adjustable interest rates),
and (5) users reimburse USACE annually for all associated operation and maintenance or and (5) users reimburse USACE annually for all associated operation and maintenance or
replacement costs.replacement costs.63 Congress has enacted occasional exceptions to USACE’s general authority, 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 which is generally limited to storage of water supply at existing projects that does not “seriously
affect” other project purposes.affect” other project purposes.4564
Recent Federal Funding
USACE primarily uses annual appropriations for administration of its water supply authorities. USACE primarily uses annual appropriations for administration of its water supply authorities.
From From ~~FY2022~~FY2023 annual appropriations, USACE planned to use $ annual appropriations, USACE planned to use $67.0 million for USACE’s costs for million for USACE’s costs for
implementing its reservoir-related water supply authorities.implementing its reservoir-related water supply authorities.4665 The Administration’s The Administration’s ~~FY2023~~FY2024
budget request included $budget request included $525.0 million for USACE’s implementation costs.66 61 USACE Planning Guidance Notebook, p. E-209. 62 Ibid. 63 43 U.S.C. §390b; USACE Planning Guidance Notebook, pp. 3-31-3-36. 64 43 U.S.C. §390b(e). 65 P.L. 117-58 did not specifically provide for water supply funding. 66 USACE, Fiscal Year 2024 Civil Works Budget of the U.S. Army Corps of Engineers, March 2023, p. 6, at https://usace.contentdm.oclc.org/utils/getfile/collection/p16021coll6/id/2317. Congressional Research Service 24 Federally Supported Water Projects and Programs ~~million for USACE’s implementation costs.~~
Statutory Authority
Statutory authority is provided in the Water Supply Act of 1958 (Title III, 72 Stat. 320, as Statutory authority is provided in the Water Supply Act of 1958 (Title III, 72 Stat. 320, as
amended; 43 U.S.C. §390b)amended; 43 U.S.C. §390b)~~;47~~,67 the Flood Control Act of 1944 (§6, 58 Stat. 890, as amended, 33 the Flood Control Act of 1944 (§6, 58 Stat. 890, as amended, 33
U.S.C. §708)U.S.C. §708);, and project-specific authorities in Water Resource Development Acts (WRDAs) or and project-specific authorities in Water Resource Development Acts (WRDAs) or
similar legislation. similar legislation.
Environmental Infrastructure Assistance
Project Purpose
~~Federal policy is generally that community water supply is a local and state responsibility.~~
~~However, communities, particularly rural and small communities, have increasingly sought~~
~~federal water supply assistance.~~ Since 1992, Congress has enacted more than Since 1992, Congress has enacted more than ~~250~~400 authorizations authorizations
allowing USACE to provide designated communities, counties, and states with design and allowing USACE to provide designated communities, counties, and states with design and
construction assistance for drinking water and wastewater infrastructure (including treatment and construction assistance for drinking water and wastewater infrastructure (including treatment and
distribution/collection facilities) and source water protection and development. These activities distribution/collection facilities) and source water protection and development. These activities
are known as are known as environmental infrastructure (EI) projects or programs. The authorizations of (EI) projects or programs. The authorizations of
federal appropriations for these activities have varied widely, from $0.1 million for a water federal appropriations for these activities have varied widely, from $0.1 million for a water
monitoring station to $monitoring station to $~~585 million~~1.0 billion for a seven-state EI program. As with Reclamation’s rural for a seven-state EI program. As with Reclamation’s rural

~~45 43 U.S.C. §390b(e).~~
~~46 P.L. 117-58 did not specifically provide for water supply funding.~~
~~47 For information on USACE’s civil works program, see https://www.usace.army.mil/Missions/Civil-Works/.~~
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water supply and Title XVI projects, congressional funding of these authorizations has enlarged water supply and Title XVI projects, congressional funding of these authorizations has enlarged
the scope of USACE’s activities. the scope of USACE’s activities.
Financing or Funding Mechanism
Under most USACE EI assistance authorizations, federal assistance typically requires a 75% Under most USACE EI assistance authorizations, federal assistance typically requires a 75%
federal and 25% nonfederal cost share (some authorities are 65% federal and 35% nonfederal). federal and 25% nonfederal cost share (some authorities are 65% federal and 35% nonfederal).
Congress typically provides the federal portion in annual Energy and Water Development Congress typically provides the federal portion in annual Energy and Water Development
Appropriations acts. How USACE and nonfederal financing is managed varies according to the Appropriations acts. How USACE and nonfederal financing is managed varies according to the
specifics of the authorization. USACE may perform the authorized design or construction work specifics of the authorization. USACE may perform the authorized design or construction work
and, for some authorities, use appropriated funds to reimburse nonfederal sponsors for work the and, for some authorities, use appropriated funds to reimburse nonfederal sponsors for work the
sponsors perform, subject to the availability of appropriations. sponsors perform, subject to the availability of appropriations.
Eligibility Requirements
Because EI assistance activities are not part of a national USACE program per se, there are no 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 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 (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 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 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 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 include EI assistance authorities, CRS identified authorized EI assistance in at least 4246 states, the states, the
District of Columbia, District of Columbia, Guam, Puerto Rico, the U.S. Virgin Islands, and the Northern Mariana Islands. Puerto Rico, the U.S. Virgin Islands, and the Northern Mariana Islands.
CRS did not identify authorities for EI assistance in CRS did not identify authorities for EI assistance in ~~Delaware, Hawaii, Iowa, Maine,~~
~~Massachusetts, Nebraska, Washington~~Iowa, Maine, Nebraska, Rhode Island, and other U.S. territories. Because this assistance is not , and other U.S. territories. Because this assistance is not
associated with traditional USACE water resources projects, it is not subject to USACE planning associated with traditional USACE water resources projects, it is not subject to USACE planning
requirements (e.g., a benefit-cost analysis is not performed). requirements (e.g., a benefit-cost analysis is not performed).
67 For information on USACE’s civil works program, see USACE, “Missions: Civil Works,” at https://www.usace.army.mil/Missions/Civil-Works/. Congressional Research Service 25 Federally Supported Water Projects and Programs Recent Federal Funding ~~Recent Federal Funding~~
Only a subset of the Only a subset of the ~~$6.2~~approximately $12.8 billion in authorized USACE EI activities has received appropriations. billion in authorized USACE EI activities has received appropriations.48
68 Congress provided USACE with $Congress provided USACE with $~~100~~168.5 million for EI assistance activities in FY2023. The explanatory statement accompanying Division D of the Consolidated Appropriations Act, 2023 (P.L. 117-328) included recommendations to fund $130.5 million for EI assistance specifically requested by Members as community project funding or congressionally directed spending proposals (32 requests were funded). In addition, Division N of P.L. 117-328 provided $18.0 million in emergency appropriations for USACE to allocate to EI assistance authorities in an agency work plan. Division A of the Continuing Appropriations and Ukraine Supplemental Appropriations Act, 2023 (P.L. 117-180) provided $20.0 million for EI assistance, which USACE allocated to assistance for Jackson, MS, water and wastewater infrastructure. The FY2024 President’s budget request included $5.0 million for EI assistance; this is the first time an Administration has requested EI assistance funding.69 Statutory Authority ~~million for EI assistance activities in FY2021 as part of~~
~~the “additional funding” provided by Congress in appropriations acts.49 USACE allocated the~~
~~funding to 21 authorities in its FY2021 work plan. In FY2022, Congress provided $86.5 million~~
~~to 26 community project funding/congressionally directed spending (CPF/CDS) EI requests and~~
~~$13 million for USACE to distribute to EI authorities in its FY2022 work plan.50 In FY2022,~~
~~Congress also provided $200 million for EI authorities in the IIJA, which USACE allocated to EI~~

~~48 For more information, see CRS In Focus IF11184,~~ ~~Army Corps of Engineers: Environmental Infrastructure (EI)~~
~~Assistance, by Anna E. Normand.~~
~~49 EI assistance is funded through the agency’s Construction account in Energy and Water Appropriations acts. USACE~~
~~Work Plans for recent fiscal years are published at USACE, “Civil Works Budget and Performance,”~~
~~http://www.usace.army.mil/Missions/Civil-Works/Budget/. For more information on USACE appropriations, see CRS~~
~~Report R46320, U.S. Army Corps of Engineers: Annual Appropriations Process and Issues for Congress, by Anna E.~~
~~Normand and Nicole T. Carter.~~
~~50 See “Explanatory Statement Accompanying H.R. 2471, Consolidated Appropriations Act, 2022,”~~ ~~Congressional~~
~~Record, vol. 168, part 42-III (March 9, 2022), pp. H2192-H2197 and pp. H2302-2308, https://www.congress.gov/117/~~
~~crec/2022/03/09/168/42/CREC-2022-03-09-bk3.pdf.~~
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~~authorities in its FY2022 IIJA spend plan.51 Similar to previous requests, the Biden~~
~~Administration requested no funding for these activities in its FY2023 request.~~
~~Statutory Authority~~
Prior to 1992, USACE was generally not widely involved with municipal drinking water 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 treatment and distribution and wastewater collection and treatment. The agency is now authorized
to contribute to more than to contribute to more than ~~280~~400 EI projects and programs. A WRDA or similar legislation is the EI projects and programs. A WRDA or similar legislation is the
typical legislative vehicle for USACE authorizations. Beginning with WRDA 1992 (P.L. 102-typical legislative vehicle for USACE authorizations. Beginning with WRDA 1992 (P.L. 102-
580), Congress has authorized USACE to assist local interests with planning, design, and 580), Congress has authorized USACE to assist local interests with planning, design, and
construction assistance for EI projects. Subsequent USACE authorization construction assistance for EI projects. Subsequent USACE authorization ~~bills~~acts have included new EI included new EI
assistance activities and raised the authorized funding ceilings for previously authorized projects. assistance activities and raised the authorized funding ceilings for previously authorized projects.
Policies limiting congressionally directed spending in the 112th through 116th Congresses limited Policies limiting congressionally directed spending in the 112th through 116th Congresses limited
congressional authorizing activity of EI assistance during that period. In WRDA 2016 congressional authorizing activity of EI assistance during that period. In WRDA 2016 ~~and WRDA~~
~~2018~~(Title I of P.L. 114-322) and WRDA 2018 (Title I of P.L. 115-270), Congress expanded the Section 7001 process for nonfederal entities to propose , Congress expanded the Section 7001 process for nonfederal entities to propose
modifications to existing authorities for modifications to existing authorities for EI assistance.70 Congress amended EI authorities in WRDA 2018 and WRDA 2020 (Division AA of P.L. 116-260).71 Congressional interest in expanding EI assistance continued in the 117th Congress, which included new EI assistance authorities in WRDA 2022. The respective WRDA bills from the Senate Environment and Public Works Committee and the House Transportation and Infrastructure Committee, S. 4136 and H.R. 7776,72 included Member proposals and proposals transmitted by the Administration (e.g., nonfederal proposals included in a Section 7001 report) for new and amended authorizations for EI assistance. In total, the enacted WRDA 2022 (Division H, Title LXXXI; P.L. 117-263) increased the authorization of appropriations for EI by 68 For more information, see CRS Report R47162, Overview of U.S. Army Corps of Engineers Environmental Infrastructure (EI) Assistance, by Anna E. Normand. 69 USACE, FY2024 Construction Budget Justification, p. 114, March 2023, at https://usace.contentdm.oclc.org/utils/getfile/collection/p16021coll6/id/2354. 70 §1157 of WRDA 2016 and §1332 of WRDA 2018. For more information on the Section 7001 process, see CRS Insight IN11118, Army Corps of Engineers: Section 7001 Report on Future Studies and Projects, by Anna E. Normand. 71 §1303 of WRDA 2018 and §352 of WRDA 2020. 72 The Senate Environment and Public Works Committee reported S. 4136, WRDA 2022, on May 4, 2022, without a report. The House Transportation and Infrastructure Committee ordered reported H.R. 7776, WRDA 2022, on May 18, 2022. Congressional Research Service 26 Federally Supported Water Projects and Programs $6.6 billion, more than doubling the authorization of appropriations previously provided by EI authorities. In WRDAs, Congress has also authorized various processes to deauthorize existing authorities meeting certain criteria. In two instances, these processes have resulted in the deauthorization of EI assistance authorities.73 Department of Agriculture Rural Utilities Service (Water and Waste Disposal Programs)74 USDA administers a variety of water and waste disposal75 programs that provide loans and grants for drinking water, sanitary sewer, and storm drainage facilities in rural communities. Eligibility is limited to rural communities with populations of 10,000 or fewer for grants and direct loans and 50,000 or fewer for guaranteed loans. These programs are administered at the national level by the Rural Utilities Service (RUS) at USDA. RUS allocates program funds to the USDA State Rural Development offices through an allocation formula based on rural population, poverty, and unemployment. Loans originate at the USDA’s State Rural Development offices. Over the last six years, RUS obligated $8.4 billion to 3,418 direct loans for water and waste disposal projects.76 During that time, RUS obligated $115.0 million for 80 guaranteed loans and $4.4 billion for over 2,587 grants for water and waste disposal projects.77 Water and Wastewater Loans and Grants Program Purpose ~~EI assistance. For those proposals that meet the criteria~~
~~established by Congress, the Administration transmits those proposals to Congress for its~~
~~consideration as part of deliberations regarding USACE authorization legislation.52 Congress has~~
~~amended EI authorities including in these Section 7001 reports in WRDA 2018 and WRDA 2020.~~
~~Department of Agriculture~~
~~Rural Utilities Service (Water and Waste Disposal Programs)53~~
~~USDA administers a variety of water and waste disposal54 programs that provide loans and grants~~
~~for drinking water, sanitary sewer, and storm drainage facilities in rural communities. Eligibility~~
~~is limited to rural communities of 10,000 population or fewer for grants and direct loans and~~
~~50,000 or fewer for guaranteed loans. These programs are administered at the national level by~~
~~the Rural Utilities Service (RUS) at USDA. RUS allocates program funds to the USDA State~~
~~Rural Development offices through an allocation formula based on rural population, poverty, and~~
~~unemployment. Loans originate at the USDA’s State Rural Development offices.~~
~~From FY2012 to FY2021, RUS obligated $11.1 billion to 5,568 direct loans for water and waste~~
~~disposal projects.55 During that time, RUS obligated $137 million for 89 guaranteed loans and~~
~~$5.9 billion for over 7,400 grants for water and waste disposal projects.56~~

~~51 See USACE,~~ ~~Army Civil Works Program Infrastructure Investment and Jobs Act, 2022 Construction Spend Plan -~~
~~Addendum, https://www.usace.army.mil/Missions/Civil-Works/Budget/.~~
~~52 For more on this public proposal process, see CRS Insight IN11118,~~ ~~Army Corps of Engineers: Section 7001 Report~~
~~on Future Studies and Projects, by Anna E. Normand; and USACE, “WRRDA 7001 Proposals,”~~
~~http://www.usace.army.mil/Missions/Civil-Works/Project-Planning/WRRDA-7001-Proposals/.~~
~~53 This section was prepared by Lisa Benson, Analyst in Agricultural Policy, Resources, Science, and Industry~~
~~Division.~~
~~54 The programs’ official titles contain “Waste Disposal,” but the vast majority of the waste disposal projects are for~~
~~wastewater infrastructure. A very 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.~~
~~55 USDA, Office of Budget and Program Analysis, “2023 USDA Explanatory Notes – Rural Utilities Service,”~~
~~https://www.usda.gov/sites/default/files/documents/34-2023-RUS.pdf.~~
~~56 USDA, Office of Budget and Program Analysis, “2023 USDA Explanatory Notes – Rural Utilities Service,”~~
~~https://www.usda.gov/sites/default/files/documents/34-2023-RUS.pdf.~~
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~~Water and Wastewater Loans and Grants~~
~~Program Purpose~~
The purpose of these programs is to provide basic human amenities, alleviate health hazards, and The purpose of these programs is to provide basic human amenities, alleviate health hazards, and
promote the orderly growth of the nation’s rural areas by meeting the need for new and improved promote the orderly growth of the nation’s rural areas by meeting the need for new and improved
rural water and waste disposal facilities. Eligible projects can include drinking water facilities, rural water and waste disposal facilities. Eligible projects can include drinking water facilities,
sanitary sewers, and stormwater drainage and disposal facilities. Funds may be used for 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 installation, repair, improvement, or expansion of rural water facilities, including costs of
distribution lines and well-pumping facilities. distribution lines and well-pumping facilities.
USDA is required to use USDA is required to use ~~a portion~~3% to 5% of the water and waste grants appropriation to make grants to of the water and waste grants appropriation to make grants to
qualified nonprofits to provide technical assistance and training to help communities identify 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 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.operation and maintenance of existing water and waste disposal facilities in rural areas.5778 The The
2018 farm bill (P.L. 115-334) directed the Secretary to reserve 3%-5% of total water and waste 2018 farm bill (P.L. 115-334) directed the Secretary to reserve 3%-5% of total water and waste
grant funding for this technical assistance and training. This activity has received grant funding for this technical assistance and training. This activity has received ~~$30 million to~~
~~$35 million annually in recent years.58 For FY2021, Congress specified that funding for technical~~
~~assistance for water and waste disposal facilities may not exceed $35 million.59 In addition, the~~
~~similar Circuit Rider technical assistance program has an appropriation of $20.157 million for~~
~~FY2021.60 The 2018 farm bill authorized appropriations for this program at $25 million annually~~
~~for FY2019-FY2023.~~
~~Financing or Funding Mechanism~~
~~Direct loans, guaranteed loans, and grants provide USDA support for water and waste disposal~~
~~projects. USDA prefers making direct loans. Grants are made only when necessary to reduce~~
~~average annual user charges to a reasonable level, particularly for lower-income communities.~~
~~The split between loans and grants distributed from the regular infrastructure program, which is~~
~~the large majority of spending, was about 75%-25% in 2015 and 2016.61 There is no statutory~~
~~distribution formula. USDA allocates funds to states based upon rural population, number of~~
~~households in poverty, and unemployment. There are no matching requirements for states.~~
~~Water and Waste Disposal Loans~~
~~The Rural Development Act of 1972 authorized establishment of the Rural Development~~
~~Insurance Fund under~~approximately 73 CRS did not identify any enacted provisions where Congress has deauthorized individual EI assistance authorities. 74 This section was prepared by Lisa Benson, Analyst in Agricultural Policy, Resources, Science, and Industry Division. 75 The programs’ official titles contain “Waste Disposal,” but the vast majority of the waste disposal projects are for wastewater infrastructure. A very 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. 76 USDA, Office of Budget and Program Analysis, “2024 USDA Explanatory Notes – Rural Utilities Service,” at https://www.usda.gov/sites/default/files/documents/34-2024-RUS.pdf. 77 Ibid. 78 7 U.S.C. §1926(a)(14)(C), Rural Water and Wastewater Technical Assistance Training Programs. Congressional Research Service 27 Federally Supported Water Projects and Programs $37.0 million annually in recent years.79 For FY2023, Congress provided funding for technical assistance for water and waste disposal facilities in the amount of $38.0 million.80 In addition, the similar Circuit Rider technical assistance program has an appropriation of $21.0 million for FY2023.81 The 2018 farm bill authorized appropriations for this program at $25.0 million annually for FY2019-FY2023.82 Financing or Funding Mechanism USDA supports water and waste disposal projects through direct loans, guaranteed loans, and grants. USDA provides loans and grants for water and waste disposal projects that serve the “most financially needy communities.”83 Water and Waste Disposal Loans Water and Waste Disposal Program loans are authorized by Section 306 of the Consolidated Farm and Rural Development Act. the Consolidated Farm and Rural Development Act.84 Among other Among other
activities, activities, ~~this fund is used for loans~~loans can be used (direct and guaranteed) for projects for the development, (direct and guaranteed) for projects for the development,
storage, treatment, purification, or distribution of water or the collection, treatment, or disposal of storage, treatment, purification, or distribution of water or the collection, treatment, or disposal of
waste in low-income rural areas.waste in low-income rural areas.85 Applicants must certify in writing that they are unable to obtain financing for the project through commercial credit institutions at reasonable rates and terms.86 Loans are repayable in not more than 40 years or the useful life Loans are repayable in not more than 40 years or the useful life
of the facilities, whichever is less.of the facilities, whichever is less.87 USDA makes either direct loans to applicants or guarantees up USDA makes either direct loans to applicants or guarantees up
to 90% of loans made by third-party lenders such as banks and savings and loan to 90% of loans made by third-party lenders such as banks and savings and loan associations.~~associations.~~

