NCSL Urges Congress to Reauthorize the Drinking Water and Clean Water State Revolving Funds

NCSL Urges Congress to Reauthorize the Drinking Water and Clean Water State Revolving Funds

The Honorable Sam Graves
Chair, Committee on Transportation and Infrastructure
1135 Longworth House Office Building
Washington, DC 20515

The Honorable Rick Larsen
Ranking Member, Committee on Transportation and Infrastructure
2163 Rayburn House Office Building
Washington, DC 20515

The Honorable Brett Guthrie 
Chair, Committee on Energy and Commerce 
2161 Rayburn House Office Building 
Washington, DC 20515 

The Honorable Frank Pallone
Ranking Member, Committee on Energy and Commerce
2107 Rayburn House Office Building

Subject: Support Reauthorization of Vital Water Infrastructure Programs   

Dear Chairman Graves, Ranking Member Larsen, Chairman Guthrie and Ranking Member Pallone, 

The National Conference of State Legislatures, the bipartisan organization representing the legislatures of our nation's states, territories, writes to express our support for the reauthorization of the Drinking Water and Clean Water State Revolving Funds (SRFs).    

Our nation's water infrastructure is essential to the strength of American communities. For decades, Congress has worked with the U.S. Environmental Protection Agency and the states to provide billions of dollars in loans, principal forgiveness and technical assistance for clean water and drinking water projects. This investment, along with billions of dollars in supplemental funding provided through the Infrastructure Investment and Jobs Act of 2021, has gone a long way to ensuring water systems can continue to serve their communities.  

However, recent EPA surveys and assessments show that further investment will be needed over the next 20 years to fund necessary drinking water infrastructure projects across the country, as well as wastewater, stormwater, wastewater treatment and nonpoint source control projects. These needs, compounded by a 31 percent decrease in federal capital investment in water infrastructure over the last few decades-as reported by the Value of Water Campaign and the American Society of Civil Engineers-has put a strain on states and local governments, who now must choose between keeping water rates affordable and deferring critical maintenance.

When communities can leverage low-interest loans from the SRFs, they save on average an estimated $960 million in interest rates over the life of the loan and can cut the cost of financing by more than 50%, according to the testimony of Jeff Walker on behalf of the Council of Infrastructure Financing Authorities to the House Transportation and Infrastructure Committee on March 11, 2025.  

These long-standing programs are an important part of protecting human health and keeping our economy moving. Preventing water infrastructure failure could save billions in cumulative healthcare costs over the next 20 years. Additionally, completing critical infrastructure repairs and replacements on schedule, rather than deferring maintenance, saves money in the long run. By having access to state revolving loan funds and direct federal grants, communities can provide safe, reliable infrastructure at an affordable rate.   

The Drinking Water and Clean Water SRFs are essential for maintaining reliable access to affordable financing and providing clean and safe water for residents and businesses. We urge you to reauthorize the SRFs at no less than current funding levels. If you have any questions regarding the priorities outlined above, please do not hesitate to contact Ben Nasta at 202.624.3596 or [email protected]. 

Sincerely,   

Tim Storey 
Chief Executive Officer
National Conference of State Legislatures   

CC: 

• The Honorable Mike Johnson, House Speaker 
• The Honorable Hakeem Jeffries, House Minority Leader
• The Honorable Mike Collins, Chair, Water Resources and Environment Subcommittee, House Committee on Transportation and Infrastructure 
• The Honorable Frederica Wilson, Ranking Member, Water Resources and Environment Subcommittee, House Committee on Transportation and Infrastructure 
• The Honorable Gary Palmer, Chair, Environment Subcommittee, House Committee on Energy and Commerce 
• The Honorable Paul Tonko, Ranking Member, Environment Subcommittee, House Committee on Energy and Commerce 
• Members of the House Committee on Transportation and Infrastructure  
• Members of the House Committee on Energy and Commerce 

Documents