U.S. House approves SRF appropriations, but there's a catch

The U.S. House of Representatives passed the Interior and Environment appropriations act on January 8, 2026. This includes $2.76 billion in funding for the Drinking Water and Clean Water State Revolving Funds (SRFs), which is in line with 2025's funding numbers. 

The passed appropriations act includes an increase in funding compared to previously proposed funding drafts, which would have cut funding by nearly 26%.

“Continuing the same level of funding for the Clean Water SRF gets us closer to ensuring that every American gets the clean water they deserve, free from sewage and runoff pollution that can make us sick," said Environment America’s Clean Water Advocate Abby Longo in a press release.

Congressionally directed spending

Although total funding has remained the same for the SRFs, the appropriations act states that certain levels of funding need to remain available for congressionally directed spending (earmarks):

• $892,762,272 of CWSRF
• $715,364,627 of DWSRF

The earmarks differ from traditional SRF funding mechanisms as they don't need to be repaid, which means the money won't "revolve" back into the SRF funds. Earmarks allow legislators to allocate funding to specific projects in their jurisdiction. If earmarks are taken from SRF funding, then they essentially eat in to the available funding for states projects.