Infrastructure Investment and Jobs Act:
September 1, 2021
Drinking Water and Wastewater Infrastructure Elena H. Humphreys
In recent years, multiple events have increased attention to the condition of the nation’s local
Analyst in Environmental
drinking water and wastewater infrastructure, and the financial challenges that communities
Policy
confront in maintaining, repairing, or replacing aging water infrastructure. The U.S.

Environmental Protection Agency (EPA) estimates that the capital cost of wastewater and
Jonathan L. Ramseur
drinking water infrastructure needed to meet federal water quality and safety requirements and
Specialist in Environmental
public health objectives exceeds $744 billion over a 20-year period.
Policy

Congressional interest in expanding federal funding for local drinking water and wastewater
infrastructure has also increased in recent years. Recent legislation has focused on a number of

themes, including affordability of local water infrastructure projects in low-income communities,
the creation of new grant programs to address specific objectives, and increased funding for the existing grant programs that
address certain types of projects, including lead reduction, resilience, and stormwater management. At the same time,
appropriations for various federal financial assistance programs have increased in recent years. These programs include the
Clean Water State Revolving Fund (CWSRF) and the Drinking Water State Revolving Fund (DWSRF) programs, authorized
under the Clean Water Act (CWA) and the Safe Drinking Water Act (SDWA), respectively.
In the 117th Congress, the American Rescue Plan Act (ARPA; P.L. 117-2), enacted March 11, 2021, provided $350 billion in
grants for state and local governments for Coronavirus Disease 2019 (COVID-19)-related purposes, which can include water
or sewer infrastructure investments. The U.S. Department of the Treasury’s interim final rule implementing this funding
allocation stated that the eligibility of water or sewer projects would align with eligibility of projects in the SRF programs.
Both chambers have passed legislation that would support water infrastructure activities. The House-passed INVEST Act
(H.R. 3684) would authorize several targeted EPA-administered grant programs for wastewater or drinking water
infrastructure, and would amend the SDWA process EPA uses to regulate contaminants in drinking water. The Senate-passed
Drinking Water and Wastewater Infrastructure Act of 2021 (S. 914) would create multiple EPA-administered grant programs,
under both the CWA and SDWA. On August 10, 2021, the Senate passed the Infrastructure Investment and Jobs Act (IIJA)
as a substitute amendment (S.Amdt. 2137) to H.R. 3684. Division E of IIJA includes many of the drinking water and
wastewater provisions from S. 914. In addition to authorizing numerous EPA-administered infrastructure grant programs and
amending existing programs, IIJA would provide emergency supplemental appropriations for drinking water and wastewater
infrastructure.
This report discusses the drinking water and wastewater infrastructure provisions in IIJA (as passed by the Senate on August
10, 2021). Drinking water and wastewater-relevant provisions of the bill include the following:
 Emergency supplemental appropriations to the SRF programs, which would represent a substantial increase
over recent regular appropriations for these programs; in particular, the level of DWSRF appropriations
would average $6.14 billion per fiscal year, nearly three times the level of recent DWSRF annual
appropriations; the majority of the supplemental funding for the DWSRF program would be dedicated to
lead line replacement.
 Nearly half of the supplemental funding for the SRF programs would be directed to principal forgiveness or
grants, in contrast to subsidized loans, the traditional instrument of the SRF programs.
 Supplemental appropriations to address emerging contaminants: $4 billion for the DWSRF program and $1
billion for the CWSRF program over five fiscal years.
 Authority for EPA to establish multiple new grant programs to address a range of specific objectives,
including assistance to specific communities, improvements in resilience to natural hazards and
cybersecurity vulnerabilities, among others.
 Modifications in funding authority and eligibility to several existing EPA funding programs, including the
SRF programs and grant programs that address specific concerns, including affordability.

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Introduction
In recent years, multiple events have increased attention to the condition of the nation’s local
drinking water and wastewater infrastructure, and the financial challenges that communities
confront in maintaining, repairing, or replacing aging water infrastructure. Such events include
elevated lead levels in the drinking water in Flint, MI, Newark, NJ, and other older cities; local
water infrastructure damage from hurricanes, winter storms, or other natural hazards; and
detection of unregulated contaminants that may require installation of additional treatment.
In many communities, water distribution, wastewater collection, and treatment systems may
require repair or replacement to maintain levels of service and comply with relevant water
treatment requirements.1 An overarching issue is deferral, for a range of reasons, of local
investment in water infrastructure.
The U.S. Environmental Protection Agency (EPA) provides periodic reports that estimate the
capital cost of wastewater and drinking water infrastructure needs. EPA’s most recent report on
drinking water indicates that public water systems need to invest $473 billion on infrastructure
improvements over 20 years to ensure the provision of safe drinking water.2 A broader water
infrastructure survey conducted by the American Water Works Association estimated that, for
drinking water alone, the cost to repair aging infrastructure and expand water service to meet
growing demand would be $1 trillion over 20 years.3 EPA’s report on wastewater estimates that
the nation’s wastewater treatment facilities will need $271 billion over the next 20 years to meet
federal water quality objectives.4
Congressional interest in drinking water and wastewater infrastructure issues has generally
increased in recent years. As a reflection of this interest, Congress has increased appropriations in
recent years for several financial assistance programs administered by EPA. These programs
include the Clean Water State Revolving Fund (CWSRF) and the Drinking Water State Revolving
Fund (DWSRF) programs, established under the Clean Water Act (CWA)5 and the Safe Drinking
Water Act (SDWA),6 respectively. Recent legislation has focused on a number of themes,
including affordability of local water infrastructure projects in low-income communities, the

1 See, for example, American Water Works Association, Buried No Longer: Confronting America’s Water
Infrastructure Challenge, 2012, https://www.awwa.org/Portals/0/AWWA/ETS/Resources/BuriedNoLonger2012.pdf?
ver=2020-09-21-095318-407.
2 EPA reports that, while all of the projects identified in the survey would promote SDWA health protection objectives,
$57.6 billion (12%) of reported needs are attributable to SDWA compliance. See EPA, Drinking Water Infrastructure
Needs Survey and Assessment: Sixth Report to Congress, 2018, https://www.epa.gov/dwsrf/what-infrastructure-needs-
survey-and-assessment.
3 American Water Works Association (AWWA), “Buried No Longer: Confronting America’s Water Infrastructure
Challenge,” 2012. Unlike EPA’s drinking water needs assessment, the AWWA estimate included the cost for additional
distribution lines investments anticipated to meet projected population growth, regional population shifts, and service
area growth through 2050, as well as the costs for investments needed for statutory compliance and repairs to aging
water infrastructure.
4 EPA, Clean Watersheds Needs Survey (CWNS) Report to Congress—2012, 2016, https://www.epa.gov/cwns.
5 The statutory name for the Clean Water Act is the Federal Water Pollution Control Act, as amended, codified at 33
U.S.C. §§1231-1387. The current act took much of its current form after enactment of the Federal Water Pollution
Control Act Amendments of 1972 (P.L. 92-500), which established the Title II construction grants program (although
prior versions of the act had authorized less ambitious grants assistance since 1956).
6 SDWA is codified generally at 42 U.S.C. §§300f-300j.
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creation of new grant programs, and increased funding to existing programs that address specific
objectives (e.g., lead reduction, increased resilience, or stormwater management).
In the 117th Congress, the American Rescue Plan Act (ARPA; P.L. 117-2), enacted March 11,
2021, provided $350 billion in grants for state and local governments for Coronavirus Disease
2019 (COVID-19)-related purposes, which can include water or sewer infrastructure
investments.7 ARPA assigned responsibility for the distribution of this funding to the Secretary of
the Treasury. The U.S. Department of the Treasury’s interim final rule stated that the eligibility of
water or sewer projects would align with eligibility of projects in the SRF programs.8 The act also
provided $500 million to assist low-income households with their water and wastewater services
bills.9
Both chambers in the 117th Congress have passed legislation that include numerous water and
wastewater infrastructure program and funding provisions. On April 29, 2021, the Senate passed
the Drinking Water and Wastewater Infrastructure Act of 2021 (S. 914). The bill would authorize
multiple EPA-administered grant programs, under both the CWA and SDWA, and would extend
and increase the authorizations of appropriations for the CWSRF and DWSRF and other existing
programs.
On July 1, 2021, the House passed the INVEST in America Act (H.R. 3684), which would
authorize several new EPA-administered grant programs for wastewater or drinking water
infrastructure and would authorize substantial increases in funding for existing programs.10 It
would also amend the SDWA process EPA uses to regulate contaminants in drinking water,
among other provisions.
On August 10, 2021, the Senate passed the Infrastructure Investment and Jobs Act (IIJA) as a
substitute amendment (S.Amdt. 2137) to H.R. 3684.11 This broad infrastructure measure is both
an authorizing bill and an appropriations bill.12 Division E of IIJA includes many of the drinking
water and wastewater provisions from S. 914. In addition to authorizing numerous EPA-
administered infrastructure grant programs and amending existing programs and providing
authorizations of appropriations for these programs, IIJA would provide emergency supplemental
appropriations13 in EPA’s State and Tribal Assistance Grants (STAG) account for drinking water

