EPA & SRFs witness cuts in 2026 House appropriations bill

The House Interior Subcommittee released its appropriations bill for FY 2026 Interior, Environment and Related Agencies Bill on July 14, 2025. The proposed spending bill includes cuts to the U.S. Environmental Protection Agency (EPA) and the Clean Water and Drinking Water State Revolving Funds (SRFs). The bill now moves to the Senate.

Proposed EPA cuts

The bill proposes a $2.12 billion cut to the EPA, which is a 23% reduction in funding compared to FY 2025. If enacted, the cuts would include programs like:

• Science and Technology: $233.7 million cut – 30.9% reduction compared to FY 2025.
• Environmental Programs and Management: $922.9 million cut – 28.9% reduction compared to FY 2025.
• State and Tribal Assistance Grants: $679.8 million cut – 15.5% reduction compared to FY 2025.

The bill also proposes $282.75 million for the Hazardous Substance Superfund program, which is equal to the budget request.

Drinking Water State Revolving Funds

According to the bill, $894,737,000 would be made available for the Drinking Water State Revolving Funds (DWSRF), down from $1.1 billion in FY 2025 – a 19% cut.

The Drinking Water State Revolving Loan Fund was established by the 1966 amendments to the Safe Drinking Water Act (SDWA). It is a financial assistance program to help water systems and states to achieve the health protection objectives of the SDWA. EPA awards the capitalization grants.

Clean Water State Revolving Funds

According to the bill, $1,208,314,000 would be made available for the Clean Water State Revolving Funds (CWSRF), down from $1.6 billion in FY 2025 – a 25% cut.

Under the CWSRF, the EPA provides grants to all 50 U.S. states and Puerto Rico. It was created by the 1987 amendments to the Clean Water Act (CWA) as a financial assistance program for a wide range of water infrastructure projects.

The $2.1 billion in SRF funding would be the lowest levels since 2008.

Other proposed cuts

The Interior, Environment, and Related Agencies Appropriations Bill, 2026, if enacted, would cut funding for the following:

• Bureau of Land Management: $110.4 million cut – 8% reduction compared to FY 2025.
• U.S. Fish and Wildlife Service: $108.7 million cut – 6.5% reduction compared to FY 2025.
• U.S. Geological Survey (USGS): $81.18 million cut – 5.6% reduction compared to FY 2025.
• Bureau of Ocean Energy Management: $30.96 million cut – 20% reduction compared to FY 2025.
• Bureau of Safety and Environmental Enforcement: $24.1 million cut – 15% reduction compared to FY 2025.