~~57 7 U.S.C. §1926(a)(14), Rural Water and Wastewater Technical Assistance Training Programs.~~
~~58 As per the USDA, Office of Budget and Program Analysis’s “FY2022 USDA Explanatory Notes – Rural Utilities~~
~~Service,” appropriations for the technical assistance grants for rural waste systems for FY2019 was $30 million, for~~
~~FY2020 was $30 million, and for FY2021 was $35 million.~~
~~59 Consolidated Appropriations Act, 2021 (P.L. 116-260).~~
~~60 Consolidated Appropriations Act, 2021 (P.L. 116-260).~~
~~61 USDA, “Water and Environmental Program,” https://www.rd.usda.gov/programs-services/water-environmental-~~
~~programs.~~
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Loan interest rates are based on the community’s economic capacity and health environment. Loan interest rates are based on the community’s economic capacity and health environment.
Interest rates are designated Interest rates are designated as poverty, market, or intermediate. Povertypoverty, market, or intermediate. Poverty ~~interest~~-rate loans are made -rate loans are made
in areas where the median household income (MHI) falls below 80% of the statewide in areas where the median household income (MHI) falls below 80% of the statewide ~~nonurban~~
nonmetropolitan MHI or the poverty level, whichever is higher, and where the project is needed to meet health or MHI or the poverty level, whichever is higher, and where the project is needed to meet health or
sanitary standards.sanitary standards.88 By law, this rate is set at By law, this rate is set at 6080% of the market rate and cannot exceed 5% annually.89 The ~~% of the market rate. The market rate is adjusted~~
~~quarterly and is set using the average of a specified 11-bond index. It applies to loans to~~
~~applicants where the MHI of the service area exceeds the statewide nonurban MHI. The~~
intermediate rate applies to loans that do not meet the criteria for the intermediate rate applies to loans that do not meet the criteria for the poverty rate and where the median household income (MHI) is not more than 100% of the statewide nonmetropolitan MHI.90 By law, this rate is set at 80% of the market rate and cannot 79 As per the USDA, Office of Budget and Program Analysis’s “FY2024 USDA Explanatory Notes – Rural Utilities Service,” appropriations for the technical assistance grants for rural waste systems for FY2021 were $36.777 million and for FY2022 were $37.387 million. 80 Consolidated Appropriations Act, 2023 (P.L. 117-328). 81 Ibid. 82 Agriculture Improvement Act of 2018 (2018 farm bill; P.L. 115-334). 83 7 C.F.R. §1780.2. 84 7 U.S.C. §1926. 85 7 U.S.C. §1926(a)(1). 86 7 C.F.R. §1780.7(d). 87 7 C.F.R. §1780.13(e). 88 7 C.F.R. §1780.13(b). 89 Ibid. 90 7 C.F.R. §1780.13(c). Congressional Research Service 28 Federally Supported Water Projects and Programs exceed 7% annually.91 The market rate applies to all loans that do not qualify for poverty-rate loans or intermediate-rate loans.92 The market rate is set using the Bond Buyer Index.93 Water and Waste Disposal Grants Water and Waste Disposal Program grants are also authorized by Section 306 of the Consolidated Farm and Rural Development Act.94 Grants can be used for projects for the development, storage, treatment, purification, or distribution of water or the collection, treatment, or disposal of waste in low-income rural areas.95~~poverty rate and do not have~~
~~to pay the market rate. By law, this rate is set at 80% of the market rate.62 Interest rates on~~
~~guaranteed loans are negotiated between the borrower and the lender. The 2014 farm bill (P.L.~~
~~113-79) amended (1) the water and waste disposal direct and guaranteed loan programs to~~
~~encourage financing by private or cooperative lenders to the maximum extent possible; (2) use of~~
~~loan guarantees where the population exceeds 5,500; and (3) use of direct loans where the impact~~
~~of a guaranteed loan on rate payers would be significant.~~
~~Water and Waste Disposal Grants~~
~~Grants for water and waste disposal projects in rural areas are also authorized under the~~
~~Consolidated Farm and Rural Development Act. Only communities with poverty and~~
~~intermediate-rate incomes qualify for USDA grants. An eligible project must serve a rural area~~
~~that is not likely to decline in population below the level for which the project was designed and~~
~~constructed so that adequate capacity will or can be made available to serve the reasonably~~
~~foreseeable growth needs of the area.~~ The 2018 farm bill (P.L. 115-334) authorized appropriations The 2018 farm bill (P.L. 115-334) authorized appropriations
at $15at $15 .0 million annually for FY2019-FY2023 for these grants.million annually for FY2019-FY2023 for these grants.96
Grant funds may be available for up to 75% of the cost of a project Grant funds may be available for up to 75% of the cost of a project ~~and should be used only to~~
~~reduce user costs to a reasonable level. Grants are made only after RUS determines the maximum~~
~~amount of loan that a community can afford and still have reasonable user rates. Grants, which~~
~~typically provide 35%-45% of project costs, may be used to supplement other funds borrowed or~~
~~furnished by applicants for project costs and may be combined with USDA loans when the~~
~~applicant is able to repay part, but not all, of the project costs. Priority is given to projects serving~~
~~populations of less than 5,500.~~
~~Eligibility Requirements~~
.97 Priority is given to projects that (1) serve rural areas with lower populations, (2) support health initiatives, and (3) support populations with lower median household incomes.98 Eligibility Requirements Eligible entities are municipalities, counties, and other political subdivisions of a state; Eligible entities are municipalities, counties, and other political subdivisions of a state;
associations, cooperatives,associations, cooperatives,63 and organizations operated on a not-for-profit basis; Indian and organizations operated on a not-for-profit basis; Indian ~~tribes~~Tribes on on
federal and state reservations; and other federally recognized federal and state reservations; and other federally recognized ~~tribes.~~Tribes.99 USDA’s loan and grant USDA’s loan and grant
programs are limited to community service areas (including areas in cities or towns) with programs are limited to community service areas (including areas in cities or towns) with
~~population~~populations of 10,000 or fewer for grants and direct loans and 50,000 or fewer for guaranteed of 10,000 or fewer for grants and direct loans and 50,000 or fewer for guaranteed
loans.loans.100 To be eligible for assistance, communities must be unable to get financing for the proposed projects from their own resources or through commercial credit at reasonable rates and terms.101 Statutory and Regulatory Authority ~~To be eligible for assistance, communities must be unable to get reasonable credit through~~
~~normal commercial channels. Also, communities must be below certain income levels. Loans and~~
~~grants are made for projects needed to meet health or sanitary standards, including Clean Water~~
~~Act and Safe Drinking Water Act standards and requirements.~~

~~62 For current interest rates, see USDA, “Water & Waste Disposal Loan & Grant Program,” http://www.rd.usda.gov/~~
~~programs-services/water-waste-disposal-loan-grant-program.~~
~~63 Rural electric cooperatives (coops) are private entities that build and manage rural utility systems. The 1990 farm bill~~
~~(P.L. 101-624) authorized rural coops to expand from their traditional electricity and telephone services. An estimated~~
~~80-90 rural electric coops (fewer than 10% of the total number of coops nationwide) are currently involved in some~~
~~aspect of drinking water or wastewater management, with the majority dealing with drinking water management.~~
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~~Statutory and Regulatory Authority~~
Statutory authority for the water and waste disposal loan and grant programs, water technical Statutory authority for the water and waste disposal loan and grant programs, water technical
assistance, and other rural water assistance programs is the Consolidated Farm and Rural assistance, and other rural water assistance programs is the Consolidated Farm and Rural
Development Act, as amended (§306, 7 U.S.C. §1926). Regulations for these programs are Development Act, as amended (§306, 7 U.S.C. §1926). Regulations for these programs are
codified at Title 7, Parts 1779-1780, of the codified at Title 7, Parts 1779-1780, of the Code of Federal Regulations..64102
Recent Federal Funding
~~FY2022~~ FY2023 appropriations for USDA’s water and waste disposal programs and related programs appropriations for USDA’s water and waste disposal programs and related programs
were included in the Consolidated Appropriations Act, were included in the Consolidated Appropriations Act, ~~2022~~2023 (P.L. 117- (P.L. 117-~~103~~328). Division A, Title III ). Division A, Title III
~~provided $653.3 million in total for FY2022.65 The appropriations included $490~~ 91 Ibid. 92 7 C.F.R. §1780.13(d). 93 Ibid. 94 7 U.S.C. §1926. 95 7 U.S.C. §1926(a)(2). 96 Agriculture Improvement Act of 2018 (2018 farm bill; P.L. 115-334). 97 7 C.F.R. §1780.10(c). 98 7 C.F.R. §1780.17. 99 7 C.F.R. §1780.7. 100 7 C.F.R. §1780.3 and 7 C.F.R. §5001.3. 101 7 C.F.R. §1780.7(d). 102 For additional information on RUS water and environmental programs, see USDA, “Water & Waste Disposal Loan & Grant Program,” at http://www.rd.usda.gov/programs-services/water-waste-disposal-loan-grant-program. Congressional Research Service 29 Federally Supported Water Projects and Programs provided $596.0 million in total for FY2023.103 The appropriations included $430.0 million in water million in water
and waste disposal grants; $1and waste disposal grants; $1.0 million to capitalize revolving funds for water and waste disposal million to capitalize revolving funds for water and waste disposal
projects; and $70projects; and $70.0 million for water and waste disposal grants for million for water and waste disposal grants for ~~colonias~~colonias, Alaskan Native and , Alaskan Native and
rural villages, and Native American tribes. Congress provided rural villages, and Native American tribes. Congress provided a $3.0 million loan subsidy to support $1.42~~$1.4~~ billion in loan authority for billion in loan authority for
water and waste disposal direct loanswater and waste disposal direct loans ~~(no loan subsidy was needed to support the loan authority),~~
~~and $50 million~~, and $50.0 million in loan authority for water and waste disposal loan guarantees ( for water and waste disposal loan guarantees (ano loan subsidy loan subsidy ~~of $45,000 was~~
~~provided~~was needed to support the loan authority). Congress also included $ to support the loan authority). Congress also included $~~37.5~~38.0 million for water and waste million for water and waste
disposal technical assistance grants and $disposal technical assistance grants and $~~20.762~~21.0 million for the Circuit Rider Program. million for the Circuit Rider Program.
For For ~~FY2023~~FY2024, the Administration , the Administration ~~is requesting $716.5~~requested $882.0 million for USDA’s water and waste million for USDA’s water and waste
disposal and related programs.disposal and related programs.66104 The request The request ~~includes $511.9~~included $538.0 million in water and waste disposal million in water and waste disposal
grants; grants; $1.0$1 million to capitalize revolving funds for water and waste disposal projects; and $ million to capitalize revolving funds for water and waste disposal projects; and $93
87.0 million for water and waste disposal grants for million for water and waste disposal grants for ~~colonias~~colonias, Alaskan Native and rural villages, Native , Alaskan Native and rural villages, Native
American tribes, and Hawaiian home lands. The request American tribes, and Hawaiian home lands. The request ~~provides $1.54~~provided $1.61 billion in loan authority billion in loan authority
for water and waste disposal direct loans (with a loan subsidy of $for water and waste disposal direct loans (with a loan subsidy of $~~26.499~~155.0 million to support the million to support the
loan authority), and $50loan authority), and $50.0 million for water and waste disposal loan guarantees (no loan subsidy is million for water and waste disposal loan guarantees (no loan subsidy is
needed to support the loan authority). The request needed to support the loan authority). The request ~~includes $40~~included $42.0 million for water and waste million for water and waste
disposal technical assistance grantsdisposal technical assistance grants, and $ and $~~20.157~~25.0 million for the Circuit Rider Program, which million for the Circuit Rider Program, which
also provides technical assistance. also provides technical assistance.
Emergency Community Water Assistance Grants
RUS is also authorized to help eligible communities prepare for or recover from an emergency RUS is also authorized to help eligible communities prepare for or recover from an emergency
that threatens the availability of safe, reliable drinking water.that threatens the availability of safe, reliable drinking water.67105 Grants ranging from $10,000 to a Grants ranging from $10,000 to a
maximum of $1maximum of $1.0 million are provided for projects to serve a rural area with a population of 10,000 million are provided for projects to serve a rural area with a population of 10,000
or fewer that has an MHI not in excess of the statewide nonmetropolitan MHI. Grants for repairs, or fewer that has an MHI not in excess of the statewide nonmetropolitan MHI. Grants for repairs,
partial replacement, or significant maintenance of an established system cannot exceed $150,000. partial replacement, or significant maintenance of an established system cannot exceed $150,000.
Communities use the funds for new systems, waterline extensions, construction of water source Communities use the funds for new systems, waterline extensions, construction of water source
and treatment facilities, and repairs or renovation of existing systems, and may be awarded for and treatment facilities, and repairs or renovation of existing systems, and may be awarded for
100% of project cost. Applicants compete on a national basis for available funding. Funding for 100% of project cost. Applicants compete on a national basis for available funding. Funding for
this program is provided primarily through a reservation of 5%-7% of appropriated water and this program is provided primarily through a reservation of 5%-7% of appropriated water and
waste disposal grant funds. The 2018 farm bill waste disposal grant funds. The 2018 farm bill ~~(P.L. 115-334)~~ also authorized appropriations of an also authorized appropriations of an
additional $50additional $50.0 million per year through FY2023 for this program. million per year through FY2023 for this program.106 Statutory authority for the emergency community water assistance grant program is the Consolidated Farm and Rural Development Act, as amended, Section 306A (7 U.S.C. §1926a). Regulations for this program are codified at Title 7, Part 1778, of the Code of Federal Regulations. 103 U.S. Congress, House Committee on Appropriations, Consolidated Appropriations Act, 2023, committee print, 117th Congress, 2nd session, H.Prt. 50-347. 104 USDA, Office of Budget and Program Analysis, “2024 USDA Explanatory Notes – Rural Utilities Service,” at https://www.usda.gov/sites/default/files/documents/34-2024-RUS.pdf. 105 7 U.S.C. §1926a. 106 Agriculture Improvement Act of 2018 (2018 farm bill; P.L. 115-334). Congressional Research Service 30 Federally Supported Water Projects and Programs Congress provided $15.0 million for the Emergency Community Water Assistance Grant Program for FY2023.107 The FY2024 Administration request also includes $15.0

~~64 For additional information on RUS water and environmental programs, see USDA, “Water & Waste Disposal Loan~~
~~& Grant Program,” http://www.rd.usda.gov/programs-services/water-waste-disposal-loan-grant-program.~~
~~65 Congressional Record, vol. 168, no. 42, Book III (March 9, 2022).~~
~~66 USDA, Office of Budget and Program Analysis, “2023 USDA Explanatory Notes – Rural Utilities Service,”~~
~~https://www.usda.gov/sites/default/files/documents/34-2023-RUS.pdf.~~
~~67 7 U.S.C. §1926a.~~
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~~Statutory authority for the emergency community water assistance grant program is the~~
~~Consolidated Farm and Rural Development Act, as amended, Section 306A (7 U.S.C. §1926a).~~
~~Regulations for this program are codified at Title 7, Part 1778, of the~~ ~~Code of Federal~~
~~Regulations~~.
~~Congress provided $15 million for the Emergency Community Water Assistance Grant Program~~
~~for FY2022. The FY2023 Administration request also includes $15~~ million for the program. million for the program.108
Rural Decentralized Water Systems Grants
USDA is also authorized to make grants to private nonprofit organizations for the purpose of USDA is also authorized to make grants to private nonprofit organizations for the purpose of
providing loansproviding loans ~~and subgrants~~ to eligible individuals for construction, refurbishing, and servicing to eligible individuals for construction, refurbishing, and servicing
of “individual household water well systems and individually owned decentralized wastewater of “individual household water well systems and individually owned decentralized wastewater
~~systems.”68 Loans and subgrants~~systems.”109 Loans are limited to $15,000 per are limited to $15,000 per ~~water well or decentralized system.~~
household. The 2018 farm bill The 2018 farm bill ~~(P.L. 115-334)~~ authorized $20authorized $20.0 million for million for ~~the program through FY2023.~~each fiscal year through FY2023 for the program.110
Statutory authority for the rural decentralized water systems grant program is the Consolidated Statutory authority for the rural decentralized water systems grant program is the Consolidated
Farm and Rural Development Act, as amended, Section 306E (7 U.S.C. §1926e). Regulations for Farm and Rural Development Act, as amended, Section 306E (7 U.S.C. §1926e). Regulations for
this program are codified at Title 7, Part 1776, of the this program are codified at Title 7, Part 1776, of the Code of Federal Regulations. .
Congress provided $5 Congress provided $5.0 million for the Rural Decentralized Water Systems Grant Program for million for the Rural Decentralized Water Systems Grant Program for
~~FY2022. The FY2023~~FY2023.111 The FY2024 Administration request also Administration request also ~~includes $5~~included $5.0 million for the program. million for the program.112
Natural Resources Conservation ~~Service69~~Service113
The USDA provides assistance for watershed activities under four closely related authorities that 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 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. 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, 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 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 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 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 the WFPO program may also be eligible to receive assistance under the Small Watershed
Rehabilitation ProgramRehabilitation Program~~, authorized by Congress in 2000~~. The fourth watershed authority is an . The fourth watershed authority is an
emergency program that is not discussed in this report.emergency program that is not discussed in this report.70114
Watershed and Flood Prevention Operations
The WFPO program consists of projects built under two authorities—the Watershed Protection 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). and Flood Prevention Act of 1954 (P.L. 83-566) and the Flood Control Act of 1944 (P.L. 78-534).
~~The vast majority of the projects (referred to as P.L. 566 projects) have been built pursuant to the~~
~~authority of P.L. 83-566, which authorizes the chief of the NRCS to approve construction of~~

~~68 7 U.S.C. §1926e.~~
69 107 U.S. Congress, House Committee on Appropriations, Consolidated Appropriations Act, 2023, committee print, 117th Congress, 2nd session, H.Prt. 50-347. 108 USDA, Office of Budget and Program Analysis, “2024 USDA Explanatory Notes – Rural Utilities Service,” at https://www.usda.gov/sites/default/files/documents/34-2024-RUS.pdf. 109 7 U.S.C. §1926e. 110 Agriculture Improvement Act of 2018 (2018 farm bill; P.L. 115-334). 111 U.S. Congress, House Committee on Appropriations, Consolidated Appropriations Act, 2023, committee print, 117th Congress, 2nd session, H.Prt. 50-347. 112 USDA, Office of Budget and Program Analysis, “2024 USDA Explanatory Notes – Rural Utilities Service,” at https://www.usda.gov/sites/default/files/documents/34-2024-RUS.pdf. 113 This section was prepared by Megan Stubbs, Specialist in Agricultural Conservation and Natural Resources Policy, This section was prepared by Megan Stubbs, Specialist in Agricultural Conservation and Natural Resources Policy,
Resources, Science, and Industry Division. Resources, Science, and Industry Division.
70114 The Emergency Watershed Protection (EWP) program is used to restore the natural functions of a watershed after a 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 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, flood plains. For more information on the EWP program, see CRS Report R42854, Emergency Assistance for
Agricultural Land Rehabilitation, by Megan Stubbs. , by Megan Stubbs.
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The vast majority of the projects (referred to as P.L. 566 projects) have been built pursuant to the authority of P.L. 83-566, which authorizes the chief of the NRCS to approve construction of smaller projects (discussed below). Larger projects must be approved by Congress. In smaller projects (discussed below). Larger projects must be approved by Congress. In ~~FY2021~~FY2022, ,
NRCS funded NRCS funded ~~49 new projects and 19 backlog projects.71~~261 projects in 39 states and territories.115
Eleven specific projects were authorized under P.L. 78-534 (referred to as P.L. 534 projects). Eleven specific projects were authorized under 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 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 subwatersheds. encompass almost 37.9 million acres and are divided into component projects in subwatersheds.
Approximately 90% of the work on the P.L. 534 projects is complete. With the exception of the Approximately 90% of the work on the P.L. 534 projects is complete. With the exception of the
two smallest projects, the estimated federal costs for each of these projects range from $40two smallest projects, the estimated federal costs for each of these projects range from $40.0
million to more than $275million to more than $275.0 million. Three of the projects have been completed, and work on the million. Three of the projects have been completed, and work on the
remainder continues in one or more subwatersheds.remainder continues in one or more subwatersheds.116 The FY2023
~~In FY2022, the IIJA (P.L. 117-58, Division J, Title I) provided $500 million for WFPO that is~~
~~available until expended. The FY2022~~ Consolidated Appropriations Act (P.L. 117- Consolidated Appropriations Act (P.L. 117-~~103~~328, Division , Division
A) appropriated $A) appropriated $~~100~~ 75.0 million, of which $million, of which $~~23.3~~20.6 million ( million (2327.5%) was identified as congressionally %) was identified as congressionally
directed spending. Amendments in the 2018 farm bill (P.L. 115-334) permanently authorized an directed spending. Amendments in the 2018 farm bill (P.L. 115-334) permanently authorized an
additional $50additional $50 .0 million annually from mandatory sources to the WFPO program.million annually from mandatory sources to the WFPO program.117
Program Purpose
The purpose of the WFPO program is to provide technical and financial assistance to states and 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 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 have similar objectives and are implemented following similar procedures. Both project types
fund land treatment and nonstructural and structural facilities for flood prevention, erosion fund land treatment and nonstructural and structural facilities for flood prevention, erosion
reduction, agricultural water management, public recreation development, fish and wildlife reduction, agricultural water management, public recreation development, fish and wildlife
habitat development, and municipal or industrial water supplies. Structural measures can include 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 dams, levees, canals, and pumping stations. Local sponsors agree to operate and maintain
completed projects. completed projects.
Financing or Funding Mechanism
USDA provides partial project grants plus technical advisory services. Financing for water 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 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 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, 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 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 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 Program loans to finance the local share of project costs. Participating state and local
organizations pay all operation and maintenance costs.organizations pay all operation and maintenance costs.118 115 USDA, FY2024 USDA Budget Congressional Justification, “2024 USDA Explanatory Notes—Natural Resources Conservation Service,” at https://www.obpa.usda.gov/explan_notes.html (hereinafter referred to as FY2024 USDA Budget Justification). 116 FY2024 USDA Budget Justification. 117 For additional discussion, see CRS Report R47560, Agricultural Conservation: FY2023 and FY2024 Appropriations, by Megan Stubbs. 118 For additional information on financing requirements, see USDA, NRCS, “Watershed Programs – Sponsor Guide,” at https://www.nrcs.usda.gov/sites/default/files/2022-08/Sponsor%20Guide.pdf. Congressional Research Service 32 Federally Supported Water Projects and Programs Eligibility Requirements
~~Eligibility Requirements~~
P.L. 566 has been called the “small watershed program” because no project may exceed 250,000 P.L. 566 has been called the “small watershed program” because no project may exceed 250,000
acresacres, and no structure may exceed more than 12,500 acre-feet of floodwater detention capacity and no structure may exceed more than 12,500 acre-feet of floodwater detention capacity
or 25,000 acre-feet of total capacity.or 25,000 acre-feet of total capacity.72119 The Senate and House Agriculture Committees must The Senate and House Agriculture Committees must
approve projects that need an estimated federal contribution of more than $25approve projects that need an estimated federal contribution of more than $25.0 million for million for
construction or include a storage structure with a capacity in excess of 2,500 acre feet. If the construction or include a storage structure with a capacity in excess of 2,500 acre feet. If the