7 These funds are not administered by EPA, but by the U.S. Department of Treasury.
8 U.S. Department of Treasury, “Coronavirus State and Local Fiscal Recovery Funds,” 86 Federal Register 26786-
26824, May 17, 2021.
9 ARPA §2912; for more information, see CRS Insight IN11642, Water Service Issues and COVID-19: Recent
Congressional Funding, by Elena H. Humphreys and Libby Perl.
10 For example, the House-passed INVEST Act would authorize $8 billion annually for FY2022 through FY2026 for
the CWSRF (§12018); for the DWSRF program, the act would authorize $4.1 billion for FY2022, $4.8 billion for
FY2023, and $5.5 annually for FY2024 through FY2031 (§13106). In comparison to the Senate-passed IIJA, the
House-passed bill would not provide emergency supplemental appropriations.
11 Some Members and stakeholders refer to this legislation as the “bipartisan infrastructure deal.”
12 Congress has established a process that provides for two separate types of measures—authorization measures and
appropriation measures. These measures perform different functions. Authorization acts establish, continue, or modify
agencies or programs. For example, an authorization act may establish or modify EPA programs, such as the SRF
programs. An authorization act may also explicitly authorize subsequent appropriations for specific agencies and
programs, frequently setting spending ceilings for them. See, CRS Report R42388, The Congressional Appropriations
Process: An Introduction, coordinated by James V. Saturno.
13 In addition to the amounts provided in a regular appropriations measure, Congress may enact additional funding for
selected activities in the form of one or more supplemental appropriations measures. In general, supplemental funding
may be enacted to address cases where resources provided through the annual appropriations process are determined to
be inadequate or not timely.
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and wastewater infrastructure. This funding would include emergency supplemental
appropriations for the DWSRF and CWSRF, among other grant programs.14
While the emergency supplemental SRF appropriations in IIJA would be spread over five fiscal
years (FY2022 through FY2026), the scale of appropriations for the SRF programs would
represent a substantial increase over recent regular appropriations, particularly for the DWSRF
program. Between FY2017 and FY2021, annual appropriations acts have provided an average of
$1.1 billion in DWSRF appropriations per fiscal year, and an average of $1.6 billion in CWSRF
appropriations per fiscal year. While some DWSRF appropriations in IIJA are directed for
specific purposes (e.g., grants for lead service line replacement and for addressing unregulated
contaminants), the level of DWSRF appropriations would average $6.14 billion per fiscal year,
nearly three times the level of recent DWSRF annual appropriations.
The 117th Congress continues to consider regular appropriations for water infrastructure
programs. H.R. 4372, as reported (H.Rept. 117-83), would provide $1.87 billion in CWSRF
appropriations and $1.36 billion in DWSRF appropriations for FY2022. Taken together, the
proposed emergency supplemental and regular SRF appropriations would comprise a significant
increase in federal funding for drinking water and wastewater infrastructure. In addition, some
states and localities may choose to use a portion of their ARPA COVID-19-related allotment for
water infrastructure, as discussed above.
Oversight of these proposed increases in federal financial assistance for local drinking water and
wastewater infrastructure projects may be of congressional interest. In IIJA, a percentage of
appropriations are reserved for the EPA’s Office of Inspector General (OIG). In addition to the
Administration’s oversight through the EPA OIG, oversight of such funds could be provided
through congressional committee activities or a legislative support agency, such as the U.S.
Government Accountability Office (GAO).15 Other types of congressional oversight include
authorizing specific administrative bodies such as the Recovery Accountability and Transparency
Board, which was established by ARRA.16
The first section of this report provides a brief history of the primary financial assistance
programs for drinking water and wastewater infrastructure. Following this context, the report
provides two tables that include details regarding the drinking water and wastewater
infrastructure provisions in IIJA.
Table 1 identifies proposed emergency supplemental appropriations for EPA drinking water and
wastewater infrastructure financial assistance programs contained in IIJA (Division J, Title VI).
The table also includes further details regarding the proposed funding and provides comments for
additional context.

14 IIJA, Division J, Title VI. Appropriations may be designated or otherwise provided so that they are effectively
exempt from the budget enforcement limits. Such funding may be referred to as “emergency spending.” For more
details, see CRS Report R42388, The Congressional Appropriations Process: An Introduction, coordinated by James
V. Saturno.
15 In response to the economic conditions from 2007 to 2009 (i.e., “Great Recession”), the American Recovery and
Reinvestment Act (ARRA, P.L. 111-5) of 2009 provided emergency supplemental appropriations for water
infrastructure delivered through the SRFs. ARRA provided several oversight provisions, including use-of-funds
reporting by federal agencies, state and local implementing agencies, ARRA funding recipients, the U.S. Government
Accountability Office, and the inspector general offices of federal departments or agencies.
16 For more information about ARRA’s oversight provisions, see CRS Report R40572, General Oversight Provisions
in the American Recovery and Reinvestment Act of 2009 (ARRA): Requirements and Related Issues, by Clinton T.
Brass.
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Table 2 provides a summary of each proposed section in IIJA, Division E, which includes a range
of drinking water and wastewater infrastructure provisions and related authorizations of
appropriations. The right-hand column of the table includes additional comments and context for
some of the bill’s sections.
Wastewater Infrastructure and Drinking Water
Financial Assistance: A Brief History17
In 1972, amendments to the CWA established the principal federal program to support wastewater
infrastructure activities.18 The CWA Title II program was a grant program that provided funding
for the construction of wastewater treatment facilities and related objectives. Federal funds were
provided through annual appropriations under a state-by-state allocation formula contained in the
CWA. States used their allotments to make grants to cities for eligible activities. Through
FY1984, Congress had appropriated nearly $41 billion under this program, representing the
largest nonmilitary public works program since the Interstate Highway System.
In the Water Quality Act of 1987,19 Congress phased out the Title II construction grants program
and authorized the CWSRF program and appropriations to capitalize state revolving loan funds.
Under the CWSRF program, EPA receives an appropriation and makes grants to states to
capitalize revolving funds administered by states. The states use the capitalization grant, and the
required 20% state match, to make loans to publicly owned treatment works and other eligible
entities for wastewater projects. Over time, those entities repay the loan to the state fund.
Together, the capitalization grant, state match, repayments, and leveraged funds were intended to
be a sustainable source of wastewater infrastructure financial assistance at the state level.
The initial federal financial assistance program for drinking water infrastructure was the DWSRF,
authorized by the SWDA Amendments of 1996.20 Federal funding support for drinking water
infrastructure followed a different course than that for wastewater for several reasons. Until the
1980s, federal drinking water regulations were relatively few in number, and public water
systems often did not need to make large investments in treatment technologies to meet those
regulations. Between 1986 and 1996, the number of federal drinking water regulations increased
from 23 to 83.21 The intent of the 1996 SDWA amendments was “to help make more effective and
more cost-effective Federal regulation of drinking water and to help small communities pay for
improvements to their public water systems, while ensuring that health protections are maintained
or improved.”22 The 1996 SDWA amendments revised the regulatory development process and
authorized a parallel program to the CWSRF for drinking water. Under the DWSRF, EPA makes
grants to states to capitalize revolving funds administered by the states. From these funds, states

