The water sector got a brief scare last week when an executive order signed by President Donald Trump on his first day back in office appeared to immediately pause distribution of funds appropriated through the Infrastructure Investment and Jobs Act of 2021 (IIJA, also known as the Bipartisan Infrastructure Law or “BIL”) and Inflation Reduction Act of 2022.
The Executive Order, “Unleashing American Energy,” signed by Trump, includes a provision on federal infrastructure and climate spending titled “Terminating the Green New Deal” that, in part, orders the immediate pause in disbursement of funds through the two laws. The order mandates a 90-day review period requiring all agency heads to submit reports to the Director of the National Economic Council and the Director of Office of Management and Budget.
But then on Jan. 21, the White House released a guidance noting that the order only applies to funds supporting programs, projects or activities that contrast with Trump Administration policy and priorities.
According to the Association of Metropolitan Water Agencies (AMWA) in its Jan. 27 Monday Morning Briefing, because the water infrastructure funding included in IIJA does not appear to conflict with the objectives, “EPA seemingly retains the power to move ahead with disbursement of the IIJA-appropriated SRF dollars unfettered.”
The bipartisan, $1.2 trillion Infrastructure Investment and Jobs Act was signed by President Joe Biden in 2021 and included more than $50 billion over five years for drinking water and wastewater spending at the EPA. As of October 2024, EPA had awarded more than $21 billion in IIJA State Revolving Fund funding to states, territories and tribes.
So far, EPA has appropriated about $10 billion for drinking water and wastewater infrastructure programs in FY25, according to AMWA. These include funding for the Drinking Water and Clean Water SRFs, lead service line replacements and funds to support costs associated with emerging contaminants like PFAS.
AMWA also pointed out that any direction related to the use of fluoride in drinking water treatment, which the Trump campaign previously said would be an initiative, was absent from the list of the president’s recent executive orders.
Sources: White House, EPA, AMWA
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