State Revolving Fund Reauthorization Agenda

Sacramento River, California | Jeffrey Vanacore

Congress faces a pivotal moment: the future of America’s water is on the line. By the end of 2026, lawmakers must reauthorize the Clean Water and Drinking Water State Revolving Funds (SRFs) – critical programs that ensure safe, reliable water for every community. Momentum is building: in recent months, congressional committees have held hearings and meetings to shape a bold new bill. Key priorities on the table include boosting funding levels, increasing transparency and technical assistance, strengthening resilience, and expanding green infrastructure.

The American Rivers Action Fund is at the heart of this effort, and now is the time for river communities to raise its voice. Together, we can help shape legislation that protects clean water, empowers communities, and builds a more resilient future.

Here’s why the SRFs matter:

Enhances Clean Water Access: SRFs help reduce pollutants entering rivers, lakes, and streams among other waterways ultimately improving water quality and protecting access to safe places to recreate.
Improves Drinking Water Services: SRFs ensure drinking water services are uninterrupted while supporting healthy waterways. They fund projects to help treat and distribute reliable water services which impact people and their communities.
Creates Jobs and Enhances the River Economy: Investments in our water infrastructure support a growing economy – for every $1 million invested, upwards of 15 jobs are generated throughout the country.
Offers Untapped Potential for Nature-Based Solutions: The SRFs encourage the use of green infrastructure solutions (GSI) which include creating wetlands, restoring floodplains, planting trees, all which filter pollutants and reduce flooding.
Ensures Long-term Water Affordability: Targeted assistance help low income families which often face greater financial insecurity while also providing flexibility to economically distressed communities to reduce the costs of borrowing for water system operations and construction.

Our policy priorities for the SRFs include:

1. Increasing Authorized Funding Levels

Congress should increase federal capitalization of the SRFs to match national water infrastructure needs and ensure access to safe drinking water and clean water systems. Authorized at $60 billion for FY2026–2030, with equal shares for the Clean Water and Drinking Water SRFs, this investment must be maintained and expanded to meet growing demand driven by aging infrastructure, emerging contaminants, and resilience needs.

Given that EPA’s Clean Watersheds Needs Survey estimates $630 billion in upgrades and repairs are needed over the next 20 years, the Clean Water and Drinking Water SRF should be reauthorized at no less than $10 billion each annually to close the gap. Supplemental appropriations should also be secured for priority areas, including at least $5 billion for the Emerging Contaminants Fund to address PFAS and other threats, and $3 billion dedicated to technical assistance for small, rural, Tribal, and distressed communities. To maximize efficiency, Congress should also allow up to 2% of capitalization grants to be used for administrative costs to ensure proper oversight and delivery.

The Emerging Contaminants Remediation Fund can be leveraged to deploy EPA-approved treatment technologies for PFAS and other pollutants, while ensuring responsible parties bear appropriate cleanup costs. A separate authorization could be useful to address these priority projects while ensuring that the base SRF funds continue to flow equitably using a predictable and fair process.

2. Streamlining Access and Ensuring Transparency

The SRF program can best serve communities by making the process simple, transparent, and accessible. Congress should require standardized SRF applications nationwide within 180 days of enactment and support the creation of a unified online application and tracking portal. This system would reduce administrative burdens and provide applicants, including underserved communities, a clear and consistent pathway to funding.

To strengthen accountability, EPA and states should maintain a public dashboard with real-time data on project status, disbursement of funds, and benefits delivered to economically distressed communities. States must assign a unique project identification number across all project lists and reports to allow clear tracking of which projects receive funding. States should also be required to hold minimum 30-day public comment periods on Intended Use Plans and Priority Lists and issue public responses to comments. GAO audits every three years will provide an additional layer of transparency and oversight.

3. Integrating Natural Infrastructure Solutions and Innovative Stormwater Approaches

At least 25% of each state’s capitalization grant should continue to be dedicated to natural and sustainable infrastructure projects, ensuring federal funds not only repair outdated systems but also modernize them for long-term resilience. Eligible projects should include wetlands restoration, bioswales, permeable pavement, aquifer recharge, desalination, drought mitigation, renewable energy upgrades at water facilities, and energy efficiency improvements.

Congress should prioritize projects that reduce emissions, enhance resilience, and maximize co-benefits for ecosystems and communities. Innovative stormwater management solutions—such as green roofs, urban tree canopies, and distributed capture systems—should also be advanced to reduce flooding risks and improve water quality. EPA should establish recurring reviews of eligible projects to ensure states are investing in the most effective natural infrastructure solutions.

4. Supporting Economically Distressed Communities and Tribes

Congress must ensure that a minimum of 60% of each state’s capitalization grant supports economically distressed communities through principal forgiveness, grants, or negative-interest loans. These resources should focus on rural, Tribal, and environmental justice communities, where affordability and access challenges are greatest.

Tools should include up to 50% principal forgiveness, zero-interest loans, affordability guidance, and tiered water rate structures to protect low-income households. Congress should also expand the Rural and Tribal Water Infrastructure Assistance Program for project development and compliance, while making private well and septic remediation permanently eligible for SRF support. States should be required to provide additional subsidization when a project serves a disadvantaged area, even if the broader utility district does not qualify.

To ensure long-term support, Congress should codify a permanent 2% Tribal set-aside with waived cost-share requirements, giving Tribal nations reliable access to funding for essential wastewater projects.

5. Accelerating Critical Water Projects – Making Permitting and Procurement More Efficient

Congress should direct EPA and states to modernize and expedite SRF-funded project delivery, balancing efficiency with accountability. Each state should designate an Infrastructure Permitting Coordinator to expedite approvals for sustainable projects, while a federal interagency MOU should be finalized within one year to align permitting timelines across agencies.

For economically distressed communities and projects under $5 million, Congress should provide targeted BABA (Build America, Buy America) waivers to reduce barriers to participation. A national, public-facing clearinghouse of compliant materials should be established to further streamline procurement.

To improve local project pipelines, Congress should allow an additional 4% technical assistance set-aside for any community meeting a state’s affordability criteria, harmonizing with the Drinking Water SRF and broadening access to capacity-building resources. Finally, Congress should prohibit states from categorically excluding federally eligible decentralized wastewater projects, ensuring rural households with failing septic systems have access to SRF assistance.

Additional resources:

Take Action: Safeguard public water supplies, restore rivers, and strengthen local economies.

Contact Jaime Sigaran, Advocacy Director, at jsigaran@americanrivers.org and Gary Belan, Director, Clean Water, at gbelan@americanrivers.org for questions or more information.