17 For further details, see the background information in CRS Report 96-647, Water Infrastructure Financing: History
of EPA Appropriations, by Jonathan L. Ramseur and Mary Tiemann.
18 The Federal Water Pollution Control Act Amendments of 1972 (P.L. 92-500).
19 P.L. 100-4, the Water Quality Act of 1987, authorized $18 billion over nine years for sewage treatment plant
construction, through a combination of the Title II grants program and a new revolving loan fund program in CWA
Title VI (33 U.S.C. §§1381-1387).
20 P.L. 104-182.
21 For a detailed discussion of SDWA regulatory development provisions, see CRS Report R46652, Regulating
Contaminants Under the Safe Drinking Water Act (SDWA), by Elena H. Humphreys.
22 U.S. Congress, House Committee on Commerce, Safe Drinking Water Act Amendments of 1996, 104th Cong., 2nd
sess., June 24, 1996, H.Rept. 104-632, p. 6.
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make loans to public water systems for projects needed for compliance and other statutory
purposes.
All 50 states and Puerto Rico implement their own SRF programs.23 Both the CWA and SDWA
provide for federal oversight of the state programs. For example, states are required to establish
priority lists called Intended Use Plans (IUPs) that identify the projects that will receive SRF
assistance in that year. EPA is required to review the state IUPs to confirm statutory and
regulatory compliance. In addition, both the CWA and SDWA require states to report specific
information to EPA regarding the implementation of their respective SRF programs. In particular,
states are required to submit to EPA an annual report on the CWSRF and a biennial report on the
DWSRF. Both statutes require EPA to annually review states’ implementation activities and
periodically audit state programs.24 EPA annually publishes details information on activities for
both programs.25
Although the SRF programs generally involve loans from the state to local entities, states may
also use the DWSRF and CWSRF to provide “additional subsidization.” This may include
principal forgiveness and/or negative interest loans, which can make infrastructure projects
affordable.26 The degree to which additional subsidization is required or authorized—thereby
altering the ratio between loans and subsidization—has generated considerable interest over the
past decade.
Since amended in 1996, SDWA has authorized states to use up to 30% of their DWSRF
capitalization grants to provide additional assistance. America’s Water Infrastructure Act of 2018
(AWIA; P.L. 115-270) increased this proportion to 35% while conditionally requiring states to use
at least 6% of their capitalization grants for these purposes. Congress amended the CWA in 2014,
adding similar authority for states to provide additional subsidization, but not requiring it. In
addition, the American Recovery and Reinvestment Act of 2009 (ARRA; P.L. 111-5) required
states to use at least 50% of their funds for additional subsidization. Since ARRA’s enactment,
appropriations acts have required states to use minimum percentages of their allotted SRF grants
to provide additional subsidization. The FY2021 appropriations act (P.L. 116-260) requires states
to use 10% of the CWSRF grants and 14% of their DWSRF grants for additional subsidization.
Enacted legislation in recent years has amended the CWA and SDWA to increase flexibilities
within CWSRF and add new requirements to both the CWSRF and DWSRF programs. In the
113th Congress, the Water Resources Reform and Development Act of 2014 (WRRDA 2014; P.L.
113-121) amended the CWA to add a range of project types eligible for CWSRF assistance. In
addition, WRRDA 2014 authorized the Water Infrastructure Finance and Innovation Act (WIFIA)

23 The CWA and SDWA require EPA to provide direct grants to the District of Columbia, the U.S. Virgin Islands,
American Samoa, Guam, the Commonwealth of Northern Marianas, and Indian tribes for wastewater and drinking
water infrastructure improvements (33 U.S.C. §1362 and §1377; 42 U.S.C. 300j-12(i) and (j)). The funding for the
District of Columbia, U.S. territories, and Indian tribes is part of the SRF appropriations to EPA.
24 42 U.S.C. §300j-12(g)(4); 33 U.S.C. §1386. As initially established, the DWSRF authorized states to provide
additional subsidization to certain communities. In 2014, similar provisions were added to the CWSRF by the Water
Resources Reform and Development Act of 2014 (P.L. 113-121).
25 For example, EPA collects data annually from the state SRF programs to document program progress and account
for the use of federal funds through the National Information Management System reports, available at the respective
EPA websites: https://www.epa.gov/cwsrf/clean-water-state-revolving-fund-cwsrf-national-information-management-
system-reports and https://www.epa.gov/dwsrf/drinking-water-state-revolving-fund-national-information-management-
system-reports.
26 33 U.S.C. §1383(i); 42 U.S.C. §300j-12(d). In addition, states can use CWSRF grants to provide additional
subsidization for specific types of infrastructure projects, including those that address water or energy efficiency.
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program, a federal loan program that provides an additional source of financing for water
infrastructure projects.27
In the 115th Congress, AWIA added additional EPA-administered grant programs to the CWA and
SDWA, and revised SDWA DWSRF provisions to make DWSRF assistance more accessible for
disadvantaged communities, in part by authorizing states to provide an increased amount of
additional subsidization.
In the 116th Congress, Members considered drinking water and wastewater infrastructure
legislation (e.g., H.R. 2, S. 3590, and S. 3591) that would have, among other things, authorized
EPA-administered grant programs to assist communities with water infrastructure affordability
and revised EPA regulatory authorities to address certain contaminants.
Figure 1 illustrates the history of appropriations to the CWSRF and DWSRF programs from
FY2000 through FY2021. From FY2000 through FY2009, annual appropriations averaged about
$1.1 billion for the CWSRF and about $833 million for the DWSRF. ARRA provided in FY2009
$4.0 billion for the CWSRF and $2.0 billion for the DWSRF, in addition to the regular FY2009
appropriations. In nominal dollars (i.e., not adjusted for inflation), the annual appropriations for
the SRF programs—especially for the CWSRF—increased after ARRA. Between FY2010 and
FY2021, the annual appropriations averaged about $1.6 billion for the CWSRF and about $1.0
billion for the DWSRF.
Recent appropriations acts have also directed funds to assist communities with water
infrastructure improvements as well as to help low-income individuals pay for their water service.
In addition to providing regular appropriations for EPA water infrastructure programs,28 the
Consolidated Appropriations Act, FY2021 (P.L. 116-260) provided $638 million to the
Department of Health and Human Services to make grants to states and Indian tribes to provide
water or wastewater rate assistance for low-income households.29

27 For more information, see CRS Report R43315, Water Infrastructure Financing: The Water Infrastructure Finance
and Innovation Act (WIFIA) Program, by Jonathan L. Ramseur, Mary Tiemann, and Elena H. Humphreys.
28 For more information, see CRS In Focus IF11724, U.S. Environmental Protection Agency (EPA) Water
Infrastructure Programs and FY2021 Appropriations, by Elena H. Humphreys and Jonathan L. Ramseur.
29 P.L. 116-260, §533. For more information, see CRS Insight IN11642, Water Service Issues and COVID-19: Recent
Congressional Funding, by Elena H. Humphreys and Libby Perl.
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Figure 1. CWSRF and DWSRF Appropriations: FY2000-FY2021
(not adjusted for inflation)

