Funding for water infrastructure programs including for grants and loans like the State Revolving Funds (SRFs) and WIFIA appear to not be affected after the Trump administration last week revoked a memorandum that paused a number of federal spending programs.
As part of a memorandum issued by the administration, federal agencies including the U.S. Environmental Protection Agency (EPA) were directed to pause distribution of all financial assistance and any pending notices of funding availability. The memorandum was apparently part of the administration’s ongoing efforts to eliminate diversity, equity and inclusion (DEI) initiatives in federal spending programs and agencies, as well as review energy-related spending. The memorandum called for a review by the Office of Management and Budget.
Although the White House tried to clarify that the pause would only affect certain programs identified in earlier Trump executive orders, it ultimately withdrew the memorandum amid the confusion and blocks by district and federal court judges.
The water sector has been following the news as it concerns potential changes to critical project funding. In particular, the Association of Metropolitan Water Agencies (AMWA) whose members include large drinking water utility systems and which follows legislative and regulatory policy for water, has been closely following the developments. In its Feb. 3 Monday Morning Briefing, AMWA said, “at this point, no water infrastructure programs appear to conflict with the Administration’s views on those issues,” referring to DEI policies or those that run counter to Trump energy policy.
In addition, the United States Department of Agriculture Rural Development announced Monday that its water and environmental programs will remain fully operational.
The confusion came on the heels of a similar situation that occurred during the president’s first week back in office. A day one executive order signed by Trump appeared to include a provision that would immediately pause distribution of funds appropriated through the Infrastructure Investment and Jobs Act (also called Bipartisan Infrastructure Law) and the Inflation Reduction Act.
The White House later clarified via a guidance that the order would only apply to funds supporting programs, projects or activities that contrast with Trump Administration policy and priorities. In that instance, AMWA said because the water infrastructure funding included in IIJA does not appear to conflict with the [administration’s] objectives, EPA seemingly retains the power to move forward distribution of IIJA-appropriated SRF money.
AMWA said it intends to collect examples of water utility projects that rely on federal assistance, and could be affected by future attempts to restrict funding disbursements. If willing to share, utilities are encouraged to contact AMWA Government Relations Associate Erin Phillips.
Sources: AMWA, EPA, The White House
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