Water Infrastructure Financing: WIFIA and the Clean Water State Revolving Fund

Environmental Permitting and Water InfrastructureHouse Transportation and Infrastructure Subcommittee on Water Resources and Environment · March 11, 2025 · 119th Congress
The House Transportation and Infrastructure Subcommittee on Water Resources and Environment held this hearing to examine the Clean Water State Revolving Fund (SRF) and the Water Infrastructure Finance and Innovation Act (WIFIA) programs, focusing on how to make federal water infrastructure financing more efficient ahead of potential reauthorization. Begins at ▶ 0:18:46
Transcript
Highlights

Title

Reauthorizing WIFIA and the Clean Water State Revolving Fund

Purpose

The House Transportation and Infrastructure Subcommittee on Water Resources and Environment held this hearing to examine the Clean Water State Revolving Fund (SRF) and the Water Infrastructure Finance and Innovation Act (WIFIA) programs, focusing on how to make federal water infrastructure financing more efficient ahead of potential reauthorization. Witnesses representing state loan authorities, a tribal nation, an engineering consultancy, and the construction industry testified on loan mechanics, regulatory burdens, and funding gaps, while members debated proposed EPA budget cuts and the merits of loans versus grants. Begins at▶ 0:18:46

Who spoke

• Chairman Rick Collins (R-GA)▶ 0:19:17: Opened by describing the Clean Water SRF's $172 billion in nearly 50,000 loans over almost 40 years▶ 0:20:48 and noted WIFIA has closed 140 loans while the Corps' CWIFP program has issued none▶ 0:21:48; later asked each witness for one or two efficiency suggestions▶ 0:53:40.

• Ranking Member Sheila Cherfilus-McCormick / Rep. Wilson (D-FL)▶ 0:23:19: Warned that proposed cuts of over 65% to water infrastructure funding would raise water bills and threaten roughly 28,000 jobs per billion invested▶ 0:25:50▶ 0:26:20; cited her district's $147 million WIFIA loan and 100 million CalPERS-style Miami-Dade loan▶ 0:58:47▶ 0:59:17.

• Jeff Walker, Immediate Past President, CIFA▶ 0:30:25: Testified SRFs hold $64 billion in permanently revolving funds, $12 billion more than cumulative federal funding▶ 0:30:55; said Texas's SRF leveraging offered $482 million against $4 billion in demand▶ 0:31:25▶ 1:27:37; argued congressional mandates like Davis-Bacon, American Iron and Steel, and Build America Buy America add 30-40% to project costs▶ 1:50:38.

• Chairman Tony Hillaire, Lummi Nation▶ 0:36:31: Described the Gooseberry Point wastewater plant, which operated beyond capacity for six years before an $8.7 million (later stated $18.6M-equivalent breakdown) fix combining grants and SRF financing▶ 0:39:02; said the Lummi Nation has identified roughly $50 million in pressing water/sewer needs plus another $46 million in potential needs▶ 0:40:03; called for direct tribal set-asides and streamlined applications▶ 0:41:34.

• Dan Buckley, Preconstruction Executive, Garney Construction▶ 0:41:34: Said federal funding once covered 63-75% of water infrastructure costs but now covers only about 4%▶ 0:44:05; cited ASCE's $1 trillion 25-year investment need against annual SRF funding of $2-5 billion▶ 0:44:05; proposed lifting private activity bond caps on water projects as done for transportation▶ 0:46:06.

• Mike Matichich, Jacobs, on behalf of U.S. Chamber of Commerce▶ 0:47:06: Highlighted WIFIA innovations — combination-of-projects applications, five-year master agreements, and rate renegotiation that saved 11 loan holders an estimated $1.5 billion▶ 0:50:08; recommended a subsidized interest rate (2/3 of Treasury rate) for small systems▶ 0:51:08.

• Rep. Wilson (D-FL) — see above.

• Rep. Mike Bost (R-IL)▶ 1:04:22: Asked witnesses about bonding requirements for WIFIA-assisted projects▶ 1:04:52 and discussed his Clean Water SRF Parity Act allowing investor-owned utilities to access SRF loans▶ 1:06:54.

• Rep. John Larson (D-CT), Ranking Member of full committee▶ 1:09:25: Introduced Chairman Hillaire and pressed him on coordinating multiple federal agencies (IHS, BLM, EPA) for tribal water financing▶ 0:34:27▶ 1:09:56; questioned Matichich on the impact of a hypothetical 65% EPA cut▶ 1:14:29.

• Rep. Vince Fong (R-CA)▶ 1:15:30: Asked about accessibility of WIFIA for large-scale California water storage projects like Sites Reservoir▶ 1:15:30 and about extended loan maturity terms▶ 1:18:01.

• Rep. Sydney Kamlager-Dove / Rep. Gyan (D-NY)▶ 1:20:33: Described PFAS contamination in Hempstead, NY drinking water and a $55 million treatment facility project, crediting constituent activist Mary Florence Perie▶ 1:21:03▶ 1:24:04.

• Rep. Mike Ezell / Vice Chair Taylor▶ 1:26:37: Described a Waverly, Ohio water leak causing a boil advisory and eight water main breaks in one year▶ 1:27:07; discussed whether SRF should remain a loan versus grant▶ 1:28:39.

