The U.S. House has passed President Donald Trump’s sweeping spending bill, a move that could send ripples through the water, sanitation, and drainage sector. While the bill’s tax cuts and Medicaid reductions have dominated headlines, the water industry is left to parse the implications of its sparse but significant mentions of water-related programs.
The bill includes funding for a handful of water programs, but the devil is in the details. The Grassroots Source Water Protection Program, for instance, will receive $1 million beginning in FY2026, a modest but welcome investment in preventing pollution of rural drinking water sources. Meanwhile, the Watershed Protection and Flood Prevention Act sees a substantial boost, with funding increased from $50 million to $150 million annually. This act enables the USDA’s Natural Resource Conservation Service to support local watershed planning and flood prevention projects, a critical investment in an era of increasing climate volatility.
The bill also allocates $1 billion for water conveyance and surface water storage enhancement projects, a direct investment in infrastructure that could bolster water security in the long term. However, the bill’s broader environmental rollbacks and cuts to green energy programs could indirectly impact the water sector. Reduced regulations on clean energy could shift reliance onto more costly alternatives, potentially driving up energy costs for utilities. As the Water and Wastewater Equipment Manufacturers Association (WWEMA) noted, State Revolving Funds were notably absent from the original budget proposal, leaving a significant funding gap for water utilities.
The bill’s passage marks a pivotal moment for the water sector. While the direct investments in water programs are a step in the right direction, the broader implications of environmental rollbacks and funding cuts could pose significant challenges. As the sector grapples with these changes, one thing is clear: the path forward will require careful navigation and strategic advocacy to ensure water security for all.