CONGRESSIONAL EARMARKS
Congressional earmarks returned to the budget in 2022. Congress is using the SRF capitalization grants to pay for earmarks, which has resulted in significant cuts to annual federal funding for SRF water projects. The approach has also resulted in a net cut in annual federal funding for water infrastructure (SRF projects plus earmarks) in 35 states and Puerto Rico.
Impact of Earmarks
Over the last two years, Congress has cut $2.3 billion or 42% in annual federal funding for state SRF projects to pay for congressional earmarks. Funding for congressional earmarks does not offset annual funding cuts to SRFs in every state. In fact, net federal funding for water infrastructure (SRF projects plus earmarks) was cut in 35 states and Puerto Rico.
SRFs Face a Funding Cliff
Nearly half of the funding in the Infrastructure Investment and Jobs Act (IIJA/BIL) - $20 billion - is restricted to projects that replace lead service lines and address emerging contaminants. The remaining funding - $23.4 billion - can be used for any eligible project and mitigates the immediate impact of cuts to annual federal funding. However, the SRFs are already beginning to plan for the coming funding cliff when supplemental appropriations end in 2027.
Over the last two years, Congress cut $383 million in net funding for clean water and drinking water infrastructure in 17 states and Puerto Rico.
Over the last two years, Congress cut $154 in net funding for clean water infrastructure in eight states.
Over the last two years, Congress cut $67 million net funding for drinking water infrastructure in ten states.
CIFA Advocacy
History
Learn the history of federal funding for SRFs.