Watchdog: Some states struggle with water infrastructure funds

By Miranda Willson | 02/27/2024 04:30 PM EST

The ability of states to effectively manage federal grants is crucial for the success of the infrastructure funds, EPA’s Office of Inspector General said.

Interest in EPA's low-interest loans for water infrastructure improvements has hit a record high.

The 2021 infrastructure law allocated $30 billion to the Drinking Water State Revolving Fund to help states address water challenges. Steve Johnson/Flickr

As states prepare to spend billions in federal funds on water infrastructure, some are having a hard time finding staff and securing matching dollars, EPA’s internal watchdog said Tuesday.

The 2021 infrastructure law allocated an unprecedented $30 billion to the Drinking Water State Revolving Fund to help states address water challenges, including contamination from lead and chemicals. But some states are facing obstacles now as they look to spend the money, according to a report from EPA’s Office of Inspector General.

The ability of states to effectively manage federal grants is crucial for the success of the infrastructure funds, Paul Bergstrand, assistant inspector general for special review and evaluation, said in a statement.

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“This report describes opportunities for the EPA to help states overcome obstacles that may result in decreased investment for critical drinking water infrastructure projects,” Bergstrand continued.

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