S.1760 - Restoring WIFIA Eligibility Act of 2025 (119th Congress)
Summary
S.1760, the Restoring WIFIA Eligibility Act of 2025, aims to amend the Water Infrastructure Finance and Innovation Act (WIFIA) of 2014. The bill focuses on the budgetary treatment of financial assistance provided under WIFIA. Specifically, it addresses how these funds are accounted for when the recipient is not a federal entity and the repayment comes from non-federal revenue sources.
The bill stipulates that such financial assistance should be treated as non-federal for budgetary purposes. It also classifies the assistance as either a direct loan or a loan guarantee under the Federal Credit Reform Act of 1990.
This adjustment seeks to clarify the budgetary impact of WIFIA projects, potentially encouraging more non-federal entities to participate in water infrastructure projects by streamlining the financial processes and reducing perceived bureaucratic hurdles.
Expected Effects
The primary effect of this bill would be to alter the budgetary treatment of WIFIA funds when they are allocated to non-federal entities and repaid with non-federal revenue. This change could make WIFIA financing more attractive to state and local governments and other non-federal entities.
By classifying these funds as non-federal and defining them as direct loans or loan guarantees, the bill aims to simplify the accounting and management of WIFIA projects. This could lead to increased investment in critical water infrastructure projects across the country.
Ultimately, the bill intends to promote more efficient and effective use of federal resources in supporting local and regional water infrastructure improvements.
Potential Benefits
- Increased Investment in Water Infrastructure: By making WIFIA more accessible to non-federal entities, the bill could stimulate greater investment in essential water infrastructure projects.
- Reduced Bureaucratic Hurdles: Streamlining the budgetary treatment may reduce administrative complexities, encouraging more participation from local governments and other eligible entities.
- Improved Water Quality and Reliability: Enhanced infrastructure can lead to better water quality, more reliable water delivery systems, and reduced risk of water-related emergencies.
- Economic Development: Water infrastructure projects can create jobs and stimulate economic activity in local communities.
- Greater Local Control: By emphasizing non-federal revenue sources, the bill promotes local autonomy and financial responsibility in managing water resources.
Potential Disadvantages
- Potential for Increased Local Debt: Non-federal entities taking on WIFIA loans may increase their debt burden, potentially straining local budgets.
- Risk of Project Delays or Failures: Even with streamlined processes, complex infrastructure projects can face delays or failures, leading to financial losses.
- Limited Scope: The bill focuses narrowly on budgetary treatment and may not address other barriers to WIFIA participation, such as technical expertise or project planning capacity.
- Possible Unintended Consequences: Altering budgetary treatment could have unforeseen impacts on federal budget accounting and oversight.
- Dependence on Non-Federal Revenue: Reliance on local revenue streams could make projects vulnerable to economic downturns or changes in local priorities.
Constitutional Alignment
The bill appears to align with the Constitution, particularly concerning Congress's power to regulate interstate commerce (Article I, Section 8). Water infrastructure projects often have implications for interstate water resources and economic activity. The bill does not seem to infringe upon any specific individual rights or liberties protected by the Bill of Rights.
Furthermore, the bill's focus on financial assistance and budgetary treatment falls within Congress's authority to manage federal finances and allocate resources for public purposes (Article I, Section 8, Clause 1: the power to lay and collect taxes, duties, imposts and excises, to pay the debts and provide for the common defense and general welfare of the United States).
However, the extent of federal involvement in local water projects could raise questions about the balance of power between the federal government and the states, as outlined in the Tenth Amendment. The bill's emphasis on non-federal revenue sources mitigates this concern to some extent.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).