A new CRS report on federal water infrastructure programs examines the Trump administration’s proposed fiscal year 2027 budget cuts and their collision with decades of unmet infrastructure needs, proposing steep reductions to programs that have long underpinned American water systems. The nation faces a combined 20-year need for wastewater and drinking water infrastructure exceeding $1.2 trillion, yet the budget would slash core funding mechanisms by roughly 79 percent for the Clean Water State Revolving Fund and 63 percent for the Drinking Water State Revolving Fund, calculated against the elevated Infrastructure Investment and Jobs Act (IIJA) funding levels of $2.603 billion annually through 2026 for each revolving fund. These cuts threaten to reverse gains made by the 2021 Infrastructure Investment and Jobs Act.

Related:

• Congressional Research Service: Report: Federally supported projects and programs for wastewater, drinking water, and water supply infrastructure