Source: Prepared by CRS using information from annual appropriations acts, ARRA, committee reports, and
explanatory statements presented in the Congressional Record.
Notes: Amounts reflect applicable rescissions but do not include supplemental appropriations for specific
locations in P.L. 116-20 and P.L. 116-113 or special purpose project grants (often referred to as “earmarks”). For
more information, see CRS Report 96-647, Water Infrastructure Financing: History of EPA Appropriations, by
Jonathan L. Ramseur and Mary Tiemann.
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Table 1. Proposed Infrastructure Investment and Jobs Act: Emergency Supplemental Appropriations for EPA Water
Infrastructure Programs (Dollars in Millions)
Program
FY2022
FY2023
FY2024
FY2025
FY2026
Total Funding Details
Notes
Clean Water
$1,902
$2,202
$2,403
$2,603
$2,603 $11,713 For FY2022 and FY2023, each state would
These funds would be additional to those
State Revolving
match 10% of its annual capitalization grant.
provided through the regular appropriations
Fund Program
For FY2024 through FY2026, the state
process. Congress appropriated $1.639 billion
General Program
match would return to 20%.
in both FY2020 and FY2021 for the CWSRF
49% of the state’s allotment of capitalization
program (Figure 1). For FY2022, the
grant would be used to provide 100%
President requested $1.871 billion.
principal forgiveness or grants, or a
Although the Clean Water Act (CWA)
combination of these.
CWSRF program is generally a loan program,
For FY2022, up to 3%, and for FY2023
states have limited (generally up to 30%) and
through FY2026, 2% would be reserved for
conditional authority to provide recipients
salaries, expenses, and administration; and of with additional subsidization, such as
that set-aside, 80% would be used by the
forgiveness of principal. Appropriations acts in
U.S. Environmental Protection Agency (EPA) recent years have required states to use 10%
for activities other than hiring permanent
of their federal grant amounts to provide
employees.
additional subsidization.
For FY2022 through FY2026, 0.35% shall be
The American Recovery and Reinvestment
reserved for EPA Office of the Inspector
Act of 2009 provided $4.0 billion for the
General (OIG) oversight.
CWSRF in supplemental funding in FY2009,
waiving the 20% state match requirement for
SRF grants.a
Clean Water
$100
$225
$225
$225
$225
$1,000
Funds would be used for eligible activities in
IIJA, if enacted, would be the first time
State Revolving
CWA Section 603(c) that address emerging
Congress specifically directed funding to
Fund Program
contaminants.
address emerging contaminants within the
Emerging
States would not have to match their
framework of eligible CWSRF activities.
Contaminants
capitalization grants.
100% of the state’s allotment of
capitalization grant would be used for 100%
principal forgiveness or grants, or a
combination of these.
For FY2022, up to 3%, and for FY2023
through FY2026, 2% would be reserved for
salaries, expenses, and administration.

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Program
FY2022
FY2023
FY2024
FY2025
FY2026
Total Funding Details
Notes
For FY2022 through FY2026, 0.5% would be
reserved for EPA OIG oversight.
Drinking
$1,902
$2,202
$2,403
$2,603
$2,603
$11,713
For FY2022 and FY2023, each state would
These funds would be additional to those
Water State
match 10% of its annual capitalization grant.
provided through the regular appropriations
Revolving Fund
For FY2024 through FY2026, the state
process. Congress appropriated $1.126 billion
Program
match would return to 20%.
in both FY2020 and FY2021 for the CWSRF
General Program
49% of the state’s allotment of capitalization
program (Figure 1). For FY2022, the
grant would be used for 100% principal
President requested $1.358 billion.
forgiveness or grants, or a combination of
Although the Safe Drinking Water Act
these.
(SDWA) DWSRF program is generally a loan
For FY2022, up to 3%, and for FY2023
program, states are conditionally required to
through FY2026, 2% would be reserved for
use at least 6% of their annual grants to
salaries, expenses, and administration; and of provide eligible recipients with additional
that set-aside, 80% would be used by EPA
subsidization, such as forgiveness of principal.
for activities other than hiring permanent
States have conditional authority to provide
employees.
further subsidization (generally up to 35%).
Appropriations acts in recent years have
For FY2022 through FY2026, 0.35% would
required states to use 14% of their federal
be reserved for EPA OIG oversight.
grant amounts to provide additional
subsidization.
The American Recovery and Reinvestment
Act of 2009 provided $2.0 billion for the
DWSRF in supplemental funding in FY2009,
waiving the 20% state match requirement for
SRF grants.

Drinking
$3,000
$3,000
$3,000
$3,000
$3,000
$15,000
Funds would be used for lead service line
Water State
replacement projects and associated
Revolving Fund
activities directly connected to the
Program
identification, planning, design, and
Lead Service Line
replacement of lead service lines.
Replacement
49% of the state’s allotment of capitalization
grant would be used for 100% principal
forgiveness or grants, or a combination of
these.
States would not have to match their
capitalization grants.

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Program
FY2022
FY2023
FY2024
FY2025
FY2026
Total Funding Details
Notes
For FY2022, up to 3%, and for FY2023
through FY2026, 2% would be reserved for
salaries, expenses, and administration
For FY2022 through FY2026, 0.5% would be
reserved for EPA OIG oversight.
Drinking
$800
$800
$800
$800
$800
$4,000
Funds provided would be used to address
The SDWA authority to address emerging
Water State
emerging contaminants in drinking water
contaminants in Section 1452(a)(2)(G) was
Revolving Fund
with a focus on per- and polyfluoroalkyl
added by the National Defense Authorization
Program
substances as authorized by SDWA Section
Act for Fiscal Year 2020 (P.L. 116-92).
Emerging
1452(a)(2)(G).
Contaminants
100% of the state’s allotment of
capitalization grant would be used for 100%
principal forgiveness or grants, or a
combination of these.
States would not have to match their
capitalization grants.
For FY2022, up to 3%, and for FY2023
through FY2026, 2% would be reserved for
salaries, expenses, and administration.
For FY2022 through FY2026, 0.5% would be
reserved for EPA OIG oversight.
SDWA Section $1,000
$1,000
$ 1,000 $1,000
$1,000
$5,000
Funds provided to states may be used for
These funds would be additional to those
1459A Small
projects that address emerging contaminants provided through the regular appropriations
and
for small and disadvantaged communities.
process. Congress established this program in
Disadvantaged
Funds provided would not be subject to the
2016 and first provided appropriations for it
Community
45% matching requirement.
in FY2018. In FY2021, the program received
Grant
$26.4 million for this grant program; for
Program
For FY2022 through FY2026, up to 3%
b
FY2022, the President requested $41.41
would be reserved for salaries, expenses,
million for this grant program.
and administration.
For FY2022 through FY2026, 0.5% would be
reserved for EPA OIG oversight.
Source: Prepared by CRS based on S.Amdt. 2137 to H.R. 3684 (Infrastructure Investment and Jobs Act), which passed the Senate on August 10, 2021.
a. For more information, see CRS Report R46464, EPA Water Infrastructure Funding in the American Recovery and Reinvestment Act of 2009, by Jonathan L. Ramseur and
Elena H. Humphreys.

CRS-10

b. In 2016, the Water Infrastructure Improvement for the Nation Act (WIIN Act; P.L. 114-322) authorized this grant program in new SDWA Section 1459A. SDWA
Section 1459A directs EPA to establish a grant program to assist disadvantaged communities and small communities that are unable to finance projects needed to
comply with SDWA. Eligible projects include investments needed for SDWA compliance, household water quality testing, and assistance that primarily benefits a
community on a per-household basis. EPA must give funding priority to projects and activities that benefit underserved communities (i.e., communities that lack
household water or wastewater services or that violate or exceed an SDWA requirement). EPA may make grants to public water systems, tribal water systems, and
states on behalf of an underserved community. EPA may waive all or some of the 45% nonfederal share of project costs.
Table 2. Proposed Infrastructure Investment and Jobs Act: Drinking Water and Wastewater Infrastructure Provisions in
Division E
Authorization and Reauthorization of Appropriations in Bold Text
Section
Summary of Provisions
Notes
Title I—Drinking Water
Section 50101
Amends Safe Drinking Water Act (SDWA) Section 1442(a) to direct EPA, within
SDWA requirements apply to public water systems, which
Technical
one year of the bill’s enactment, to evaluate community water system and
include community water systems but not wastewater systems.
Assistance and
wastewater system compliance with the act; requires EPA to submit a report to
The Clean Water Act applies to wastewater systems.
Grants for
Congress on SDWA compliance trends for community water systems and
Emergencies
wastewater systems, as well as trends of community water system or wastewater
Affecting Public
system characteristics that correlate to SDWA compliance or noncompliance; as
Water Systems
practicable, EPA should also determine whether community water systems and
wastewater systems maintain asset management plans.

