NCSL Urges Congress to Fully Fund SRFs and “Exercise Caution” in its Use of Earmarks

The National Conference of State Legislatures (NCSL) sent a letter to Congressional leaders on September 26, urging them to “appropriate the current authorized funding levels for the Clean Water and Drinking Water State Revolving Funds (SRFs), and exercise caution as it attaches Congressionally Directed Spending (CDS) to the SRFs.” NCSL is the bipartisan organization representing our nation’s states, territories, and commonwealth legislatures. The letter notes that Congress has begun diverting funding from SRF programs in fiscal year (FY) 2022, “resulting in a significant 42% reduction for state-directed SRF projects, totaling $2.3 billion.” It highlights concerns that the SRFs will likely face fiscal uncertainty when the Infrastructure Investment and Jobs Act funding ends in FY 2026. NCSL argues that the SRFs are vital water infrastructure programs that provide low-cost financing for critical water infrastructure projects. This letter follows similar comments from the National Governors Association on September 14, which urged Congress to mitigate further funding cuts to water infrastructure projects, focusing on the adverse impacts of CDS on the SRF programs.