Water infrastructure funding faces cuts in FY2015 budget request

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WASHINGTON, DC, Feb. 4, 2014 -- Today, the Obama Administration released its FY2015 Budget request proposing $500 million in cuts to the Clean Water and Drinking Water State Revolving Fund programs (CWSRF and DWSRF). The budget proposes funding the CWSRF and DWSRF at $1.018 billion and $757 million respectively. This constitutes $350 million to the CWSRF and $150 million to the DWSRF over last year's funding levels.

Overall, the budget request proposes $7.9 billion for the Environmental Protection Agency (EPA) -- $300 million below the $8.2 billion Congress appropriated to the Agency for FY2014. Click here for a chart that compares proposed discretionary spending levels for EPA's water programs from FY2012 through the current FY2015 budget proposal.

This year's budget request again includes a proposal to limit the amount of tax liability wealthy individuals can claim on interest income received from investments in municipal bonds to 28 percent. At the same time, the budget again proposes a new bond program called America Fast Forward Bonds, which provides subsidy payments to state and local governmental issuers of conventional taxable bonds.

"These proposed cuts come at exactly the wrong time. Clean water agencies are increasingly demonstrating their ability to spur local economic development and create jobs -- efforts that the federal government should embrace as a full partner," said NACWA's Executive Director, Ken Kirk. "NACWA will be working to ensure that Congress replaces these cuts with full funding levels and remains a reliable, long-term partner in meeting the requirements of the Clean Water Act (CWA)."

See also: "Batten Down the Hatches"

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