Last week, the House Appropriations Committee held a full committee markup of the Fiscal Year 2027 (FY27) Interior, Environment, and Related Agencies spending bill. The legislation was approved by the committee by a vote of 35-27, with minimal changes to the version of the bill voted out of the Interior Subcommittee last month. The measure provides a total discretionary allocation of $38.9 billion, including a $1.8 billion reduction, 20 percent, to the EPA budget.
The legislation passed by the full committee maintains the reductions in funding that were passed during the Interior Subcommittee markup. It reduces funding for the State Revolving Fund (SRF) programs by about 16 percent from FY26, taking the Drinking Water SRF down to $910 million, compared to $1.126 billion in FY26. Other notable funding levels in the bill include:
- $1.192 billion for the Clean Water SRF (down from $1.639 billion in FY26);
- $64.6 million to support WIFIA loans (equal FY26);
- $2.25 million for Midsize and Large Drinking Water System resilience grants (equal to FY26); and
- $22 million for Reducing Lead in Drinking Water grants (equal to FY26).
The committee report released in conjunction with the markup details the nearly 1,200 drinking water and wastewater infrastructure earmarks, totaling more than $1 billion, included in the measure.
Interior, Environment, and Related Agencies Subcommittee Chairman Mike Simpson (R-ID) said, "As Chairman of the House Interior and Environment Appropriations Subcommittee, I promised to write a fiscally responsible bill that rightsizes federal agencies, supports the Trump Administration's policy goals, and reduces regulatory burdens.”
House appropriators’ approval of their proposed EPA spending legislation represents just one step in a long process. Later this month the Senate Appropriations Committee is expected to unveil its own EPA spending proposal, which historically has tended to reject cuts proposed by the House. Senators will also put forward their own slate of recommended water infrastructure earmarks. All of these developments will set the stage for lawmakers to negotiate a final EPA spending package for FY27 later this fall.
AMWA will continue to monitor the forthcoming full committee markup on Senate Appropriations and any changes in funding for water infrastructure programs. For questions regarding AMWA’s appropriations work, please contact Director of Legislative Affairs, Megan Seymour.