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President Obama’s $8.6 billion FY17 budget request for EPA would increase Drinking Water State Revolving Fund (DWSRF) funding next year, but the boost would come at the expense of the Clean Water SRF, whose funding would be slashed by more than $400 million.

The President’s request of $1.02 billion for the DWSRF is $157 million more than the program is receiving this year, but it falls short of the $1.186 billion the White House initially requested for the program last year.  The plan would cut the CWSRF to only $979.5 million in FY17 – $414 million below its current level.

The White House plan would fund two SRF programs at a combined level of $2 billion – a reduction to $257 million below the current combined level.  EPA estimates this will lead to an additional 71 drinking water projects receiving funding next year, but 170 fewer wastewater projects.

In a statement on the budget request, AMWA CEO Diane VanDe Hei called the requested net SRF reduction “disappointing” and said the association will work with Congress to “deliver robust and necessary funding for water infrastructure programs” as the appropriations process gets underway on Capitol Hill.