Federal water bill would raise government's share to 90% for qualifying projects

What does this do?

HR 7845 amends the federal WFIA loan and financing program, which funds water infrastructure such as pipes, treatment plants, and reservoirs. Under current rules, the federal government is limited in how much of a project's cost it can cover. This bill creates exceptions allowing federal funding to reach up to 90 percent of project costs for projects that meet at least one of three qualifying conditions.

Who does it affect?

State and local governments, water districts, and utilities would be directly affected, particularly those in drought-prone regions of the western United States. Lower-income communities where households earn at or below 200 percent of the federal poverty level would also be affected.

Why does it matter?

Qualifying projects would be moved to the front of the line for federal financing decisions, changing how limited federal funds are distributed among competing projects. Local governments and utilities in drought-affected or lower-income areas would face a reduced local funding requirement, which could alter how and whether they pursue infrastructure upgrades.

What does it cost, and who pays?

• Federal share up to 90% of project cost
• Local share as low as 10%
• Income threshold at 200% of poverty level