Trump Administration Releases Fiscal Year 2026 Budget by ACWA Staff May 20, 2025 Water News WASHINGTON, D.C. — The Trump Administration on May 2 released a summary of its Fiscal Year 2026 budget proposal that recommends a decrease in discretionary and non-defense spending of an estimated $163 billion. Notably for ACWA members, the budget includes estimated cuts of $4.9 billion for the Environmental Protection Agency, $5.1 billion for the Department of Interior, $5 billion for the Department of Agriculture, and $1.7 billion for the Department of Commerce. While the president’s budget serves as a funding blueprint, it is ultimately up to Congress to set funding levels and appropriate funds for federal programs. ACWA staff is working closely with partner organizations and allies on Capitol Hill to secure robust funding for water infrastructure. Specific budget proposals include the following: U.S. Environmental Protection Agency Decrease of $2.4 billion for the Clean and Drinking Water State Revolving Fund (SRF), which offers low-cost financing for water quality projects. SRFs are the largest source of federal funds for drinking water utilities, sewage treatment plants, and other infrastructure like water pipes. Decrease of $254 million for the Superfund program, which is tasked with cleaning up contaminated areas and responding to emergencies. Informally called Superfund, the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA) helps protect exposure to per- and polyfluoroalkyl substances (PFAS). U.S. Department of the Interior (DOI) Decrease of $609 million to the Bureau of Reclamation for restoration projects. Decrease of $564 million for U.S. Geological Survey (USGS) programs relating to surveys, investigations, and research. These USGS programs provide science information on natural hazards, ecosystems, water, energy and mineral resources. Decrease of $198 million for Bureau of Land Management Conservation Programs, including the Wildlife and Aquatic Habitat Management program that helps conserves and improve aquatic ecosystems and land-based wildlife habitats. Consolidation of U.S. Department of Agriculture and DOI wildfire fighting strategies including wildfire suppression response, risk mitigation efforts, and coordination with non-Federal partners to combat the wildfire crisis. Specifically, this seeks to consolidate the Federal wildland fire responsibilities into a single new Federal Wildland Fire Service at DOI, including transferring USDA’s current wildland fire management responsibilities. U.S. Department of Agriculture Decrease of $721 million for the Rural Development Programs, which provides loans to low-income communities to plan and develop infrastructure projects regarding aging rural water and wastewater systems. Decrease of $391 million for Forest Service Operations, which provides policy, oversight, and operational support over the management of million acres of public land encompassing national forests and grasslands. Decrease of $754 million for the Natural Resource Conservation Service (NRCS) Private Lands Conservation Operations, which provides conservation technical assistance to comply with State environmental regulations; this includes California’s Irrigated Lands Regulatory Program, which regulates agricultural runoff. Additionally, this proposal calls for a decrease of $16 million for the NRCS Watershed Operations, which provides assistance to implement conservation practices that address watershed resource concerns such as renovating locally owned dams and installing flood control measures. U.S. Department of Commerce Decrease of $1.5 billion for the National Oceanic and Atmospheric Administration (NOAA), including $209 million for projects pertaining to weather satellites and infrastructure that relate to climate-measurement instruments. U.S. Army Corps of Engineers Decrease of $1 billion for the Harbor Maintenance Trust Fund Surplus, which finances operation and maintenance projects for ports and harbors nationwide. Decrease of $7 million to eliminate the Water Infrastructure Finance and Innovation Act program, which provides low-cost, long-term loans for non-Federal water infrastructure projects such as dam safety. U.S. Department of Homeland Security Decrease of $646 million for Federal Emergency Management Agency’s (FEMA) Non-Disaster Grant Programs, which provide assistance to submit applications and review and accept awards, among other things, to help prevent, respond to, and recover from various emergencies. Decrease of $491 million for Cybersecurity and Infrastructure Security Agency, which identifies and manages risk to the cyber and physical infrastructure. This includes water and wastewater systems that provide critical services like drinking water, fire suppression, and sanitation. For more information on the Trump Administration’s budget proposal and the appropriations process, please contact ACWA Federal Relations Director Ian Lyle at ianl@acwa.com.
