Water Supply and Sewage Treatment NAICS 221310, 221320

May 26, 2026 - EPA Scales Back PFAS Drinking Water Limits

• According to The New York Times, the Trump administration plans to roll back federal limits on certain PFAS, or “forever chemicals,” in drinking water, reversing parts of stricter Biden-era rules that linked the substances to numerous health problems. The Environmental Protection Agency (EPA) will rescind limits on four PFAS and retain restrictions on two, while allowing utilities up to two extra years to comply. Officials, including EPA Administrator Lee Zeldin and Health and Human Services Secretary Robert F. Kennedy Jr., said the changes correct legal flaws and could lead to stricter future rules, while also committing nearly $1 billion to help states address contamination. Environmental advocates and some supporters criticized the move as weakening protections, noting PFAS are widespread in US water supplies and persist in the human body.
• A coalition of 28 water, engineering, manufacturing, and environmental organizations is urging Congress to boost federal investment in water infrastructure as work begins on fiscal 2027 spending bills, according to WaterWorld. In a letter to House and Senate appropriators, the groups called for sustained funding for drinking water and wastewater systems, PFAS remediation, lead service line replacement, cybersecurity, water reuse, and affordability programs. Signatories included major industry associations and the US Chamber of Commerce. The coalition emphasized strengthening key financing tools, addressing aging infrastructure, and supporting resilience against cyber threats. It also highlighted the need for investment tied to economic growth, while preserving municipal bond tax exemptions and expanding financing flexibility for utilities facing rising regulatory and infrastructure costs.

• According to FMI’s second-quarter 2026 North American Engineering and Construction Outlook, US water supply construction spending is projected to rise 5% in 2026 over 2025, supported by multiple structural demand drivers and long-term investment cycles. Growth is fueled by population increases, expanding industrial activity, and rising water needs from data centers and semiconductor facilities, which are pushing utilities to invest in storage expansion, treatment upgrades, and non-potable reuse systems. Lead service line replacement programs under the Lead and Copper Rule are moving into active construction, establishing a multidecade spending pipeline. At the same time, utilities are prioritizing resilience and supply reliability through investments in aquifer storage, desalination and water recycling, particularly in Western and Sun Belt regions. However, project timelines face pressure from permitting delays, right-of-way constraints and workforce competition, while uncertainty around federal Drinking Water State Revolving Fund allocations may affect funding.
• Engineering News-Record reports that the Waterways Council Inc. launched a May 6 campaign urging creation of an Inland Navigation Construction Organization within the US Army Corps of Engineers to oversee lock and dam projects nationwide. The group argues that a single, coordinated program would improve accountability, cut costs, and reduce delays compared with the current geography-based approach. A study released in February by engineering firm HDR found centralized management could boost efficiency, while leaders say long timelines, such as the $1.6 billion Montgomery Lock and Dam project, highlight the need for reform. Despite advances in construction methods and technology, projects still face delays and overruns. A bipartisan group of 37 lawmakers has reviewed the proposal, and Congress is considering potential action later this year.