Connecting Waterpeople

Modernizing America’s water infrastructure: EPA’s groundbreaking progress

  • Modernizing America’s water infrastructure: EPA’s groundbreaking progress

The U.S. EPA has released its 2024 Investing in America report, detailing the investment progress under the Bipartisan Infrastructure Law (BIL) and the Inflation Reduction Act (IRA) – two landmark pieces of legislation reshaping the future of the U.S. economy. Together, the BIL and the IRA provide the EPA $102 billion, including $41 billion under the IRA (FY 2022) and $61 billion under the BIL over five fiscal years (FY 2022 to FY 2026). To date, the resources appropriated to the EPA under the BIL amount to $36.9 billion.

Nearly half of the total appropriation – $50 billion – targets water, one of the EPA’s five major programs (the other four being climate action, air, land, and protecting our communities), marking the largest federal investment in water systems in U.S. history. This funding aims to modernize the nation’s drinking water, wastewater, and stormwater infrastructure while preserving critical waterways.

What is the progress in water investments to date? The $50 billion for water falls entirely under the BIL, of which $29 billion have been appropriated so far. Most of the water funding ($48 billion) is being channeled into improving water infrastructure, with a focus on resilience and accessibility. An additional $2 billion supports place-based water resources programs across the nation, including the National Estuary Program and 12 Geographic Programs that efforts in critical watersheds, such as the Great Lakes Restoration Initiative or the Chesapeake Bay Program.

The funds, distributed through State Revolving Fund (SRF) programs, offer low-cost financing for a wide range of projects, including system upgrades, relocations, and investments in green infrastructure. By addressing the increasing impacts of climate change, such as extreme weather and drought, these projects aim to ensure the long-term reliability of water resources.

Recognizing the need to bridge disparities, nearly half of the SRF funding is dedicated to grants or principal forgiveness, enabling underserved communities to access critical resources. So far, over $18.2 billion in BIL funding has been awarded to states, territories, and Tribes, with approximately 1,200 drinking water SRF projects and 340 clean (waste) water SRF projects already funded.

A major component of the BIL funding will go to the replacement of lead service lines, which continue to pose health risks in millions of homes. In 2024, the EPA introduced a final rule requiring water systems to identify and replace lead pipes within a decade. This effort, backed by a $15 billion investment over five years, has already funded the replacement of over 40,000 lead service lines.

The EPA is also taking decisive action on emerging contaminants like PFAS, a group of chemicals linked to serious health risks. The BIL includes $5 billion for the Emerging Contaminants in Small or Disadvantaged Communities Grant Program, expanded last March to include owners of private drinking water wells as eligible beneficiaries for FY 2024 BIL funding. In 2024, new regulations designated two PFAS as hazardous substances and introduced the first national drinking water standards to limit PFAS exposure, aiming to protect 100 million Americans and prevent thousands of illnesses and deaths.

Looking ahead, the EPA plans to release an additional $20 billion in funding for water infrastructure through fiscal years 2025 and 2026. By 2026, the full $48 billion investment for water, wastewater, and stormwater infrastructure will be transforming communities nationwide, ensuring cleaner, safer, and more reliable water resources for generations to come.

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