Click the link to read the article on the Circle of Blue website (Brett Walton):
The Rundown
- The House budget, though not as severe as the White House’s, proposes a 25 percent cut to the main source of federal funding for local water systems.
- Senate approves Trump’s $9.4 billion in cuts to public broadcasting and foreign aid.
- Other water bills in Congress include tribal water infrastructure funding, sinkhole monitoring, microplastics, and Great Lakes fisheries.
- Bureau of Reclamation announces $200 million for water recycling projects in two western states.
- EPA delays requirements to monitor groundwater at coal ash dumps.
- Before taking summer break, Congress will hold hearings this week on fossil fuel pipeline safety, rising electricity demand, FEMA improvement, and NEPA reviews.
And lastly, Congress’s watchdog finds NRCS could improve its dam safety approach.
“While requests greatly exceeded the funding available for projects, we did our best to provide some funding for all eligible projects given the impact these dollars will have in communities across the country.” Rep. Mike Simpson (R-ID), speaking about water infrastructure earmarks in his committee’s 2026 budget proposal.
By the Numbers
$200 Million: Bureau of Reclamation funding announced for two water reuse projects in the western states. Phoenix will receive $179 million for its North Gateway project, which will produce 8 million gallons of recycled water a day. Washington County Water Conservancy District, which encompasses high-growth St. George in southwest Utah, will see more than $20 million for its regional recycled water system. The final cost for that system is expected at more than $1 billion.
News Briefs
House Proposes Water Cuts
In its draft fiscal year 2026 budget, a House Appropriations subcommittee proposes a 25 percent combined cut to the state revolving funds, the main source of federal funding for local water systems.The Drinking Water State Revolving Fund would be funded at $895 million, down from $1.1 billion. The Clean Water State Revolving Fund, which is for sewer and stormwater projects, would be funded at $1.2 billion, compared to $1.6 billion in 2025.
Though not as deep as President Trump’s proposal of a 90 percent cut, the budget proposal still drew criticism from water utility groups, who would prefer federal assistance be maintained or increased.
Combined, half of the appropriated funds would be redirected as earmarks to specific projects. This action pulls money out of circulation in the revolving funds, which grow as utilities repay interest. Water groups worry that if Congress continues down this path of carving out earmarks from the revolving funds the viability of the funds will be at risk.
In context: Will Congress Defy Trump on Water Infrastructure Spending?
Delaying Coal Ash Compliance
The EPA granted states and utilities more time to meet federal rules for cleaning up waste pits at coal-fired power plants that pollute groundwater and rivers.Groundwater monitoring requirements will not be mandatory until August 2029, according to the new timeline. It is a 15-month extension.
In context: President Trump Wants Coal Ash in State Hands
Senate Approves Foreign Aid, Public Broadcasting Cuts
Joining the House, the Senate endorsed the president’s desire to cut $9.4 billion in already approved spending on public broadcasting and foreign aid.Reuters details the on-the-ground fallout from U.S. foreign aid cuts, documenting 21 water projects that were abandoned before completion.
Other Water Bills in Congress
Besides the budget, members introduced bills on microplastics, tribal water access, and sinkholes.
- Representatives from Florida and Oregon introduced a bipartisan bill in both chambers that would require a federal study on the damage to human health from microplastics in food and water.
- The House Natural Resources Committee approved a bill to reauthorize a federal research program for Great Lakes fisheries.
- The House passed a bill to establish within the U.S. Geological Survey a sinkhole mapping and risk assessment program.
- Democrats in the House and Senate introduced the Tribal Access to Clean Water Act, a bill that would increase funding authorizations for a number of federal programs that invest in water infrastructure and technical assistance on tribal lands. The largest chunk would be directed to the Indian Health Service, authorized at $500 million annually through 2030 for sanitation facilities. Even if the bill were to pass, Congress would still need to appropriate the money.
Studies and Reports
Dam Safety
The Government Accountability Office reviewed the Natural Resources Conservation Service’s approach to dam safety.The report found that NRCS could improve in several areas. For one, the agency does not monitor completion of dam inspections with its local project sponsors.
Also, the agency is missing data on the condition of the dams, even those that are rated high-hazard and threaten lives and property downstream if they fail.
NRCS helped to plan, design, and construct nearly 12,000 dams.
On the Radar
Congressional Hearings
A few hearings on tap this week before the representatives take summer break.On July 22, the House Natural Resources Committee will hold a hearing on NEPA reviews, which agencies are beginning to shorten.
That same day, a House Energy and Commerce subcommittee will hold a hearing on fossil fuel pipeline safety. This week marks the 15th anniversary of one of the nation’s largest inland oil spills. In July 2010, an Enbridge pipeline ruptured near Marshall, Michigan, spilling more than 843,000 gallons of oil into local waterways.
Also on July 22, the House Appropriations Committee will vote on the fiscal year 2026 budget bill for EPA and Interior.
On July 23, the Senate Energy and Natural Resources Committee will discuss challenges to meeting rising electricity demand. Data center growth is causing energy demand to soar.
Also on July 23, a House Transportation and Infrastructure subcommittee will discuss ways to improve FEMA’s disaster response.
Cybersecurity Webinar for Water Utilities
The EPA and the federal government’s cybersecurity agency will hold a free webinar for water utilities on cybersecurity vulnerabilities.The webinar is July 24 at 2:00 p.m. Eastern. Register here.
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