Communities across the country rely on federal cost-share grants and loans to help fund costly water reuse projects. Each year, Congress provides funding for these federal programs through the annual appropriations process. The WateReuse Association engages in each appropriations cycle to advocate for key programs. Last week, the White House published the President’s FY 2027 Budget Request, which kicks off the FY 2027 appropriations cycle. Congress will now consider—though not necessarily align with—the President’s request as it develops appropriations legislation for FY 2027.
For the second year in a row, the President has proposed the near eradication of critical water infrastructure programs, including those that fund water reuse projects. The Budget Request proposes cuts of 91 percent and 87 percent to the Clean Water and Drinking Water State Revolving Fund Programs, respectively. The White House also proposes an 89 percent funding cut to the Water Infrastructure Finance and Innovation Act (WIFIA) Loan Program, suggesting instead that the U.S. Environmental Protection Agency (EPA) uses existing “carryover” funds from prior years. The Budget does not speak to how using “carryover” funds would impact outstanding loans that have not yet been closed by EPA. Project sponsors for these pending loans have been awaiting final EPA action for more than a year.
The President’s Budget Request does not propose funding for the Title XVI Water Reuse Grants Program nor for the Pilot Program for Alternative Water Source Grants, and it makes deep cuts to the EPA budget and the Bureau of Reclamation’s Water and Related Resource Account. WateReuse is working closely with Congress to ensure that final FY 2027 appropriations legislation rejects these proposed funding cuts. For more information on how you can help, see our recent action alert or reach out to Greg Fogel, Director of Policy and Government Affairs, at gfogel@watereuse.org. | 