~~71 USDA, FY2023 USDA Budget Congressional Justification, “2023 USDA Explanatory Notes—Natural Resources~~
~~Conservation Service,” https://www.obpa.usda.gov/explan_notes.html.~~
~~72 The enacted FY2022 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. This provision did not amend the WFPO~~
~~authorization. Therefore, it is effective only for the funds provided through the FY2022 annual appropriation.~~
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storage structure will have a capacity in excess of 4,000 acre feet, approval is also required from storage structure will have a capacity in excess of 4,000 acre feet, approval is also required from
the Senate Environment and Public Works Committee and the House Transportation and the Senate Environment and Public Works Committee and the House Transportation and
Infrastructure Committee. There are no population or community income-level limits on Infrastructure Committee. 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 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).relate to agriculture (including rural communities).120
Recent Federal Funding
The enacted The enacted ~~FY2022~~FY2023 appropriations provided WFPO with $ appropriations provided WFPO with $~~100~~75.0 million. Of the $ million. Of the $~~100~~75.0 million, million,
$$~~23.3~~20.6 million is directed to million is directed to ~~earmarks, and $10~~“community project funding/congressionally directed spending” (CPF/CDS) items, which some have referred to as “earmarks”; $10.0 million is directed to projects that provide water to rural communities; and $10.0 million is required to be allocated to projects and million is required to be allocated to projects and
activities that (1) can “commence promptly”; (2) address regional priorities for flood prevention, activities that (1) can “commence promptly”; (2) address regional priorities for flood prevention,
agricultural water management, inefficient irrigation systems, fish and wildlife habitat, or agricultural water management, inefficient irrigation systems, fish and wildlife habitat, or
watershed protection; or (3) address ongoing P.L. 534 projects.watershed protection; or (3) address ongoing P.L. 534 projects.~~73 IIJA provided $500 million for~~
~~WFPO in FY2022 that is available until expended.74 The FY2022 joint explanatory statement~~
~~notes the IIJA additions for WFPO in reference to the reductions in the FY2022 annual~~
~~appropriated levels.75 The FY2023 Administration’s request proposes $125~~121 The Administration’s FY2024 budget requested $175.0 million in million in
discretionary funding for the WFPO program.discretionary funding for the WFPO program.122
In addition to discretionary funding through appropriations, the 2018 farm bill permanently In addition to discretionary funding through appropriations, the 2018 farm bill permanently
authorizes $50authorizes $50.0 million annually from mandatory sources. million annually from mandatory sources.76123 This mandatory funding will be This mandatory funding will be
available unless otherwise amended by Congress. Mandatory funds are authorized for P.L. 566 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. 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 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 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 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 codified at Title 7, Part 622, of the Code of Federal Regulations..77
~~Small Watershed Loans~~
~~As part of its lending responsibilities, RUS makes loans to local organizations to finance the local~~
~~share of the cost of installing, repairing, or improving facilities, purchasing sites and easements,~~
~~and related costs for P.L. 566 and P.L. 534 projects (see discussion above). Loans are limited to~~
~~$10 million, they must be repaid within 50 years, and the cost-share assistance may not exceed~~
~~the rate of assistance for similar projects under other USDA conservation programs. NRCS and~~

~~73 For additional information on FY2022 WFPO earmarks, see CRS Report R46971,~~ ~~Agricultural Conservation:~~
~~FY2022 Appropriations, by Megan Stubbs.~~
~~74 For additional information, see CRS In Focus IF11990,~~ ~~Infrastructure Investment and Jobs Act (IIJA): Funding for~~
~~USDA Broadband, Watershed, and Bioproduct Programs, by Lisa S. Benson, Megan Stubbs, and Kelsi Bracmort.~~
~~75 WFPO has received an average of $160 million annually through appropriations between FY2017 and FY2022. See~~
~~FY2022 “Explanatory Statement Submitted by Ms. DeLauro, Chair of the House Committee on Appropriations,~~
~~Regarding the House Amendment to H.R. 2471, Consolidated Appropriations Act, 2022,” Congressional Record, vol.~~
~~168, part 42-Book III (March 9, 2022), p. H1713.~~
76124 119 The enacted FY2023 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. This provision did not amend the WFPO authorization. Therefore, it is effective only for the funds provided through the FY2023 annual appropriation. 120 16 U.S.C. §1002. 121 For additional information on FY2023 WFPO earmarks, see CRS Report R47560, Agricultural Conservation: FY2023 and FY2024 Appropriations, by Megan Stubbs. 122 FY2024 USDA Budget Justification. 123 The 2018 farm bill authorizes mandatory funding from the Commodity Credit Corporation, a government-owned 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, entity that finances programs supporting U.S. agriculture. For more information, see CRS Report R44606, The
Commodity Credit Corporation (CCC), by Megan Stubbs. , by Megan Stubbs.
77124 For information on the program, see NRCS, “Watershed and Flood Prevention Operations For information on the program, see NRCS, “Watershed and Flood Prevention Operations (WFPO) Program,” Program,”
at https://www.nrcs.usda.gov/https://www.nrcs.usda.gov/~~wps/portal/nrcs/main/national/programs/landscape/wfpo/~~programs-initiatives/watershed-and-flood-prevention-operations-wfpo-program. .
Congressional Research Service Congressional Research Service

3033 Federally Supported Water Projects and Programs Small Watershed Loans As part of its lending responsibilities, RUS makes loans to local organizations to finance the local share of the cost of installing, repairing, or improving facilities, purchasing sites and easements, and related costs for P.L. 566 and P.L. 534 projects (see discussion above). Loans are limited to $10.0 million, they must be repaid within 50 years, and the cost-share assistance may not exceed the rate of assistance for similar projects under other USDA conservation programs. NRCS and

~~Federally Supported Water Projects and Programs~~

the local organization must also agree on a plan of work before a loan is obligated. Over the life the local organization must also agree on a plan of work before a loan is obligated. Over the life
of the program, 495 RUS loans have been made at a value of almost $176of the program, 495 RUS loans have been made at a value of almost $176.0 million. million.125
Small Watershed Rehabilitation
Some of the oldest P.L. 566 projects that have exceeded their design life (dams were constructed 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 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, reducing any possibility of dam failure and to meet changing resource needs. By the end of 2025,
6,782 watershed dams will have reached the end of their designed life spans. In response to this 6,782 watershed dams will have reached the end of their designed life spans. In response to this
concern, Congress created a dam rehabilitation program, known as the Small Watershed 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 Rehabilitation Program, in Section 313 of the Grain Standards and Warehouse Improvement Act
of 2000 (P.L. 106-472), which revised the WFPO program. From 2000 to of 2000 (P.L. 106-472), which revised the WFPO program. From 2000 to ~~2021~~2022, the program , the program
authorized the rehabilitation of authorized the rehabilitation of ~~263~~269 dams in 26 states. Of this total, dams in 26 states. Of this total, ~~171~~176 projects are complete, projects are complete, 5762
are in are in ~~progress~~the design or construction phase, and the remaining projects are waiting for funding., and the remaining projects are waiting for funding.126
Program Purpose
The purpose of rehabilitation is to extend the service life of the dams and bring them into 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 compliance with applicable safety and performance standards or to decommission the dams so
they no longer pose a threat to life and property. 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 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 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 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 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 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 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 state and may include bonds, local taxing authority, state appropriations, or in-kind technical
services.services.127
Eligibility Requirements
Only dams constructed under the P.L. 83-566 authority, the Resource Conservation and Only dams constructed under the P.L. 83-566 authority, the Resource Conservation and
Development program, and pilot watershed projects Development program, and pilot watershed projects ~~authorized in the Agriculture Appropriations~~
~~Act of~~from 1953 are eligible for assistance under 1953 are eligible for assistance under the Small Watershed Rehabilitation Program.128 125 FY2024 USDA Budget Justification. 126 Ibid. 127 For additional information on financing requirements, see USDA, NRCS, “Watershed Programs – Sponsor Guide,” at https://www.nrcs.usda.gov/sites/default/files/2022-08/Sponsor%20Guide.pdf. 128 16 U.S.C. §1012. Congressional Research Service 34 Federally Supported Water Projects and Programs ~~the Small Watershed Rehabilitation Program.~~
Recent Federal Funding
Since FY2000, Congress has appropriated more than $Since FY2000, Congress has appropriated more than $~~820~~880.0 million for rehabilitation projects. The million for rehabilitation projects. The
Small Watershed Rehabilitation Program has discretionary funding authority of up to $85Small Watershed Rehabilitation Program has discretionary funding authority of up to $85 ~~million~~
~~annually~~.0 million annually through the end of FY2023. The program has received an average annual appropriation of $. The program has received an average annual appropriation of $~~8.2~~6.6 million over the last million over the last
~~five years, including $1 million in the enacted FY2022 appropriations. The IIJA provided $118~~
~~million for the Small Watershed Rehabilitation Program in FY2022 that is available until~~
~~expended. Similar to WFPO, the FY2022 joint explanatory statement notes the IIJA additions for~~
~~the program in reference to the reductions in the FY2022 annual appropriated levels. The FY2023~~
~~Administration’s request proposes $10~~five years, not including the $118.0 million provided by the Infrastructure Investment and Jobs Act (P.L. 117-58) in 2022. The Administration’s FY2024 budget requested $10.0 million in discretionary funding for the Small Watershed million in discretionary funding for the Small Watershed
Rehabilitation Program.Rehabilitation Program.129
In the past, the program was authorized through omnibus farm bills to receive mandatory funding In the past, the program was authorized through omnibus farm bills to receive mandatory funding
to remain available until expended. This funding was frequently restricted through annual to remain available until expended. This funding was frequently restricted through annual
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appropriations and used to offset other discretionary spending.appropriations and used to offset other discretionary spending.78130 The 2018 farm bill reauthorized The 2018 farm bill reauthorized
discretionary funding authority of $85discretionary funding authority of $85.0 million annually for the program. million annually for the program.131 Mandatory funds Mandatory funds
authorized for WFPO through the 2018 farm bill may also be used for rehabilitation work under authorized for WFPO through the 2018 farm bill may also be used for rehabilitation work under
the Small Watershed Rehabilitation Program.the Small Watershed Rehabilitation Program.79132 Discretionary funding authority expires at the end of FY2023. Mandatory funding authority is permanent.
Statutory and Regulatory Authorities
The Small Watershed Rehabilitation Program is authorized by the Watershed Protection and 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 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). 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 Regulations are codified at Title 7, Part 622, of the Code of Federal Regulations..80
133 Environmental Protection Agency
Clean Water State Revolving Fund Loan ~~Program81~~Program134
In 1987, Congress amended the Clean Water Act (CWA)In 1987, Congress amended the Clean Water Act (CWA)82135 to establish the Clean Water State to establish the Clean Water State
Revolving Fund (CWSRF) program.Revolving Fund (CWSRF) program.83136 All 50 states, plus Puerto Rico, participate in the CWSRF All 50 states, plus Puerto Rico, participate in the CWSRF
program.program.84137 EPA receives annual appropriations to support the CWSRF program and distributes 129 FY2024 USDA Budget Justification. 130 ~~EPA receives annual appropriations to support the CWSRF program and distributes~~
~~grants to the states based on a CWA statutory formula.85 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 formal estimate by EPA and states~~
~~(prepared in 2016), an additional $271 billion nationwide is needed over the next 20 years for all~~
~~types of projects eligible for funding through the CWSRF program.86~~
~~EPA data indicate that since 1988, 68% of all awarded loans and other assistance have gone to~~
~~assist communities with 10,000 people or fewer. These loans and assistance have accounted for~~
~~23% of total CWSRF funding.87~~

78 For additional information on past reductions to mandatory programs, see CRS In Focus IF10041, For additional information on past reductions to mandatory programs, see CRS In Focus IF10041, Reductions to
Mandatory Agricultural Conservation Programs in Appropriations Law, by Megan Stubbs. , by Megan Stubbs.
79131 16 U.S.C. §1012. 132 For additional information, see CRS Report R45698, For additional information, see CRS Report R45698, Agricultural Conservation in the 2018 Farm Bill, by Megan , by Megan
Stubbs. Stubbs.
80133 For information on the program, see NRCS, “Watershed Rehabilitation Program,” For information on the program, see NRCS, “Watershed Rehabilitation Program,” ~~http~~at https://www.nrcs.usda.gov/://www.nrcs.usda.gov/~~wps/~~
~~portal/nrcs/main/national/programs/landscape/wr/.~~
81programs-initiatives/watershed-rehabilitation. 134 This section was prepared by Jonathan Ramseur, Specialist in Resources and Environmental Policy, Resources, This section was prepared by Jonathan Ramseur, Specialist in Resources and Environmental Policy, Resources,
Science, and Industry Division. Science, and Industry Division.
82135 The official statutory name is the Federal Water Pollution Control Act (P.L. 92-500), as amended, codified at Title The official statutory name is the Federal Water Pollution Control Act (P.L. 92-500), as amended, codified at Title
33, §33, §§1251 et seq, of the 1251 et seq, of the U.S. Code. .
83136 Prior to 1989 (when the CWSRF program became effective), EPA states used their annual allotment to make grants Prior to 1989 (when the CWSRF program became effective), EPA states used their annual allotment to make grants
to cities and other eligible recipients. to cities and other eligible recipients.
84137 U.S. territories, Indian tribes, and the District of Columbia receive grants from EPA under separate CWA U.S. territories, Indian tribes, and the District of Columbia receive grants from EPA under separate CWA authorities. Congressional Research Service 35 Federally Supported Water Projects and Programs grants to the states based on a CWA statutory formula.138 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 formal estimate by EPA and states (prepared in 2016), an additional $271.0 billion nationwide is needed over the next 20 years for all types of projects eligible for funding through the CWSRF program.139 EPA data indicate that since 1988, 68% of all awarded loans and other assistance have gone to assist communities with 10,000 people or fewer. These loans and assistance have accounted for 23% of total CWSRF funding.140 Program Purpose ~~authorities.~~
~~85 For more information, see CRS Report RL31073,~~ ~~Allocation of Wastewater Treatment Assistance: Formula and~~
~~Other Changes, by Jonathan L. Ramseur.~~
~~86 EPA, Clean Watersheds Needs Survey 2012, 2016, https://www.epa.gov/cwns.~~
~~87 EPA, “Did You Know,” https://www.epa.gov/cwsrf (accessed June 30, 2022).~~
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~~Program Purpose~~
The CWSRF program provides assistance in constructing and upgrading publicly owned The CWSRF program provides assistance in constructing and upgrading publicly owned
municipal wastewater treatment plants and related equipment (including stormwater municipal wastewater treatment plants and related equipment (including stormwater
infrastructure), implementing nonpoint pollution management programs, developing and infrastructure), implementing nonpoint pollution management programs, developing and
implementing management plans under the National Estuary Program, and supporting a range of implementing management plans under the National Estuary Program, and supporting a range of
other eligible activities that were added to the program in 2014other 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 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 programs. These programs may provide seven general types of financial assistance: making
loans; buying or refinancing existing local debt obligations; guaranteeing or purchasing insurance 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 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 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 funds; earning interest on fund accounts; and supporting reasonable costs of administering the
CWSRF.CWSRF.141 Loans are made at or below market interest rates, including zero interest loans, as Loans are made at or below market interest rates, including zero interest loans, as
determined by the state in negotiation with the applicant. determined by the state in negotiation with the applicant.
Although the CWSRF program is generally a loan program, states may (under certain conditions) 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 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 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 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 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.10% of their capitalization grants for additional subsidization under certain conditions.88142
Prior to the enactment of IIJA, appropriations acts in recent years have required states to use 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 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 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 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 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).”~~ 138 For more information, see CRS Report RL31073, Allocation of Wastewater Treatment Assistance: Background and Formula History, by Jonathan L. Ramseur. 139 EPA, Clean Watersheds Needs Survey 2012, 2016, at https://www.epa.gov/cwns. 140 Based on data in EPA, National Information Management System (January 30, 2023), at https://www.epa.gov/cwsrf/clean-water-state-revolving-fund-cwsrf-national-information-management-system-reports. 141 33 U.S.C. §1383(d). 142 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. Congressional Research Service 36 Federally Supported Water Projects and Programs recipients in the form of forgiveness of principal, negative interest loans, or grants (or any combination of these).”143 In an EPA memorandum on May 12, 2022, EPA interprets the additional subsidization provided in appropriations act to be “additive” to the 10% floor in the Clean Water Act.144 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 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 be repaid within 30 years of a project’s completion, not to exceed the project’s useful life. States
are required to ensure that CWSRF-funded projects use American iron and steel products and 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.apply the prevailing wage requirements of the Davis-Bacon Act.89145
Eligibility Requirements
In general, eligible loan recipients for CWSRF assistance are any municipal, intermunicipal, 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 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 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 are eligible for certain types of activities (e.g., decentralized wastewater treatment

~~88 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.~~
~~89 For more information, see U.S. Department of Labor, “Davis-Bacon and Related Acts,” https://www.dol.gov/whd/~~
~~govcontracts/dbra.htm.~~
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projects; projects to manage, reduce, or treat stormwater; or development of watershed projects; projects to manage, reduce, or treat stormwater; or development of watershed
management projects). management projects).
Projects or activities eligible for funding were initially those needed for constructing or upgrading 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 (and planning and designing) publicly owned municipal wastewater treatment plans. As defined
in Clean Water Act Section 212,in Clean Water Act Section 212,90 devices and systems used in the storage, treatment, recycling, devices and systems used in the storage, treatment, recycling,
and reclamation of municipal sewage are eligible.and reclamation of municipal sewage are eligible.146 These include construction or upgrading of These include construction or upgrading of
secondary or advanced treatment plants; construction of new collector sewers, interceptor sewers, 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, 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 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 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 first to be used to assure compliance with enforceable deadlines, goals, and requirements of the
act, including municipal compliance.act, including municipal compliance.91147 After satisfying the “first use” requirement, funds may be After satisfying the “first use” requirement, funds may be
used to implement other eligible uses. The statutory list of eligible activities initially included 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 nonpoint source management programs and estuary activities in approved State Nonpoint
Management Programs and estuarine Comprehensive Conservation and Management Plans, Management Programs and estuarine Comprehensive Conservation and Management Plans,
respectively.respectively.92148 In 2014, the Water Resources Reform and Development Act of 2014 (WRRDA; In 2014, the Water Resources Reform and Development Act of 2014 (WRRDA;
P.L. 113-121) amended the list of eligible projects by adding several P.L. 113-121) amended the list of eligible projects by adding several types of projects and activities, projects and activities,
including including
• replacement of decentralized treatment systems (e.g., septic tanks); replacement of decentralized treatment systems (e.g., septic tanks);
• energy-efficiency improvements at treatment works; energy-efficiency improvements at treatment works;
~~ reuse and recycling of wastewater or stormwater; and~~
 143 For example, see the Consolidated Appropriations Act, 2023 (P.L. 117-328); and the Consolidated Appropriations Act, 2022 (P.L. 117-103). 144 Memorandum from Michael Deane (EPA Office of Wastewater Management) to EPA Regions, “FY 2022 CWSRF Base Allotment Availability,” May 12, 2022, at https://www.epa.gov/system/files/documents/2022-05/FY%202022%20CWSRF%20Base%20Allotment%20Availability.pdf. 145 For more information, see U.S. Department of Labor, “Davis-Bacon and Related Acts,” at https://www.dol.gov/whd/govcontracts/dbra.htm. 146 33 U.S.C. §1292. 147 33 U.S.C. §1382(b)(5). 148 For a detailed breakdown of SRF funding by category, see EPA, Clean Water SRF Program Information, National Summary, updated annually, at https://www.epa.gov/cwsrf/clean-water-state-revolving-fund-cwsrf-national-information-management-system-reports. Congressional Research Service 37 Federally Supported Water Projects and Programs • reuse and recycling of wastewater or stormwater; and • security improvements at treatment works. security improvements at treatment works.
In 2018, the America’s Water Infrastructure Act of 2018 (AWIA; P.L. 115-270) amended the list 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 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 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. connection of an individual household to a centralized publicly owned treatment works.
Recent Federal Funding
Since the first appropriations for the CWSRF program in FY1989, Congress has provided Since the first appropriations for the CWSRF program in FY1989, Congress has provided ~~more~~
~~than $49~~approximately $56 billion in grants to states and Puerto Rico to capitalize their CWSRFs. According to billion in grants to states and Puerto Rico to capitalize their CWSRFs. According to
EPA’s national CWSRF funding data report, federal funds—together with state matching EPA’s national CWSRF funding data report, federal funds—together with state matching
contributions, repaid loans, and other funds—have provided contributions, repaid loans, and other funds—have provided approximately $163~~$153~~ billion in SRF assistance to billion in SRF assistance to
support more than support more than 4446,000 SRF loans and debt refinance agreements.,000 SRF loans and debt refinance agreements.93149
For FY2020 and FY2021, Congress appropriated $1.639 billion (P.L. 116-94 and P.L. 116-260) For FY2020 and FY2021, Congress appropriated $1.639 billion (P.L. 116-94 and P.L. 116-260)
for the CWSRF program. The FY2022 CWSRF appropriations for the CWSRF program. The FY2022 CWSRF appropriations ~~include~~included both supplemental both supplemental
appropriations from IIJA of $1.902 billion and regular appropriations (P.L. 117-103) of $1.639 appropriations from IIJA of $1.902 billion and regular appropriations (P.L. 117-103) of $1.639
billion, a portion of which did not go directly to the CWSRF program. P.L. 117-103 billion, a portion of which did not go directly to the CWSRF program. P.L. 117-103 ~~includes~~
~~“community project funding/congressionally directed spending” (~~included CPF/CDSCPF/CDS~~) items, which some~~

