Water Supply and Sewage Treatment NAICS 221310, 221320

Jan 23, 2026 - Senate Approves EPA Budget

• In mid-January, the Senate approved an $8.8 billion EPA budget, which heads to President Trump's desk, according to Waste Dive. The budget offers mixed implications for water utilities, preserving core water quality and infrastructure programs while keeping overall funding historically constrained. The bill maintains support for PFAS research, drinking water safety initiatives and grants for well owners, and it directs new work on PFAS management in agricultural settings, all of which shape future regulatory and treatment requirements for utilities. Although the budget is 4% lower than last year and includes a steep cut to Superfund, it still provides more stability than the deeper reductions previously proposed by the White House. However, the agency’s reduced staffing levels after last year’s reorganization could slow permitting, oversight and technical guidance that water utilities rely on.
• In late November, the EPA announced it would distribute $3 billion in new Drinking Water State Revolving Fund assistance and reallocate $1.1 billion in unused funds to speed removal of lead service lines, according to Engineering News-Record. The move ties allocations more closely to updated state inventories that significantly reduced the national estimate of remaining lead pipes. The agency said the revised data, which show about 4 million lead lines nationwide, will help utilities plan more efficiently and ensure funding reaches systems with verified needs. The money, provided through the Infrastructure Investment and Jobs Act, can support locating, planning, design and full replacement work, and states must update spending plans to qualify for additional allocations. Water-sector groups welcomed the shift, saying data-driven funding improves fairness and strengthens implementation as utilities refine inventories, prepare capital plans and face long-term replacement obligations that contribute to an estimated $625 billion in drinking water infrastructure needs.

• The Trump administration has proposed limiting the Environmental Protection Agency’s authority to regulate pollution in wetlands, rivers, and streams, according to The New York Times. The move could strip protections from up to 55 million acres of wetlands and threaten clean drinking water supplies. By narrowing the definition of protected waters to those with year-round or seasonal flow, the rule would exclude many intermittent and ephemeral streams, which provide more than half of the water flowing through river systems used for drinking supplies. The proposal follows the 2023 Supreme Court decision in Sackett v. EPA, which reduced federal oversight. Environmental groups warn the changes could lead to unsafe water and higher treatment costs, while industry groups, including agriculture, home builders, oil drillers, and real estate developers, suggest the change will reduce regulatory burdens.
• The Environmental Business Journal estimates the 30-year market potential for managing PFAS contamination at $132 million, the lowest projection since 2019, reflecting regulatory shifts under the Trump administration, according to Waste Dive. While remediation is expected to dominate at nearly $88 million, drinking water and wastewater spending are projected at $24 million and $20 million, respectively. Despite muted forecasts, companies are expanding capacity, with SGS quadrupling PFAS testing and Veolia pledging more than 100 treatment sites, including a $35 million drinking water facility in Delaware. Recent EPA tests confirmed destruction efficiencies of 99.9999% for certain PFAS chemicals, but mixed regulatory actions, including limits on wastewater sludge oversight, create uncertainty. The evolving landscape highlights both challenges and opportunities for utilities tasked with safeguarding drinking water and managing sewage treatment amid rising demand for PFAS solutions.