Amends SDWA Section 1442(b), which authorizes EPA to provide grants to states
SDWA Section 1442(b) includes the following provision: “no
or drinking water systems in emergency situations “to assist in responding to and
limitation on appropriations for any such other program shall
alleviating any emergency situation” to specifically include cybersecurity events and
apply to amounts appropriated under this subparagraph.” P.L.
heightened exposure to lead; amends SDWA Section 1442(d) to reauthorize
107-188 amended Section 1442(d) to authorize appropriations
appropriations at $35 million annually for FY2022 through FY2026 for
for such emergency assistance of not more than $35 million for
the emergency grant program.
FY2002 and such sums as may be necessary for each fiscal year
thereafter. Congress has not appropriated funds to carry out
SDWA Section 1442(b).

Reauthorizes appropriations of $15 million annually for FY2022 through
SDWA Section 1442(e)(5) authorized appropriations of $15
FY2026 for SDWA Section 1442(e), which authorizes EPA to make grants to
million for each of FY2015-FY2020.
nonprofit organizations to provide technical assistance to small public water
systems; adds new Subsection 1442(f) to provide that state-based nonprofit
organizations governed by community water systems are eligible for technical
assistance under Section 1442(e); requires state-based nonprofit organizations to
consult with the state prior to using such funding.

CRS-11

Section
Summary of Provisions
Notes
Section 50102
Amends SDWA Section 1452, the Drinking Water State Revolving Loan Fund
America’s Water Infrastructure Act of 2018 (AWIA; P.L. 115-
Drinking Water
(DWSRF) program. Under this program, EPA receives annual appropriations for
270) renewed the requirement to use American iron and steel
State Revolving
grants to states to capitalize their DWSRFs.
products in projects that receive funds from a DWSRF during
Loan Funds
Makes permanent the SDWA requirement to use American iron and steel products
FY2019 through FY2023. Previously, Congress has required
American iron and steel for DWSRF-financed projects for

in projects supported by funds made available through the DWSRF by removing the
fiscal year limitation on such requirement (SDWA §1452(a)(4)).
specified fiscal years. The Water Infrastructure Improvements for
the Nation (WIIN) Act (P.L. 114-322) amended SDWA to

require the use of American iron and steel for FY2017. In the
American Recovery and Reinvestment Act of 2009 (ARRA; P.L.
111-5), Congress provided supplemental appropriations for the
DWSRF and required the use of American-produced iron, steel,
and manufactured goods in projects that received ARRA funding.
Since FY2014, Congress has regularly required the use of
American iron and steel for DWSRF-financed projects through
appropriations acts.

Amends SDWA Section 1452(m) to reauthorize appropriations for DWSRF
AWIA reauthorized DWSRF capitalization grants for FY2019-
capitalization grants. The authorization of appropriations for DWSRF
FY2021. The current authorization of appropriations for the
capitalization grants would be
DWSRF are approximately

$2.40 billion for FY2022,

$1.17 billion for FY2019,

$2.75 billion for FY2023,

$1.30 billion for FY2020, and

$3.00 billion for FY2024,

$1.95 billion for FY2021.

$3.25 billion for each of FY2025 and FY2026.

Amends SDWA Section 1452(d) to expand forms of additional subsidization states
Currently, states may use as much as 35% of their annual
may provide for projects serving disadvantaged communities. In addition to current
capitalization grant to provide additional subsidization. AWIA
authority to forgive loan principal, states may provide additional subsidies using
amended SDWA to conditionally require states to use at least
“grants, negative interest loans, other loan forgiveness, and through buying,
6% of their capitalization grant for this purpose. Section 1452(d)
refinancing, or restructuring debt.” Also conditionally requires states to use at least
currently does not include the term “grant”; however,
12% of their capitalization grant for these subsidies; and excludes loans with zero or “forgiveness of principal” enables states to provide comparable
higher interest rates from the definition of “additional subsidization.”
assistance. Appropriations acts in recent years have required
states to use 14% of their federal grant amounts to provide
additional subsidization.

CRS-12

Section
Summary of Provisions
Notes
Section 50103
Amends SDWA Section 1454, which authorizes states to establish source water
SDWA Section 1454(e) authorizes appropriations of $5 million
Source Water
quality protection partnership petition programs, in which public water system
for each of FY2020-FY2021, and provides that each state with a
Petition
operators and the community members request state assistance to form a voluntary plan for a program approved under subsection (b) shall receive
Program
partnership to prevent source water degradation. Section 50103 authorizes
an equitable portion of the funds available for any fiscal year.
counties, acting on behalf of unincorporated areas, to form such a partnership; and
reauthorizes appropriations for the source water quality protection
partnership petition program at $5 million annually for FY2020 through
FY2026.
Section 50104
Amends SDWA Section 1459A, which directs EPA to establish a grant program to
SDWA Section 1459A(k) authorizes appropriations for Section
Assistance for
assist disadvantaged communities and small communities that are unable to finance
1459A of $60 million for each of FY2017 through FY2021.
Small and
projects or activities needed to comply with SDWA. This section expands the
Disadvantaged
projects and activities eligible for grants under this program to include (1) the
Communities
purchase of point-of-entry or point-of-use filters and filtration systems; (2)
investments necessary for providing information regarding use and maintenance of

these devices, and options for replacing lead service lines or removing other lead

sources; and (3) contracts with nonprofit entities on behalf of an eligible entity (or

state on behalf of an eligible entity). It reduces the nonfederal cost-share of this

grant program from not less than 45% to not less than 10%; and reauthorizes
appropriations for Subsections 1459A(a)-(j) at


$70 million for FY2022,

$80 million for FY2023,

$100 million for FY2024,

$120 million for FY2025, and

$140 million for FY2026.

Expands eligible entities for SDWA Section 1459A(j), which authorizes EPA to make SDWA Section 1442(b) authorizes EPA to make grants to states
grants to states to assist underserved communities to respond to imminent and
or publicly owned water systems to assist in responding to and
substantial contamination.
alleviating emergency situations (42 U.S.C. §300j-1(b)).
Specifically, grants authorized by this subsection may be used
only to support actions that are necessary (1) to prevent, limit,
or mitigate danger to the public health in an emergency, and (2)
that would otherwise not be taken without such emergency
assistance, as determined by the Administrator.

Amends SDWA Section 1459A(l), which authorizes EPA to establish the Drinking
SDWA Section 1459A(l)(5) authorizes appropriations for Section
Water System Infrastructure Resilience and Sustainability Program for small and
1459A(1) of $4 million for each of FY2019 and FY2020.
disadvantaged public water systems, to direct EPA to establish this grant program. It

CRS-13

Section
Summary of Provisions
Notes
reauthorizes appropriations of $25 million annually for FY2022 through
FY2026 for this grant program; further amends Section 1459A(l) to establish a
10% cost share for eligible entities, which EPA may waive under certain
circumstances.

Adds SDWA Subsection 1459A(m) to direct EPA, subject to appropriations, to
The U.S. Department of Agriculture (USDA) is authorized to
establish a new grant program to provide assistance to public water systems, or
provide grants to various eligible entities to provide water
nonprofit entities on behalf of public water systems, to voluntarily connect
services, including connecting households to water systems to
individual households to public water systems; authorizes appropriations of $20 alleviate health risks (7 U.S.C. §1926c). USDA is also authorized
million annually for FY2022 through FY2026 for this program; requires
to provide grants to communities to prepare for or recover
EPA to report to Congress within three years of enactment regarding program
from an emergency that threatens the availability of safe, reliable
implementation.
drinking water. Among the eligible uses, USDA may provide
grants to connect households to water systems (7 U.S.C.
§1926a).