~~90 33 U.S.C. §1292.~~
~~91 33 U.S.C. §1382(b)(5).~~
~~92 For a detailed breakdown of SRF funding by category, see EPA,~~ ~~Clean Water SRF Program Information, National~~
~~Summary, updated annually, https://www.epa.gov/cwsrf/clean-water-state-revolving-fund-cwsrf-national-information-~~
~~management-system-reports.~~
~~93 EPA, Clean Water SRF Program Information, National Summary, February 2022, https://www.epa.gov/cwsrf/clean-~~
~~water-state-revolving-fund-cwsrf-national-information-management-system-reports.~~
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~~have referred to as “earmarks.” The act sets aside 27% ($443.6 million) of the FY2022 CWSRF~~
~~appropriations ($1.639 billion) to CPF/CDS. Such~~ items. The act set aside 27% ($443.6 million) of the FY2022 CWSRF appropriations ($1.639 billion) to CPF/CDS. Similarly, the FY2023 CWSRF appropriation includes both supplemental appropriations from IIJA of $2.202 billion and regular appropriations of $1.639 billion, a portion of which will not go directly to the CWSRF program. P.L. 117-328 includes CPF/CDS items and sets aside 53% ($863.1 million) of the FY2023 CWSRF appropriation to CPF/CDS. The CPF/CDS funds are to be distributed directly to funds are to be distributed directly to
recipients, instead of to states’ SRF programs. Thus, the reservation of funds effectively decreases recipients, instead of to states’ SRF programs. Thus, the reservation of funds effectively decreases
the total amount available for allotment as state capitalization grantsthe total amount available for allotment as state capitalization grants ~~to $1.195 billion.94 Thus, the~~
~~combined FY2022 appropriations for the CWSRF program are $3.097 billion.~~
.150 For For ~~FY2023~~FY2024, the President requested $1.639 billion for the CWSRF program., the President requested $1.639 billion for the CWSRF program.151 This would be in This would be in
addition to the addition to the ~~FY2023~~FY2024 supplemental appropriations of $2. supplemental appropriations of $2.~~202~~403 billion provided by IIJA. billion provided by IIJA.
Through a separate process, EPA provides direct grants for the District of Columbia, the U.S. 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 Virgin Islands, American Samoa, Guam, and the Commonwealth of the Northern Mariana
Islands.Islands.95152 EPA also provides direct grants to Indian tribes. EPA also provides direct grants to Indian tribes.96153 The funding for the District of The funding for the District of
Columbia, U.S. territories, and Indian tribes is part of the SRF appropriations to EPA. 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 Clean Water Act, as amended, Sections Statutory authority for the clean water SRF program is the Clean Water Act, as amended, Sections
601-607 (33 U.S.C. §§1381-1387). Regulations are codified at Title 40, Section 35.3100, of the 601-607 (33 U.S.C. §§1381-1387). Regulations are codified at Title 40, Section 35.3100, of the
Code of Federal Regulations. .
149 This figure includes funds through the end of FY2022, as it is based on data in EPA, National Information Management System (September 2022), at https://www.epa.gov/cwsrf/clean-water-state-revolving-fund-cwsrf-national-information-management-system-reports. 150 For more information, see CRS Report R47633, The Role of Earmarks in CWSRF and DWSRF Appropriations in the 117th Congress, by Elena H. Humphreys. 151 OMB, Budget of the U.S. Government, FY2024, Appendix, at https://www.whitehouse.gov/wp-content/uploads/2023/03/hud_fy2024.pdf. 152 See 33 U.S.C. §1384 note. 153 See 33 U.S.C. §1377. Congressional Research Service 38 Federally Supported Water Projects and Programs Drinking Water State Revolving Fund Loan Program154 ~~Drinking Water State Revolving Fund Loan Program97~~
The Safe Drinking Water Act (SDWA) requires public water systems to comply with federal The Safe Drinking Water Act (SDWA) requires public water systems to comply with federal
drinking water regulations promulgated by EPA.drinking water regulations promulgated by EPA.98155 Through these regulations, EPA has set Through these regulations, EPA has set
standards to control the levels of more than 90 contaminants in drinking water, and more standards to control the levels of more than 90 contaminants in drinking water, and more
regulations are under development. To help communities meet these federal mandates and to meet 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 the act’s public health objectives, Congress amended SDWA in 1996 to establish a drinking water
state revolving fund (DWSRF) loan program.state revolving fund (DWSRF) loan program.156 The program is patterned closely after the CWSRF The program is patterned closely after the CWSRF
and authorizes EPA to make grants to states to capitalize drinking water state revolving loan 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 funds. States use their DWSRFs to provide assistance to public water systems for infrastructure
and other drinking water projects.and other drinking water projects.99157 States may use a portion of their annual grants to administer States may use a portion of their annual grants to administer
the DWSRF program and to implement other SDWA requirements.the DWSRF program and to implement other SDWA requirements.158 States must match 20% of the States must match 20% of the
federal capitalization grant.federal capitalization grant.159
Each year, states are required to develop an “intended use plan” that includes a list of projects the 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.state intends to fund through the DWSRF.160 The law generally directs states to give funding priority 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 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 SDWA regulations; and (3) assist systems most in need on a per household basis, according to
state affordability criteria.state affordability criteria.161 The law also directs states to make available at least 15% of their 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 annual allotment to public water systems that serve 10,000 or fewer persons (to the extent the
funds can be obligated to eligible projects).funds can be obligated to eligible projects).162 Over the life of the program, roughly Over the life of the program, roughly 71% of DWSRF assistance agreements and 38% of funds have gone to these smaller systems. 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.163 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 in infrastructure improvements over 20 years ($31.25 billion annually) to ensure the provision of safe drinking water and compliance with federal standards.164 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. The SDWA directs states to give funding priority to infrastructure 154~~71% of DWSRF~~

~~94 For more information, see CRS In Focus IF12103,~~ ~~U.S. Environmental Protection Agency (EPA) Water~~
~~Infrastructure Programs and FY2022 Appropriations, by Elena H. Humphreys and Jonathan L. Ramseur.~~
~~95 See 33 U.S.C. §1384 note.~~
~~96 See 33 U.S.C. §1377.~~
97 This section was prepared by Elena Humphreys, Analyst in Environmental Policy, Resources, Science, and Industry This section was prepared by Elena Humphreys, Analyst in Environmental Policy, Resources, Science, and Industry
Division. Division.
98155 See CRS Report RL31243, See CRS Report RL31243, Safe Drinking Water Act (SDWA): A Summary of the Act and Its Major Requirements, , by Elena H. Humphreys and Mary Tiemann. 156 P.L. 104-182. 157by
~~Mary Tiemann.~~
99 Private, residential wells are not regulated under the SDWA and are not eligible for assistance through this program. Private, residential wells are not regulated under the SDWA and are not eligible for assistance through this program.
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~~assistance agreements and 38% of funds have gone to these smaller systems. 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. Needs surveys are prepared by EPA and~~
~~the states, and the most recent survey (2018) indicates that public water systems need to invest at~~
~~least $472.6 billion in infrastructure improvements over 20 years ($23.63 billion annually) to~~
~~ensure the provision of safe drinking water and compliance with federal standards.100~~
~~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. The SDWA directs states to give funding priority to infrastructure~~
158 42 U.S.C. §300j-12(a)(2). 159 42 U.S.C. §300j-12(e). 160 42 U.S.C. §300j-12(b). 161 42 U.S.C. §300j-12(b)(3). 162 42 U.S.C. §300j-12(a)(2) (F). 163 Detailed national and state program data are available at EPA, “Drinking Water State Revolving Fund National Information Management System Reports,” at https://www.epa.gov/drinkingwatersrf/drinking-water-state-revolving-fund-national-information-management-system-reports. 164 This estimate is not adjusted for inflation. EPA, 7th Drinking Water Infrastructure Needs Survey and Assessment, April 2023, at https://www.epa.gov/system/files/documents/2023-04/Final_FAQ_DWINSA_4.4.23.v1.pdf. Congressional Research Service 39 Federally Supported Water Projects and Programs projects that are needed to achieve or maintain compliance with SDWA requirements, protect 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 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 capitalization grant for specified purposes, including programs for protecting sources of drinking
water and improving the managerial and technical capacity of water systems. 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 systemsStates may use the DWSRF to make low- or zero-interest loans to public water systems~~, and loan~~. Loan
recipients must generally repay the entire loan plus any interest to the state. DWSRFs may also be 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 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 obligation, provide revenue or security for payment of principal and interest on state revenue or
general obligation bonds if the proceeds of bond sale are deposited into the DWSRF, and earn general obligation bonds if the proceeds of bond sale are deposited into the DWSRF, and earn
interest on DWSRF accounts.interest on DWSRF accounts.165
The statute authorizes states to use up to 35% of their annual DWSRF grants to provide additional 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 subsidies (e.g., principal forgiveness and negative interest rate loans) to help economically
disadvantaged communities of any size.disadvantaged communities of any size.~~101 (A disadvantaged community is one in which the~~
~~service area of a public water system meets state-established affordability criteria.)~~166 The The
Consolidated Appropriations Act, Consolidated Appropriations Act, ~~2022~~2023 (P.L. 117- (P.L. 117-~~103~~328), requires states to use 14% of their ), requires states to use 14% of their
DWSRF capitalization grants DWSRF capitalization grants ~~“to provide additional subsidy to eligible recipients.”~~
~~Eligibility Requirements~~
for additional subsidization to eligible recipients. In EPA memorandum from 2023, the agency clarified 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.167 Eligibility Requirements Drinking water systems that are eligible to receive DWSRF assistance include community water 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. 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.Federally owned systems are not eligible to receive assistance from this program.168
Projects eligible for DWSRF assistance include (1) capital investments to rehabilitate or replace 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 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 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 SDWA regulations (e.g., treatment facilities); and (3) project design and planning and associated
preconstruction activities.preconstruction activities.169 Assistance may also be available for construction of new wells to Assistance may also be available for construction of new wells to
replace contaminated wells, source water protection, land acquisition, security measures replace contaminated wells, source water protection, land acquisition, security measures
(including infrastructure improvements), and consolidation of water supplies (e.g., in cases where (including infrastructure improvements), and consolidation of water supplies (e.g., in cases where

~~100 This estimate is not adjusted for inflation. EPA,~~ ~~Drinking Water Infrastructure Needs Survey and Assessment: Sixth~~
~~Report to Congress, March 2018, https://www.epa.gov/sites/production/files/2018-10/documents/~~
~~corrected_sixth_drinking_water_infrastructure_needs_survey_and_assessment.pdf.~~
~~101~~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).170 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 165 42 U.S.C. §300j-12(a)(2). 166 SDWA Section 1452(d)(2)(B) (42 U.S.C. §300j-12(d)(2)(B)) conditionally requires states to use at least 12% of SDWA Section 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.their capitalization grants to further subsidize DWSRF loans.
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~~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).~~
~~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~~
A disadvantaged community is one in which the service area of a public water system meets state-established affordability criteria. 167 EPA, FY 2023 Allotments for the Drinking Water State Revolving Fund based on the Seventh Drinking Water Infrastructure Needs Survey and Assessment, May 2023, at https://www.epa.gov/dwsrf/annual-allotment-federal-funds-states-tribes-and-territories. 168 42 U.S.C. §300j-12(a)(2)(A). 169 42 U.S.C. §300j-12(a)(2)(B). 170 For more information, see EPA’s website “DWSRF Eligibility Handbook” at https://www.epa.gov/dwsrf/dwsrf-eligibility-handbook. Congressional Research Service 40 Federally Supported Water Projects and Programs treated water), monitoring, and operation and maintenance. Ineligible systems include those that 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 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 in significant noncompliance with any SDWA regulation (unless the project is likely to ensure
compliance). compliance).
Recent Federal Funding
~~For FY2021, the President requested $863.2 million, and Congress again provided $1,126.1~~
~~million in P.L. 116-260.102 The President’s FY2022 Budget Request included $1,357.9 million for~~
~~the DWSRF program.~~ For FY2022, two acts provided appropriations for the DWSRF program. For FY2022, two acts provided appropriations for the DWSRF program.
IIJA (P.L. 117-58) IIJA (P.L. 117-58) ~~provides~~provided three appropriations for three appropriations for ~~FY2022 of~~
1. the DWSRF. It included $1,902.0 million for the DWSRF program,$1,902.0 million for the DWSRF program,
2. $3,000.0 million through the DWSRF for lead service line replacement projects $3,000.0 million through the DWSRF for lead service line replacement projects
and related activities, and and related activities, and
3. $800.0 million through the DWSRF for grants to support projects to address $800.0 million through the DWSRF for grants to support projects to address
emerging contaminants with a focus on per- and polyfluoroalkyl substancesemerging contaminants with a focus on per- and polyfluoroalkyl substances.
(PFAS). The Consolidated Appropriations Act, 2022 (P.L. 117-103) provided $1,126.1 million for the The Consolidated Appropriations Act, 2022 (P.L. 117-103) provided $1,126.1 million for the
DWSRF. Of this total appropriation, the act dedicates $397.8 million to DWSRF. Of this total appropriation, the act dedicates $397.8 million to ~~“community project~~
~~funding/congressionally directed spending” items, which some have called “earmarks.”~~
CPF/CDS items. Accordingly, the Accordingly, the act provides $728.3 million for the DWSRF program. The Consolidated Appropriations Act, 2023 (P.L. 117-328) provided $1,126.1 million for the DWSRF. Of this total appropriation, $609.3 million is dedicated to earmarks and the remaining $516.9 million is for the DWSRF program. In addition, for FY2023, IIJA (P.L. 117-58) provides three appropriations for FY2023 of 1. $2,202.0 million for the DWSRF program, 2. $3,000.0 million through the DWSRF for lead service line replacement projects and related activities, and 3. $800.0 million through the DWSRF for grants to support projects to address emerging contaminants with a focus on per- and polyfluoroalkyl substances. For FY2024, the President requested $1,126.1 million for the DWSRF program.171 From FY1997 through FY2022, more than 18,843 projects had received DWSRF financial assistance, and 13,109 had been completed.172 Statutory and Regulatory Authority ~~act provides $728.3 million for the DWSRF program.~~
~~For FY2023, the President requested $1,126.1 million for the DWSRF program. In recent years,~~
~~the estimated average state capitalization grant has been roughly $20.77 million per fiscal year.~~
~~The estimated average grant to territories was $4.14 million per fiscal year.103~~
~~From FY1997 through FY2021, cumulative appropriations for the DWSRF program reached~~
~~$25.12 billion. Adjusted for set-asides, cumulative net federal contributions totaled $24.39 billion.~~
~~When combined with the 20% state match ($4.46 billion), bond proceeds, loan principal~~
~~repayments, and other funds, the total DWSRF investment through FY2021 had reached $50.71~~
~~billion, and the program had provided more than $48.54 billion in assistance. Over the same~~
~~period, more than 17,779 projects had received assistance, and 12,752 had been completed.104~~

~~102 In 2018, AWIA reauthorized DWSRF appropriations for FY2019-FY2021. The authorized appropriations are~~
~~$1.174 billion in FY2019, $1.300 billion in FY2020, and $1.950 billion in FY2021. SDWA §1452(m); 42 U.S.C.~~
~~§300j-12(m).~~
~~103 Code of Federal Domestic Assistance, Capitalization Grants for Drinking Water State Revolving Funds, No. 66.468,~~
~~https://beta.sam.gov/fal/569f9cce42834328941b19aea8b9e2e6/view.~~
~~104 Detailed national and state program data are available at EPA, “Drinking Water State Revolving Fund National~~
~~Information Management System Reports,” https://www.epa.gov/drinkingwatersrf/drinking-water-state-revolving-~~
~~fund-national-information-management-system-reports.~~
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~~Federally Supported Water Projects and Programs~~

~~Statutory and Regulatory Authority~~
The statutory authority for the DWSRF program is the Safe Drinking Water Act Amendments of 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 1996 (P.L. 104-182, §1452, 42 U.S.C. §300j-12). Regulations are codified at Title 40, Section
35.3500, of the 35.3500, of the Code of Federal Regulations..~~105~~173
Water Infrastructure Finance and Innovation Act ~~Program106~~Program174
Localities are primarily responsible for providing water infrastructure services, which include Localities are primarily responsible for providing water infrastructure services, which include
both drinking water and wastewater infrastructure. According to the most recent estimates by 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 states and EPA, funding needs for projects eligible for CWSRF or DWSRF funding—described in
171 EPA, Fiscal Year 2024 Justification of Appropriation Estimates for the Committee on Appropriations, EPA-190R23001, Washington, DC, March 2023, at https://www.epa.gov/system/files/documents/2023-03/fy-2024-congressional-justification-all-tabs.pdf. 172 Detailed national and state program data are available at EPA, “Drinking Water State Revolving Fund National Information Management System Reports,” at https://www.epa.gov/drinkingwatersrf/drinking-water-state-revolving-fund-national-information-management-system-reports. 173 DWSRF program information, regulations, facts, and statistics are available at https://www.epa.gov/dwsrf. 174 This section was prepared by Jonathan Ramseur, Specialist in Environmental Policy, Resources, Science, and Industry Division. Congressional Research Service 41 Federally Supported Water Projects and Programs the sections above (i.e., projects needed to address water quality and public health-related the sections above (i.e., projects needed to address water quality and public health-related
problems or regulations)—total over $840 billion over a 20-year period.problems or regulations)—total over $840 billion over a 20-year period.~~107~~175 However, many water However, many water
infrastructure capital needs are ineligible for assistance through the SRF programs or are too large infrastructure capital needs are ineligible for assistance through the SRF programs or are too large
or otherwise not suited for those programs. or otherwise not suited for those programs.
The Water Infrastructure Finance and Innovation Act (WIFIA) authorizes EPA to provide credit The Water Infrastructure Finance and Innovation Act (WIFIA) authorizes EPA to provide credit
assistance—secured (direct) loans or loan guarantees—for a broad range of drinking water and assistance—secured (direct) loans or loan guarantees—for a broad range of drinking water and
wastewater projects.wastewater projects.~~108~~176 In contrast to SRF programs, EPA provides credit assistance directly to 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, and eligible recipients. Thus far, EPA has provided credit assistance in the form of secured loans, and
the agency does not expect much demand for loan guarantees.the agency does not expect much demand for loan guarantees.~~109~~177
Section 4201 of AWIA (P.L. 115-270) amended WIFIA to authorize EPA to enter into agreements 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 with relevant federal agencies to administer and service loans that such agencies are authorized to
make.make.178 Section 4301 of AWIA directs EPA and Reclamation to enter into such an agreement. In 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 October 2019, EPA and Reclamation entered into a memorandum of understanding for
administering and servicing credit instruments. Under this agreement, EPA is responsible for administering and servicing credit instruments. Under this agreement, EPA is responsible for
providing support in administering and servicing Reclamation federal credit instruments, providing support in administering and servicing Reclamation federal credit instruments,
including determining project creditworthiness and loan terms, among other responsibilities.including determining project creditworthiness and loan terms, among other responsibilities.~~110~~179
Program Purpose
WIFIA provides an additional source of financing for water infrastructure projects, including 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 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 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 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. 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 Moreover, SRF funding is generally limited to projects that promote CWA or SDWA compliance

~~105 DWSRF program information, regulations, facts, and statistics are available at https://www.epa.gov/dwsrf.~~
~~106 This section was prepared by Jonathan Ramseur, Specialist in Environmental Policy, Resources, Science, and~~
~~Industry Division.~~
~~107~~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 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 175 EPA published its most recent estimate of capital needs for EPA published its most recent estimate of capital needs for wastewater infrastructure in 2016. See EPA, infrastructure in 2016. See EPA, Clean
Watersheds Needs Survey 2012, Report to Congress, 2016. EPA issued the most recent EPA needs estimate for , Report to Congress, 2016. EPA issued the most recent EPA needs estimate for
drinking water infrastructure in 2018. See EPA, infrastructure in 2018. See EPA, Drinking Water Infrastructure Needs Survey and Assessment, 2018. , 2018.
These estimates are not adjusted for inflation. These estimates are not adjusted for inflation.
~~108~~176 In 2014, WRRDA established a five-year WIFIA pilot program. In 2018, AWIA (P.L. 115-270) amended the In 2014, WRRDA 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, 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. , by Jonathan L.
Ramseur, Mary Tiemann, and Elena H. Humphreys. Ramseur, Mary Tiemann, and Elena H. Humphreys.
~~109~~177 See EPA, See EPA, WIFIA Program Handbook, 2019, footnote 24. , 2019, footnote 24.
~~110~~178 33 U.S.C. §3909(g). 179 See EPA’s WIFIA website See EPA’s WIFIA website, at https://www.epa.gov/wifia/mou-administering-and-servicing-federal-credit-instruments. https://www.epa.gov/wifia/mou-administering-and-servicing-federal-credit-instruments.
Congressional Research Service Congressional Research Service

3842 Federally Supported Water Projects and Programs

~~Federally Supported Water Projects and Programs~~

~~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~~
~~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 basis, excluding administrative costs and any incidental effects on governmental receipts
or outlays in accordance with the Federal Credit Reformor outlays in accordance with the Federal Credit Reform Act of 1990 (2 U.S.C. §661 Act of 1990 (2 U.S.C. §661 et
seq.).).~~111~~180
Although subsidy rates are project-specific, in the Although subsidy rates are project-specific, in the ~~Biden~~ Administration’s FY2023 budget Administration’s FY2023 budget
proposal, OMB estimated a 1.proposal, OMB estimated a 1.0701% subsidy rate for WIFIA in % subsidy rate for WIFIA in ~~FY2022.112~~FY2023.181 At this subsidy rate, $10 At this subsidy rate, $10.0
million in appropriations could support direct loans totaling $million in appropriations could support direct loans totaling $~~930~~990.0 million. million.~~113~~182 Thus, one advantage Thus, one advantage
of the WIFIA program is that it can provide a large amount of credit assistance relative to the of the WIFIA program is that it can provide a large amount of credit assistance relative to the
amount of budget authority provided. amount of budget authority provided.
Eligibility Requirements
WIFIA credit assistance is available to state infrastructure financing authorities for a group of WIFIA credit assistance is available to state infrastructure financing authorities for a group of
projects and individual project sponsors, which may include projects and individual project sponsors, which may include
• a corporation; a corporation;
• a partnership; a partnership;
• a joint venture; a joint venture;
• a trust; or a trust; or
• a federal, state, local, or tribal government (or consortium of tribal governments). a federal, state, local, or tribal government (or consortium of tribal governments).
Categories eligible for assistance by EPA include Categories eligible for assistance by EPA include
• wastewater treatment and community drinking water facilities; wastewater treatment and community drinking water facilities;
• enhanced energy efficiency of a public water system or wastewater treatment enhanced energy efficiency of a public water system or wastewater treatment
works; works;
• repair or rehabilitation of aging wastewater and drinking water systems; repair or rehabilitation of aging wastewater and drinking water systems;
• desalination, water recycling, aquifer recharge, or development of alternative desalination, water recycling, aquifer recharge, or development of alternative
water supplies to reduce aquifer depletion; water supplies to reduce aquifer depletion;

