Infrastructure Funding & Affordability 

Many utilities are navigating unprecedented financial and affordability challenges and a rapidly shifting operating landscape. In addition to federal advocacy, NACWA focuses on connecting utilities and advancing best practices to help utilities continue evolving to best serve their communities.

According to the Value of Water Campaign’s report, The Economic Benefits of Investing in Water Infrastructure, the United States must invest around $3.4 trillion over 20 years (an annual need of $168 billion) to repair and modernize our water, wastewater, and stormwater systems.

The reality is that many local utilities are facing significant affordability challenges. Costs are rising and regulatory obligations are growing. Some utilities have shrinking rate bases exasperating the costs of maintaining aging infrastructure, but even those communities with growing populations are finding portions of their customer base are unable to afford the rising costs of clean water. As rates continue to rise, higher costs disproportionately impact the poorest segments of any given community.

This is why NACWA has positioned the establishment of a permanent Low-Income Water Affordability Program (LIHWAP) as a key priority for our engagement with the federal government, alongside increased infrastructure investment. Reliable water and wastewater services are essential to public health, economic stability, and household well-being. In 2021, LIHWAP was first established at the Department of Health and Human Services to help families facing financial hardship maintain access to these services, ultimately assisting over 1.6 million households, but unfortunately Congress has declined so far to reauthorize or continue funding the program after 2023.

While the gap in funding is frustrating, LIHWAP’s demonstrated success served as proof of concept for the ongoing need for a federal water assistance program and helped solidify broader support from beyond the clean water sector. Rising household costs, aging infrastructure, and growing regulatory requirements continue to strain families and water utilities. LIHWAP stabilized vulnerable households, strengthened utility finances, and reflected a broad, bipartisan recognition that clean and safe water are essential services. Bolstered by this impact, NACWA remains committed to working with the Federal Government to reestablish a lasting, reliable affordability program that will support families, protect public health, and provide stability for local water systems.

NACWA has also led advocacy over many years urging EPA to improve its Financial Capability Assessment Guidance. Most recently, NACWA is encouraged by efforts initiated by the Agency in 2026 to revisit the current guidance, which was last updated in 2023 and raised significant concerns from the water sector. NACWA's focus for improvements include ensuring that the Guidance more accurately assesses impacts on individual, lowest-quintile-income households than the 2023 version; can be readily completed by communities without requiring analyses beyond its intended scope and reviewed with minimal subjectivity; and supports modern approaches to managing utility affordability including cash flow forecasting and the use of integrated planning approaches. NACWA’s latest comments and other related documents can be reviewed at the links below.