Significant reductions proposed for EPA and State Revolving Funds in FY27

The Trump administration’s fiscal year 2027 budget proposal outlines significant changes to federal water infrastructure funding, including major reductions to State Revolving Funds (SRFs) and a shift in how Superfund cleanup activities are financed.

EPA and State Revolving Funds

According to the budget proposal, EPA discretionary budget authority woulkd witness a $4.6 billion cut which is a 52% decrease from the 2026 enacted level.

The proposal calls for more than $2.5 billion in savings from the Drinking Water and Clean Water State Revolving Funds, signaling a reduced federal role in financing water infrastructure. According to the document, the cuts are intended to “return the SRFs to their intended structure of funds revolving at the State level,” arguing that states should take greater responsibility for funding water projects.

The article referenced in this story originally ran as White House proposes significant cuts to EPA, SRFs in budget proposal on WaterWorld, an EndeavorB2B partner site.