~~111 33 U.S.C. §3901(13).~~
~~112 OMB, Budget of the United States Government, FY2023, Federal Credit Supplement, Table 1,~~
~~https://www.govinfo.gov/app/collection/budget/2023/BUDGET-2023-FCS.~~
~~113~~ • prevention, reduction, or mitigation of the effects of drought;183 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 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.184 180 33 U.S.C. §3901(13). 181 OMB, Budget of the United States Government, FY2024, Federal Credit Supplement, Table 1, at https://www.govinfo.gov/app/collection/budget/2024. 182 The subsidy rate, which is often expressed in percentage terms or as a ratio, largely determines the amount of credit 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 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 $20charge against available budget authority, a $20.0 million budgetary allocation could theoretically support a $200 million budgetary allocation could theoretically support a $200 .0 million million
~~loan. A lower subsidy rate would support a larger loan amount.~~
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~~Federally Supported Water Projects and Programs~~

~~ prevention, reduction, or mitigation of the effects of drought;114 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 million or larger to be eligible for credit assistance.~~
~~For projects in less populous communities (defined by WIFIA as populations of 25,000 or fewer),~~
~~project costs must be $5 million or more.~~
~~Recent Federal Funding~~
~~For FY2019, the Consolidated Appropriations Act, 2019 (P.L. 116-6) provided $68 million for the~~
~~WIFIA program (including $5 million for administrative costs). For FY2020, the Further~~
~~Consolidated Appropriations Act, 2020 (P.L. 116-94) provided $60 million for this program~~
~~(including $5 million for administrative costs). For FY2021, the~~ loan. A lower subsidy rate would support a larger loan amount. 183 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. 184 33 U.S.C. §3907(a). Congressional Research Service 43 Federally Supported Water Projects and Programs Recent Federal Funding For FY2022, the Consolidated Appropriations Act (P.L. 117-103) provided $69.5 million for WIFIA (including $6.0 million for administrative costs). For FY2023, the Consolidated Appropriations Consolidated Appropriations
~~Act, 2021 (P.L. 116-260) provided $65 million for the program (including $5.5 million for~~
~~administrative costs). For FY2022, the Consolidated Appropriations Act~~Act, 2023 (P.L. 117- (P.L. 117-~~103) provided~~
~~$69.5~~328) provides $75.6 million for WIFIA (including $ million for WIFIA (including $~~6.0~~ 7.6 million for administrative costs). For million for administrative costs). For ~~FY2023~~FY2024, the , the
President requested $80.President requested $80.34 million for the program (including $8. million for the program (including $8.25 million for administrative million for administrative
costs).costs).
185 To receive funding, a prospective borrower submits a letter of interest to EPA. The letter must 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 document project eligibility, financial creditworthiness, engineering feasibility, and alignment
with EPA’s policy priorities. From these submittals, the agency selects projects for funding.with EPA’s policy priorities. From these submittals, the agency selects projects for funding.~~115~~186 On On
June 17, 2022, EPA announced a sixth round of WIFIA funding. EPA estimated that its FY2022 June 17, 2022, EPA announced a sixth round of WIFIA funding. EPA estimated that its FY2022
budget authority would provide approximately $5.5 billion in credit assistance.budget authority would provide approximately $5.5 billion in credit assistance.~~116~~
187 In 2023, EPA’s WIFIA website announced that the program has funding available on an “ongoing basis” that allows for a “rolling selection process.”188 Statutory and Regulatory Authority
The statutory authority for the WIFIA program is WRRDA (P.L. 113-121, Title V, codified at 33 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) 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 and AWIA amended WIFIA provisions in 2015 and 2018, respectively. EPA promulgated an
interim final rule for the program on December 19, 2016 (81 interim final rule for the program on December 19, 2016 (81 Federal Register 91822). 91822).
Regulations are codified at Title 40, Section 35.10000, of the Regulations are codified at Title 40, Section 35.10000, of the Code of Federal Regulations. .
Other EPA Water Infrastructure Funding ~~Programs117~~Programs189
In recent WRDAs, Congress has authorized several new drinking water and wastewater In recent WRDAs, Congress has authorized several new drinking water and wastewater
infrastructure funding programs. These programs are discussed below.infrastructure funding programs. These programs are discussed below.~~118~~

~~114 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.~~
~~115~~190 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 municipal separate sanitary sewers (“wet weather” projects).191 At that time, Congress authorized annual appropriations of $750.0 million for FY2002 and FY2003, but the program never received appropriations. 185 Office of Management and Budget, Budget of the U.S. Government, FY2024, Appendix, at https://www.whitehouse.gov/wp-content/uploads/2023/03/hud_fy2024.pdf. 186 For more up-to-date details of project selection, see EPA’s WIFIA website at https://www.epa.gov/wifia. For more up-to-date details of project selection, see EPA’s WIFIA website at https://www.epa.gov/wifia.
~~116~~187 EPA, “Notice of Funding Availability for Credit Assistance Under WIFIA Program,” 87 EPA, “Notice of Funding Availability for Credit Assistance Under WIFIA Program,” 87 Federal Register 36489, Register 36489,
June 17, 2022, June 17, 2022, at https://www.epa.gov/wifia/https://www.epa.gov/wifia/~~fy-2022-notice-funding-availability.~~
~~117~~wifia-available-funding. 188 See EPA, “WIFIA Available Funding,” at https://www.epa.gov/wifia/wifia-available-funding. 189 This section was prepared by Elena Humphreys, Analyst in Environmental Policy, Resources, Science, and Industry This section was prepared by Elena Humphreys, Analyst in Environmental Policy, Resources, Science, and Industry
Division; and Jonathan Ramseur, Specialist in Environmental Policy, Resources, Science, and Industry Division. Division; and Jonathan Ramseur, Specialist in Environmental Policy, Resources, Science, and Industry Division.
~~118~~190 Other drinking water grant programs include the Voluntary Lead Testing in Drinking Water at Schools and Child Other drinking water grant programs include the Voluntary Lead Testing in Drinking Water at Schools and Child
Care Program Grant Program (authorized in SDWA Care Program Grant Program (authorized in SDWA ~~Section~~ §1464(d), added by P.L. 114-322 1464(d), added by P.L. 114-322 ~~Section~~ §2107) and the 2107) and the
Drinking Water Fountain Replacement for Schools Grant Program (authorized in SDWA Drinking Water Fountain Replacement for Schools Grant Program (authorized in SDWA ~~Section~~ §1465, added by P.L. 1465, added by P.L.
115-270, 115-270, ~~Section~~ §2006(b)). 2006(b)).
191 P.L. 106-554. Congressional Research Service Congressional Research Service

4044

Federally Supported Water Projects and Programs

~~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~~
~~municipal separate sanitary sewers (“wet weather” projects). At that time, Congress authorized~~
~~annual appropriations of $750 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 In 2018, AWIA Section 4106 amended the grant program by modifying the eligibility provisions
to include stormwater infrastructure, among other changes.to include stormwater infrastructure, among other changes.192 In addition, AWIA reauthorized In addition, AWIA reauthorized
appropriations for the grant program for $225appropriations for the grant program for $225.0 million for FY2019 and FY2020. million for FY2019 and FY2020.193 IIJA reauthorized IIJA reauthorized
appropriations for $280appropriations for $280.0 million annually for FY2022 through FY2026. million annually for FY2022 through FY2026.194
Under this program, EPA Under this program, EPA ~~will provide~~provides grants to states, which grants to states, which ~~will~~in turn, provide sub-awards to eligible provide sub-awards to eligible
entities. The grants to states entities. The grants to states ~~will be~~are allocated based on a formula prepared by EPA. allocated based on a formula prepared by EPA.~~119 As of the~~
~~date of this report, EPA has not issued any grants for this program.120~~
~~Recent Federal Funding~~
~~For FY2020, the Further Consolidated Appropriations Act, 2020 (P.L. 116-94) provided $28~~
~~million, the first appropriation for this program. For FY2021~~195 In November 2022, EPA announced the availability of FY2022 funding and invited states to apply for grants to support eligible projects.196 In August 2023, EPA announced the availability of FY2023 funding.197 Recent Federal Funding For FY2022, the Consolidated Appropriations , the Consolidated Appropriations
Act, Act, ~~2021~~2022 (P.L. (P.L. ~~116-260~~117-103) provided $) provided $~~40 million. For FY2022~~43.0 million for this program. For FY2023, the Consolidated Appropriations , the Consolidated Appropriations
Act, Act, ~~2022~~2023 (P.L. 117- (P.L. 117-~~103) provided $43~~328) provides $50.0 million for million for ~~this~~the program. For program. For ~~FY2023~~FY2024, the President , the President
requested $280requested $280.0 million for this program. million for this program.198
Statutory Authority
The statutory authority for this program is CWA Section 221 (codified at 33 U.S.C. §1301). The 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 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). 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 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 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 treatment works and decentralized wastewater treatment systems to comply with the CWA and
apply for financing from the CWSRF.apply for financing from the CWSRF.~~121~~199 For this purpose, AWIA authorized appropriations of For this purpose, AWIA authorized appropriations of $25.0 ~~$25~~
million per year for FY2019 through FY2023. IIJA reauthorized appropriations of $75million per year for FY2019 through FY2023. IIJA reauthorized appropriations of $75 .0 million per million per
year for FY2022 through FY2026 to carry out grant programs in Section 104(b)(8), as year for FY2022 through FY2026 to carry out grant programs in Section 104(b)(8), as ~~well as~~
~~Section 104(b)(3) and Section 104(g). These latter two programs have not received appropriations~~
~~in recent years.~~

~~119~~ 192 P.L. 115-270. 193 AWIA §4106. 194 IIJA §50204. 195 EPA, “State Formula Allocations for Sewer Overflow and Stormwater Reuse Grants,” 86 EPA, “State Formula Allocations for Sewer Overflow and Stormwater Reuse Grants,” 86 Federal Register 11287, 11287,
February 24, 2021, February 24, 2021, at https://www.federalregister.gov/documents/2021/02/24/2021-03756/state-formula-allocations-for-https://www.federalregister.gov/documents/2021/02/24/2021-03756/state-formula-allocations-for-
sewer-overflow-and-stormwater-reuse-grants. sewer-overflow-and-stormwater-reuse-grants.
~~120 For more up-to-date information, see EPA’s Sewer Overflow and Stormwater Reuse Municipal Grants Program~~
~~website, https://www.epa.gov/cwsrf/sewer-overflow-and-stormwater-reuse-municipal-grants-program.~~
~~121 For more information, see EPA, “Technical Assistance for Treatment Works,” https://www.epa.gov/small-and-rural-~~
~~wastewater-systems/technical-assistance-treatment-works.~~
~~Congressional Research Service~~

41196 EPA, Memorandum from Assistant Administrator Radhika Fox to EPA Regional Water Division Directors, “Amendments to the Sewer Overflow and Stormwater Reuse Municipal Grants Program and Allocation of Federal Fiscal Year 2022 Funding,” November 18, 2022, at https://www.epa.gov/system/files/documents/2022-11/OSG-BIL-amendments-and-FY22-allotment.pdf. 197 EPA, Memorandum from Assistant Administrator Radhika Fox to EPA Regional Water Division Directors, “Allocation of Federal Fiscal Year 2023 Funding for the Sewer Overflow and Stormwater Reuse Municipal Grant Program,” August 9, 2023, at https://www.epa.gov/system/files/documents/2023-08/OSG-FY2023-Allotment-August-2023.pdf. 198 OMB, Budget of the U.S. Government, FY2024, Appendix, at https://www.whitehouse.gov/wp-content/uploads/2023/03/hud_fy2024.pdf. 199 For more information, see EPA, “Technical Assistance for Treatment Works,” at https://www.epa.gov/dwcapacity/training-and-technical-assistance-small-systems-funding. Congressional Research Service 45 Federally Supported Water Projects and Programs 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 FY2022, the Consolidated Appropriations Act, 2022 (P.L. 117-103) provided $20.0

~~Federally Supported Water Projects and Programs~~

~~Recent Federal Funding~~
~~For FY2020, the Further Consolidated Appropriations Act, 2020 (P.L. 116-94), enacted December~~
~~20, 2019, provided $12 million for the Section 104(b)(8) grant program. For FY2021, the~~
~~Consolidated Appropriations Act, 2021 (P.L. 116-260) provided $18~~ million for this program. For million for this program. For
~~FY2022~~FY2023, the Consolidated Appropriations Act, , the Consolidated Appropriations Act, ~~2022~~2023 (P.L. 117- (P.L. 117-~~103) provided $20~~328) provides $27.0 million for million for ~~this~~
the program. For program. For ~~FY2023~~FY2024, the President requested $18, the President requested $18.0 million for this program. In addition, the million for this program. In addition, the
President requested $75President requested $75.0 million to carry out this grant program and grant programs in Section million to carry out this grant program and grant programs in Section
104(b)(3) and Section 104(g).104(b)(3) and Section 104(g).200
Statutory Authority
The statutory authority for this technical assistance is CWA Section 104(b)(8) (codified at 33 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, U.S.C. §1254(b)(8)). This provision was added to the CWA in 2018 by AWIA (P.L. 115-270,
§4106). §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 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 assistance to public water systems and particularly to small systems (serving 25-10,000
customers).customers).201 Accounting for 92% of community water systems, these small systems frequently Accounting for 92% of community water systems, these small systems frequently
lack both economies of scale and the financial, managerial, and technical capacity to meet lack both economies of scale and the financial, managerial, and technical capacity to meet
statutory requirements. statutory requirements.
~~The~~This technical assistance is intended to enable small systems to achieve and maintain compliance technical assistance is intended to enable small systems to achieve and maintain compliance
with drinking water regulationswith drinking water regulations ~~and~~. Assistance may include circuit-rider and multistate regional technical may include circuit-rider and multistate regional technical
assistance programs, training, and assistance in implementing regulationsassistance programs, training, and assistance in implementing regulations,; source water protection source water protection
~~plans,~~plans; monitoring plans monitoring plans,; and water security enhancements water security enhancements~~, etc~~. The WIIN Act (P.L. 114-322) amended . The WIIN Act (P.L. 114-322) amended
Section 1442 to specify that technical assistance grants to tribes may be used for operator training Section 1442 to specify that technical assistance grants to tribes may be used for operator training
and certification. and certification.
Recent Federal Funding
For FY2021, the ~~For FY2020, the Further~~ Consolidated Appropriations Act, Consolidated Appropriations Act, ~~2020~~2021 (P.L. 116- (P.L. 116-~~94), enacted December~~
~~20, 2019, provided $15~~260), provided $19.0 million for this program. For million for this program. For ~~FY2021~~FY2022, the Consolidated Appropriations , the Consolidated Appropriations
Act, Act, ~~2021 (P.L. 116-260) provided $19~~2022 (P.L. 117-103), provided $22.0 million for this program. million for this program. ~~For FY2022, the~~The Consolidated Consolidated
Appropriations Act, Appropriations Act, ~~2022~~2023 (P.L. 117- (P.L. 117-~~103)~~328), provided $ provided $2226.0 million for this program. For million for this program. For ~~FY2023~~FY2024, the , the
President did not request funds for this program. President did not request funds for this program.
Statutory Authority
The statutory authority for this technical assistance is SDWA Section 1442(e) (codified at 42 The statutory authority for this technical assistance is SDWA Section 1442(e) (codified at 42
U.S.C. §300j-1(e)). U.S.C. §300j-1(e)).
200 OMB, Budget of the U.S. Government, FY2024, Appendix, at https://www.whitehouse.gov/wp-content/uploads/2023/03/hud_fy2024.pdf. 201 42 U.S.C. §300j-1(e). Congressional Research Service 46 Federally Supported Water Projects and Programs Small and Disadvantaged Communities Drinking Water Grant Program
In 2016, Congress amended SDWA to add a drinking water grant program to help assist 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.disadvantaged or small communities afford projects needed to comply with SDWA regulations.202
Eligible projects include investments needed for SDWA compliance, household water quality Eligible projects include investments needed for SDWA compliance, household water quality
testing, and assistance that benefits a community on a per-household basis.testing, and assistance that benefits a community on a per-household basis.203 Eligible grant Eligible grant
recipients include public water systems or tribal water systems that serve a disadvantaged 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 or a community of 10,000 or fewer individuals or a state on behalf of an underserved
~~Congressional Research Service~~

42

~~Federally Supported Water Projects and Programs~~

~~community.~~community.204 For the purposes of this grant program, For the purposes of this grant program, underserved community is defined to mean “a is defined to mean “a
political subdivision of a State that, as determined by the Administrator, has an inadequate system political subdivision of a State that, as determined by the Administrator, has an inadequate system
for obtaining drinking water.”for obtaining drinking water.”~~122~~205 This grant program requires a cost share of no less than 10% of 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 total project costs in the form of monetary funding, services, materials, supplies, or other in‐kind
services.services.206 EPA may waive this matching requirement if the grant recipient would experience EPA may waive this matching requirement if the grant recipient would experience
significant financial hardship from providing the nonfederal share.significant financial hardship from providing the nonfederal share.207
In April 2019, EPA announced the distribution of FY2018 and FY2019 funding for these grants 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 among the states and territories, using a formula similar to the DWSRF allotment formula, with a
2% allotment for tribes.2% allotment for tribes.~~123~~208 EPA reports that states EPA reports that states ~~will~~ need to develop a list of fundable projects need to develop a list of fundable projects
that meet the grant program’s eligibility criteria to receive their allotment of funding.that meet the grant program’s eligibility criteria to receive their allotment of funding.~~124 In~~
~~November 2020,~~ 209 For FY2020, EPA announced that the agency would EPA announced that the agency would ~~provide $20~~distribute $20.0 million for public water million for public water
systems serving tribal communities.systems serving tribal communities.~~125~~210 For FY2021 funding, EPA allotted $23.2 million among For FY2021 funding, EPA allotted $23.2 million among
the states by using “an algorithmic formula that includes factors for population below poverty, 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 small water systems, and underserved communities,” after reserving 10% of available funds for
~~projects serving Indian tribes and Alaska Native villages.126~~
~~Recent Federal Funding~~
~~Beginning in FY2018, Congress has appropriated funds~~ projects serving Indian tribes and Alaska Native villages.211 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 projects serving Indian tribes and Alaska Native Villages.212 202 P.L. 114-322. 203 42 U.S.C. §300j-19a(c). 204 Ibid. 205 42 U.S.C. §300j-19a(a)(2). 206 42 U.S.C. §300j-19a(h). 207 Ibid. 208 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, at https://www.epa.gov/sites/production/files/2019-04/documents/wiin_2104_allotment_memo_april_2019.pdf. 209 EPA, Assistance for Small and Disadvantaged Communities Drinking Water Grant Program: Grant Implementation Document, August 2019, at https://www.epa.gov/sites/production/files/2019-08/documents/assistance_for_small_and_disadvantaged_communities_grant_implementation_document_08_27_19.pdf. 210 See EPA website “WIIN Act Section 2104: Assistance for Small and Disadvantaged Communities Tribal Grant Program,” at https://www.epa.gov/tribaldrinkingwater/wiin-act-section-2104-assistance-small-and-disadvantaged-communities-tribal. 211 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, at https://www.epa.gov/system/files/documents/2021-08/fy2021-initial-state-allotment-memo.pdf. 212 EPA, “Allotments for Fiscal Year 2022 and 2023 for the Assistance to Small, Underserved and Disadvantaged Communities Grant, Authorized under Section 1459A of the Safe Drinking Water Act, as Amended by Section 2104 of the Water Infrastructure Improvements for the Nation Act,” June 23, 2023, at https://www.epa.gov/system/files/documents/2023-06/SUDC%20Grant%20Allotments%20for%20Fiscal%20Year%202022%20and%202023_0.pdf. Congressional Research Service 47 Federally Supported Water Projects and Programs Recent Federal Funding Beginning in FY2018, Congress has appropriated funds each year to support this grant program for small to support this grant program for small
and disadvantaged communities. For FY2018, Congress provided $20.0 million to support these and disadvantaged communities. For FY2018, Congress provided $20.0 million to support these
grants (P.L. 115-141). For FY2019, the Consolidated Appropriations Act, 2019 (P.L. 116-6) grants (P.L. 115-141). For FY2019, the Consolidated Appropriations Act, 2019 (P.L. 116-6)
provided $25.0 million for this grant program. For FY2020, the Further Consolidated provided $25.0 million for this grant program. For FY2020, the Further Consolidated
Appropriations Act, 2020 (P.L. 116-94) provided $25.4 million. For FY2021, the Consolidated Appropriations Act, 2020 (P.L. 116-94) provided $25.4 million. For FY2021, the Consolidated
Appropriations Act, 2021 (P.L. 116-260) provided $26.4 million for this grant program. For Appropriations Act, 2021 (P.L. 116-260) provided $26.4 million for this grant program. For
FY2022, two acts provided appropriations for this grant program. IIJA (P.L. 117-58) provided FY2022, two acts provided appropriations for this grant program. IIJA (P.L. 117-58) provided
appropriations for FY2022 of $1.0 billion for this grant program for projects to address emerging appropriations for FY2022 of $1.0 billion for this grant program for projects to address emerging
contaminants. The Consolidated Appropriations Act, 2021 (P.L. 117-103) provided $27.2 million contaminants. The Consolidated Appropriations Act, 2021 (P.L. 117-103) provided $27.2 million
for this grant program. for this grant program. ~~For FY2023~~Similarly, IIJA provided this grant program with $1.0 billion dedicated to emerging contaminant projects in FY2023. For FY2023, the Consolidated Appropriations Act, 2023 (P.L. 117-328) provided $30.2 million for this grant program. For FY2024, the President requested $80.0 million for this grant program., the President requested $80.0 million for this grant program.213
Statutory Authority
The statutory authority for the Assistance for Small and Disadvantaged Communities Drinking The statutory authority for the Assistance for Small and Disadvantaged Communities Drinking
Water Grant program is SDWA Section 1459A (codified at 42 U.S.C. §300j-19a, added by the Water Grant program is SDWA Section 1459A (codified at 42 U.S.C. §300j-19a, added by the
WIIN Act, P.L. 114-322, §2104). WIIN Act, P.L. 114-322, §2104).

