DENVER, CO, DECEMBER 13, 2016 -- President Obama on Saturday signed legislation that will allow the Water Infrastructure Finance and Innovation Act (WIFIA) program to begin making loans to tackle the nation's trillion-dollar water infrastructure challenge, a moment that drew praise from the American Water Works Association, which helped craft WIFIA.
"AWWA is thankful to all those members of Congress and water sector partners who championed WIFIA over the past several years," said Tracy Mehan, AWWA executive director of government affairs. "With more than $2 trillion needed to repair and expand water and wastewater infrastructure in the coming years, water utilities needed a smart new finance tool to help communities pay for large, critical water projects. Funding WIFIA is a tremendous step forward as we confront the nation’s water infrastructure challenge."
The legislation, H.R. 2028, was a continuing resolution to keep the federal government in operation until April 28. It also included $100 million in state revolving loan (SRF) funds to assist communities in which a water emergency had been declared, such as in Flint, Mich.
The money for WIFIA is available now since funding was already authorized in the original legislation creating the program in 2014. In previous fiscal years, Congress had only appropriated money for the U.S. Environmental Protection Agency to set up the program.
Of the $20 million appropriated for WIFIA, $3 million is to be used for administrative purposes, leaving $17 million to seed loans. WIFIA leverages federal dollars so that for every dollar Congress appropriates, $50 to $60 is expected to be loaned out. That means up to $1.02 billion could be available for loans.
The legislation creating WIFIA in 2014 actually authorizes $35 million in appropriations for 2017, and AWWA will continue to ask Congress to fully fund WIFIA to maximize its potential.
"Because WIFIA is a loan program, it strikes just the right balance between federal assistance and local responsibility," said AWWA CEO David LaFrance.
About AWWA
Established in 1881, the American Water Works Association is the largest nonprofit, scientific and educational association dedicated to managing and treating water, the world’s most important resource. With approximately 50,000 members, AWWA provides solutions to improve public health, protect the environment, strengthen the economy and enhance our quality of life.
RELATED ARTICLES
WIIN Act Passes
New poll shows strong bipartisan support for Water Infrastructure Bill
Congress Nears Passage of WIFIA, Flint Relief Measures
