As such, financial information reported by the agencies on the  federal government’s financial support of freshwater programs in the  United States and abroad is an estimate of the minimum amount of funds  provided for these efforts. Federal Agencies Provided an Estimated $49 Billion for Domestic Freshwater Programs during Fiscal Years 2000 through 2004

Of the 27 agencies that provided about $49 billion in federal financial  support specifically for freshwater programs in the United States during  fiscal years 2000 through 2004, 3 agencies accounted for over 70 percent of  the total. EPA provided about 31 percent of the total support, the Corps  accounted for about 26 percent of the total, and Agriculture’s Rural Utilities  Service accounted for about 16 percent of the total. Domestic drinking water supply and wastewater treatment programs were  supported by 18 and 16 agencies, respectively. Grant programs and direct federal spending provided over $22 billion and  about $22 billion, respectively, for domestic freshwater programs. We also identified domestic programs that may provide financial support  for freshwater activities, but are not included in the $49 billion because  supporting freshwater activities is not the programs’ primary purpose and  activity-level data is not readily available. For the purposes of our review, we include  information on U.S. contributions to these commissions in the same  section as the information for domestic freshwater programs because these  projects are joint efforts among the United States, Canada, and Mexico  along the shared borders; however, information on funding spent solely in  the United States by the commissions is not readily available. Federal Agencies Provided an Estimated $3 Billion for Freshwater Programs Abroad during Fiscal Years 2000 through 2004

Of the about $3 billion of U.S. financial support provided internationally for  freshwater programs during fiscal years 2000 through 2004, an estimated   $2 billion was spent throughout most of the world, and more recently  another $1 billion supported freshwater projects in Afghanistan and Iraq. Seven of the 8 agencies reported that they provided financial support for  wastewater treatment and watershed management programs abroad. The United States Also Provided Financial Contributions to Various International Organizations That Support Freshwater Programs

In addition to providing financial support directly through federal agencies  for freshwater programs abroad, the United States also indirectly supports  these programs through its contributions to numerous international  organizations (e.g., the United Nations and the World Bank). For the purpose of our  review, we examined freshwater programs that support desalination;  drinking water supply; flood control; irrigation; navigation (primarily for  river-based transportation); wastewater treatment; water conservation;  water dispute management; and watershed protection, restoration, and  management activities. The agency also receives financial support from other federal  agencies—such as Commerce’s National Oceanic and Atmospheric  Administration and the Corps—to support domestic freshwater programs,  including watershed management, irrigation, and water conservation. Consequently, the department supports multiple types of  freshwater programs. Each of the  388 national parks is responsible for management activities in the park. U.S. Agency for International Development: $1.8 Billion

The U.S. Agency for International Development is an independent federal  agency created under the Foreign Assistance Act of 1961, as amended. Some portion of the general budgets of  these organizations was used to support freshwater projects around the  world.
Why GAO Did This Study

As the world's population tripled during the past century, demand for the finite amount of freshwater resources increased six-fold, straining these resources for many countries, including the United States. The United Nations estimates that, worldwide, more than 1 billion people live without access to clean drinking water and over 2.4 billion people lack the basic sanitation needed for human health. Freshwater supply shortages--already evident in the drought-ridden western United States--pose serious challenges and can have economic, social, and environmental consequences. Multiple federal agencies share responsibility for managing freshwater resources, but consolidated information on the federal government's financial support of these activities is not readily accessible. GAO was asked to determine for fiscal years 2000 through 2004 how much financial support federal agencies provided for freshwater programs in the United States and abroad. For the purposes of this report, freshwater programs include desalination, drinking water supply, flood control, irrigation, navigation, wastewater treatment, water conservation, water dispute management, and watershed management.

What GAO Found

Of the over $52 billion in total financial support provided by federal agencies for freshwater programs during fiscal years 2000 through 2004, about $49 billion was directed to domestic programs and about $3 billion supported programs abroad. Domestic program activities involved 27 federal agencies, but 3 agencies--the Environmental Protection Agency, the Army Corps of Engineers, and the Department of Agriculture's (Agriculture) Rural Utilities Service--accounted for over 70 percent of the financial support. Eighteen agencies supported domestic drinking water supply programs and 16 supported domestic wastewater treatment and watershed management programs. Grant programs of over $22 billion and direct federal spending of about $22 billion accounted for most of the domestic financial support. In addition to the about $49 billion that directly support freshwater activities in the United States, some agencies also have programs that may indirectly support such activities, but it is difficult to determine the dollar value of this indirect support. For example, Agriculture's Conservation Reserve Program supports multiple activities, including irrigation, but information on each activity supported by the program is not readily available. Also included in the domestic program is about $175 million that the United States provided to three commissions that conduct freshwater activities along U.S. borders with Mexico and Canada. Of the estimated $3 billion in total financial support directed toward freshwater programs abroad between fiscal years 2000 through 2004, about $1 billion was recently provided for freshwater projects in Afghanistan and Iraq. Most of the financial support for international freshwater programs was provided by the U.S. Agency for International Development. Foreign wastewater treatment and watershed management programs were the ones that most of the agencies supported. The vast majority of the U.S. support for international programs was provided through grants. Not included in the $3 billion for international support are the contributions that the United States made to the general budgets of numerous international organizations, such as the United Nations and the World Bank. The international organizations used some portion of the U.S. contributions to support freshwater activities around the globe.