~~122 42 U.S.C. §300j-19a(a)(1).~~
~~123 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.~~
~~124 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.~~
~~125 See EPA website “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-~~
~~communities-tribal.~~
~~126 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/2021-08/fy2021-initial-state-allotment-memo.pdf.~~
~~Congressional Research Service~~

43 Lead Reduction Projects Grant Program In 2016, Congress amended SDWA to direct EPA to establish a grant program for projects and activities that reduce lead in drinking water.214 These grants may be used to replace a publicly owned lead service line; to test, plan, or perform other relevant activities to control lead in drinking water; and to provide assistance to low-income homeowners to replace their portions of lead service lines.215 Eligible grant recipients include public water systems; tribal water systems; qualified nonprofits with experience in lead reduction; and local, state, or municipal governments.216 This grant program generally requires recipients to provide a 20% match. EPA may waive this matching requirement for reasons of affordability. Recent Federal Funding Congress first appropriated funds for this grant program in FY2018. In FY2018, the Consolidated Appropriations Act, 2018 (P.L. 115-141) provided $10.0 million to support these grants. In FY2019, the Consolidated Appropriations Act, 2019 (P.L. 116-6) provided $15.0 million for this grant program. In FY2020, the Further Consolidated Appropriations Act, 2020 (P.L. 116-94) provided $19.5 million to support this grant program. For FY2021, the Consolidated Appropriations Act, 2021 (P.L. 116-260) provided $21.5 million for this grant program. The Consolidated Appropriations Act, 2022 (P.L. 117-103) provided $22.0 million for this grant 213 EPA, Fiscal Year 2024 Justification of Appropriation Estimates for the Committee on Appropriations, EPA-190R23001, Washington, DC, March 2023, at https://www.epa.gov/system/files/documents/2023-03/fy-2024-congressional-justification-all-tabs.pdf. 214 P.L. 114-322. 215 42 U.S.C. §300j-19b(a)(2). 216 42 U.S.C. §300j-19b(a)(1). Congressional Research Service 48 Federally Supported Water Projects and Programs program for FY2022. The Consolidated Appropriations Act, 2023 (P.L. 117-328) provided $25.0 million for this grant program. For FY2024, the President requested $182.0 million.217 Statutory Authority The statutory authority for this grant program is SDWA Section 1459B (codified at 42 U.S.C. §300j-19b, added by the WIIN Act, P.L. 114-322, §2105). Small Water System Resilience and Sustainability Grant Program In 2018, Congress amended SDWA to authorize EPA to establish the Drinking Water System Infrastructure Resilience and Sustainability Program, a grant program for small and disadvantaged public water systems.218 EPA is to award grant funds to eligible public water systems for projects that increase resilience to natural hazards, including hydrologic changes. Eligible projects include those 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.219 This grant program generally requires recipients to provide a 10% cost share that EPA can waive.220 Recent Federal Funding Congress first appropriated funds for this grant program in FY2020. In FY2020, the Further

~~Federally Supported Water Projects and Programs~~

~~Lead Reduction Projects Grant Program~~
~~In 2016, Congress amended SDWA to direct EPA to establish a grant program for projects and~~
~~activities that reduce lead in drinking water. Grants may be used to replace a publicly owned lead~~
~~service line; to test, plan, or perform other relevant activities to control lead in drinking water;~~
~~and to provide assistance to low-income homeowners to replace their portions of lead service~~
~~lines. Eligible grant recipients include public water systems; tribal water systems; qualified~~
~~nonprofits with experience in lead reduction; and local, state, or municipal governments. This~~
~~grant program generally requires recipients to provide a 20% match. EPA may waive this~~
~~matching requirement for reasons of affordability.~~
~~In October 2020, EPA provided the first funding for this grant program.127~~
~~Recent Federal Funding~~
~~Congress first appropriated funds for this grant program in FY2018. In FY2018, the~~ Consolidated Consolidated
Appropriations Act, Appropriations Act, ~~2018~~2020 (P.L. (P.L. ~~115-141)~~116-94), provided $ provided $103.0 million to support .0 million to support ~~these grants. In~~
~~FY2019~~this grant program. For FY2021, the Consolidated Appropriations Act, , the Consolidated Appropriations Act, ~~2019~~2021 (P.L. 116- (P.L. 116-6)260), provided $ provided $154.0 million for this .0 million for this
grant program. grant program. ~~In FY2020, the Further~~The Consolidated Appropriations Act, 2022 (P.L. 117-103), provided $5.0 million for this grant program for FY2022. The Consolidated Appropriations Act, Consolidated Appropriations Act, ~~2020~~2023 (P.L. 117-328), provided $7.0 million for ~~(P.L. 116-94)~~
~~provided $19.5 million to support~~ this grant program. For this grant program. For ~~FY2021, the Consolidated~~
~~Appropriations Act, 2021 (P.L. 116-260) provided $21.5 million for this grant program. The~~
~~Consolidated Appropriations Act, 2021 (P.L. 117-103) provided $22~~FY2024, the President requested $25.0 million.221 Statutory Authority The statutory authority for the Small Water System Resilience and Sustainability grant program is SDWA Section 1459A(l) (codified at 42 U.S.C. §300j-19a(l), added by AWIA (P.L. 115-270, §2005)). Midsize and Large Drinking Water System Infrastructure Resilience and Sustainability Program In 2021, Congress amended SDWA to direct EPA to establish a grant program for public water systems serving 10,000 or more individuals to improve resilience to natural hazards and to address cybersecurity vulnerabilities.222 Eligible uses of funds include various water conservation, 217 EPA, Fiscal Year 2024 Justification of Appropriation Estimates for the Committee on Appropriations, EPA-190R23001, Washington, DC, March 2023, at https://www.epa.gov/system/files/documents/2023-03/fy-2024-congressional-justification-all-tabs.pdf. 218 P.L. 115-270. 219 42 U.S.C. §300j-19a(l)(3). 220 42 U.S.C. §300j-19a(l)(5). 221 EPA, Fiscal Year 2024 Justification of Appropriation Estimates for the Committee on Appropriations, EPA-190R23001, Washington, DC, March 2023, at https://www.epa.gov/system/files/documents/2023-03/fy-2024-congressional-justification-all-tabs.pdf. 222 P.L. 117-58. Congressional Research Service 49 Federally Supported Water Projects and Programs desalination construction, and watershed management activities, among others.223 EPA is directed to use 50% of amounts available for grants for water systems serving 10,000 or more to 100,000 individuals, and 50% for systems serving more than 100,000 individuals.224 Recent Federal Funding Congress first provided appropriations for this grant program for FY2023. The Consolidated Appropriations Act, 2023 (P.L. 117-328), provided $5.0 million for this grant program. For FY2024~~.0 million for this grant~~
~~program for FY2022. For FY2023~~, the President requested $, the President requested $~~182~~50.0 million..0 million.225
Statutory Authority
The statutory authority for the The statutory authority for the ~~Reducing Lead in Drinking Water~~Midsize and Large Drinking Water System Resilience and Sustainability grant program is SDWA Section grant program is SDWA Section
~~1459B~~1459F (codified at 42 U.S.C. §300j- (codified at 42 U.S.C. §300j-~~19b~~19g, added by , added by ~~the WIIN Act, P.L. 114-322, §2105~~IIJA (P.L. 117-58, §50107)). ).
Department of Housing and Urban ~~Development128~~Development226
Community Development Block Grants
HUD administers assistance in support of state and local government neighborhood revitalization, HUD administers assistance in support of state and local government neighborhood revitalization,
including infrastructure improvements, primarily under the Community Development Block including infrastructure improvements, primarily under the Community Development Block
Grant (CDBG) program. The program’s primary objective is to develop viable communities by Grant (CDBG) program. The program’s primary objective is to develop viable communities by
providing decent housing and a suitable living environment and by expanding economic providing decent housing and a suitable living environment and by expanding economic
opportunities, principally for persons of low and moderate income. State and local governments opportunities, principally for persons of low and moderate income. State and local governments
use CDBG funds for a broad range of neighborhood revitalization and community and economic use CDBG funds for a broad range of neighborhood revitalization and community and economic
development activities intended to meet one of three national objectives. Specifically, eligible development activities intended to meet one of three national objectives. Specifically, eligible
activities must activities must
1. principally benefit low- or moderate-income persons, 1. principally benefit low- or moderate-income persons,
2. aid in preventing or eliminating slums and blight, or 2. aid in preventing or eliminating slums and blight, or
3. address an imminent threat to the health and safety of residents. 3. address an imminent threat to the health and safety of residents.

~~127 See EPA, “WIIN Grant: Reduction in Lead Exposure Via Drinking Water,” https://www.epa.gov/dwcapacity/wiin-~~
~~grant-reduction-lead-exposure-drinking-water.~~
~~128 This section was prepared by Joe Jaroscak, Analyst in Economic Development Policy, Government and Finance~~
~~Division.~~
~~Congressional Research Service~~

44

~~Federally Supported Water Projects and Programs~~

~~Program regulations require~~227 The program statute requires that at least 70% of a grantee’s funds must benefit low- and that at least 70% of a grantee’s funds must benefit low- and
moderate-income persons.moderate-income persons.228
The block grant nature of the CDBG program provides local government discretion in selecting The block grant nature of the CDBG program provides local government discretion in selecting
the eligible activities to be undertaken in pursuit of national objectives. Water and waste disposal the eligible activities to be undertaken in pursuit of national objectives. Water and waste disposal
needs compete with many other eligible activities for this assistance, including historical needs compete with many other eligible activities for this assistance, including historical
preservation, energy conservation, economic development, lead-based paint abatement, public preservation, energy conservation, economic development, lead-based paint abatement, public
facilities, and public service activities.facilities, and public service activities. ~~Since it was enacted in 1974, the CDBG program has~~
~~invested over $150 billion in communities nationwide.~~
223 42 U.S.C. §300j-19(g)(1)(c). 224 42 U.S.C. §300j-19(g)(1)(f). 225 EPA, Fiscal Year 2024 Justification of Appropriation Estimates for the Committee on Appropriations, EPA-190R23001, Washington, DC, March 2023, at https://www.epa.gov/system/files/documents/2023-03/fy-2024-congressional-justification-all-tabs.pdf. 226 This section was prepared by Joe Jaroscak, Analyst in Economic Development Policy, Government and Finance Division. 227 24 C.F.R. § 570.208. 228 42 U.S.C. §5301(c). Congressional Research Service 50 Federally Supported Water Projects and Programs Congress has also used the program to provide supplemental appropriations to assist communities Congress has also used the program to provide supplemental appropriations to assist communities
and states in response to natural disasters, the mortgage foreclosure crisis of 2008, economic and states in response to natural disasters, the mortgage foreclosure crisis of 2008, economic
recessions, terrorist attacks, and the Coronavirus Disease 2019 (COVID-19) pandemic. Since recessions, terrorist attacks, and the Coronavirus Disease 2019 (COVID-19) pandemic. Since
~~1992~~1993, Congress has appropriated approximately $, Congress has appropriated approximately $~~89.8~~99.6 billion in supplemental CDBG funding to billion in supplemental CDBG funding to
assist targeted states and local governments in their recovery assist targeted states and local governments in their recovery ~~efforts, referred to~~and mitigation efforts, as CDBG- as CDBG-
Disaster Recovery (CDBG-DRDisaster Recovery (CDBG-DR) and CDBG-Mitigation (CDBG-MIT) funding.229~~) funding.129~~
After subtracting any amounts specified in appropriations acts, 70% of CDBG funds (the After subtracting any amounts specified in appropriations acts, 70% of CDBG funds (the
entitlement program) are allocated by formula to entitlement communities.entitlement program) are allocated by formula to entitlement communities.~~130~~230 Entitlement Entitlement
communities are defined as central cities of metropolitan areas; metropolitan cities with communities are defined as central cities of metropolitan areas; metropolitan cities with
populations of 50,000 or more; and statutorily defined urban counties.populations of 50,000 or more; and statutorily defined urban counties.231 These funds are not These funds are not
available for projects in rural communities. The remaining 30% of CDBG funding (the state available for projects in rural communities. The remaining 30% of CDBG funding (the state
program) is allocated by formula to the states for distribution to nonentitlement communities for program) is allocated by formula to the states for distribution to nonentitlement communities for
use in areas that are not part of a CDBG entitlement community allocation. These funds, which use in areas that are not part of a CDBG entitlement community allocation. These funds, which
are administered by each state, may be available for rural community water projects, among other are administered by each state, may be available for rural community water projects, among other
eligible activities.eligible activities.~~131~~232
Funds from both the state and the entitlement CDBG programs are disbursed across several broad Funds from both the state and the entitlement CDBG programs are disbursed across several broad
categories, including the acquisition and demolition of real property, planning and administrative categories, including the acquisition and demolition of real property, planning and administrative
activities, housing, public services, and public improvements such as water and wastewater activities, housing, public services, and public improvements such as water and wastewater
treatment facilities. From treatment facilities. From ~~FY2016 to FY2020~~FY2018 to FY2022, water and sewer improvements accounted for an , water and sewer improvements accounted for an
average of 12% of total CDBG expenditures. CDBG expenditures for public improvements average of 12% of total CDBG expenditures. CDBG expenditures for public improvements
overall—including water, sewer, and related improvements—accounted for approximately 36% overall—including water, sewer, and related improvements—accounted for approximately 36%
of all CDBG funds expended during the same five-year span.of all CDBG funds expended during the same five-year span.~~132~~233
Program Purpose
As noted, the primary goal of the CDBG program is the development of viable communities by As noted, the primary goal of the CDBG program is the development of viable communities by
providing decent housing, a suitable living environment, and expanding economic opportunities, providing decent housing, a suitable living environment, and expanding economic opportunities,
principally for low- and moderate-income persons. Funds may also be used to aid in preventing or principally for low- and moderate-income persons. Funds may also be used to aid in preventing or
eliminating slums and blight or to address an imminent threat to residents of the impacted area. eliminating slums and blight or to address an imminent threat to residents of the impacted area.

~~129 HUD, CDBG Grant History Report (as of April 2021), https://www.hudexchange.info/programs/cdbg-dr/reports/.~~
~~130 HUD, Awards and Allocations, https://www.hudexchange.info/grantees/allocations-awards/.~~
~~131~~ Financing or Funding Mechanism The CDBG funding allocation process is outlined in the program’s statute.234 After amounts specified in an appropriations act are allocated, 70% of the remaining funds are allocated by formula to entitlement communities and 30% to the states for distribution to nonentitlement communities. Funds are awarded to entitlement communities based on the higher yield from one of two weighted formulas. The first formula uses population, overcrowded housing, and poverty data, while the second formula allocates funds based on an entitlement community’s relative share of poverty, housing built before 1940, and the lag in population growth rate relative to the 229 U.S. Department of Housing and Urban Development (HUD), CDBG Grant History Report (as of April 2023), at https://www.hudexchange.info/programs/cdbg-dr/reports/. 230 HUD, Awards and Allocations, at https://www.hudexchange.info/grantees/allocations-awards/. 231 42 U.S.C. §5302. 232 HUD, HUD, CDBG Expenditure Reports, National Expenditure Reports (FY2001-FY2020), All CDBG Disbursements,
at https://www.hudexchange.info/programs/cdbg/cdbg-expenditure-reports/. https://www.hudexchange.info/programs/cdbg/cdbg-expenditure-reports/.
~~132~~233 Between Between ~~FY2016 and FY2020~~FY2018 and FY2022, disbursements by CDBG recipients for water and sewer improvements , disbursements by CDBG recipients for water and sewer improvements ~~have~~
~~averaged $388~~averaged $398.4 million per year. See HUD, .4 million per year. See HUD, CDBG Expenditure Reports, National Expenditure Reports (FY2001-
FY2020), All CDBG Disbursements, , at https://www.hudexchange.info/programs/cdbg/cdbg-expenditure-reports/. https://www.hudexchange.info/programs/cdbg/cdbg-expenditure-reports/.
234 42 U.S.C. §5306. Congressional Research Service Congressional Research Service

4551 Federally Supported Water Projects and Programs

~~Federally Supported Water Projects and Programs~~

~~Financing or Funding Mechanism~~
~~The CDBG funding allocation process is outlined in the program’s statute. After amounts~~
~~specified in an appropriations act are allocated, 70% of the remaining funds are allocated by~~
~~formula to entitlement communities and 30% to the states for distribution to nonentitlement~~
~~communities. Funds are awarded to entitlement communities based on the higher yield from one~~
~~of two weighted formulas. The first formula uses population, overcrowded housing, and poverty~~
~~data, while the second formula allocates funds based on an entitlement community’s relative~~
~~share of poverty, housing built before 1940, and the lag in population growth rate relative to the~~
total for all entitlement communities. Similar formulas are used to allocate nonentitlement funds total for all entitlement communities. Similar formulas are used to allocate nonentitlement funds
to states. to states.
In order to receive CDBG funds, eligible grantees are required to participate in HUD’s In order to receive CDBG funds, eligible grantees are required to participate in HUD’s
Consolidated Plan process, in which grantees assess conditions and needs related to community Consolidated Plan process, in which grantees assess conditions and needs related to community
development and housing to inform the selection of program activities. Under this process, development and housing to inform the selection of program activities. Under this process,
grantees submit three- to five-year consolidated plans as well as annual strategic plans that must grantees submit three- to five-year consolidated plans as well as annual strategic plans that must
be developed with community input and conform to HUD specifications. Grantees also report be developed with community input and conform to HUD specifications. Grantees also report
annually on performance against their stated goals for the previous year through a Comprehensive annually on performance against their stated goals for the previous year through a Comprehensive
Annual Performance Evaluation Report (CAPER).Annual Performance Evaluation Report (CAPER).~~133~~235
States do not undertake eligible CDBG activities directly. Instead, states act as fiscal agents States do not undertake eligible CDBG activities directly. Instead, states act as fiscal agents
charged with three distinct responsibilities: (1) determining the method or methods to be used to charged with three distinct responsibilities: (1) determining the method or methods to be used to
distribute funds to nonentitlement communities, including seeking the input of affected local distribute funds to nonentitlement communities, including seeking the input of affected local
governments; (2) selecting local governments that will receive funds; and (3) monitoring local governments; (2) selecting local governments that will receive funds; and (3) monitoring local
government grant recipients and project implementation to ensure compliance with rules government grant recipients and project implementation to ensure compliance with rules
governing the program. governing the program.
Eligibility Requirements
There are three categories of recipients eligible for direct allocations of CDBG program funds: There are three categories of recipients eligible for direct allocations of CDBG program funds:
entitlement communities, states (for distribution to nonentitlement communities), and insular entitlement communities, states (for distribution to nonentitlement communities), and insular
areas (U.S. territories). Before funds are allocated to states and entitlement communities, a areas (U.S. territories). Before funds are allocated to states and entitlement communities, a
statutory amount of $7statutory amount of $7.0 million is set aside annually for the U.S. territories or insular areas of million is set aside annually for the U.S. territories or insular areas of
Guam, the Virgin Islands, American Samoa, and the Commonwealth of the Northern Mariana Guam, the Virgin Islands, American Samoa, and the Commonwealth of the Northern Mariana
Islands. These funds are awarded annually based on each insular area’s relative share of aggregate Islands. These funds are awarded annually based on each insular area’s relative share of aggregate
population for all insular areas. population for all insular areas.
Eligible activities include a wide range of projects such as public facilities and improvements, Eligible activities include a wide range of projects such as public facilities and improvements,
housing, public services, economic development, and brownfields redevelopment. Grantees must housing, public services, economic development, and brownfields redevelopment. Grantees must
ensure that each activity meets one of the program’s three national objectives: benefiting low- and ensure that each activity meets one of the program’s three national objectives: benefiting low- and
moderate-income persons (the primary objective), aiding in the prevention or elimination of moderate-income persons (the primary objective), aiding in the prevention or elimination of
slums or blight, or assisting other community development needs that present a serious and slums or blight, or assisting other community development needs that present a serious and
immediate threat to the health or welfare of the community. Under the state program that assists immediate threat to the health or welfare of the community. Under the state program that assists
smaller communities, states develop their own program and funding priorities and have smaller communities, states develop their own program and funding priorities and have
considerable latitude to define community eligibility and criteria, within general criteria in law considerable latitude to define community eligibility and criteria, within general criteria in law
and regulations. and regulations.

