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CongressionaJ Research Service
~ Inforrning the legislative debate since 1914
0
March 27, 2025
U.S. Environmental Protection Agency (EPA) Water
Infrastructure Programs and FY2025 Appropriations
Many policymakers and stakeholders have raised concerns
about the condition of the nation's local drinking water and
wastewater infrastructure and the financial challenges that
communities may confront in maintaining or replacing
aging infrastructure. In 2024, the U.S. Environmental
Protection Agency (EPA) estimated that wastewater and
stormwater infrastructure would need $630.1 billion (in
2022 dollars) over the next 20 years to meet federal water
quality objectives. In 2023, EPA estimated that drinking
water systems need to invest $625 billion (in 2021 dollars)
over 20 years to ensure the provision of safe drinking water.
FY2025 Appropriations
The Full-Year Continuing Appropriations and Extensions
Act, 2025 (P.L. 119-4), Section 1101(a), provides federal
agency budget authority for FY2025, including for EPA.
Section 1101(a)(7) provides EPA funding for FY2025 at
FY2024 enacted levels, with certain exceptions. One
exception is FY2025 funding for the Clean Water State
Revolving Fund (CWSRF) and the Drinking Water SRF
(DWSRF). Section 1801(8) of the act provides specific
appropriations for EPA's State and Tribal Assistance
Grants (STAG) account. Section 1801(8) does not include
the community project funding/congressionally directed
spending (CPF/CDS) items, sometimes called earmarks,
that were provided in FY2024 from CWSRF and DWSRF
appropriations. (A separate account, the Water
Infrastructure Finance and Innovation Act [WIFIA]
account, funds EPA's WIFIA credit assistance program.)
Table 1 identifies that P.L. 119-4 provides about $3.04
billion for EPA's water infrastructure programs, the same
as the FY2024 enacted level (P.L. 118-42). Table 1 also
identifies that the Infrastructure Investment and Jobs Act
(IIJA; P.L. 117-58) provides emergency supplemental
appropriations for the SRFs and a drinking water grant
program for FY2022-FY2026.
Table 1. EPA Water Infrastructure: Enacted Appropriations for FY2024 and FY2025
(dollars in millions, not adjusted for inflation)
FY2024
FY2024 Division E FY2025 FY2025
Program IIJA P.L. 118-42 IIJA P.L. 119-4
State and Tribal Assistance Grants (STAG) Account
Clean Water State Revolving Fund (CWSRF) $2,403.0 $851.2 $2,603.0 $1,638.9
Grants for Emerging Contaminant Projects $225.0 - $225.0 -
Community Project Funding/Congressionally Directed Spending (CPFICDS) - $787.7 - -
Drinking Water State Revolving Fund (DWSRF) $2,403.0 $494.4 $2,603.0 $1,126.1
Lead Service Line Replacement Projects $3,000.0 - $3,000.0 -
Grants for Emerging Contaminant Projects $800.0 - $800.0 -
CPFICDS - $631.7 - -
Grants for U.S.-Mexico Border Projects - $35.0 - $35.0
Grants for Rural and Alaska Native Villages - $39.0 - $39.0
Grants for Testing School Water for Lead - $28.0 - $28.0
Grants for Reducing Lead in Drinking Water - $22.0 - $22.0
Grants for Small and Disadvantaged Communities $1,000.0 $28.5 $1,000.0 $28.5
Grants for Small Water System Resilience and Sustainability - $6.5 - $6.5
Grants for Midsize to Large Water System Resilience and Sustainability - $2.3 - $2.3
Grants for Indian Reservation Drinking Water - $4.0 - $4.0
Grants for Sewer Overflow and Stormwater - $41.0 - $41.0
Water Infrastructure Finance and Innovation Act (WIFIA) Account - $72.3 - $72.3
Total $9,831.0 $3,043.6 $10,231.0 $3,043.6
Sources: CRS using appropriation amounts from P.L. 118-42, the Infrastructure Investment and Jobs Act (IlJA; P.L. 117-58), and P.L. 1 19-4. P.L.
117-58 provides supplemental and advanced appropriations for certain activities for FY2022-FY2026. Not included are FY2025 supplemental
SRF appropriations provided by P.L. 118-158 dedicated to areas affected by Hurricanes Helene and Milton and the Hawaii wildfires.
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