Background

Water infrastructure is foundational to public health, environmental protection, economic growth, and community resilience. Utilities support communities and critical sectors such as healthcare, energy, manufacturing, housing, and education, yet their value is often under-recognized because systems operate largely out of public view.

To address current and emerging global water challenges and implement circular water practices, the sector needs increased, sustained, and reliable funding and financing for wastewater, drinking water, water reuse, and stormwater infrastructure. Although these needs are well documented, they are not widely recognized outside the sector because water systems are often underground, reliable, and invisible until failures occur. Utilities also face rising costs from aging infrastructure, evolving regulatory requirements, PFAS and other emerging contaminants, cybersecurity risks, and climate change.

Studies show broad consensus that water infrastructure faces significant and growing funding shortfalls worldwide. For example, the U.S. needs surveys estimate $1.2 Trillion in capital investment over the next twenty years, while the Value of Water Campaign estimates $3.4 Trillion for capital improvements and $4.3 Trillion for operations and maintenance. Circular water approaches could unlock up to $47 billion annually, but achieving these outcomes will require increased investment from federal, state, local, private, and innovative sources.

Without significant, intentional, long-term investment in water infrastructure and circular water approaches, communities will face increasing risks to public health and the environment, especially rural, tribal, and economically disadvantaged populations. Historically water services have often been undervalued and underpriced relative to the full cost of maintaining and upgrading infrastructure. While affordability remains essential, long-term sustainability requires funding that reflects the full lifecycle cost of service, including workforce, operations, maintenance, and future system replacement.

Position

The water sector needs increased and more reliable funding and financing of water infrastructure to close the infrastructure funding gap. Governments and stakeholders at all levels must be engaged to address these challenges. WEF supports the following:

Core Water Infrastructure Funding Principles
- Water infrastructure is essential and must be prioritized as a foundational, anchor investment for public health, economic development, and environmental protection.
- Sustainable funding requires contributions from all levels of government, utilities, and the private sector.
- Funding strategies should include innovative and flexible financing approaches, including public-private partnerships and community-based solutions.
- Investment decisions should reflect the full lifecycle cost of infrastructure systems.
- Support investments that advance a circular water economy, including water reuse, resource recovery, sustainable system design, efficiency, and innovation.
- Support workforce development investments to ensure capacity to plan, design, build, and operate water systems, while advancing career pathways, competitive compensation, and long-term workforce stability.
Sustained Funding and Financing
- National governments should increase and sustain funding and financing support for water infrastructure as a national security priority.
- Stable, predictable, and long-term funding mechanisms are critical to effective infrastructure planning and investment.
- Governments and stakeholders should expand the use of innovative financing mechanisms, including public-private partnerships (P3s), to complement traditional funding sources.
- Revenues generated from water utilities should be preserved for water infrastructure investment and system sustainability.
- Governments and utilities should promote transparency, accountability, and responsible financial management.
Addressing Affordability Challenges
- Policies should ensure access to safe and affordable water services for all communities.
- Affordability challenges should be addressed through targeted assistance programs for low-income households, rather than broadly suppressing utility rates.
- Utilities should have flexibility to design equitable and sustainable rate structures, including approaches that reflect different usage and value profiles where appropriate.
Water Sector Coordination and Advocacy
- WEF supports coordination across water sector organizations and stakeholders to strengthen advocacy and drive collective action.
- Education and public awareness efforts should be expanded to increase understanding of water infrastructure needs and costs.
Policy Priorities Specific to the United States
- Federal and state governments should protect, sustain, and strengthen State Revolving Fund (SRF) programs as a cornerstone of water infrastructure financing.
- Congress should ensure that congressionally directed spending (earmarks) does not reduce or divert dedicated SRF funding and should consider funding such projects through separate or additional appropriations.
- Earmarked projects should, where applicable, be coordinated with state processes to ensure effective and appropriate investment.
- Congress and other federal governments should maintain or create tax incentives that support water infrastructure investments, including preserving tax-exempt municipal bonds and credits for industrial water reuse projects.
- Federal funding programs should be structured to improve access for disadvantaged communities, including those that may face barriers due to administrative burden to programs such as the Water Infrastructure Finance and Innovation Act (WIFIA).
- Federal funding programs should support the full lifecycle costs of water infrastructure, including planning, design, asset management, rehabilitation, replacement, and resilience improvements.
- Increased funding appropriations are necessary to meet documented infrastructure needs.

Alignment With WEF’s Mission and Critical Objectives

Since 1928, WEF and its members have created products and services for water and wastewater professionals. As a global water sector leader, our mission is to inspire the water community in pursuit of human and environmental well-being to create a life free of water challenges. The water infrastructure funding position statement aligns with WEF’s mission and the following WEF Strategic Goals:

Attract and develop a diverse and passionate water workforce.
Leading the transformation to a Circular Water Economy.
Cultivate a purpose-driven community to sustainably solve water challenges for all.