~~133 U.S. Department of Housing and Urban Development,~~ ~~Consolidated Plan Process, Grant Programs, and Related~~
~~HUD Programs, https://www.hudexchange.info/programs/consolidated-plan/consolidated-plan-process-grant-~~
~~programs-and-related-hud-programs/.~~
~~Congressional Research Service~~

46

~~link to page 8 link to page 8~~ ~~Federally Supported Water Projects and Programs~~

~~Recent Federal Funding~~
Recent Federal Funding The Consolidated Appropriations Act, The Consolidated Appropriations Act, ~~2022 (P.L. 117-103)~~2023, appropriated $ appropriated $~~4.841~~6.4 billion for the billion for the
Community Development Fund (CDF),Community Development Fund (CDF),~~134~~236 including $3. including $3.~~307~~3 billion in CDBG entitlement, billion in CDBG entitlement,
nonentitlement, and insular area fundsnonentitlement, and insular area funds ~~(see Table 1)~~. The act included $. The act included $~~1.516~~3.0 billion in the CDF billion in the CDF
for Economic Development Initiative for Economic Development Initiative funding, for congressionally directed community project spending, among other provisions.237 Of the amount appropriated for CDBG grants in FY2023, $2.3 billion was allocated to entitlement 235 HUD, Consolidated Plan Process, Grant Programs, and Related HUD Programs, at https://www.hudexchange.info/programs/consolidated-plan/consolidated-plan-process-grant-programs-and-related-hud-programs/. 236 The CDBG program is funded in an account called the Community Development Fund. 237 HUD, Economic Development Initiative—Community Project Funding Grants, March 2023, at https://www.hud.gov/program_offices/comm_planning/economic_development_initiative_community_project_funding_grants. Congressional Research Service 52 Federally Supported Water Projects and Programs ~~funding, for congressionally directed community project~~
~~spending.135 As in FY2021, the Consolidated Appropriations Act, 2022 appropriated $25 million~~
~~of the $4.841 billion for activities authorized under the Substance Use-Disorder Prevention that~~
~~Promotes Opioid Recovery and Treatment for Patients and Communities Act (the SUPPORT for~~
~~Patients and Communities Act; P.L. 115-271). Of the amount appropriated for CDBG grants in~~
~~FY2022, $2.305 billion was allocated to entitlement~~ communities, $987.9 million to states for communities, $987.9 million to states for
distribution to nonentitlement communities, and $7distribution to nonentitlement communities, and $7 .0 million to insular areas.million to insular areas.~~136 The Biden~~
238 The Administration’s Administration’s ~~FY2023~~FY2024 budget requested $3. budget requested $3.774 billion for the CDF, of which $3. billion for the CDF, of which $3.~~607~~3 billion billion
was requested for the CDBG programwas requested for the CDBG program ~~(see Table 1).137~~.239
Statutory and Regulatory Authority
Statutory authority for the CDBG program is Title I of the Housing and Community Development Statutory authority for the CDBG program is Title I of the Housing and Community Development
Act of 1974, as amended (42 U.S.C. §Act of 1974, as amended (42 U.S.C. §§5301 et seq.). Regulations are codified at Title 24, Part 570, 5301 et seq.). Regulations are codified at Title 24, Part 570,
of the of the Code of Federal Regulations. Regulations covering the CDBG state program for . Regulations covering the CDBG state program for
nonentitlement communities are codified at Title 24, Part 570, Subpart I (§570.480).nonentitlement communities are codified at Title 24, Part 570, Subpart I (§570.480).~~138~~240 CDBG has CDBG has
operated under an expired authorization since 1994. operated under an expired authorization since 1994.
CDBG Section 108 Loan Guarantees
Authorized under the same title (Title I of the Housing and Community Development Act of Authorized under the same title (Title I of the Housing and Community Development Act of
1974) as the formula-based CDBG program, Section 108 provides loan guarantees to CDBG 1974) as the formula-based CDBG program, Section 108 provides loan guarantees to CDBG
grantees. The program allows entitlement communities and states, on behalf of a nonentitlement grantees. The program allows entitlement communities and states, on behalf of a nonentitlement
community, to leverage its annual CDBG allocation in support of large-scale economic community, to leverage its annual CDBG allocation in support of large-scale economic
development and housing rehabilitation projects and the construction, reconstruction, or development and housing rehabilitation projects and the construction, reconstruction, or
installation of public facilities. installation of public facilities.
Program Purpose
Consistent with the goals and objectives of the CDBG program, Section 108 loan guarantees are Consistent with the goals and objectives of the CDBG program, Section 108 loan guarantees are
intended to supplement CDBG program activities. The program allows entitlement communities intended to supplement CDBG program activities. The program allows entitlement communities
and states to extend the reach of the formula-based CDBG program, giving them access to and states to extend the reach of the formula-based CDBG program, giving them access to

~~134 The CDBG program is funded in an account called the Community Development Fund.~~
~~135 U.S. Department of Housing and Urban Development,~~ ~~Economic Development Initiative—Community Project~~
~~Funding Grants, May 2022, https://www.hud.gov/program_offices/comm_planning/~~
~~economic_development_initiative_community_project_funding_grants.~~
~~136~~additional financial resources to undertake large-scale, transformative neighborhood revitalization efforts. Eligible activities include acquiring and rehabilitating publicly owned real property; housing rehabilitation; economic development activities, including those carried out by for-profit and nonprofit entities; debt service reserves; payment of interest on the guaranteed loan; issuance cost of the public offering; and the acquisition, construction, reconstruction, and installation of public facilities, including water and sewer improvements.241 Financing or Funding Mechanism Section 108 loan guarantees are financed through public offerings. Under the program, states and communities are allowed to float bonds, notes, or debentures worth up to five times their annual CDBG allocation, minus any existing Section 108 commitments or outstanding principal balances, with a repayment period of up to 20 years. States and entitlement communities must 238 HUD’s Office of Community Planning and Development (CPD) administers the CDBG program. CPD’s HUD’s Office of Community Planning and Development (CPD) administers the CDBG program. CPD’s
Appropriations Budget/Allocations table provides the Appropriations Budget/Allocations table provides the ~~FY2022~~FY2023 amount of funding allocated for entitlement (called amount of funding allocated for entitlement (called
“local governments” in the table) and state CDBG programs. See “local governments” in the table) and state CDBG programs. See ~~U.S. Department of Housing and Urban~~
~~Development~~HUD, “CPD Appropriations Budget/Allocations,” , “CPD Appropriations Budget/Allocations,” at https://www.hud.gov/program_offices/comm_planning/https://www.hud.gov/program_offices/comm_planning/
appropriations_budget_allocations. appropriations_budget_allocations.
~~137~~239 OMB, OMB, Budget of the U.S. Government, ~~FY2023~~FY2024, Appendix, p. p. ~~571,~~ 562, at https://www.whitehouse.gov/wp-content/uploads/https://www.whitehouse.gov/wp-content/uploads/
~~2022/03/appendix_fy2023.pdf.~~
~~138~~2023/03/hud_fy2024.pdf. 240 For more program information on CDBG entitlements grants, see https://www.hudexchange.info/programs/cdbg- For more program information on CDBG entitlements grants, see https://www.hudexchange.info/programs/cdbg-
entitlement/cdbg-entitlement-program-eligibility-requirements/. For information on the CDBG state program, see entitlement/cdbg-entitlement-program-eligibility-requirements/. For information on the CDBG state program, see
https://www.hudexchange.info/programs/cdbg-state/. https://www.hudexchange.info/programs/cdbg-state/.
241 42 U.S.C. §5308(a). Congressional Research Service Congressional Research Service

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~~Federally Supported Water Projects and Programs~~

~~additional financial resources to undertake large-scale, transformative neighborhood revitalization~~
~~efforts.~~
~~Eligible activities include acquiring and rehabilitating publicly owned real property; housing~~
~~rehabilitation; economic development activities, including those carried out by for-profit and~~
~~nonprofit entities; debt service reserves; payment of interest on the guaranteed loan; issuance cost~~
~~of the public offering; and the acquisition, construction, reconstruction, and installation of public~~
~~facilities, including water and sewer improvements.~~
~~Financing or Funding Mechanism~~
~~Section 108 loan guarantees are financed through public offerings. Under the program, states and~~
~~communities are allowed to float bonds, notes, or debentures worth up to five times their annual~~
~~CDBG allocation, minus any existing Section 108 commitments or outstanding principal~~
~~balances, with a repayment period of up to 20 years. States and entitlement communities must~~
pledge their current and future CDBG allocations as security against default of the bonds or notes. pledge their current and future CDBG allocations as security against default of the bonds or notes.
Section 108 funds are made available on an ongoing basis, allowing communities to apply for Section 108 funds are made available on an ongoing basis, allowing communities to apply for
funds any time during the year. Section 108 loan funds are made available to eligible public funds any time during the year. Section 108 loan funds are made available to eligible public
entities that may reloan the funds to private participants in a redevelopment project. Applicants entities that may reloan the funds to private participants in a redevelopment project. Applicants
are encouraged to meet with HUD staff prior to submitting a formal application. are encouraged to meet with HUD staff prior to submitting a formal application.
Eligibility Requirements
Section 108 loan guarantees may be accessed only by CDBG entitlement communities and states Section 108 loan guarantees may be accessed only by CDBG entitlement communities and states
on behalf of a CDBG nonentitlement community. All eligible activities must meet at least one of on behalf of a CDBG nonentitlement community. All eligible activities must meet at least one of
the three national objectives of the regular CDBG program: the project must principally benefit the three national objectives of the regular CDBG program: the project must principally benefit
low- and moderate-income persons, aid in eliminating or preventing slums and blight, or address low- and moderate-income persons, aid in eliminating or preventing slums and blight, or address
an imminent threat to the health and safety of residents. The program has an open application an imminent threat to the health and safety of residents. The program has an open application
process, allowing entitlement communities and states to submit applications anytime during the process, allowing entitlement communities and states to submit applications anytime during the
year. The application process governing the Section 108 program can be grouped into several year. The application process governing the Section 108 program can be grouped into several
distinct stages: application presubmission, citizen participation, application submission, distinct stages: application presubmission, citizen participation, application submission,
application review and notification, award allocation, and reporting. application review and notification, award allocation, and reporting.
When submitting formal applications, states and entitlement communities must include a When submitting formal applications, states and entitlement communities must include a
description of activities to be carried out, financing structure, source of loan repayment, citizen description of activities to be carried out, financing structure, source of loan repayment, citizen
participation plan, antidisplacement strategy, and a pledge of the applicant’s CDBG allocation as participation plan, antidisplacement strategy, and a pledge of the applicant’s CDBG allocation as
security for the Section 108 guaranteed loan.security for the Section 108 guaranteed loan. ~~Recipients receiving Section 108 funds are required~~
~~to file annual performance reports with HUD detailing progress made in meeting the objectives of~~
~~their community development plans, including Section 108 activities.~~
242 Recent Federal Funding
For For ~~FY2022~~FY2023, Congress authorized a loan commitment ceiling of $300, Congress authorized a loan commitment ceiling of $300.0 million and directed HUD million and directed HUD
to collect fees from borrowers that result in a credit subsidy cost of zero for guaranteeing Section to collect fees from borrowers that result in a credit subsidy cost of zero for guaranteeing Section
108 loans.108 loans.~~139~~243 Until FY2015, Congress appropriated an amount necessary to cover the estimated Until FY2015, Congress appropriated an amount necessary to cover the estimated
long-term liability to the federal government of a Section 108 loan guarantee (credit subsidy). long-term liability to the federal government of a Section 108 loan guarantee (credit subsidy).
The Department of Housing and Urban Development Appropriations Act of The Department of Housing and Urban Development Appropriations Act of ~~FY2014140~~ FY2014244 changed changed
that arrangement, allowing HUD to collect a fee from the borrower to cover the cost of that arrangement, allowing HUD to collect a fee from the borrower to cover the cost of the credit ~~the credit~~

~~139 P.L. 117-103.~~
~~140 P.L. 113-76, 128 Stat. 617.~~
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subsidy. The amount of the fee is determined annually by HUD based on a percentage of the subsidy. The amount of the fee is determined annually by HUD based on a percentage of the
principal amount of the Section 108 guaranteed loan. For principal amount of the Section 108 guaranteed loan. For ~~FY2023, the Biden~~ FY2024, the Administration Administration
requested $requested $~~300~~400.0 million in Section 108 loan guarantee authority. million in Section 108 loan guarantee authority.~~141~~245
Statutory and Regulatory Authority
Statutory authority for the Section 108 program is Title I of the Housing and Community Statutory authority for the Section 108 program is Title I of the Housing and Community
Development Act of 1974, as amended (42 U.S.C. §5308). Regulations are codified at Title 24, Development Act of 1974, as amended (42 U.S.C. §5308). Regulations are codified at Title 24,
Part 570, Subpart M, of the Part 570, Subpart M, of the Code of Federal Regulations. .
242 24 C.F.R. § 570.704. 243 P.L. 117-328. 244 P.L. 113-76, 128 Stat. 617. 245 OMB, Budget of the U.S. Government, FY2024, Appendix, p. 562, at https://www.whitehouse.gov/wp-content/uploads/2023/03/hud_fy2024.pdf. Congressional Research Service 54 Federally Supported Water Projects and Programs Department of Commerce246 ~~Department of Commerce142~~
Economic Development Administration Public Works Program
The Department of Commerce’s Economic Development Administration (EDA) is authorized to The Department of Commerce’s Economic Development Administration (EDA) is authorized to
provide provide certain types of development assistance to areas experiencing substantial economic distress.development assistance to areas experiencing substantial economic distress.247 EDA grants EDA grants
for community water and sewer projects are available primarily through its Public Works for community water and sewer projects are available primarily through its Public Works
program.program.248 Similar assistance is also available under the agency’s Economic Adjustment Assistance Similar assistance is also available under the agency’s Economic Adjustment Assistance
program, which is discussed in the subsequent section.program, which is discussed in the subsequent section.249
Under the Public Works program, grants are awarded competitively to eligible applicants to Under the Public Works program, grants are awarded competitively to eligible applicants to
revitalize, expand, and upgrade their physical infrastructure. These investments in public works revitalize, expand, and upgrade their physical infrastructure. These investments in public works
improvements are generally linked to projects intended to enable communities to attract new improvements are generally linked to projects intended to enable communities to attract new
industry, encourage business expansion and retention, diversify local economies, and generate or industry, encourage business expansion and retention, diversify local economies, and generate or
retain private-sector jobs in EDA-designated distressed regions. Grants may be used for a wide retain private-sector jobs in EDA-designated distressed regions. Grants may be used for a wide
range of purposes, range of purposes, ~~but often~~and may have a water supply or wastewater element. have a water supply or wastewater element.
The types of projects funded include business and science parks, expansion of port and harbor The types of projects funded include business and science parks, expansion of port and harbor
facilities, business incubator facilities, skill-training facilities, telecommunications infrastructure, facilities, business incubator facilities, skill-training facilities, telecommunications infrastructure,
redevelopment of brownfields, and water and wastewater facilities primarily serving industry and redevelopment of brownfields, and water and wastewater facilities primarily serving industry and
commerce.commerce.250 Federal law requires that Federal law requires that ~~units of government~~eligible recipients retain ownership of EDA-funded retain ownership of EDA-funded
projects.projects.251 Because EDA grants are designed to primarily support economic development, foster Because EDA grants are designed to primarily support economic development, foster
job creation, and attract private investment, these grants are generally not available for job creation, and attract private investment, these grants are generally not available for ~~rural~~
residential sewer and water supply development. sewer and water supply development.252
Program Purpose
The purpose of EDA’s Public Works program is to promote long-term economic development The purpose of EDA’s Public Works program is to promote long-term economic development
and assist in the construction of public works and the development of facilities needed to initiate and assist in the construction of public works and the development of facilities needed to initiate
and support the creation or retention of permanent private-sector jobs in areas experiencing long-and support the creation or retention of permanent private-sector jobs in areas experiencing long-
term economic deterioration and distress. The program supports investments that help distressed term economic deterioration and distress. The program supports investments that help distressed
areas areas address their competitive disadvantages.253 Financing or Funding Mechanism EDA competitively awards public works grants directly to approved applicants. Generally, EDA investment assistance may not exceed 50% of the project cost. Projects may receive an additional amount, not to exceed 30%, based on the relative needs of the region in which the project will be 246~~address their competitive disadvantages. Funded projects must be part of an EDA-certified~~
~~Comprehensive Economic Development Strategy (CEDS) or equivalent EDA-accepted regional~~
~~economic development strategy.~~

~~141 OMB, Budget of the U.S. Government, FY2023, Appendix, p. 578, https://www.whitehouse.gov/wp-content/uploads/~~
~~2022/03/appendix_fy2023.pdf.~~
~~142~~ This section was prepared by Julie Lawhorn, Analyst in Economic Development Policy, Government and Finance This section was prepared by Julie Lawhorn, Analyst in Economic Development Policy, Government and Finance
Division. Division.
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~~Financing or Funding Mechanism~~
~~EDA competitively awards public works grants directly to approved applicants. Generally, EDA~~
~~investment assistance may not exceed 50% of the project cost. Projects may receive an additional~~
~~amount, not to exceed 30%, based on the relative needs of the region in which the project will be~~
~~located, as determined by EDA.~~247 42 U.S.C. §3161. 248 42 U.S.C. §3141. 249 42 U.S.C. §3149. 250 EDA, “Public Works,” at https://www.eda.gov/funding/programs/public-works. 251 13 C.F.R. §314.7. 252 EDA, “FY2023 Public Works and Economic Adjustment Assistance Notice of Funding Opportunity,” p. 10, at https://www.grants.gov/web/grants/view-opportunity.html?oppId=346815. For additional information, see EDA, “Public Works,” at https://www.eda.gov/funding/programs/public-works. 253 42 U.S.C. §3141(b). Congressional Research Service 55 Federally Supported Water Projects and Programs located, as determined by EDA.254 In the case of certain Indian tribes, nonprofit organizations that In the case of certain Indian tribes, nonprofit organizations that
have exhausted their effective borrowing capacity, or a state or political subdivision of a state that have exhausted their effective borrowing capacity, or a state or political subdivision of a state that
has exhausted its effective taxing and borrowing capacity, grants totaling 100% of a project’s cost has exhausted its effective taxing and borrowing capacity, grants totaling 100% of a project’s cost
may be awarded.may be awarded.255 Credit may be given toward the nonfederal share for in-kind contributions, Credit may be given toward the nonfederal share for in-kind contributions,
including contributions of space, equipment, and services.including contributions of space, equipment, and services.256 No minimum or maximum project No minimum or maximum project
amount is specified in law. amount is specified in law.
Eligibility Requirements
Public works grants may be made to states, cities, counties and other political subdivisions of Public works grants may be made to states, cities, counties and other political subdivisions of
states, states, ~~an Indian tribe, an~~Indian Tribes, economic development economic development ~~district~~districts, institutions of higher education or a , institutions of higher education or a
consortium of such institutions, and private or public not-for-profit organizations acting in consortium of such institutions, and private or public not-for-profit organizations acting in
cooperation with officials of a political subdivision of a state.cooperation with officials of a political subdivision of a state.~~143 For~~257 Individuals and for-profit, private-sector entities -profit, private-sector entities
do not qualify.do not qualify.258
Qualified projects must fill a pressing need of the area and must (1) be intended to improve the Qualified projects must fill a pressing need of the area and must (1) be intended to improve the
opportunities for the successful establishment or expansion of businesses, (2) assist in the creation opportunities for the successful establishment or expansion of businesses, (2) assist in the creation
of additional long-term private-sector employment, and (3) benefit long-term unemployed or of additional long-term private-sector employment, and (3) benefit long-term unemployed or
underemployed persons and low-income families.underemployed persons and low-income families.259 Projects must also be consistent with the Projects must also be consistent with the ~~area~~region’s certified Comprehensive Economic Development Strategy (CEDS) or equivalent EDA-accepted regional economic development strategy260’s
~~CEDS~~ and have an adequate share of nonfederal funds. and have an adequate share of nonfederal funds.261 In addition, eligible projects must be In addition, eligible projects must be
located in areas that meet at least one of the following criteria: low per-capita income, located in areas that meet at least one of the following criteria: low per-capita income,
unemployment above the national average, or “special need” as determined by EDA.unemployment above the national average, or “special need” as determined by EDA.~~144~~262
Recent Federal Funding
~~The Further Consolidated Appropriations Act, 2020 (P.L. 116-93) appropriated $292.5 million for~~
~~EDA programs, including $118.5 million~~ In FY2020, Congress directed EDA to allocate $118.5 million of total appropriations for the Public Works grant program. for the Public Works grant program.263 The amount of Public Works funding increased by $1.0 million 254 42 U.S.C. §3144. Additionally, agency regulations describe the economic distress criteria at 13 C.F.R. Part 301, Subpart D—Investment Rates and Matching Share Requirements. 255 42 U.S.C. §3144(c). 256 42 U.S.C. §3144(b). 257 ~~The Consolidated~~
~~Appropriations Act, 2021 (P.L. 116-260) appropriated $305.5 million for EDA programs,~~
~~including $119.5 million for the Public Works program. The Consolidated Appropriations Act,~~
~~2022 (P.L. 117-103) included $330 million for EDA programs and an additional $43.5 million for~~
~~salaries and expenses. Of the amount appropriated for EDA programs in FY2022, Congress~~
~~directed EDA to allocate $120.5 million for the Public Works program. For FY2023, the~~
~~Administration’s budget requested $124 million for the Public Works program.145~~

