Pew Warns Water Utilities Face Financing Pressure as Supplemental Funding Ends
An October 14 analysis separates expiring supplemental SRF support from ongoing state and local water costs.
The end of supplemental federal water funding could make infrastructure renewal harder to finance, according to an October 14 analysis by The Pew Charitable Trusts. The analysis examines the transition after the Infrastructure Investment and Jobs Act’s five-year supplemental funding period ended in September.
Pew identifies US$55 billion in federal water infrastructure support over fiscal 2022–2026, including US$43.4 billion through State Revolving Funds. It warns that a return to lower funding levels could reduce the availability of grants and principal forgiveness, leaving utilities more dependent on repayable loans, municipal borrowing and local revenue.
The analysis does not say all federal water programs have ended. Rather, it highlights the loss of a temporary funding increase while maintenance backlogs and construction costs remain substantial. Pew cites EPA surveys estimating roughly US$1.2 trillion in combined drinking-water and wastewater needs over 20 years. That national needs estimate is not an approved capital program or an available funding pool.
Pew analysis, October 14 · Reviewed October 20, 2026. Water coverage.