Adds SDWA Subsection 1459A(n) to direct EPA to establish a competitive grant

program for states, giving priority to states with a high proportion of underserved
communities; authorizes appropriations of $50 million annually for FY2022
through FY2026; requires EPA to submit a report to Congress within two years
of enactment regarding program implementation.
Section 50105
Amends SDWA Section 1459B to revise the eligible entities for the existing lead
Currently, SDWA Section 1459B directs EPA to establish a grant
Reducing Lead
reduction grant program to include “qualified nonprofit organizations with
program for projects and activities that reduce lead in drinking
in Drinking
experience in lead reduction, as determined by the Administrator ...” rather than “a
water, including replacement of lead service lines and corrosion
Water
qualified nonprofit organization as determined by the Administrator, servicing a
control. Under the current program, grants may be used to
public water system.... ”
provide assistance to low-income homeowners to replace their

portions of lead service lines. Under SDWA Section 1452(d)(3),
Expands the eligible uses of lead reduction grants to include replacement of
the definition of a “disadvantaged community” means the service
privately owned lead service lines, and authorizes EPA to provide grant funds to
area of a public water system that meets affordability criteria
“low-income homeowners, and landlords or property owners providing housing to
established after public comment and review by the state. That is,
low-income renters” with prioritization for disadvantaged communities based on
affordability is established at the water system-level rather than
state DWSRF affordability criteria; requires water systems to replace privately
at the individual household level. SDWA Section 1459B(d)
owned lead service lines at no cost to low-income customers, authorizes water
authorizes appropriations of $60 million for each of FY2017-
systems to replace privately owned lead service lines at no cost to such customers,
FY2021 to carry out this section.
and requires water systems to notify the state of planned lead service line
replacements; increases and extends the authorization of appropriations
for this grant program from $60 million annually for FY2017 through
FY2021 to $100 million annually for FY2022 through FY2026.

Adds SDWA Subsection 1459B(d) to direct EPA to establish a grant program for

water systems in which no less than 30% of the systems’ service lines are known, or

CRS-14

Section
Summary of Provisions
Notes
suspected, to contain lead, to carry out lead reduction projects, including “existing
lead inventorying”; requires EPA to submit a report to relevant congressional
committees within two years of the first grant award regarding the implementation
of this grant program; authorizes appropriations of $10 million (available until
expended) for this grant program.
Section 50106
Adds SDWA Section 1459E to direct EPA to establish a grant program for states;

Operational
local governments; tribes; public corporations established by a unit of local
Sustainability of
government; nonprofit entities that own, operate, or provide technical assistance to
Small Public
public water systems; and other government entities to improve the “operational
Water Systems
sustainability of one or more small water systems,” subject to available
appropriations. Eligible uses of the funds include various asset management
activities. Requires EPA to report to Congress on the implementation of this grant
program within two years of enactment; authorizes appropriations of $50
million annually for FY2022 through FY2026; requires eligible entities to
provide a 10% match, which EPA may waive under certain circumstances.
Section 50107
Adds SDWA Section 1459F to direct EPA to establish a grant program for public
AWIA amended SDWA Section 1459A to authorize EPA to
Midsize and
water systems serving 10,000 or more individuals to improve resilience to natural
establish the Drinking Water System Infrastructure Resilience
Large Drinking
hazards and to address cybersecurity vulnerabilities. Eligible uses of funds would
and Sustainability Program, a grant program for small and
Water System
include various water conservation, desalination construction, and watershed
disadvantaged public water systems. EPA is authorized to provide
Infrastructure
management activities, among others. Requires EPA to report to Congress on the
grants to eligible systems for projects that increase resilience to
Resilience and
implementation of this grant program within two years of enactment; authorizes
natural hazards, including hydrologic changes. Eligible projects
Sustainability
appropriations of $50 million annually for FY2022 through FY2026; directs include those that increase water use efficiency, enhance water
Program
EPA to use 50% of amounts available for grants for water systems serving 10,000 or
supply through watershed management or desalination, and
more to 100,000 individuals, and 50% for systems serving more than 100,000
increase energy efficiency in the conveyance or treatment of
individuals.
drinking water. FY2020 was the first fiscal year that this program
received funding ($3 million).
Section 50108
Requires EPA to assess and report to Congress on the prevalence of municipalities,

Needs
public entities, or tribal governments with water service providers that serve a
Assessment for
“disproportionate percentage ... of households with qualifying need,” and as
Nationwide
determined by EPA, the prevalence of municipalities, public entities, or tribal
Rural and Urban governments that “have taken on an unsustainable level of debt due to customer
Low-Income
nonpayment” for drinking water and wastewater services.
Community
Water
Assistance

CRS-15

Section
Summary of Provisions
Notes
Section 50109 Requires EPA, within two years of enactment, to establish a grant program to
P.L. 116-260 provided $638 million for a new Low-Income
Rural and Low-
provide household drinking water and/or wastewater rate assistance based on the
Household Drinking Water and Wastewater Emergency
Income Water
results of the study performed under Section 50108 of the bill. Eligible uses of the
Assistance Program (Division H, Title V, §533) to be
Assistance Pilot
funds would include direct household assistance, lifeline rates, bill discounting,
administered by the Department of Health and Human Services
Program
percent of income billing, and special hardship provisions; directs EPA to make no
(HHS). Congress appropriated an additional $500 million to HHS
more than 40 grants, which would be awarded as follows:
for low-income water assistance in the American Rescue Plan


Act (P.L. 117-2, §2912).

8 to rural drinking water or wastewater systems or states,


8 to eligible entities that own or operate a medium water service provider,


8 to eligible entities that own or operate a large water provider serving
between 100,001 to 500,000 individuals,


8 to water service providers that serve more than 500,000 individuals, and

8 to drinking water or wastewater or municipal storm sewer systems serving
disadvantaged communities,
This section does not include an authorization of appropriations. Requires EPA to
report to Congress on the implementation of this grant program within two years
of the first funds’ disbursement and annually thereafter.

Section 50110
Amends SDWA Section 1464(b) to require EPA to publish school lead testing
Lead
guidance for public water systems.
Contamination
Amends SDWA Section 1464(d) to expand the existing Voluntary School and Child
Currently, SDWA Section 1464(d)(8) authorizes appropriations
in School
Care Program Lead Testing Grant Program to include activities such as compliance
of $20 million for each of FY2017-FY2019, and $25 million for
Drinking Water
monitoring and lead remediation; expands eligible entities to include water systems,
each of FY2020 and FY2021.

qualified nonprofit organizations, and tribal consortia; reauthorizes
appropriations for SDWA Section 1464(d) at

$30 million for FY2022,

$35 million for FY2023,

$40 million for FY2024,

$45 million for FY2025, and

$50 million for FY2026.

CRS-16

Section
Summary of Provisions
Notes
Section 50111
Revises the Indian Reservation Drinking Water Grant Program, authorized by
AWIA Section 2001 directs EPA—subject to appropriations—to
Indian
AWIA Section 2001, which directs EPA—subject to appropriations—to establish a
establish a drinking water infrastructure grant program for 20
Reservation
drinking water infrastructure grant program for 20 eligible projects (10 projects in
eligible projects (10 projects in the Upper Missouri River Basin
Drinking Water
the Upper Missouri River Basin and 10 projects in the Upper Rio Grande River
and 10 projects in the Upper Rio Grande River Basin) to
Program
Basin) to improve water quality, water pressure, or water services. This section
improve water quality, water pressure, or water services. One of
directs EPA to establish such a grant program, establishes the federal share at 100%
the 10 projects in the Upper Missouri River Basin must serve

of project costs, and expands the eligible uses of the funds to either drinking water
two or more tribes. To be eligible, the public water system must

infrastructure improvements or wastewater system improvements; requires EPA to
either be on a reservation or serve a federally recognized Indian

use 50% of funds for
tribe. Section 2001 authorizes an appropriation $20 million


annually from FY2019 through FY2022 to support this program.

10 projects in the Upper Missouri River Basin,
To date, no funds have been appropriated for this purpose.


