Drinking water has earned a “C-” on the 2025 American Society of Civil Engineers (ASCE) Report Card for America’s Infrastructure, which is the same score it received in 2021.
ASCE released the report card grading America’s infrastructure on March 25, 2025, where the country received an overall grade of “C,” its highest ever score.
How drinking water infrastructure earned a “C-” From ASCE
The ASCE Report Card highlighted the need for funding and building more resilient infrastructure. According to ASCE, the U.S. Environmental Protection Agency (EPA) determined that the nation’s water infrastructure needs stand at $625 billion over 20 years, exceeding EPA’s 2018 assessment by more than $150 billion.
“Our nations water infrastructure is aging and underfunded,” said Carol Haddock, vice chair of the committee, in a news briefing.
The report highlighted new funding opportunities, such as the Infrastructure Investment and Jobs Act (IIJA), which invested more than $30 billion for drinking water improvements, removal of lead service lines and addressing emerging contaminants like per- and polyfluoroalkyl substances (PFAS).
The report also states that there have been funding shortfalls, like with state revolving funds that support drinking water.
“SRFs have had flat funding since 2020, earmarks have reduced the amount of funding,” said Pat Lach, chair of Illinois’ ASCE Report Card, in a news briefing.
ASCE stated that utilities are facing their own challenges, which include:
- Aging infrastructure
- Emerging contaminants
- Extreme weather
- Operational costs
“Many utilities are improving performance using innovation,” Haddock said in a news briefing. “We are seeing a wonderful deployment of innovations and technology.”
One improvement mentioned was asset management. ASCE reports that only 30% of utilities have fully implemented an asset management plan, but just under half are in the process of implementing one.
The report highlighted the need to utilize programs and assistance to meet new regulations, so the burden doesn’t fall on public water systems and ratepayers.
“Not only do we still have needs, but there’s new technologies and things that need to happen to meet all the regulatory changes,” Lach said in a news briefing.
ASCE grades wastewater with “D+”
Wastewater received a grade of “D+” on the 2025 American Society of Civil Engineers (ASCE) Report Card for America’s Infrastructure, which is the same score it received in 2021.
The ASCE Report Card highlighted the importance of wastewater infrastructure, stating that the nation’s sewers are estimated to be worth over $1 trillion and include nearly 17,500 wastewater treatment plants.
The report stated that, over the last decade, the sector’s renewal and replacement rate for large capital projects decreased from 3% to 2% while the average number of collection system failures for combined water utilities increased from 2 to 3.3 per 100 miles of pipe.
ASCE emphasized the need for funding across the water sector, stating that the average bill for residential wastewater customers is increasing from $35 to nearly $65 per month from 2010 to 2020 — with locally generated funds still falling short.
“Our utilities are generally supported by rate payers, so there is a long-term expectation that the rates that are set should cover the needs of the utility,” said Carol Haddock, vice chair of the committee, in a news briefing. “It is the decades of under investment and rates lower than the actual cost of operating the utility that have caught up with us.”
Haddock stated that there has been a significant increase in the cost of operations for utilities, including:
- Cost of electricity
- Cost of chemicals
- Cost of employee workforce
These increased costs have occurred where rates have generally stayed stagnant, according to Haddock.
“We certainly are hoping to see some additional investments over the next five years, and that’s part of the recommendation to help tackle that,” Haddock said in a news briefing.
Pat Lach, chair of Illinois’ ASCE Report Card, stated that state revolving funds have had flat funding since 2020, which combined with earmarks being taken out for projects, has reduced the amount of funding that goes to different providers.
According to ASCE, in 2024 the wastewater and stormwater annual capital needs were $99 billion, whereas the funding gap was $69 billion, meaning only about 30% of the sector’s infrastructure capital needs are being met.
ASCE stated that assuming the combined wastewater and stormwater sector continues along the same path, the gap will grow to more than $690 billion by 2044.
Key takeaways from the 2025 ASCE Infrastructure Report Card
Key insights from the 2025 Report Card for America’s Infrastructure include:
- Grades increased or stayed the same in 16 categories since the prior report in 2021.
- If IIJA levels of funding are supported beyond the bill’s expiration in 2026, taxpayers will save $700 per year, according to ASCE.
- Stormwater and transit tied for the lowest grade of “D,” while ports earned the highest grade of “B.”
- The new category of broadband received a “C+.”
- Both energy (D+) and rail (B-) received declining grades due to safety and capacity concerns.
- Trends impacting U.S. infrastructure include extreme weather, the need for sustained investments and the need for reliable data.
- There is a funding gap of roughly $3.7 trillion across all infrstrucure sectors, according to ASCE.
The report highlighted the need for sustained investment, prioritizing resiliency and advancing policy in innovations.
