Executive Summary

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When a resource is as basic as clean water, it can be easy to take for granted. Flowing in and out of our homes and businesses through underground pipes, clean water for sanitation keeps our communities livable, our lifestyles possible, and our industries viable. But while steady access to clean water is a cornerstone of modern society, its future is far from secure.

As recent tragedies have shown, the United States’ national infrastructure is experiencing the consequences of decades of neglect. Our water systems, many of which are more than 100 years old, are no exception.

The Environmental Protection Agency has estimated that we are falling short on water infrastructure spending by a whopping $22 billion per year. Aging pipes are breaking down, unable to square mounting capacity pressures with degrading materials. Beach closings caused by sewage overflows are occurring at the highest rates ever, and economically crucial lakes, rivers, and estuaries across the country are being crippled by pollution.

While the federal government’s Clean Water State Revolving Fund, which administers money to states for clean water projects, contributes needed help, annual political battles over funding levels mean its assistance may not amount to much more than a finger in the dike.

Fiscal 2007 saw the Clean Water State Revolving Fund funded at some of the lowest levels in history, and for 2008 the president has requested states be given a mere $688 million – the lowest levels since the program’s inception.

These cuts go even deeper because of the manner in which the SRF is administered. Federal SRF contributions drive state funding, and for every federal dollar spent on clean water, approximately $1.28 is contributed by states and leveraged from bonds. However, without sufficient federal money driving the process, states must pick and choose from often hundreds of needed improvements. While not every state is facing such a shortfall, major gaps are the norm for most. The end result is that states, already providing the lion’s share of funding, are unable to conduct needed maintenance and improvement projects. The burden often falls hardest on smaller municipalities, which receive the majority of clean water loans and depend on low interest rates to meet their needs. Compounding the problem, states lose potential jobs and increased tax revenues because they cannot afford to fund the infrastructure necessary for continued growth.

Thirty five years after the passage of the Clean Water Act, degrading wastewater infrastructure threatens to turn back the clock to the Dark Ages of American water quality. For the sake of our nation and its future, we cannot allow this to happen. Given the fickle year-to-year funding of the SRF and the urgency of our clean water troubles, we need a new solution. A federal clean water trust fund would provide a steady, reliable, and equitable source of funding for needed projects across the country. By sidestepping the contentious appropriations process, a trust fund would safeguard our clean water infrastructure, our environment, and our economy.

This report will examine trends in clean water spending on a state-by-state level, pointing out the need for urgent action while explaining the benefits that could be achieved through the establishment of a clean water trust fund.

For footnotes, download the full report, Clear Waters: Why America Needs a Clean Water Trust Fund.

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