Two Recommendations to Strengthen the SRFs: Reauthorization and Separate Earmarks

waterresources
Written By Ekta Patel

Federal appropriations for Clean Water and Drinking Water State Revolving Funds (SRFs) are distributed into state-run funds, loaned to communities, repaid, and re-lent again. Earmarks break that cycle. Since FY2022, Congress has funded water infrastructure earmarks by taking them out of SRF appropriations before EPA calculates each state's allotment — turning revolving loans into one-time grants that never come back. EPIC estimates this will cost states $19.4 billion in water infrastructure financing capacity over 20 years, even after accounting for the earmarks states receive.

This brief lays out two recommendations for Congress: (1) Sustain the full federal investment available for the SRFs in FY2026, and (2) fund water project earmarks through a separate budget line. This would restore the practice Congress followed for 21 years and mirror how Congress funds earmarks for other programs today.

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For more information, please see: policyinnovation.org/state-revolving-fund-earmarks

Ekta Patel

Ekta joined EPIC in 2025 as a Senior Policy Analyst in the Water Program. Previously, she served as a Water and Policy Advisor at USAID, where she developed strategies to advance water security and provided technical assistance to water, sanitation, and hygiene projects, with a focus on fragile and conflict-affected settings. Her experience spans water management in the western US, desalination, infrastructure financing, and US and international water governance. Earlier in her career, Ekta was a business analyst and product designer at an education technology start-up. She holds a PhD in Environmental Policy from Duke University and a BA with honors in Environmental Science and Public Policy from Harvard University.

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