West Orange, N.J. (September 10, 2026) - As communities across the United States recognize National Preparedness Month, Trust in Water is highlighting a funding gap for many Americans who are served by private, regulated wastewater utilities. Recently, these utilities have called on Congress to expand eligibility for the Clean Water State Revolving Fund (CWSRF) so that all wastewater providers can access one of the federal government’s most effective infrastructure financing tools. Preparedness begins underground, with water and wastewater systems built to withstand storms, floods and the strain of age.
The Clean Water State Revolving Fund helps states finance wastewater infrastructure at below-market rates. Private, regulated wastewater utilities as well as co-op water utilities are excluded from the program, even though the customers they serve contribute to it through federal tax dollars. That exclusion creates a two-tiered system in which access to low-cost capital depends not on need or public benefit, but on ownership structure.
“Preparedness starts with infrastructure. We need to invest in our water and wastewater systems before there is an emergency, not after one,” said Jerry Keenan, President, NJ Alliance for Action and Trust in Water Leadership Council member. “If a project protects public health, strengthens a community and benefits customers, it should have access to affordable financing regardless of who owns the system.”
A Financing Gap With Real Costs
Regulated utilities are increasingly called upon to stabilize and rehabilitate distressed public systems, often at the direction of state agencies. Those systems frequently require substantial upgrades to treatment facilities, replacement of collection system pump stations and modernization of aging infrastructure. Without access to low-cost financing, more of that cost falls to customers.
Access to CWSRF financing would help stretch infrastructure dollars further while keeping investment affordable. Because regulated utilities operate under state regulatory oversight, the savings from lower-cost capital are passed through to customers.
In a recent op-ed in the Charleston Gazette-Mail by Scott Wyman, president of West Virginia American Water, it's clear that private companies do not benefit directly from access to CWSRF, but rather, customers gain direct benefits through rate stabilization and affordability Additionally, Wyman highlights that expanding eligibility of CWSRF to private utilities would not weaken the program, but rather, the program would be strengthened as private utilities repay loans with interest.
The Clean Water SRF Parity Act
The Clean Water SRF Parity Act (HR 3862), introduced by Reps. Mike Bost, R-Ill., and John Garamendi, D-Calif., is a path forward. The legislation would allow states to extend low-interest CWSRF loans to all wastewater providers, public and private alike, while codifying consumer protections to ensure that 100 percent of the savings benefit customers.
The bill also preserves state flexibility. It does not mandate that loans be awarded to any particular entity and does not set aside funding for private providers. State agencies would continue to direct resources where they will have the greatest impact.
In a recent report, Trust in Water highlights how the Clean Water SRF parity act accelerates compliance, lowers costs and protects public health. Additionally, equitable access to funds allows private providers to more rapidly respond to failing and distressed wastewater utilities in need of immediate investment and improvement.
Preparedness Starts with Infrastructure
The 2026 National Preparedness Month theme, “Americans Stand Ready,” emphasizes the proactive steps that make communities more resilient. For water and wastewater systems, readiness is a function of investment. Systems that have gone years without upgrades are the ones most likely to fail when heavy rain, flooding or extreme cold arrives, sending untreated wastewater into homes, streets and local waterways.
Financing determines how quickly that work gets done. When utilities can borrow at lower rates, they can complete resilience projects sooner and at less cost to customers. A financing gap is therefore a preparedness gap, and it falls hardest on the communities with the oldest systems and the fewest resources.
About Trust in Water
Trust in Water is a 501(c)(4) non-profit entity created to provide education about the role of private water and wastewater providers as trusted partners in delivering safe, clean, reliable, and sustainable water solutions to communities across America. For more information on Trust in Water, please visit www.trustinh2o.com.
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