WEST ORANGE, NJ — As communities across the United States observe National Preparedness Month, Trust in Water is highlighting a financing gap affecting many customers served by private, regulated wastewater utilities. The organization is calling for expanded eligibility under the Clean Water State Revolving Fund (CWSRF), one of the federal government’s primary tools for financing water-quality infrastructure.

The CWSRF provides states with low-cost financing for a wide range of water and wastewater projects. Under current federal law, however, access to financing for publicly owned wastewater treatment works is treated differently from many privately owned systems. That distinction can limit financing options for utilities that serve communities but operate under private ownership.

For wastewater systems facing aging infrastructure, severe weather and increasing regulatory requirements, access to affordable capital can directly affect how quickly needed upgrades are completed.

“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.”

Aging Wastewater Systems Create Growing Financing Demands

Regulated utilities are increasingly called upon to stabilize and rehabilitate distressed public systems, often at the direction of state agencies. Those projects can include upgrades to treatment facilities, replacement of collection-system pump stations and modernization of aging infrastructure.

Without access to lower-cost financing, more of those capital costs can ultimately affect customers.

Trust in Water argues that expanding CWSRF access would allow infrastructure dollars to go further while helping utilities keep investment affordable. Because regulated utilities operate under state regulatory oversight, the organization says financing savings can be passed through to customers through rates.

The issue has also drawn attention from utility executives. In a recent op-ed in the Charleston Gazette-Mail, Scott Wyman, President of West Virginia American Water, argued that private companies do not directly benefit from CWSRF access; instead, customers benefit through lower costs and greater rate stability.

Wyman also argued that expanding CWSRF eligibility to private utilities would strengthen rather than weaken the program because private utilities would repay loans with interest.

H.R. 3862 Would Expand CWSRF Eligibility

The Clean Water SRF Parity Act of 2025, H.R. 3862, introduced by Reps. Mike Bost, R-IL, and John Garamendi, D-CA, would expand eligibility for CWSRF assistance to include certain privately owned treatment works. The bill was introduced in June 2025 and referred to the House Committee on Transportation and Infrastructure.

The legislation would allow states to extend low-interest CWSRF loans to a broader range of wastewater providers while establishing requirements intended to ensure that assistance primarily benefits the people served by the treatment works.

The bill also preserves state flexibility. It would not require states to award loans to private providers or set aside CWSRF funding for them. State agencies would continue to determine which projects receive assistance based on their priorities and applicable requirements.

Trust in Water says the proposed changes would give utilities another financing option without removing state control over how CWSRF resources are allocated.

Faster Infrastructure Investment Could Improve Resilience

In a recent report, Trust in Water argues that expanding CWSRF eligibility could accelerate compliance, lower infrastructure costs and support public health. The organization also says broader access could allow private providers to respond more quickly when distressed wastewater systems require immediate investment.

The financing issue is particularly relevant to infrastructure resilience. EPA identifies CWSRF financing as a potential source for resilience and recovery-related improvements, including backup generators, flood barriers, redundant equipment, telemetry systems, cybersecurity and hardening of wastewater facilities against hazards.

For wastewater contractors, those projects can involve treatment-plant upgrades, collection-system rehabilitation, pump-station replacement, electrical improvements and other capital-intensive work. Access to lower-cost financing can affect how quickly utilities can move projects from planning and engineering into construction.

Preparedness Starts With Reliable Wastewater Infrastructure

The 2026 National Preparedness Month theme, “Americans Stand Ready,” emphasizes proactive steps communities can take before disasters occur. For water and wastewater systems, that preparedness depends in part on the condition and reliability of underground infrastructure.

Systems that have gone years without upgrades can be more vulnerable when heavy rain, flooding or extreme cold puts additional stress on treatment and collection infrastructure. Failures can affect homes, streets, waterways and public health.

Financing determines how quickly many of those infrastructure improvements can move forward. EPA describes the CWSRF as a federal-state partnership that provides low-cost financing for water-quality infrastructure, with states determining project priorities and administering assistance.

For communities facing aging wastewater infrastructure, the argument from Trust in Water is straightforward: closing a financing gap could help close a preparedness gap by allowing needed infrastructure work to be completed sooner and at a lower cost to customers.

To learn more visit trustinh2o.com.