10 projects in the Upper Rio Grande River Basin,


10 projects in the Columbia River Basin,

10 projects in the Lower Colorado River Basin, and

10 projects in the Arkansas-White-Red River Basin.
Retains requirement that EPA select no less than two projects that serve more than
one federally recognized Indian tribe; requires EPA to report to Congress on the
implementation of this grant program within two years of enactment; authorizes
appropriations of $50 million annually for FY2022 through FY2026.
Section 50112
Adds SDWA Section 1459G to require EPA, subject to appropriations, and within
AWIA Section 2007 directs EPA to administer a competitive
Advanced
one year of enactment, to study existing and potential future technology, including
grant program to accelerate the development of innovative water
Drinking Water
cybersecurity vulnerabilities, that could enhance various aspects of the water
technology that addresses drinking water supply, quality,
Technologies
provided by a public water system; requires EPA to establish a grant program for
treatment, or security. Among the selection criteria for grants,
water systems either serving 100,000 or fewer individuals or small and
EPA must prioritize projects that provide additional drinking
disadvantaged water systems to identify, deploy, or identify and deploy technologies; water supplies with minimal environmental impact. AWIA
requires EPA to report to Congress on the implementation of this grant program
authorizes $10 million to be appropriated each year for FY2019
within two years of the first funds’ disbursement and annually thereafter;
and FY2020 to support this grant program. To date, no funds
authorizes appropriations of $10 million annually for FY2022 through
have been appropriated for this purpose.
FY2026.

CRS-17

Section
Summary of Provisions
Notes
Section 50113
Adds SDWA Section 1420A on cybersecurity. Requires EPA, in coordination with

Cybersecurity
the Department of Homeland Security Cybersecurity and Infrastructure Security
Support for
Agency (CISA) to develop a prioritization framework to identify public water
Public Water
systems (including systems’ source water) that, if degraded or rendered inoperable
Systems
due to an incident, would lead to significant impacts on the health and safety of the
public, within 180 days of enactment; requires EPA and CISA to develop a Technical
Cybersecurity Support Plan for public water systems, within 270 days of enactment;
requires EPA to report to Congress within 10 additional days from the
development of the prioritization framework and support plan (i.e., within 190 days
and 280 days, respectively).
Section 50114 Amends SDWA Section 1459A(j), authorizes a grant program to help states assist

State Response
underserved communities to respond to imminent and substantial contamination;
to
changes eligibility from “underserved community” to water systems eligible for
Contaminants
SDWA Section 1459A (i.e., systems that serve a disadvantaged community, or a
community that may become disadvantaged as a result of the project, or systems
serving 10,000 or fewer individuals and do not have capacity to incur debt).
Section 50115 Requires EPA to annually report to Congress, first within one year of enactment, on
Annual Study on the national prevalence of, and reasons for, boil water advisories, as a part of the
Boil Water
agency’s budget request.
Advisories
Title II—Clean Water
Section 50201
Reauthorizes appropriations of $75 million annually for FY2022 through
The grant programs in Section 104(b)(3) and 104(g) were
Research,
FY2026 for Clean Water Act (CWA) Section 104(u), which includes grants
established in 1972; Congress has not provided appropriations to
Investigations,
to state water pollution control agencies (subsection (b)(3)), grants to nonprofit
these programs in recent years.
Training, and
organizations for technical assistance (subsection (b)(8)), and grants to eligible
The grant program in Section 104(b)(8) was authorized in the
Information
entities for training projects (subsection (g)); not less than $50 million each fiscal
America’s Water Infrastructure Act of 2018 (AWIA; P.L. 115-
year shall be used for the training project grants (subsection (b)(8)); directs EPA to
270). Congress first provided $12 million in appropriations for
submit a report describing implementation of these grant programs.
this program for FY2020 (P.L. 116-94) and $18 million for
FY2021 ($18 million in P.L. 116-260).
Section 50202
Directs EPA to establish a wastewater efficiency grant program for publicly owned

Wastewater
treatment works (POTW) to create or improve waste-to-energy systems; grants
Efficiency Grant
may not exceed $4 million per recipient; authorizes appropriations of $20
Pilot Program
million annually for FY2022 through FY2026.

CRS-18

Section
Summary of Provisions
Notes
Section 50203
Amends CWA Section 220, a pilot program for alternative water source projects,
To date, this program has not received appropriations.
Pilot Program
to include stormwater as an eligible project type; authorizes appropriations of
for Alternative
$25 million annually for FY2022 through FY2026.
Water Source
Projects
Section 50204
Amends CWA Section 221 to include as an eligible project “notification systems to
Congress authorized this program in 2000 and provided the first
Sewer Overflow inform the public of combined sewer or sanitary overflows that result in sewage
appropriation in 2019, providing $28 million for FY2020 (P.L.
and Stormwater being released into rivers and other waters”; provides the federal cost share shall
116-94), followed by $40 million for FY2021 (P.L. 116-260). EPA
Reuse Municipal
be not less than 90% in rural or financially distressed communities; EPA may
issued a proposed rule in the Federal Register regarding this
Grants
increase federal share to 100%; authorizes appropriations of $280 million
program on August 4, 2020. To date, EPA has not issued any
annually for FY2022 through FY2026; directs states to use not less than 25% of grants for this program.
grants in rural or financially distressed communities.
Section 50205
Adds Section 222 to the CWA, directing EPA to establish a clean water

Clean Water
infrastructure resilience and sustainability grant program; a grant shall not exceed
Infrastructure
75% of total project cost, but allows for 90% under certain conditions, including a
Resiliency and
population of fewer than 10,000 or a low-income community; the nonfederal cost
Sustainability
share may be waived; applies CWA Section 608 (requirement to use American
Program
products iron and steel products) to grant projects; authorizes appropriations
of $25 million annually for FY2022 through FY2026.
Section 50206
Adds Section 223 to the CWA, directing EPA to establish a circuit rider program to
Small and
award grants to nonprofit entities to provide assistance to small and medium
Medium Publicly POTWs to carry out CWA Section 602(b)(13), which requires that an SRF
Owned
recipient demonstrate it “has studied and evaluated the cost and effectiveness of the
Treatment
processes, materials, techniques, and technologies for carrying out the proposed
Works Circuit
project”; grants limited to $75,000; authorizes appropriations of $10 million
Rider Program
annually for FY2022 through FY2026.
Section 50207
Adds Section 224 to the CWA, directing EPA to establish a grant program to
Section 50207 does not include an authorization of
Small Publicly
support projects that repair/replace equipment to improve water/energy efficiency
appropriations for this program.
Owned
of small POTWs, defined as a population of not more than 10,000 or a
Treatment
disadvantaged community; not less than 15% of grants must support POTWs that
Works
serve fewer than 3,300 people.
Efficiency Grant
Program

CRS-19

Section
Summary of Provisions
Notes
Section 50208
Adds Section 225 to the CWA, directing EPA to establish a grant program for
The USDA’s Rural Utilities Service provides direct and
Grants for
private nonprofit organizations to construct, repair, or replace individual household
guaranteed loan and grant assistance to communities for waste
Construction
(or multihousehold) decentralized wastewater systems; provides priority for funding disposal projects in eligible rural areas. Eligible areas include rural
and Refurbishing to individuals that do not have access to sanitary disposal systems; authorizes
towns of 10,000 or less. Under the USDA program, long-term,
of Individual
appropriations of $50 million annually for FY2022 through FY2026.
low-interest loans are primary funding mechanisms. If funds are
Household
available, a grant may be combined with a loan to reduce
Decentralized
borrower costs. In some cases funding may also be available for
Wastewater
legal and engineering fees, land acquisition, and start-up
Systems for
operations. Project applications are scored on a point system,
Individuals with
with smaller populations and lower median household incomes
Low or
receiving priority (7 U.S.C. §1926).
Moderate
For additional information, see https://www.rd.usda.gov/
Income
programs-services/water-waste-disposal-loan-grant-program.
Section 50209
Adds Section 226 to the CWA, directing EPA to establish a grant program to help

Connection to
cover the costs of connecting low-income individuals to POTWs; grants go to
Publicly Owned
POTWs or nonprofit entities; authorizes appropriations of $40 million
Treatment
annually for FY2022 through FY2026; not less than 15% of grants to go to
Works
systems serving fewer than 3,300 people.
Section 50210
Amends clean water state revolving fund (CWSRF) provisions in CWA Section 603
Although the CWSRF program is generally a loan program, the
Clean Water
to clarify that additional subsidization includes “forgiveness of principal, grants,
CWSRF program allows states to provide SRF recipients
State Revolving
negative interest loans, other loan forgiveness, and through buying, refinancing, or
additional subsidization. In addition, appropriations acts in recent
Funds
restructuring debt”; directs states to use at least 10% of their capitalization grant for years have required states to use specified minimum percentages
additional subsidization; allows states to allocate 2% of capitalization grants to
of their federal grant amounts to provide additional subsidization.
nonprofits to provide technical assistance to small, rural, and tribal POTWs.
This trend began with the American Recovery and Reinvestment

Act of 2009 (ARRA, P.L. 111-5), which required states to use at
least 50% of their ARRA SRF funds for this purpose. Subsequent

appropriations acts have included similar conditions, with varying
percentages of mandatory subsidization. The FY2021
appropriations act requires states to use 10% of the CWSRF
grants for additional subsidization.

