Kelly, Curtis Introduce Bipartisan Bill to Unlock Federal Funding for Western Water Infrastructure
Today, Senators Mark Kelly (D-AZ) and John Curtis (R-UT) introduced the Restoring WIFIA Eligibility Act, bipartisan, bicameral legislation aimed at strengthening water quality and storage infrastructure across the Western United States. Companion legislation has been introduced in the House of Representatives by Congressmen Jim Costa (D-CA-21) and Dan Newhouse (R-WA-4).
“Strengthening Arizona’s water infrastructure is key to the growth and prosperity of our state,” said Kelly. “Our bipartisan bill will cut red tape to give more projects access to federal funding, which will help modernize our water infrastructure and address critical water challenges facing communities in Arizona and the west.”
“After meeting with several water conservancy districts across Utah over the past few months, one thing is clear: Utah’s rapid population growth is placing significant pressure on our community water resources,” said Curtis. “This bipartisan legislation would make it easier for local governments and utilities to invest in critical water infrastructure projects—helping ensure we can meet the growing needs of our communities.”
“Water is the lifeblood of the West, and as climate change intensifies drought and weather extremes, we must invest in reliable, modern water infrastructure,” said Costa. “Our legislation will provide California and San Joaquin Valley water managers with the tools they need to expand water storage and ensure clean drinking water in our communities.”
“Federal irrigation, clean water, and wastewater projects are essential to rural areas like Central Washington, but a lack of resources for maintenance and repairs puts our water infrastructure at risk. This legislation gives our local water managers the tools they need to sustain long-term projects and guarantee clean, safe water that our communities, farmers, and ranchers rely on,” said Newhouse.
Background:
The Water Infrastructure Finance and Innovation Act (WIFIA) of 2014 established a program designed to provide credit assistance to public and private borrowers for wastewater, drinking water, and stormwater projects. WIFIA loans offer attractive terms, including low, fixed-interest rates, flexible repayment schedules, and the ability to draw funds as needed. This structure helps communities undertake crucial water infrastructure improvements more affordably, benefiting ratepayers and local economies.
However, despite WIFIA’s broad intent, certain interpretations of the program have inadvertently created hurdles for projects with any federal involvement. These projects, while largely managed and funded by non-federal entities, have been erroneously classified as “Federal” for budgetary purposes. This classification has rendered them ineligible for WIFIA loans, which are statutorily available only to “non-federal borrowers.”
The Restoring WIFIA Eligibility Act addresses this issue by:
- Amending the WIFIA Act to clarify the budgetary treatment of financial assistance for hybrid-funded projects.
- Ensuring that WIFIA assistance is deemed non-Federal as long as the recipient is a non-federal entity and the repayment sources are non-federal revenues.
- Unlocking a broader array of essential water infrastructure projects, including those that involve cost-sharing between federal and non-federal entities, thereby allowing communities to benefit from the completion of critical infrastructure projects at an optimal scale.
The full text of the bill can be found here.