• Rep. Laura Friedman (D-CA)▶ 1:32:10: Warned a 65% EPA budget cut would gut air and water monitoring; cited $14.6 billion in California SRF/WIFIA assistance since 1989 and a $1.8 million Burbank Sanitary District loan▶ 1:33:40.

• Rep. David Valadao / Rep. LaMalfa (R-CA)▶ 1:37:12: Discussed the Sites Reservoir project's WIFIA application, pending since 2021-2022, and asked about schedule flexibility for large multi-year projects▶ 1:39:12.

• Rep. Jared Huffman / Rep. Garamendi (D-CA)▶ 1:43:01: Criticized proposed 65% EPA and Army Corps funding cuts as undermining the value of any WIFIA/SRF reforms being discussed▶ 1:44:02.

• Rep. Barry Moore / Rep. Knott? (R-FL)▶ 1:48:07: Raised the $37 trillion national debt and asked whether federal financing could be conditioned on reducing state regulatory costs▶ 1:49:37.

• Rep. Shomari Figures (D-AL)▶ 1:54:09: Noted seven of the fifteen poorest counties in Alabama are in his district and that Pritchard, Alabama loses an estimated 60% of treated water in delivery▶ 1:56:41; criticized proposed tax-break-funded deficit spending▶ 1:54:39.

• Rep. Jeff Hurd (R-CO)▶ 2:09:26: Asked about asymmetric application of mandates like the sustainability asset management plan across states, citing Colorado engineering procurement conflicts▶ 2:09:56.

• Rep. Eleanor Holmes Norton (D-DC)▶ 2:05:53: Asked about harms from federal water funding cuts, including 6 billion gallons of treated water wasted hourly▶ 2:06:24, and about a $1.4 billion cut to Army Corps construction▶ 2:07:55.

• Rep. Eric Burlison (R-MO)▶ 2:14:29: Asked Walker about state efficiency, noting SRFs charge only about 4% overhead▶ 2:15:29.

• Rep. Brian Babin (R-TX)▶ 2:20:01: Asked whether federal bureaucrats know Texas water needs better than local officials▶ 2:20:31; discussed effects of Biden-era grant expansion on SRF leverage▶ 2:21:32.

• Rep. Bruce Westerman (R-AR)▶ 2:24:02: Asked about regionalization of rural water systems, citing central Arkansas's regionalized management model▶ 2:25:34.

Key moments

• Walker said Clean Water SRFs hold $64 billion in permanently revolving loan funds, $12 billion more than total federal capitalization to date, calling this "the power of loans" versus one-time grants▶ 0:30:55▶ 1:29:09.

• Hillaire detailed a six-year, $8.7 million effort to replace the failing Gooseberry Point wastewater plant, funded through a mix of grants/forgivable loans and SRF financing▶ 0:39:02.

• Buckley stated federal cost-share for water infrastructure has fallen from 63-75% historically to about 4% today, against an ASCE-estimated $1 trillion 25-year need▶ 0:44:05.

• Matichich reported 11 WIFIA loan holders renegotiated interest rates in 2020, saving an estimated $1.5 billion collectively▶ 0:50:08.

• Sharp partisan disagreement over a proposed 65% EPA budget cut: Wilson, Friedman, and Garamendi warned it would gut water infrastructure funding and monitoring capacity▶ 0:25:50▶ 1:32:40▶ 1:44:02, while Republican members focused on the $37 trillion national debt and regulatory costs as bigger concerns▶ 1:48:37.

• Bost's proposed WIFIA bonding-requirement amendment and his Clean Water SRF Parity Act (with Rep. Garamendi) to let investor-owned utilities access SRF loans drew general witness support▶ 1:04:52▶ 1:06:54▶ 1:07:24.

• Walker said Congress-driven earmarks consumed over half of SRF appropriations in the 118th Congress, leaving 39 states with fewer resources▶ 1:58:44.

• Figures cited Pritchard, Alabama losing an estimated 60% of treated water before delivery to end users, illustrating infrastructure decay in low-income communities▶ 1:56:41.

• Fong and Matichich discussed the Sites Reservoir's WIFIA application, pending since 2021-2022, and the master-agreement mechanism (first used for a $1 billion+ Hampton Roads Sanitation District loan) as a model for large multi-year projects▶ 1:37:12▶ 1:41:01.

• Buckley and Walker both endorsed lifting private activity bond caps on water projects, mirroring the uncapped treatment given to transportation P3 financing▶ 0:46:06▶ 1:12:58.

Metadata

CommitteeHouse Transportation and Infrastructure Subcommittee on Water Resources and Environment
Chamber / CongressHouse · 119th Congress
DateMarch 11, 2025
TypeHearing
Witnesses
Mr. Jeff Walker — Immediate Past President, Council of Infrastructure Financing Authorities
The Honorable Tony Hillaire — Chairman, Lummi Nation
Mr. Mike Matichich — Economic and Financial Services Consulting Lead, Jacobs
Mr. Dan Buckley — Preconstruction Executive Mid-Atlantic, Garney Construction
Videoyoutube
Transcript259 caption blocks · 20,529 words · 2:28:54 runtime
EventCongress.gov 117997