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Federally Supported Water Supply and Wastewater Treatment Programs (CRS Report for Congress)

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Release Date Revised May 3, 2019
Report Number RL30478
Report Type Report
Authors Claudia Copeland, Specialist in Resources and Environmental Policy; Nicole T. Carter Specialist in Natural Resources Policy; Betsy A. Cody, Specialist in Natural Resources Policy; Megan Stubbs, Specialist in Agricultural Conservation and Natural Resource
Source Agency Congressional Research Service
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Summary:

For more than four decades, Congress has authorized and refined several programs to help communities address water supply and wastewater problems. The agencies that administer these programs differ in multiple ways. In terms of funding mechanisms, projects developed by the Bureau of Reclamation and the U.S. Army Corps of Engineers typically require direct, individual project authorizations from Congress. In contrast, standing program authorizations provide project funding for other agencies, including  the Department of Agriculture (USDA),  the U.S. Environmental Protection Agency (EPA),  the Department of Commerce, and  the Department of Housing and Urban Development (HUD). The key practical difference is that with the individual project authorizations, there is no predictable assistance or even guarantee of funding after a project is authorized, because funding must be secured each year in the congressional appropriations process. The programs, on the other hand, have set program criteria, are generally funded from year to year, and provide a process under which project sponsors compete for funding. In terms of scope and mission, the primary responsibilities of the Corps are to maintain inland navigation, provide for flood and storm damage reduction, and restore aquatic ecosystems, while EPA’s mission relates to protecting public health and the environment. The Department of Commerce and HUD focus on community and economic development. Likewise, the specific programs—while all address water supply and wastewater treatment to some degree—differ in important respects. Some are national in scope (those of USDA, EPA, and the Department of Commerce, for example), while others are regionally focused (Reclamation’s programs and projects). Some focus primarily on urban areas (HUD) and some on rural areas (USDA), and others do not distinguish based on community size (e.g., EPA, the Corps). Federal funding for the programs and projects discussed in this report varies greatly. Collectively, congressional funding for these programs in recent years has been somewhat eroded by overall competition among the many programs that are supported by discretionary spending, despite the continuing pressure from stakeholders and others for increased funding. FY2018 appropriations highlights include the following:  $1.163 billion for capitalization grants to states under EPA’s State Revolving Fund (SRF) loan program for drinking water systems and $1.694 billion for EPA’s SRF program for wastewater facilities;  $55 million in subsidy costs for the EPA-administered Water Infrastructure Finance and Innovation Act (WIFIA) program, allowing the agency to provide approximately $5.5 billion in credit assistance for drinking water and wastewater infrastructure projects;  $400 million for USDA’s rural water and waste disposal grant program and direct loan authority of $1.2 billion;  $3.3 billion for HUD Community Development Block Grant (CDBG) funds (water and wastewater projects are among many eligible uses); and  $54.4 million for Reclamation’s Title XVI reclamation/recycling projects.