	Introduction

Waste discharges from municipal sewage treatment plants into inland and coastal waters are a significant source of water quality problems throughout the country. The collection and treatment of wastewater remains among the most important public health interventions in human history and has contributed to a significant decrease in waterborne diseases during the past century. Background

The Clean Water Act (CWA) establishes performance levels to be attained by municipal sewage treatment plants in order to prevent the discharge of harmful quantities of waste into surface waters and to ensure that residual sewage sludge meets environmental quality standards. Estimated Funding Needs

Although Congress has provided more than $104 billion in CWA assistance since 1972, funding needs for wastewater infrastructure remain high. According to the most recent estimate by EPA and the states, the nation's wastewater treatment facilities will need $271 billion over the next 20 years to meet the CWA's water quality objectives. Funding for Wastewater Treatment Activities

In addition to prescribing municipal treatment requirements, the CWA authorizes the principal federal program to support wastewater treatment plant construction and related eligible activities. Congress established this program in the Federal Water Pollution Control Act Amendments of 1972 (P.L. 92-500), significantly enhancing what had previously been a modest grant program. In both FY2016 and FY2017, Congress provided $1.394 billion for the CWSRF program. However, funding for the CWSRF program increased by about 22% in FY2018. 115-141 ), provided $1.694 billion to the CWSRF program. Clean Water State Revolving Fund Program

The CWSRF program represented a major shift in how the nation finances wastewater treatment needs. In contrast to the Title II construction grants program, which provided grants directly to localities, CWSRFs are loan programs. States use their CWSRFs to provide several types of financial assistance to communities, including project construction loans made at or below market interest rates, refinancing of local debt obligations, providing loan guarantees, and purchasing insurance. States may also provide additional loan subsidies (including forgiveness of principal and negative interest loans) in certain instances. The CWA identifies a number of types of projects and activities as eligible for CWSRF assistance. Water Infrastructure Finance and Innovation Act program

The Water Infrastructure Finance and Innovation Act of 2014 (WIFIA) program provides another source of financial assistance for water infrastructure. Congress established the WIFIA program in WRRDA. For FY2018, the Consolidated Appropriations Act, 2018 ( P.L. EPA estimated that its budget authority ($55 million) would provide approximately $5.5 billion in credit assistance. Issues debated in connection with these bills included extending CWSRF assistance to help states and cities meet the estimated funding needs, modifying the program to assist small and economically disadvantaged communities, and enhancing the CWSRF program to address a number of water quality priorities beyond traditional treatment plant construction—particularly the management of wet weather pollutant runoff from numerous sources, which is the leading cause of stream and lake impairment nationally. The 113 th Congress enacted considerable changes to the CWSRF provisions in 2014 ( P.L. 113-121 ).
The collection and treatment of wastewater remains among the most important public health interventions in human history and has contributed to a significant decrease in waterborne diseases during the past century. Nevertheless, waste discharges from municipal sewage treatment plants into rivers and streams, lakes, and estuaries and coastal waters remain a significant source of water quality problems throughout the country.
The Clean Water Act (CWA) establishes performance levels to be attained by municipal sewage treatment plants in order to prevent the discharge of harmful wastes into surface waters. The act also provides financial assistance so that communities can construct treatment facilities and related equipment to comply with the law. Although approximately $104 billion in CWA assistance has been provided since 1972, funding needs for wastewater infrastructure remain high. The Environmental Protection Agency (EPA) estimates that the nation's wastewater treatment facilities will need $271 billion over the next 20 years to meet the CWA's water quality objectives.
The CWA authorizes the principal federal program to support wastewater treatment plant construction and related eligible activities. Congress established the CWA Title II construction grants program in 1972, significantly enhancing what had previously been a modest grant program. In 1987, Congress amended the CWA and created the Clean Water State Revolving Fund (CWSRF) program. This program represented a major shift in how the nation finances wastewater treatment needs. In contrast to the Title II construction grants program, which provided grants directly to localities, CWSRFs are loan programs. States use their CWSRFs to provide several types of loan assistance to communities, including project construction loans made at or below market interest rates, refinancing of local debt obligations, providing loan guarantees, and purchasing insurance.
In 2014, Congress revised the CWSRF program by providing additional loan subsidies (including forgiveness of principal and negative interest loans) in certain instances (P.L. 113-121). In addition, the 2014 act increased the types of projects eligible for CWSRF assistance.
In both FY2016 and FY2017, Congress provided $1.394 billion for the CWSRF program. However, funding for the program increased by 22% in FY2018. The Consolidated Appropriations Act, 2018 (P.L. 115-141) provided $1.694 billion to the CWSRF program.
In addition, Congress established the Water Infrastructure Finance and Innovation Act (WIFIA) program in 2014 (P.L. 113-121). WIFIA provides direct loans for an array of water infrastructure projects, including CWSRF-eligible projects. EPA issued its first WIFIA loan in April 2018. In FY2018, Congress appropriated $63 million to EPA for the WIFIA program (roughly double the FY2017 appropriation). EPA estimates that this funding will provide approximately $5.5 billion in credit assistance.
Policymakers have continued to propose changes to wastewater infrastructure funding programs. Issues debated in connection with these proposals include extending CWSRF assistance to help states and cities meet the estimated funding needs, modifying the program to assist small and economically disadvantaged communities, and enhancing the CWSRF program to address a number of water quality priorities beyond traditional treatment plant construction—particularly the management of wet weather pollutant runoff from numerous sources, which is the leading cause of stream and lake impairment nationally.