~~143~~ Under this program, the term Under this program, the term state includes the District of Columbia, the Commonwealth of Puerto Rico, the U.S. includes the District of Columbia, the Commonwealth of Puerto Rico, the U.S.
Virgin Islands, Guam, American Samoa, the Commonwealth of the Northern Mariana Islands, the Republic of the Virgin Islands, Guam, American Samoa, the Commonwealth of the Northern Mariana Islands, the Republic of the
Marshall Islands, the Federated States of Micronesia, and the Republic of Palau. Under this program, the term Marshall Islands, the Federated States of Micronesia, and the Republic of Palau. Under this program, the term Indian
tribe includes any Indian tribe, band, nation, pueblo, or other organized group or community, including any Alaska includes any Indian tribe, band, nation, pueblo, or other organized group or community, including any Alaska
Native village or Regional Corporation (as defined in or established under the Alaska Native Claims Settlement Act (43 Native village or Regional Corporation (as defined in or established under the Alaska Native Claims Settlement Act (43
U.S.C. §U.S.C. §§1601 et seq.)), that is recognized as eligible for the special programs and services provided by the United 1601 et seq.)), that is recognized as eligible for the special programs and services provided by the United
States to Indians because of their status as Indians (42 U.S.C. States to Indians because of their status as Indians (42 U.S.C. §§3122). 3122).
~~144~~258 42 U.S.C. 42 U.S.C. §~~3141~~§3122(4). 259 42 U.S.C. §3141(b). 260 42 U.S.C. §3141(b)(3). 261 42 U.S.C. §3144. 262 42 U.S.C. §3161.. Additionally, agency regulations describe the economic distress criteria at 13 C.F.R. Part 300, Additionally, agency regulations describe the economic distress criteria at 13 C.F.R. Part 300,
Subpart C—Economic Distress Criteria. See also EDA’s Notice of Funding Opportunity, Public Works and Economic Subpart C—Economic Distress Criteria. See also EDA’s Notice of Funding Opportunity, Public Works and Economic
Adjustment Assistance Programs, Adjustment Assistance Programs, ~~FY2020,~~ FY2023, at https://www.grants.gov/web/grants/view-opportunity.html?oppId=https://www.grants.gov/web/grants/view-opportunity.html?oppId=~~321695.~~
~~145 U.S. Department of Commerce (DOC), FY2023 EDA Congressional Budget Justification, p. 25,~~
~~https://www.commerce.gov/sites/default/files/2022-03/FY2023-EDA-Congressional-Budget-Submission~~346815. 263 Congressional Record, December 17, 2019, pp. H10961-10962, at https://www.govinfo.gov/content/pkg/CREC-2019-12-17/pdf/CREC-2019-12-17-house-bk2.pdf. .pdf.
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each fiscal year through 2023, reaching $121.5 million in FY2023.264 For FY2024, the Administration requested $100.0 million for the Public Works program.265 Statutory and Regulatory Authority
The statutory authority for the Public Works program is the Public Works and Economic The statutory authority for the Public Works program is the Public Works and Economic
Development Act of 1965, as amended, P.L. 89-136 (42 U.S.C. §Development Act of 1965, as amended, P.L. 89-136 (42 U.S.C. §§3121 et seq.). Regulations are 3121 et seq.). Regulations are
codified at Title 13, Chapter III, Parts 302, 305, 316, and 317, of the codified at Title 13, Chapter III, Parts 302, 305, 316, and 317, of the Code of Federal
Regulations. .
Economic Development Administration Economic Adjustment
Assistance Program
EDA, through its Economic Adjustment Assistance (EAA) grant program, awards development EDA, through its Economic Adjustment Assistance (EAA) grant program, awards development
assistance to areas experiencing long-term economic deterioration and distress or sudden and assistance to areas experiencing long-term economic deterioration and distress or sudden and
substantial economic dislocation. This may include assisting communities/regions affected by substantial economic dislocation. This may include assisting communities/regions affected by
natural disasters, natural resource depletion, mass layoffs, and other severe economic shocks that natural disasters, natural resource depletion, mass layoffs, and other severe economic shocks that
communities experience in restructuring and diversifying their regional economies. Funds have communities experience in restructuring and diversifying their regional economies. Funds have
also been made available to aid communities experiencing chronic unemployment and also been made available to aid communities experiencing chronic unemployment and
underinvestment, and communities affected by military base realignments and closures.underinvestment, and communities affected by military base realignments and closures.266
EAA funds are competitively awarded to qualified applicants to assist them in developing and EAA funds are competitively awarded to qualified applicants to assist them in developing and
implementing a five-year CEDS or for implementation grants that support the activities and implementing a five-year CEDS or for implementation grants that support the activities and
strategies identified in a CEDS. Examples of EAA activities may include strategies identified in a CEDS. Examples of EAA activities may include
~~ financing of physical~~• construction of public infrastructure projects, including water and sewer infrastructure projects, including water and sewer facilities, facilities,
industrial parks, and business incubators; industrial parks, and business incubators;
• strategic planning activities that include short-term action plans intended to strategic planning activities that include short-term action plans intended to
stabilize a distressed community and regionally oriented, long-term development stabilize a distressed community and regionally oriented, long-term development
strategies intended to assess and redirect the region’s economic future; strategies intended to assess and redirect the region’s economic future;
• capitalization of revolving loan funds, which would allow qualifying businesses capitalization of revolving loan funds, which would allow qualifying businesses
and other borrowers to borrow funds at favorable interest rates; and other borrowers to borrow funds at favorable interest rates;
 or • market or industry research and analysis; technical assistance, including market or industry research and analysis; technical assistance, including
feasibility studies; public services; and training. feasibility studies; public services; and training.~~146~~
~~Program Purpose~~
267 Federal law requires that eligible recipients retain ownership of EDA-funded projects.268 Because EDA grants are designed to primarily support economic development, foster job creation, and 264 Congressional Record, vol. 166, no. 28 (December 21, 2020), p. H7922, at https://www.govinfo.gov/content/pkg/CREC-2020-12-21/pdf/CREC-2020-12-21-house-bk3.pdf; Congressional Record, vol. 168, no. 42 (March 9, 2022), p. H1772, at https://www.congress.gov/117/crec/2022/03/09/168/42/CREC-2022-03-09-bk3.pdf; and Congressional Record, vol. 168, no. 198 (December 20, 2022), p. S7898, at https://www.congress.gov/117/crec/2022/12/20/168/198/CREC-2022-12-20-pt1-PgS7819-2.pdf. 265 U.S. Department of Commerce (DOC), FY2024 EDA Congressional Budget Justification, p. 27, at https://www.commerce.gov/sites/default/files/2023-03/EDA-FY2024-Congressional-Budget-Submission.pdf. 266 42 U.S.C. §3149. For additional information, see EDA, “Economic Adjustment Assistance,” at https://www.eda.gov/economic-adjustment-assistance. 267 13 C.F.R. Part 307 and EDA, “FY2023 Public Works and Economic Adjustment Assistance Notice of Funding Opportunity,” at https://www.grants.gov/web/grants/view-opportunity.html?oppId=346815. 268 13 C.F.R. §314.7. Congressional Research Service 57 Federally Supported Water Projects and Programs attract private investment, these grants are generally not available for residential sewer and water supply development.269 Program Purpose The purpose of the program is to promote long-term economic development in areas experiencing The purpose of the program is to promote long-term economic development in areas experiencing
sudden economic dislocation or long-term economic distress. EDA’s EAA program supports sudden economic dislocation or long-term economic distress. EDA’s EAA program supports
investments intended to help distressed areas address their competitive disadvantages and investments intended to help distressed areas address their competitive disadvantages and
evaluate their economic futures. evaluate their economic futures.
Financing or Funding Mechanism
EDA competitively awards EAA grants directly to eligible applicants. Generally, EAA investment EDA competitively awards EAA grants directly to eligible applicants. Generally, EAA investment
assistance may not exceed 50% of the project cost. Projects may receive an additional amount, assistance may not exceed 50% of the project cost. Projects may receive an additional amount,
not to exceed 30%, based on the relative needs of the region in which the project will be located, not to exceed 30%, based on the relative needs of the region in which the project will be located,
as determined by EDA.as determined by EDA.270 In the case of certain Indian tribes and nonprofit organizations that have In the case of certain Indian tribes and nonprofit organizations that have
exhausted their effective borrowing capacity, or a state or political subdivision of a state that has exhausted their effective borrowing capacity, or a state or political subdivision of a state that has
exhausted its effective taxing and borrowing capacity, grants totaling 100% may be awarded.exhausted its effective taxing and borrowing capacity, grants totaling 100% may be awarded.271
Credit may be given toward the nonfederal share for in-kind contributions, including Credit may be given toward the nonfederal share for in-kind contributions, including

~~146 13 C.F.R. Part 307.~~
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contributions of space, equipment, and services.contributions of space, equipment, and services.272 No minimum or maximum project amount is No minimum or maximum project amount is
specified in law. specified in law.
Eligibility Requirements
EAA grants may be made to states, cities, counties and other political subdivisions of states, EAA grants may be made to states, cities, counties and other political subdivisions of states, an
Indian Indian ~~tribe, an~~ Tribes, economic development economic development ~~district~~districts, institutions of higher education or a consortium of , institutions of higher education or a consortium of
such institutions, and private or public not-for-profit organizations acting in cooperation with such institutions, and private or public not-for-profit organizations acting in cooperation with
officials of a political subdivision of a state.officials of a political subdivision of a state.~~147 For~~273 Individuals and for-profit, private-sector entities do not qualify.-profit, private-sector entities do not qualify.274
Qualified projects must fill a pressing need of the area arising from actual or threatened severe Qualified projects must fill a pressing need of the area arising from actual or threatened severe
unemployment or economic adjustment problems resulting from severe changes in economic unemployment or economic adjustment problems resulting from severe changes in economic
conditions.conditions.275 Projects must also have an adequate share of local funds. Projects must also have an adequate share of local funds.276 With the exception of 269 EDA, “FY2023 Public Works and Economic Adjustment Assistance Notice of Funding Opportunity,” p. 10, at https://www.grants.gov/web/grants/view-opportunity.html?oppId=346815. For additional information, see EDA, “Public Works,” at https://www.eda.gov/funding/programs/public-works. 270 42 U.S.C. §3144. Additionally, agency regulations describe the economic distress criteria at 13 C.F.R. Part 301, Subpart D—Investment Rates and Matching Share Requirements. 271 42 U.S.C. §3144(c). 272 42 U.S.C. §3144(b). 273 Under this program, the term state includes the District of Columbia, the Commonwealth of Puerto Rico, the U.S. Virgin Islands, Guam, American Samoa, the Commonwealth of the Northern Mariana Islands, the Republic of the Marshall Islands, the Federated States of Micronesia, and the Republic of Palau. Under this program, the term Indian tribe includes any Indian tribe, band, nation, pueblo, or other organized group or community, including any Alaska Native village or Regional Corporation (as defined in or established under the Alaska Native Claims Settlement Act (43 U.S.C. §§1601 et seq.)), that is recognized as eligible for the special programs and services provided by the United States to Indians because of their status as Indians (42 U.S.C. §3122). 274 42 U.S.C. §3122(4). 275 42 U.S.C. §3149. 276 42 U.S.C. §3144. Congressional Research Service 58 Federally Supported Water Projects and Programs ~~With the exception of~~
strategy grants, EAA projects must also be consistent with the area’s CEDS.strategy grants, EAA projects must also be consistent with the area’s CEDS.277 In addition, eligible In addition, eligible
projects must be located in areas that meet at least one of the following criteria: low per-capita projects must be located in areas that meet at least one of the following criteria: low per-capita
income, unemployment above the national average, or “special need” as determined by EDA.income, unemployment above the national average, or “special need” as determined by EDA.~~148~~278
Recent Federal Funding
Congress directed EDA to allocate $37Congress directed EDA to allocate $37.0 million annually to the EAA program in FY2018-FY2020 million annually to the EAA program in FY2018-FY2020
and $37.5 million to the program in FY2021 and FY2022.and $37.5 million to the program in FY2021 and FY2022.~~149 For FY2023~~279 Congress directed EDA to allocate $39.5 million to the EAA program in FY2023.280 For FY2024, the Administration’s , the Administration’s
budget requested $budget requested $4833.0 million for the EAA program. million for the EAA program.~~150~~281
Congress has approved additional funding for EDA grant programs that support economic Congress has approved additional funding for EDA grant programs that support economic
transition strategies and help affected communities build economic development capacity through transition strategies and help affected communities build economic development capacity through
Assistance to Energy Transition initiatives (e.g., the Assistance to Coal Communities [ACC]Assistance to Energy Transition initiatives (e.g., the Assistance to Coal Communities [ACC] ~~and~~,
the Assistance to Nuclear Closure Communities [NCC]the Assistance to Nuclear Closure Communities [NCC], and Assistance to Biomass Closure Communities [BCC] initiatives). Congress directed EDA to initiatives). Congress directed EDA to
allocate $10allocate $10.0 million in FY2015 and million in FY2015 and $15.0~~$15~~ million in FY2016 to the ACC initiative. million in FY2016 to the ACC initiative.~~151~~282 Funding for Funding for
the ACC initiative remained at the ACC initiative remained at $30.0~~$30~~ million each year for FY2017 through FY2020 and increased million each year for FY2017 through FY2020 and increased
to $33.5 million in FY2021 and to $41.5 million in FY2022. In FY2020, Congress directed EDA to $33.5 million in FY2021 and to $41.5 million in FY2022. In FY2020, Congress directed EDA
to allocate $15to allocate $15.0 million for the first time to the NCC initiative and increased the amount to $16.5 million for the first time to the NCC initiative and increased the amount to $16.5
~~million annually in FY2021 and FY2022~~million each fiscal year from FY2021 through FY2023. For the first time in FY2022, Congress directed EDA to . For the first time in FY2022, Congress directed EDA to
provide funding ($4.5 million) through the EAA program to biomass power plant closure provide funding ($4.5 million) through the EAA program to biomass power plant closure
~~communities. For FY2023, the Administration’s budget requested $80.5 million for the ACC~~

~~147 Under this program, the term state includes the District of Columbia, the Commonwealth of Puerto Rico, the U.S.~~
~~Virgin Islands, Guam, American Samoa, the Commonwealth of the Northern Mariana Islands, the Republic of the~~
~~Marshall Islands, the Federated States of Micronesia, and the Republic of Palau. Under this program, the term~~ ~~Indian~~
~~tribe~~ ~~includes any Indian tribe, band, nation, pueblo, or other organized group or community, including any Alaska~~
~~Native village or Regional Corporation (as defined in or established under the Alaska Native Claims Settlement Act (43~~
~~U.S.C. 1601 et seq.)), that is recognized as eligible for the special programs and services provided by the United States~~
~~to Indians because of their status as Indians (42 U.S.C. §3122).~~
~~148~~communities. In FY2023, Congress again directed EDA to provide $4.5 million to the BCC initiative. For FY2024, the Administration requested $80.5 million for the ACC initiative and $10.0 million for the NCC initiative.283 ACC, NCC, and BCC grants are administered primarily under the authority of EDA’s EAA program and can be used for a variety of eligible activities, including infrastructure, water, and wastewater projects.284 277 42 U.S.C. §3149(b)(2). 278 42 U.S.C. §3161 ~~42 U.S.C. §3149~~.. Additionally, agency regulations describe the economic distress criteria at 13 C.F.R. Part 300, Additionally, agency regulations describe the economic distress criteria at 13 C.F.R. Part 300,
Subpart C—Economic Distress Criteria.Subpart C—Economic Distress Criteria. See also the EDA’sSee also the EDA’s Notice of Funding Opportunity, Public Works and Notice of Funding Opportunity, Public Works and
Economic Adjustment Assistance Programs, FY2020, Economic Adjustment Assistance Programs, FY2020, at https://www.grants.gov/web/grants/view-opportunity.html?https://www.grants.gov/web/grants/view-opportunity.html?
oppId=321695. oppId=321695.
~~149~~279 See explanatory statements accompanying P.L. 115-141, P.L. 116-6, P.L. 116-93, P.L. 116-260, and P.L. 117-103 See explanatory statements accompanying P.L. 115-141, P.L. 116-6, P.L. 116-93, P.L. 116-260, and P.L. 117-103. 280 Sen. Patrick Leahy, “Explanatory Statement Submitted by Mr. Leahy, Chair of the Senate Committee on Appropriations, Regarding H.R. 2617, Consolidated Appropriations Act, 2023,” Senate, Congressional Record, vol. 168, No. 198 (December 20, 2022), p. S7898, at https://www.congress.gov/congressional-record/volume-168/issue-198/senate-section/article/S7819-2. 281
~~150~~ U.S. Department of Commerce, U.S. Department of Commerce, ~~FY2023~~FY2024 EDA Congressional Budget Justification, p. p. 5957,,
at https://www.commerce.gov/sites/default/files/https://www.commerce.gov/sites/default/files/~~2022-03/FY2023-EDA~~2023-03/EDA-FY2024-Congressional-Budget-Submission.pdf. -Congressional-Budget-Submission.pdf.
~~151~~282 In FY2015 and FY2016, the ACC initiative was administered as a component of the In FY2015 and FY2016, the ACC initiative was administered as a component of the
multiagency POWER Initiative—a coordinated federal effort to assist coal-impacted communities. For more multiagency POWER Initiative—a coordinated federal effort to assist coal-impacted communities. For more
information, see CRS Report R46015, information, see CRS Report R46015, The POWER Initiative: Energy Transition as Economic Development, by Julie , by Julie
~~M. Lawhorn.~~
~~Congressional Research Service~~

52

~~Federally Supported Water Projects and Programs~~

~~initiative and $10 million for the NCC initiative.152 ACC and NCC grants are administered~~
~~primarily under the authority of EDA’s EAA program and can be used for a variety of eligible~~
~~activities, including infrastructure, water, and wastewater projects.153~~
M. Lawhorn. 283 U.S. Department of Commerce, FY2024 EDA Congressional Budget Justification, pp. 69-75, at https://www.commerce.gov/sites/default/files/2023-03/EDA-FY2024-Congressional-Budget-Submission.pdf. 284 For more information, see “Assistance to Energy Transition Communities” in CRS Report R46991, Economic Development Administration: An Overview of Programs and Appropriations (FY2011-FY2023), by Julie M. Lawhorn; CRS Insight IN11648, The Economic Development Administration’s Assistance to Coal and Nuclear Closure Communities Initiatives for Economic Transitions, by Julie M. Lawhorn; and EDA, “Notice of Funding Opportunity, Public Works and Economic Adjustment Assistance Programs, FY2023,” at https://www.grants.gov/web/grants/view-opportunity.html?oppId=346815. Congressional Research Service 59 Federally Supported Water Projects and Programs Additionally, in FY2020 and FY2021, Congress approved two rounds of supplemental funding, Additionally, in FY2020 and FY2021, Congress approved two rounds of supplemental funding,
primarily through the EAA program. Congress approved $1.5 billion of supplemental funding primarily through the EAA program. Congress approved $1.5 billion of supplemental funding
through the Coronavirus Aid, Relief, and Economic Security (CARES) Act (P.L. 116-136) in through the Coronavirus Aid, Relief, and Economic Security (CARES) Act (P.L. 116-136) in
FY2020. The American Rescue Plan Act of 2021 (ARPA; P.L. 117-2) included $3FY2020. The American Rescue Plan Act of 2021 (ARPA; P.L. 117-2) included $3.0 billion in billion in
supplemental funding to the EDA for economic adjustment assistance activities. Congress supplemental funding to the EDA for economic adjustment assistance activities. Congress
directed EDA to use CARES Act and ARPA funding to prevent, prepare for, and respond to directed EDA to use CARES Act and ARPA funding to prevent, prepare for, and respond to
COVID-19 and for responding to economic injury as a result of the COVID-19 pandemic, which COVID-19 and for responding to economic injury as a result of the COVID-19 pandemic, which
could include infrastructure, water, and wastewater activities.could include infrastructure, water, and wastewater activities.~~154~~285
Statutory and Regulatory Authority
The statutory authority for the Economic Adjustment Assistance program is the Public Works and The statutory authority for the Economic Adjustment Assistance program is the Public Works and
Economic Development Act of 1965, as amended, P.L. 89-136 (42 U.S.C. §Economic Development Act of 1965, as amended, P.L. 89-136 (42 U.S.C. §§3121 et seq.). 3121 et seq.).
Regulations are codified at Title 13, Chapter III, Parts 302, 305, 316, and 317 of the Regulations are codified at Title 13, Chapter III, Parts 302, 305, 316, and 317 of the Code of
Federal Regulations. .

~~152 U.S. Department of Commerce, FY2023 EDA Congressional Budget Justification, pp. 65-67,~~
~~https://www.commerce.gov/sites/default/files/2022-03/FY2023-EDA-Congressional-Budget-Submission.pdf.~~
~~153 For more information, see “Assistance to Energy Transition Communities” in CRS Report R46991,~~ ~~Economic~~
~~Development Administration: An Overview of Programs and Appropriations (FY2011-FY2022), by Julie M. Lawhorn;~~
~~CRS Insight IN11648,~~ ~~The Economic Development Administration’s Assistance to Coal and Nuclear Closure~~
~~Communities Initiatives for Economic Transitions, by Julie M. Lawhorn; and EDA, “Notice of Funding Opportunity,~~
~~Public Works and Economic Adjustment Assistance Programs, FY2020,” https://www.grants.gov/web/grants/view-~~
~~opportunity.html?oppId=321695.~~
~~154~~ Author Information Jonathan L. Ramseur, Coordinator Julie M. Lawhorn Specialist in Environmental Policy Analyst in Economic Development Policy Lisa S. Benson Anna E. Normand Analyst in Agricultural Policy Specialist in Natural Resources Policy Nicole T. Carter Charles V. Stern Specialist in Natural Resources Policy Specialist in Natural Resources Policy Elena H. Humphreys Megan Stubbs Analyst in Environmental Policy Specialist in Agricultural Conservation and Natural Resources Policy Joseph V. Jaroscak Analyst in Economic Development Policy 285 In March 2021, EDA announced that the agency had awarded more than $1 billion in CARES Act grants. See EDA, In March 2021, EDA announced that the agency had awarded more than $1 billion in CARES Act grants. See EDA,
“U.S. EDA Marks Milestone $1 Billion in CARES Act Grants Awarded,” March 22, 2021, “U.S. EDA Marks Milestone $1 Billion in CARES Act Grants Awarded,” March 22, 2021, at https://www.eda.gov/news/https://www.eda.gov/news/
blogs/2021/03/22/eda-marks-cares-act-milestone.htm. blogs/2021/03/22/eda-marks-cares-act-milestone.htm.
Congressional Research Service Congressional Research Service

5360 Federally Supported Water Projects and Programs

~~Federally Supported Water Projects and Programs~~

~~Author Information~~

~~Jonathan L. Ramseur, Coordinator~~
~~Julie M. Lawhorn~~
~~Specialist in Environmental Policy~~
~~Analyst in Economic Development Policy~~

~~Lisa S. Benson~~
~~Anna E. Normand~~
~~Analyst in Agricultural Policy~~
~~Analyst in Natural Resources Policy~~

~~Nicole T. Carter~~
~~Charles V. Stern~~
~~Specialist in Natural Resources Policy~~
~~Specialist in Natural Resources Policy~~

~~Elena H. Humphreys~~
~~Megan Stubbs~~
~~Analyst in Environmental Policy~~
~~Specialist in Agricultural Conservation and Natural~~

~~Resources Policy~~

~~Joseph V. Jaroscak~~

~~Analyst in Economic Development Policy~~

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R46471 R46471 · VERSION 710 · UPDATED
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