Subcommittee vote leaves drinking water and clean-water state revolving funds sharply reduced; lawmakers warn of local impacts
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Summary
An amendment to restore fiscal 2025 levels for the Clean Water and Drinking Water State Revolving Funds failed in committee, leaving the bill with a roughly 62% cut to SRF funding and prompting multiple members to warn of higher local rates and delayed projects.
A Democratic amendment to restore state revolving fund (SRF) funding for drinking water and wastewater projects to Fiscal Year 2025 levels failed during Monday’s Interior and Environment subcommittee markup, leaving the House Republican draft with a roughly 62% cut to these programs.
Why it matters: The Clean Water State Revolving Fund (CWSRF) and Drinking Water State Revolving Fund (DWSRF) provide low-cost financing to cities, towns and small systems for lead pipe replacement, sewer upgrades, and other capital projects. Committee Democrats said deep reductions force local governments or ratepayers to cover rising costs for essential public health infrastructure.
What happened: Representative Rosa DeLauro (D-Conn.) sponsored an amendment to restore SRF funding to FY2025 enacted levels. DeLauro argued the reductions would “devastate the ability of state and local governments to finance needed projects” and called the proposal “unthinkable” amid rising extreme weather and aging infrastructure. Ranking Member Chellie Pingree (D-Maine) and lawmakers from both parties detailed local projects that would be affected, citing examples in Ohio, Texas, Virginia and West Virginia.
The committee rejected DeLauro’s amendment on a recorded vote: ayes 26, noes 32. Chairman Mike Simpson (R-Idaho) opposed the amendment on fiscal grounds, saying restoring the funds without an offset would breach the committee’s 302(b) allocation and noting prior supplemental infrastructure funding from the bipartisan infrastructure law.
Key figures and claims from the markup: Democrats and local officials described SRF-supported projects that replace lead service lines and address sewage overflows. Members repeatedly cited the EPA estimate that drinking water and wastewater systems face more than $1.2 trillion in capital needs over the next 20 years. Opponents of the amendment pointed to past supplemental funding provided by the Infrastructure Investment and Jobs Act as part of the larger funding picture.
Action taken: The amendment to restore SRF funding to FY2025 levels was voted down (26–32). The underlying bill as reported retains the lower SRF amounts and moves forward to the full committee.
What to watch: Local utilities and state SRF programs will assess the funding gap and consider options including rate increases, deferred projects, or local borrowing. Observers should track floor amendments and conference negotiations where SRF funding could be restored.
