As we head into 2026, there are several priorities on the federal horizon that can support local water infrastructure projects to improve drinking water, wastewater and stormwater management systems.
Here are six key points that NLC is advocating for on behalf of water infrastructure, along with ways local leaders can get involved.
1. Water Infrastructure Funding from IIJA Continues to be Available
The bipartisan Infrastructure Investment and Jobs Act (IIJA) allocates $50 billion over five years for water infrastructure (PDF), divided across five distinct pots under the Clean Water State Revolving Fund and the Drinking Water State Revolving Fund (SRF). In addition to traditional uses through the SRFs, there is specific funding for lead pipe replacement and addressing PFAS and other emerging contaminants.
The U.S. Environmental Protection Agency (EPA) is in the process of allocating the FY25 and FY26 amounts to states, which will, in turn, distribute them to communities. Moreover, due to the varying state timelines, some states may still be in the process of distributing FY24 funding to their communities.
National League of Cities
By: Carolyn Berndt
December 18, 2025