A bipartisan bill was introduced in the U.S. Senate last week to require an updated formula by which Clean Water State Revolving Fund (CWSRF) capitalization grants are allocated among U.S. states, tribes, and territories. Concerns about CWSRF allocations are perennially raised by Members of Congress who represent states which have grown in population since the formula was set in 1987.

The latest bill, led by Sen. Rubio (R-FL), joins a companion bill in the U.S. House led by Rep. Waltz (R-FL).  The Clean Water Allotment Modernization Act of 2021 would adjust the CWSRF formula by incorporating Clean Watersheds Needs Survey (CWNS) data beginning in Fiscal Year 2027 (FY27). State population and degree of water quality impairments would also play into the new allotment formula. In the interim years until FY27, any federal CWSRF funding provided above Fiscal Year 2021 levels would be allocated based on state population.

The question of allocations is being revived in light of the major increases in CWSRF funding currently being advanced by Congress. An amendment to allocate CWSRF funds based on population was unsuccessfully proposed by Sen. Rubio when the Senate voted to pass its bipartisan infrastructure bill this summer, and it appears unlikely this new bill will advance at this time.

NACWA will continue monitoring this issue. Contact Kristina Surfus, NACWA Managing Director of Government Affairs, to discuss.