EPA Administrator Gina McCarthy twice testified on Capitol Hill last week on the agency’s FY17 budget request, and each time heard criticism from lawmakers for missing an opportunity to seek higher water infrastructure investments in the aftermath of the Flint water crisis.
Administrator McCarthy delivered similar testimony before the Senate Environment and Public Works Committee and the Senate Interior, Environment, and Related Agencies Appropriations Subcommittee. McCarthy told each panel that “State Revolving Funds (SRF) alone, while important, cannot and should not be relied upon to solve all infrastructure needs,” and that the new Water Infrastructure Finance and Innovation Act (WIFIA) pilot program will supplement the SRFs by “making loans for large innovative projects of regional or national significance.”
EPA requested approximately $2 billion for the two SRF programs and $20 million for WIFIA next year, but McCarthy faced questions from lawmakers over why the administration proposed a net cut of $257 million to the SRF programs next year.
Senator Ben Cardin (D-Md.) told McCarthy that he is “perplexed” by the SRF request, saying it “does not seem like a commitment to modernize our water infrastructure.” Similarly, Senator Lisa Murkowski (R-Alaska) labeled as “disturbing” EPA’s decision to “shortchange” SRF funding in the budget request.
Administrator McCarthy told members of both panels that the EPA budget is bound by overall budget limits that constrain the amount of funds available to devote to water infrastructure. She also said the country needs to engage in “a larger conversation about water infrastructure funding” approaches, though she did not elaborate on that point.