The Story
Federal State Revolving Fund support for water and wastewater projects is expected to fall about 80% from last year's levels, according to Circle of Blue. The five-year supplement from the 2021 Infrastructure Investment and Jobs Act, which added around $43 billion and roughly quadrupled the SRF money states received, ran out in September.
Circle of Blue reports that the House has passed its version of the Water Resources Development Act by a 415 to 9 vote, with the House draft authorizing roughly $1.2 billion for the Clean Water SRF and about $911 million for the Drinking Water SRF, generally on par with prior base appropriations. The Senate has not yet passed its version, and Congress returns November 9 with no clear plan for an extension.
The drop will not hit all at once. Circle of Blue cites Bluefield Research findings that over half of IIJA allotments have not yet reached project-level agreements, so IIJA-backed SRF money will keep flowing to states into the early 2030s.
Source: Circle of Blue, The $43 Billion Water Boost Is Over. Now What?, November 7, 2026
The infraTerra Take
Our recommendation to Florida utilities is simple. Get sewer rehab and inflow and infiltration projects designed, scoped and onto FDEP's SRF priority list now, while leftover IIJA dollars are still moving through the pipeline. The Clean Water SRF is the program that pays for sewer systems, and the base program Congress is likely to reauthorize looks like the pre-IIJA program, not the boosted one.
That matters most for collection systems. The early November rains on Florida's east coast showed again how fast leaking mains, manholes and private laterals push plants past capacity. Utilities that plan to fix I&I with low-cost federal loans need shovel-ready packages, because competition for a smaller pool will reward the agencies that show up with condition data and a clear scope. Our I&I ROI calculator is a starting point for making that case.
For contractors, the near-term pipeline of SRF-funded rehab work should hold up as IIJA allotments finish converting to project agreements. The risk is a few years out, when funding falls back to base levels and more of the bill shifts to local rates and bonds. Firms that bid Florida municipal work should watch which utilities lock in their loans now and which wait.
For property owners, a thinner federal pool means more of the cost of sewer repair lands on monthly bills. That makes the case for fixing problems once, including the private side of the connection, rather than paying again after the next storm.
What to Watch
- Whether the Senate passes its WRDA bill and how its SRF authorization levels compare with the House version after Congress returns November 9
- FY2027 appropriations for the Clean Water and Drinking Water SRFs, which set the actual dollars states receive
- The November 1, 2027 compliance date for EPA Lead and Copper Rule Improvements, which will shape demand for Drinking Water SRF loans
