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A 37-Year-Old Water Funding Formula Is Getting a Much-Needed Update

A bipartisan overhaul, the first since 1987, will reshape EPA revolving fund distribution. Fast-growing states gain more, while others see reduced allocations.

Nadia Kowalski
Nadia Kowalski
·2 min read·United States·10 views

Originally reported by Smart Cities Dive · Rewritten for clarity and brevity by Brightcast

Remember 1987? Big hair, shoulder pads, and apparently, the last time anyone bothered to update how federal clean water funds are divvied up. Well, buckle up, because a new bipartisan Senate bill wants to drag that formula into the 21st century.

The proposed change is pretty simple: states that are actually growing will get more money. The trade-off? Other states will see their funding shrink. Because apparently, even water infrastructure funding can't escape the laws of supply and demand.

Senators Mark Kelly (D-Ariz.) and Rick Scott (R-Fla.) are behind the "Clean Water Allotment Modernization Act of 2026." Their goal? Ditch the fixed-percentage formula from the Reagan era and base funding on, you know, current needs.

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How the New Formula Flows

The new system is a bit more nuanced than just 'who's growing.' It breaks down like this:

  • 60% will be based on a state's documented infrastructure needs. Because you can't fix what you don't measure.
  • 20% will come from the state's population, according to the latest census. Which makes sense, as people tend to use water.
  • 20% will consider the state's share of its population living at or below 200% of the federal poverty level. Because clean water shouldn't be a luxury.

This new approach aims to better align the funding with the EPA's actual goals for water quality and affordability. Which, if you think about it, seems like a pretty good idea.

A 2024 report from the Government Accountability Office (GAO) crunched the numbers using 2022 data. The result? 31 states would see their funding stay the same or increase, with some getting a whopping 260% boost. Meanwhile, 19 states would face cuts, some as deep as 53%.

To soften the blow, the bill includes a four-year transition period. Annual increases are capped at 200%, and decreases won't exceed 25%. So, no state is going to wake up to a sudden, catastrophic drought of dollars.

Senator Scott put it plainly: it's time to bring the Clean Water State Revolving Fund (CWSRF) into this century. Senator Kelly highlighted Arizona's rapid growth and the stagnant water infrastructure funding that just hasn't kept pace. This bill aims to bridge that gap.

Take Florida, for example. Its share of CWSRF funds would jump from 3.43% to about 6.16% after the transition. That's a lot more splash.

The EPA estimates that a cool $630 billion is needed over the next two decades to fix and replace the nation's clean water and wastewater infrastructure. The CWSRF is crucial, providing low-interest loans and grants for everything from sewer repair to wastewater treatment upgrades. Basically, it keeps our water flowing clean, and our drains, well, draining.

The bill has now moved on to the Senate Committee on Environment and Public Works for review. Here's hoping it gets a clean pass.

Brightcast Impact Score (BIS)

This article describes a bipartisan Senate bill that proposes a new, needs-based formula for allocating Clean Water State Revolving Fund grants. This is a positive action as it aims to improve clean water infrastructure funding across the US, reflecting current demands and benefiting many states. The change is significant as it's the first update to the formula since 1987.

Hope26/40

Emotional uplift and inspirational potential

Reach26/30

Audience impact and shareability

Verification23/30

Source credibility and content accuracy

Significant
75/100

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Sources: Smart Cities Dive

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