Drinking Water State Revolving Fund: Program Overview and Issues

Publication Date: June 2005

Publisher: Library of Congress. Congressional Research Service

Author(s):

Research Area: Environment

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Abstract:

In the Safe Drinking Water Act (SDWA) Amendments of 1996 (P.L. 104-182), Congress authorized a drinking water state revolving loan fund (DWSRF) program to help public water systems finance infrastructure projects needed to comply with federal drinking water regulations and to protect public health. Under the program, states receive capitalization grants to make loans to water systems for drinking water projects and certain other SDWA activities. Since the program was first funded in FY1997, Congress has provided $7.8 billion, including roughly $844 million for FY2005. The President has requested $850 million for FY2006. Through June 2004, the DWSRF program had provided $7.9 billion in assistance and had supported 6,500 projects.

The Environmental Protection Agency's (EPA's) 2001 survey of capital improvement needs for public water systems found that these systems need to invest $150.9 billion on infrastructure improvements over 20 years to ensure the provision of safe water. Several new standards and security concerns have increased these needs. Key issues include the gap between estimated needs and funding; SDWA compliance costs, particularly for small systems; and the broader need for cities to improve their water infrastructure, apart from SDWA compliance. This report will be updated.