U.S. Environmental Protection Agency (EPA) Water Infrastructure Programs and FY2024 Appropriations

U.S. Environmental Protection Agency (EPA) Water Infrastructure Programs and FY2024 Appropriations

link to page 1

March 22, 2024
U.S. Environmental Protection Agency (EPA) Water
Infrastructure Programs and FY2024 Appropriations
Many policymakers and stakeholders have raised concerns
account. A separate account funds a federal credit
about the condition of the nation’s local drinking water and
assistance program under the Water Infrastructure Finance
wastewater infrastructure and the financial challenges that
and Innovation Act (WIFIA). As presented in Table 1,
communities may confront in maintaining, repairing, or
Division E provides approximately $3.04 billion in regular
replacing aging infrastructure. In 2016, the U.S.
appropriations for these programs, 0.8% less than the total
Environmental Protection Agency (EPA) estimated that
regular FY2023 enacted level (P.L. 117-328). FY2024 SRF
wastewater and stormwater infrastructure would need $271
appropriations remained the same as in FY2023, though
billion over the next 20 years to meet federal water quality
other grant programs and the WIFIA program received less
objectives. In 2023, EPA estimated that drinking water
in FY2024 than in FY2023. The Infrastructure Investment
systems need to invest $625 billion (in 2021 dollars) over
and Jobs Act (IIJA; P.L. 117-58) provides emergency
20 years to ensure the provision of safe drinking water.
supplemental appropriations for the SRFs and one drinking
water grant program for FY2022-FY2026.
FY2024 Appropriations
The Consolidated Appropriations Act, 2024 (P.L. 118-42),
State Revolving Fund Programs
Division E, Title II, provides regular appropriations for
The Clean Water Act (CWA) and the Safe Drinking Water
EPA for multiple water infrastructure programs, including
Act (SDWA) authorize complementary programs to help
the Clean Water State Revolving Fund (CWSRF) and the
publicly owned treatment works and public water systems
Drinking Water SRF (DWSRF). Appropriations for the
finance improvements needed for compliance and other
SRFs and other water infrastructure programs are provided
statutory purposes.
within the State and Tribal Assistance Grants (STAG)
Table 1. EPA Water Infrastructure: Enacted Appropriations for FY2023 and FY2024
(dollars in millions, not adjusted for inflation)
FY2023
FY2024
FY2023
Division G
FY2024
Division E
Program
IIJA
P.L. 117-328
IIJA
P.L. 118-42
State and Tribal Assistance Grants (STAG) Account

Clean Water State Revolving Fund (CWSRF)
$2,202.0
$775.8
$2,403.0
$851.2
Grants for Emerging Contaminant Projects
$225.0
—
$225.0
—
Community Project Funding/Congressionally Directed Spending (CPF/CDS)
—
$863.1
—
$787.7
Drinking Water State Revolving Fund (DWSRF)
$2,202.0
$516.9
$2,403.0
$494.4
Lead Service Line Replacement Projects
$3,000.0
—
$3,000.0
—
Grants for Emerging Contaminant Projects
$800.0
—
$800.0
—
CPF/CDS
—
$609.3
—
$631.7
Grants for U.S.-Mexico Border Projects
—
$36.4
—
$35.0
Grants for Rural and Alaska Native Villages
—
$39.7
—
$39.0
Grants for Testing School Water for Lead
—
$30.5
—
$28.0
Grants for Reducing Lead in Drinking Water
—
$25.0
—
$22.0
Grants for Small and Disadvantaged Communities
$1,000.0
$30.2
$1,000.0
$28.5
Grants for Small Water System Resilience and Sustainability
—
$7.0
—
$6.5
Grants for Midsize to Large Water System Resilience and Sustainability
—
$5.0
—
$2.3
Grants for Indian Reservation Drinking Water
—
$4.0
—
$4.0
Grants for Sewer Overflow and Stormwater
—
$50.0
—
$41.0
Water Infrastructure Finance and Innovation Act (WIFIA) Account
—
$75.6
—
$72.3
Total
$9,429.0
$3,068.5
$9,831.0
$3,043.6
Sources: CRS using appropriation values from P.L. 117-328, the Infrastructure Investment and Jobs Act (IIJA; P.L. 117-58), and P.L. 118-42. P.L.
117-58 provides supplemental and advanced appropriations for certain activities for FY2022-FY2026.
https://crsreports.congress.gov

