Water sector groups urge Congress to boost FY2027 infrastructure funding

A coalition of major water, engineering, manufacturing and environmental organizations is urging congressional appropriators to strengthen federal investment in water infrastructure programs as lawmakers begin work on Fiscal Year 2027 spending legislation.

In a joint letter sent to leaders of the House and Senate Appropriations Subcommittees on Interior, Environment, and Related Agencies, 28 organizations called for sustained funding for drinking water and wastewater infrastructure, PFAS remediation, lead service line replacement, cybersecurity, water reuse and affordability programs.

The letter was signed by groups including the American Water Works Association, Water Environment Federation, National Association of Clean Water Agencies, WateReuse Association and the U.S. Chamber of Commerce.

The organizations urged lawmakers to “sustain and strengthen” core federal financing tools, including the Drinking Water and Clean Water State Revolving Funds and the Water Infrastructure Finance and Innovation Act program, citing growing demands on aging infrastructure systems.

The coalition also called for increased support to address PFAS contamination and lead exposure, including funding for lead service line replacement and grants aimed at reducing lead in schools and drinking water systems.

Cybersecurity and resilience funding also emerged as a major focus in the letter, reflecting increasing concern across the water sector about operational disruptions and cyber threats targeting utilities and critical infrastructure.

In addition, the groups pressed Congress to support water reuse, conservation and digital infrastructure initiatives, including continued backing for the federal WaterSense program and the Water Reuse Interagency Working Group.

The letter emphasized that reliable water infrastructure is increasingly tied to broader economic growth, industrial development and technology expansion, arguing that water availability and quality are critical to sectors including energy, manufacturing, food production and data centers.

The coalition also asked lawmakers to preserve financing flexibility for utilities and local governments by maintaining the tax-exempt status of municipal bonds and increasing the cap on private activity bonds used for infrastructure projects.

The funding requests come as utilities nationwide face mounting costs tied to regulatory compliance, aging infrastructure replacement, emerging contaminants and climate resilience investments.