What types of projects do states actually invest in with Clean Water State Revolving Funds?

By Stephanie Vo, Senior Water Policy Associate

Clean Water State Revolving Funds (CWSRF) are the largest federal program to invest in infrastructure for wastewater and stormwater management. States use CWSRFs to finance projects to improve water quality and public health. The program has financed more than 42,800 projects since 1987. Recently, Congress increased the annual appropriation for the CWSRF program from $1.64 billion in 2021 to $2.6 billion by 2026 through the Infrastructure Investment and Jobs Act. 

With this increase in funding, how will states invest the money?

After analyzing data on how states have used CWSRF funding over the past 10 years, we find that states have invested around 91 percent of CWSRF assistance in repairing and maintaining centralized wastewater treatment plants. Despite the wide array of different project types that states can finance using CWSRF resources, a large majority of CWSRF assistance goes towards non-localized or non-nature-based solutions. It’s time to rethink the magnitude of our investments in centralized and gray infrastructure systems, as there are other solutions that increase the resiliency of our communities in ways that are more equitable and adaptive.

Nationwide states invest 91% of CWSRF resources in centralized wastewater treatment projects, with the other 9% going to projects in stormwater, water conservation, nonpoint source pollution control, and energy conservation. We break these numbers down yearly and state-by-state in this report.

Centralized treatment plants have played a crucial role in getting the United States to its overall high standard of living and good health—but we’ve reached a point where conventional, centralized, and gray infrastructure systems may not always be the most prudent investments going forward. These types of specialized, singular-purposed systems offer little flexibility and limited reconfiguration possibilities in changing conditions, which is crucial to consider as many communities face water challenges due to climate change. For example, the frequency of urban flooding—the most common natural disaster in the U.S.—is expected to increase as our nation’s floodplains grow an additional 45% by the end of the century due to sea level rise and extreme weather. These challenges often fall inequitably on communities already historically disadvantaged. On top of this, our urban centers continue to sprawl and grow in population, straining our water systems even more. 

With the challenges that communities are facing, states should invest more CWSRF funds in green and natural infrastructure. There are plenty of examples in which green and natural infrastructure can help with water quality and quantity issues, while also providing other economic, environmental, and social benefits that support communities’ resiliency. We know that green and natural infrastructure:

• can be more cost effective than gray infrastructure,

• has environmental benefits,

• reduces strain on gray, engineered structures, and

• promotes community well-being. 

Actually implementing these solutions in our communities requires reframing our normal conceptualization of infrastructure as the centralized, gray systems we often imagine towards infrastructure that includes nature. It also will require all levels of government, non-profit organizations, and private entities acting collectively to promote, codify, and invest in water infrastructure that promotes climate resiliency and equity. Let’s cut a bigger slice of pie for the localized, the green, and the natural solutions.