Clean water programs see $2.4B cut in White House’s proposed FY2026 budget
In a May 2, 2025, letter to Appropriations Committee Chair Susan Collins, President Donald Trump’s FY2026 budget proposal amounts to $4.2 billion in total funding reduction in 2026 compared to 2025 for the U.S. Environmental Protection Agency (EPA).
Clean and Drinking Water State Revolving Loan programs would see the greatest reduction with an overall budget of $305 million. That amounts to $2.46 billion less than the 2025 budget. The President’s letter claims this change will place the onus on states to fund their own infrastructure while sharing additional reasoning as to why the reduction is on the table.
“In practice, the program has been heavily earmarked by the Congress for projects that are ultimately not repaid into the program and bypass States’ interest and planning. In addition, the SRFs are largely duplicative of the EPA’s Water Infrastructure Finance and Innovation Act (WIFIA) program and the Department of Agriculture’s (USDA) Water and Wastewater Loan and Grant program, and they received a massive investment in the Infrastructure Investment and Jobs Act (IIJA),” the letter states.
Additional reductions include:
- $1 billion less for Categorical Grants Programs
- $254 million less for Hazardous Substance Superfund clean up
- $235 million less for the Office of Research and Development
- $100 million less for the Office of Environmental Justice
- $90 million less for Diesel Emissions Reduction Act grants
- $100 million less for Atmospheric Protection Programs
While the overall balance results in a reduction, two programs would witness increases.
The proposal allocates $124 million for drinking water programs, which is a $9 million increase over the 2025 budget. Additionally, $31 million is allocated for Indian Reservation Drinking Water programs, which amounts to a $27 million increase from 2025.
Editor's Note: Stormwater Solutions has reached out to various industry associations for comment and will update this article accordingly.
