Administration’s Budget Signals Shift in Water Investment Priorities
The Obama Administration released its proposed Fiscal Year (FY) 2017 budget on February 9 signaling a dramatic shift in water investment priorities. While the Administration is touting a proposed $300 million investment in water innovation and water supply, it is also significantly slashing funding to EPA’s Clean Water State Revolving Fund (CWSRF) by over $414 million. This is a surprising and disappointing request in a final budget from an Administration that is trying to make clean water a centerpiece of its legacy, especially in light of the current water crisis playing out in Flint, Michigan.
The proposed cut to the CWSRF pays for other Administration priorities elsewhere in the Administration’s EPA budget, including an increase of $158 million for the Drinking Water State Revolving Fund (DWSRF) program and $240 million more for enforcement efforts. Even in the wake of Flint, the proposed increase to the DWSRF is less than what the Administration proposed last year. While NACWA supports an increase for the DWSRF, there also must be an increase in the CWSRF – especially given EPA’s own recent clean water needs survey showing a $270 billion need for clean water investment. Now is the time to be increasing the federal investment in water infrastructure, not cutting investment. Additional details on the budget request are available in Advocacy Alert 16-03 
.
The Administration’s budget request also contains funding for a $300 million initiative to invest in water innovation technology focused on dealing almost exclusively with water supply challenges caused by western drought. Monies would fund such things as technology development to increase water and energy efficiency measures at water treatment plants. There is a particular focus on reducing the cost and energy intensity of desalination technology; increasing water conservation efforts; developing new drought assessments; and promoting basic water supply research.
While NACWA is supportive of investing in water innovation and research, increasing funding for these efforts while also dramatically cutting funds for the federal government’s primary water infrastructure investment programs demonstrates a stunning lack of awareness of the most important water investment priorities currently facing the nation. This is particularly true in light of the crisis in Flint, where the precarious state of our nation’s water infrastructure has been painfully exposed. Members of Congress from both political parties have already denounced the Administration’s proposed cuts to the SRF, and Sen. Ben Cardin (D-MD) has introduced a bill that would triple investments in both the CWSRF and DWSRF.
Budget negotiation