A Declining WIFIA Program Needs Amendments — Not More Funding, Narrative or Spin

What the WIFIA Loan Program does not need:

  • More funding in FY2026: The WH FY2026 Budget Proposal is correct, even understated, in saying that WIFIA has more than enough funding for FY26 credit subsidy from carryover of prior year’s unutilized discretionary appropriations. In fact, the amount, about $220 million if all pending loan applications close (unlikely), is enough for about $22 billion of new loans — more than 10 years of volume at the Program’s 2024 pace.
  • More ‘this is fine’ narrative: An October 2025 letter from four water advocacy groups to EPA’s Zeldin pushed for a resumption of WIFIA loan closings stalled by the OMB pause and Trump 2.0’s general federal upheaval. Okay — but the letter continued with a narrative implying that Trump 2.0 was the Program’s only problem and “[r]esuming the previous pace of WIFIA loan closings will create jobs across the nation and contribute toward the Administration’s goal of ensuring that Americans have access to the best water in the world.” Not exactly a realistic assessment.
  • More press release spin: It is standard practice for credit programs to issue a press release announcing annually available funding and inviting applications. So, no surprises in the EPA’s 11/20 PR re about $70 million of available credit subsidy funding (enough for roughly $7 billion of loan volume) — pretty much the same as it has been each year since 2020. Of course, ‘available’ doesn’t mean ‘will be utilized’ (most probably won’t unless WIFIA is improved) but still a standard announcement. What comes next is unusual — the Program also announced the approval of five loans in process — not their closing, just the approval. WIFIA loans have very high eligibility standards — is it news that an investment-grade loan to a low-risk water infrastructure project is approved? Not really — closing a high-grade project finance loan is the hard part and that’s likely still uncertain for some (if not all) of the five loans, depending on how their alternatives look over the next few months. Perhaps the real ‘news’ is simply that OMB is finally starting to process loans again? It’d be fair to note that in the PR (maybe a sentence), but the approvals were played up, including in the water press, as if it represented a major success. Yes, OMB doing their job again is necessary for WIFIA’s renewal — but far from sufficient.

Don’t get me wrong — adequate WIFIA funding, a strong narrative about Program capabilities, and press releases that highlight successes are important elements in realizing real-world policy outcomes. I get it. But under WIFIA’s current circumstances, sole focus on them poses a danger of camouflaging serious issues and fostering a ‘mission accomplished’ mindset for actions that are only marginally useful or even irrelevant.

What WIFIA does need now:

  • Calm and realistic consideration of the Program’s strengths and weaknesses using data and analysis of its operational results 2018-2024.
  • Development of an overall plan of reform and improvement by amendment, especially in the context of two other sources of federally subsidized water infrastructure finance — SRFs and the tax-exempt water & sewer bond market.
  • Immediate action by way of support for the proposed 55-year loan term amendment currently in Congress.