Washington is turning toward the next water funding cycle
Congress spent much of early 2026 finishing the work it did not complete in 2025. By early February lawmakers finalized a roughly $1.2 trillion appropriations package that funds most federal agencies through September 30, 2026. The agreement ended the immediate threat of a government shutdown and gave agencies the stability needed to move forward with program implementation.
One exception remained: funding for the Department of Homeland Security (DHS) continued under a short term extension with a mid February deadline that briefly dominated congressional attention. While the DHS funding debate did not directly affect federal water programs, it did influence the broader legislative calendar and limited the bandwidth available for other policy discussions.
With FY26 funding largely settled, attention on Capitol Hill is already beginning to shift toward the next phase of federal spending. For water policy observers, that means the early stages of the FY27 appropriations process.
The FY27 planning window opens for water funding
Congress is still in the earliest stages of the FY27 cycle. At the time of this writing, appropriations committees are collecting member requests for programmatic funding submission, Community Project Funding and Congressionally Directed Spending (“earmarks” in common parlance). This serves as the starting signal for advocacy groups, utilities, and infrastructure coalitions preparing their annual funding priorities.
Many organizations are using the early months of the year to prepare their materials and align priorities. Water infrastructure coalitions across the sector are developing appropriations letters, priority sheets, and briefing materials intended for congressional offices once the request process formally opens.
For utilities and water advocates, the goal is straightforward. The sector is working to maintain strong federal investment levels in programs that support drinking water and wastewater infrastructure, including the State Revolving Funds and other federal financing tools that help communities manage long term capital needs.
The early groundwork taking place now often determines how effectively those priorities land once appropriations activity accelerates later in the year.
A broader conversation about water system resilience
Alongside funding discussions, the policy language around water infrastructure continues to evolve. One of the most notable trends this year is the expanding use of the term water resilience in federal conversations.
Historically, resilience in water policy was largely framed around physical infrastructure. The discussion focused on pipes, treatment plants, and stormwater systems that could withstand extreme weather events and long term environmental pressures.
More recently that definition has broadened. Federal policymakers increasingly talk about resilience as a combination of infrastructure investment, operational preparedness, and system security.
This shift reflects a growing recognition that water utilities face multiple overlapping risks. Aging infrastructure remains a major concern, but utilities must also think about cybersecurity threats, emergency preparedness, and operational continuity. These issues are now appearing more frequently in congressional hearings, agency guidance, and policy discussions.
For wastewater utilities, the practical implication is that resilience is becoming a cross cutting theme in federal water policy. Funding debates, regulatory discussions, and infrastructure planning increasingly reference the same underlying goal of maintaining reliable and secure water systems.
Infrastructure needs and investment remain the central challenge
Even as the policy conversation evolves, the core challenge facing the sector remains unchanged: the United States continues to confront a substantial water infrastructure investment gap.
Many wastewater systems were built or expanded in the middle of the twentieth century. Pipes, pump stations, and treatment facilities are now reaching the point where rehabilitation or replacement is unavoidable. At the same time, utilities must respond to population growth, climate-related weather pressures, and emerging water quality concerns.
Federal investment programs have provided important support in recent years, particularly through the Infrastructure Investments and Jobs Act (IIJA) and continued annual appropriations for financing programs. However, those resources are best understood as part of a long term funding partnership between federal, state, and local governments.
Most infrastructure investment ultimately happens at the local level through utility capital planning and ratepayer support. Increased federal investment can accelerate this progress.
Looking ahead
The coming months will offer the first real indication of how Congress plans to approach water infrastructure funding in the FY27 cycle. Appropriations guidance, coalition advocacy efforts, and early congressional outreach will begin to shape the debate.
For wastewater professionals, the message in Washington remains consistent: infrastructure investment, operational resilience, and long term planning are becoming increasingly interconnected. As federal policymakers refine their priorities for the next budget cycle, the water sector will continue making the case that sustained investment is essential to protecting public health, supporting economic growth, and maintaining reliable service for communities across the country.
About the Author
Mae Stevens
Current Strategies CEO
Mae Stevens is the CEO of Current Strategies, a multimillion-dollar public affairs firm in Washington, D.C., and the only firm dedicated to water infrastructure. She leads the firm’s strategic counsel, advocacy, and coalition management efforts to advance critical infrastructure priorities across all clients.
A recognized national leader in water policy, she wrote the legislation that addressed the Flint water crisis and authored the first-ever federal low-income water customer assistance legislation, while working as the top environment and public works advisor for Sen. Ben Cardin.
Stevens has been named one of The Hill’s Top Lobbyists in 2021, 2022, 2023, 2024, and 2025 reflecting her influence in shaping policy and delivering results for clients across Fortune 500, municipal, and nonprofit sectors.
Her career has spanned senior roles on Capitol Hill and leading public affairs firms, where she has consistently bridged policy expertise and real-world impact.
She is a graduate of Columbia University and The George Washington University.