Federal Water Funding Lapses – NUCA Urges Immediate Reauthorization

On September 30, 2026, the Infrastructure Investment and Jobs Act’s (IIJA) five-year authorization and supplemental funding expired, putting utility construction projects at risk. NUCA is urging Congress to immediately reauthorize the Clean Water and Drinking Water State Revolving Funds and the Water Infrastructure Finance and Innovation Act, along with highway programs including the Bridge Formula Program, Safe Streets and Roads for All, and MEGA. IIJA delivered more than $43 billion in supplemental water funding, including billions in fiscal 2026 alone for capitalization, lead service line replacement, and emerging contaminants.

Without new support, federal water funding could fall about 60 percent from fiscal 2026 to fiscal 2027. Previously awarded IIJA dollars can still move through pipelines, but states will have far less capacity for the next generation of work. EPA estimates more than $1.25 trillion in water and wastewater needs over 20 years.

Lawmakers return to Washington on Nov. 9, after the Nov. 3 midterm elections. NUCA is calling on Congress for multi-year reauthorization and appropriations that keep projects and jobs on track.