Reauthorizes appropriations for the CWSRF program as follows:
Although the authority for CWSRF appropriations expired in


FY1994, Congress has continued to provide annual

$2.40 billion for FY2020;
appropriations to the program. Congress appropriated $1.6


$2.75 billion for FY2023;
billion for both FY2020 and FY2021 for the CWSRF program.


$3.00 billion for FY2024;

$3.25 billion for each of FY2025 and FY2026.

CRS-20

Section
Summary of Provisions
Notes
Section 50211
Amends AWIA Section 4304, which directs EPA, in consultation with USDA, to

Water
establish the Innovative Water Infrastructure Workforce Development program;
Infrastructure
expands the uses of grants provided in this program to include recruitment and
and Workforce
promotion of diversity within the water sector, training for the water sector, and
Investment
activities to improve water sector employee retention; expands eligible grant
recipients to include public works departments and agencies; requires EPA to
coordinate a federal interagency working group to address recruitment, training,
and retention of the water sector workforce; requires EPA in coordination with the
federal interagency working group to report to Congress within two years of
enactment on potential solutions to workforce recruitment, training, and retention
challenges in the water sector; authorizes appropriations of $5 million
annually for FY2022 through FY2026.
Section 50212
Reauthorizes appropriations for grants to Alaska to support rural and native villages
Although authority for appropriations for this program expired
Grants to
(33 U.S.C. 1263a(e)); authorizes appropriations of $40 million annually for
at the end of FY2005, this program has continued to receive
Alaska to
FY2022 through FY2024, $50 million for FY2025, and $60 million for
annual appropriations. Congress appropriated $36.2 million for
Improve
FY2026.
this program for FY2021.
Sanitation in
Rural and
Native Villages
Section 50213
Directs EPA to establish a grant pilot program to create systems that improve the

Water Data
sharing of information between states and local governments regarding water
Sharing Pilot
quality, infrastructure needs, and water technology; grants may be issued to states,
Program
counties, or local governments; states may establish regional consortia to carry out
certain water projects; authorizes appropriations annually for FY2022
through FY2026.
Section 50214
Amends the Water Infrastructure Finance and Innovation Act of 2014 (WIFIA) to

Final Rating
require loan applicants to submit one final rating option letter instead of two (33
Opinion Letters
U.S.C. 3907(a)(1)(D)(ii)).

CRS-21

Section
Summary of Provisions
Notes
Section 50215
Reauthorizes appropriations for subsidy costs of $50 million annually for
Section 50215’s reauthorization of appropriations matches the
Water
FY2022 through FY2026 and administrative costs annually for FY2022
existing authority of appropriations for FY2021 (33 U.S.C.
Infrastructure
through FY2026. Requires EPA to develop an outreach plan to promote the
§3912). Congress provided $59.5 million for WIFIA subsidy costs
Financing
WIFIA program to small and rural communities.
in FY2021. EPA estimated that this FY2021 budget authority
Reauthorization
would provide approximately $5.5 billion in credit assistance
(EPA, FY2021 Notice of Funding Availability,
https://www.epa.gov/wifia/fy-2021-notice-funding-availability).

Section 50216
Directs EPA to provide a report to Congress describing the CWSRF and DWSRF

Small and
programs’ historical distributions of funds to small and disadvantaged communities
Disadvantaged
and identifying opportunities to improve distribution to low-income, rural, minority,
Community
and indigenous communities, in accordance with Executive Order 12898.
Analysis

Section 50217
Directs EPA to establish a grant program to support the creation of centers of
Stormwater
excellence for stormwater control infrastructure technologies at research
Infrastructure
institutions or nonprofit organizations; authorizes appropriations annually for
Technology
FY2022 through FY2026; directs EPA to provide grants to state, local, and tribal
governments to carry out stormwater infrastructure projects that involve new and
emerging technologies; prioritizes grant awards to small, rural, and disadvantaged
communities with municipal combined storm and sanitary systems; authorizes
appropriations of $10 million annually for FY2022 through FY2026.
Section 50218
Directs EPA to establish a Water Reuse Interagency Working Group to develop

Water Reuse
and coordinate water reuse activities and resources through the implementation of
Interagency
a National Water Reuse Action Plan; directs EPA to submit a report to Congress
Working Group on the working group’s activities at least once every two years.
Section 50219
Directs EPA to carry out and submit to Congress a study examining the state of

Advanced Clean existing and potential technologies that could enhance treatment, monitoring,
Water
affordability, efficiency, and safety of wastewater services provided by treatment
Technologies
works.
Study

CRS-22

Section
Summary of Provisions
Notes
Section 50220
Amends CWA Section 516 to direct the EPA to conduct an assessment of capital
Clean Water Act Section 516(b)(1)(B) requires EPA to prepare
Clean
improvement needs for all projects eligible under the CWSRF program; directs EPA “a detailed estimate, biennially revised, of the cost of
Watersheds
to complete such an assessment at least every four years; authorizes an
construction of all needed publicly owned treatment works in all
Needs Survey
appropriation of $5 million (available until expended).
of the States and of the cost of construction of all needed
publicly owned treatment works in each of the States.”
Historically, EPA has produced this estimate approximately every
four years, referred to as the Clean Water Needs Survey. The
scope of this existing assessment is narrower than the proposed
assessment in this section.
Section 50221
Amends the Water Resource Research Act to require each Water Resource

Research Institute to provide a nonfederal match equivalent to the federal funds
Water
provided and submit an annual report to specified congressional committees
Resources
regarding such matching funds; requires the Secretary of the Interior to complete an
Research Act
evaluation of each institute, every five years, and as a result of the evaluation, the
Amendments
Secretary is authorized to suspend/discontinue funding for such institute until the
institute’s qualifications are reestablished; reauthorizes appropriations of $3
million annually for FY2022 through FY2025.
Section 50222
Adds Section 124 to the CWA to direct the EPA to provide funding to carry out

Enhanced
groundwater research on enhanced aquifer use and recharge in support of sole-
Aquifer Use and source aquifers; not less than 50% of funding is to be provided to a state, local
Recharge
government, or Indian tribe to carry out activities that would directly support that
research, with the remaining funding allocated to an appropriate research center;
requires a state, local government, or Indian tribe and the appropriate research
center to form a research relationship for coordinating purposes; authorizes
appropriations of $5 million annually for FY2022 through FY2026.
Source: Prepared by CRS based on S.Amdt. 2137 to H.R. 3684 (Infrastructure Investment and Jobs Act), which passed the Senate on August 10, 2021.

CRS-23

Infrastructure Investment and Jobs Act: Drinking Water and Wastewater Infrastructure

Author Information

Elena H. Humphreys
Jonathan L. Ramseur
Analyst in Environmental Policy
Specialist in Environmental Policy

Disclaimer
This document was prepared by the Congressional Research Service (CRS). CRS serves as nonpartisan
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under the direction of Congress. Information in a CRS Report should not be relied upon for purposes other
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Congressional Research Service
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