The Future on Water Infrastructure Funding and Programs
Looking ahead to 2026, federal policy decisions will play a major role in helping communities upgrade drinking water, wastewater and stormwater systems. Significant funding from the Infrastructure Investment and Jobs Act is still available through state revolving loan programs, including resources dedicated to lead pipe replacement and PFAS cleanup. At the same time, annual federal budget negotiations are underway and proposed cuts to core water programs could slow or halt local projects if Congress does not maintain full funding.
Other federal actions will also shape local water priorities. Congress is preparing the next Water Resources Development Act, which affects Army Corps flood control and ecosystem projects, giving communities an opportunity to advance local needs. Regulatory uncertainty remains around updated lead and PFAS drinking water rules, which are facing legal challenges and potential revisions, though communities are encouraged to continue preparing for compliance using existing funding. At the same time, local governments are seeking protection from legal liability tied to PFAS contamination, arguing that responsibility should rest with polluters rather than municipalities that did not create the problem. Together, these issues underscore the importance of sustained federal support and clear policy direction for local water infrastructure.