U.S. Environmental Protection Agency (EPA) Water Infrastructure Programs and FY2024 Appropriations
The CWSRF provides financial assistance for infrastructure
Grants for Testing School Water for Lead
projects to publicly owned treatment works and other
SDWA Section 1464(d) requires EPA to establish a
eligible recipients (33 U.S.C. §§1381-1387). The DWSRF
voluntary program for testing for lead in drinking water at
provides assistance to public water systems, which may be
schools and child care programs under the jurisdiction of
publicly or privately owned (42 U.S.C. §300j-12). In both
local education agencies. IIJA expanded the program’s
SRF programs, EPA makes grants to states to capitalize a
eligibilities, and P.L. 118-42 provides $28.0 million in
state revolving loan fund. Each state must match 20% of its
FY2024 for the program.
annual capitalization grant. States are authorized to use the
CWSRF or the DWSRF primarily to provide subsidized
Grants for Reducing Lead in Drinking Water
loans to eligible recipients. CWSRF financial assistance is
SDWA Section 1459B directs EPA to establish a grant
available generally for purposes defined in CWA Section
program for projects and activities that reduce lead in
603, which include wastewater/stormwater infrastructure
drinking water. Grants can provide assistance to low-
projects. DWSRF financial assistance is available for
income homeowners to replace lead service lines. IIJA
statutorily specified expenditures and those that EPA “has
expands eligibilities, and P.L. 118-42 provides $22.0
determined, through guidance, will facilitate” SDWA
million in FY2024 for the program.
compliance or further the act’s health protection objectives.
Grants for Small and Disadvantaged Communities
P.L. 118-42 includes “community project
SDWA Section 1459A directs EPA to establish a grant
funding/congressionally directed spending” (CPF/CDS)
program to assist disadvantaged communities and small
items, which some call earmarks. The act sets aside 48%
communities that are unable to finance projects needed to
($787.7 million) of the FY2024 CWSRF appropriation to
comply with SDWA. P.L. 118-42 provides $28.5 million
CPF/CDS and 56% ($631.7 million) of the FY2024
for FY2024. IIJA provides $1.0 billion for this program
DWSRF appropriation for CPF/CDS. Such funds are to be
dedicated to emerging contaminants projects for FY2024.
distributed directly to recipients, instead of to states’ SRF
programs. Thus, the reservation of funds effectively
Grants for Drinking Water System Resilience
decreases the total amount available for allotment as state
SDWA Section 1459A(l) directs EPA to establish a grant
capitalization grants. Compared to FY2023, P.L. 118-42 set
program to assist small and disadvantaged public water
aside a higher percentage of the DWSRF appropriations and
systems to improve natural hazard resilience. P.L. 118-42
a lower percentage of CWSRF appropriations for
provides $6.5 million for FY2024. IIJA amended SDWA to
CPF/CDS. After IIJA is considered, the combined SRF
add a parallel program for water systems serving 10,000
appropriations are higher in FY2024 than in FY2023.
people or more. P.L. 118-42 provides the program’s second
appropriation of $2.3 million.
P.L. 118-42 authorizes EPA to set aside $13.3 million from
FY2024 SRF appropriations to administer FY2022 and
Grants for Indian Reservation Drinking Water
FY2023 CPF/CDS. EPA cannot obligate these funds
America’s Water Infrastructure Act of 2018 (AWIA; P.L.
without written confirmation by the House and Senate
115-270), Section 2001, established a grant program for
Committees on Appropriations. To gain this confirmation,
water systems that serve Indian tribes in specified river
EPA is directed to brief the committees within 45 days (i.e.,
basins. IIJA expanded the program to more river basins and
by April 23, 2024) and provide a report within 90 days (i.e.,
project types. P.L. 118-42 provides the program’s second
by June 7, 2024). In the briefing and report, EPA is required
appropriation of $4.0 million.
to identify ways (other than increased staffing) that would
improve EPA’s timeliness and efficacy of CPF/CDS
Grants for Sewer Overflow and Stormwater
administration. In addition, EPA is required to provide a
The Consolidated Appropriations Act, 2001 (P.L. 106-554),
legislative structure to allow for state administration of
added Section 221 to the CWA, authorizing EPA to
CPF/CDS projects.
establish a grant program to address sewer overflows.
AWIA expanded the program to include stormwater. P.L.
Water Infrastructure Finance and Innovation Act
118-42 provides $41.0 million for FY2024.
Congress established the WIFIA program in the Water
Resources Reform and Development Act of 2014 (P.L. 113-
Other Wastewater/Drinking Water Grant
121, 33 U.S.C. §§3901-3914). WIFIA authorizes EPA and
Programs
the U.S. Army Corps of Engineers to provide credit
P.L. 118-42 provides appropriations for other wastewater
assistance—secured loans or loan guarantees—for a range
and drinking water grant programs that do not directly
of water infrastructure projects. EPA provides WIFIA loans
support construction activities. These programs support a
directly to eligible recipients. WIFIA appropriations
variety of activities, including technical assistance for small
primarily cover long-term credit subsidy costs, which
drinking water/wastewater systems, development of
would cover the federal government’s risk that the loan
“innovative” technology for drinking water or stormwater
may not be repaid. EPA estimates that the average subsidy
control, development of the water sector workforce, and
cost for WIFIA projects will be comparatively low. Thus,
research on enhanced aquifer recharge and use.
relative to its budget authority, WIFIA allows for a larger
amount of total assistance. For example, EPA estimates that
Elena H. Humphreys, Analyst in Environmental Policy
the FY2023 budget authority for WIFIA subsidy costs
Jonathan L. Ramseur, Acting Section Research Manager
would be $63.0 million of the $75.6 million for the program
and will allow EPA to lend roughly $6.5 billion.
IF12617
https://crsreports.congress.gov

U.S. Environmental Protection Agency (EPA) Water Infrastructure Programs and FY2024 Appropriations

Disclaimer
This document was prepared by the Congressional Research Service (CRS). CRS serves as nonpartisan shared staff to
congressional committees and Members of Congress. It operates solely at the behest of and under the direction of Congress.
Information in a CRS Report should not be relied upon for purposes other than public understanding of information that has
been provided by CRS to Members of Congress in connection with CRS’s institutional role. CRS Reports, as a work of the
United States Government, are not subject to copyright protection in the United States. Any CRS Report may be
reproduced and distributed in its entirety without permission from CRS. However, as a CRS Report may include
copyrighted images or material from a third party, you may need to obtain the permission of the copyright holder if you
wish to copy or otherwise use copyrighted material.

https://crsreports.congress.gov | IF12617 · VERSION 1 · NEW