House subcommittee hears push to preserve SRF and expand WIFIA while easing requirements for small and tribal communities
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Summary
Witnesses and members at a House Transportation and Infrastructure subcommittee hearing urged continued funding for the Clean Water State Revolving Fund and broader use of WIFIA loans, while calling for technical assistance, reduced administrative mandates, and targeted tribal set‑asides to speed repairs and lower customer bills.
Chairman Collin's Water Resources and Environment Subcommittee convened a hearing to examine financing options for water infrastructure, focusing on the Clean Water State Revolving Fund (CWSRF) and the Water Infrastructure Finance and Innovation Act (WIFIA). Witnesses representing state SRF administrators, tribal leaders, industry groups and engineering firms described financing achievements, remaining gaps, and changes they say would improve access and delivery.
The hearing drew testimony that low‑interest revolving loans remain one of the most effective federal tools for sustaining long‑term investment. Jeff Walker, executive director and administrator of the Texas Water Development Board, told the subcommittee the CWSRF has provided about $172,000,000,000 through nearly 50,000 low‑interest loans and currently holds about $64,000,000,000 in permanently revolving funds. "Loans are perpetually growing and revolving," Walker said, adding that loan repayments create a recurring revenue stream states can reinvest.
But witnesses and members said federal funding levels and program design leave many projects underfunded. Dan Buckley of Garney Construction and the National Utility Contractors Association noted SRF annual appropriations historically lag the need, citing American Society of Civil Engineers estimates that water systems require roughly $1 trillion over 25 years. He said SRF appropriations in recent years have been only in the low billions annually and that earmarks and funding constraints reduce states' ability to address the backlog.
Several witnesses recommended changes to make WIFIA and SRF financing more accessible, especially for small, rural and tribal systems. Walker and others said WIFIA’s current structure favors larger borrowers: the program can require a nonrefundable application fee (witnesses cited a $100,000 fee), a portion of project cost must be financed elsewhere because WIFIA typically covers up to 49%, and smaller systems face higher per‑customer costs. Mike Matydich, global principal for economic and financial services at Jacobs Solutions, urged wider use of WIFIA master agreements and SRF programmatic financing to reduce repetitive application work.
Tribal testimony illustrated challenges in navigating multiple funding streams and agency requirements. Lummi Nation Chairman Tony Hillaire described a Gooseberry Point wastewater project that cost about $18,700,000; roughly $12,900,000 came from grants or forgivable loans and about $5,700,000 was financed through the state revolving fund. Hillaire asked Congress for more direct tribal set‑asides and simplified, coordinated application processes across agencies.
Members from both parties pressed witnesses on tradeoffs between loans and grants. Walker argued that revolving loans amplify federal capital through leveraging, while others pushed for additional principal forgiveness or direct grants for low‑income communities. Industry witnesses urged attention to workforce capacity and argued that permitting and reporting burdens increase project costs and delay construction.
Multiple members raised concerns about proposed broad cuts at the Environmental Protection Agency that they said would blunt the agency’s ability to administer SRF and WIFIA programs and to process applications. Ranking Member Nanette Wilson and Rep. Jerry Garamendi, among others, said proposed reductions would undermine water projects nationwide and requested specific follow‑up from EPA officials.
The hearing produced no formal votes. Instead, members and witnesses offered a range of legislative and administrative options — more federal capitalization to SRFs, broader use of WIFIA master agreements, subsidized WIFIA rates for small systems, expanded technical assistance, tribal set‑asides, and scrutiny of earmarks and reporting requirements — as possible next steps to address the nation’s water infrastructure deficit.
Looking ahead, members said Congress must balance fiscal oversight with ensuring stable funding, and several requested written follow‑up from EPA and the witnesses on specific proposals and on the impact of any agency budget cuts.
