New administration, Congress to carry water policy implications

The top story in the Association of Metropolitan Water Agencies (AMWA) November 11 Monday Morning Briefing newsletter, written by Chief Policy Officer Dan Hartnett, outlines the pending opportunities and challenges for water policy in a shifting political landscape.

Voters’ decision to return former President Donald Trump to The White House, combined with Republicans regaining control of the U.S. Senate and appearing positioned to hold on to the House of Representatives majority, promises to alter the course of water policy over the next four years.

Though major issues related to drinking water policy did not make the cut for inclusion in the Trump campaign agenda or the Republican Party platform, there have been clues about how the incoming administration may address key water policy topics. Perhaps most notably, a Trump campaign advisor recently pledged that his administration would “advise all U.S. water systems to remove fluoride from public water.” There are several ways the incoming administration could pursue this, such as abiding by a recent district court order to regulate the contaminant under the Toxic Substances Control Act or utilizing emergency powers under the Safe Drinking Water Act that allow the EPA Administrator to take actions to address a contaminant that “may present an imminent and substantial endangerment to the health of persons.”

The incoming Trump administration will also positioned to shape EPA’s regulatory agenda for the next four years. To start, the incoming administration could impose a regulatory freeze on January 20 – much like the Biden administration did four years ago – to halt the implementation of pending or recently-enacted regulations. With an effective date of December 30, 2024, the recently-finalized Lead and Copper Rule Improvements appear to be out of reach of a freeze, but other pending regulations could be paused or scrapped altogether. These include heat injury and illness prevention rules proposed by OSHA and upcoming Effluent Limitation Guideline proposals that aim to limit PFAS discharges by various industries.

President Trump’s EPA will have an opportunity to put its stamp on several major drinking water rules anticipated in 2025. The Microbial/Disinfection Byproducts rule revisions and a perchlorate National Primary Drinking Water Regulation are mandated by court orders and, therefore, will likely move ahead under President Trump, but each proposal will likely look much different than it would have under a Harris administration. EPA must also propose the Sixth Unregulated Contaminant Monitoring Rule or UCMR6 by late 2025, and the Trump administration may propose the inclusion of a narrower array of contaminants for monitoring than might otherwise be included.

Less likely to be affected by the change in administration is AMWA and AWWA’s ongoing legal challenge to EPA’s drinking water regulations for several PFAS. EPA’s substantive arguments on the case must be filed with the court before the end of President Biden’s term, and the agency is expected to continue to defend the rule in court even after President Trump takes office.

One notable plank of the Republican platform was a pledge to “Protect Critical Infrastructure,” with efforts to “raise the Security Standards for our Critical Systems and Networks and defend them against bad actors.” This could align with AMWA’s efforts to expand water systems’ access to WaterISAC and explore baseline cybersecurity preparedness guidelines for water systems.

On Capitol Hill, Republicans gained control of the Senate, securing at least 53 seats in the chamber. While short of a filibuster-proof majority, the GOP will control the policy agenda. This could be good news for AMWA-backed legislation to protect drinking water and wastewater systems from CERCLA liability related to the cleanup of PFAS from drinking water residuals. Sen. Shelley Moore Capito (R-W.Va.) is in line to chair the Environment and Public Works Committee next year and has expressed support for the legislation – which could ease its path through the Senate.

Conversely, a Republican Senate could complicate efforts to advance legislation to stand up a new assistance program for low-income water ratepayers or increase funding for EPA and its water infrastructure investment programs.

A similar story could play out in the House; as of late last week, Republicans appeared on track to maintain their slim majority in the chamber, though numerous key races remained uncalled. Should Republicans hold the House, lawmakers would likely mirror their current approach of proposing drastic spending cuts for EPA and other federal agencies, which would lead to a constrained budget for water infrastructure funding programs and complicate efforts to extend elevated levels of investment through the BIL. House Republican leaders would also focus on tax reform as a number of key tax policies are set to expire during the 119th Congress. Such a Republican tax bill could present a vehicle to carry the FLOW Act (AMWA-backed legislation to cut red tape related to lead service line replacements) or other tax policy priorities to promote water efficiency.

A Republican House would also head off anticipated efforts by Democrats to overhaul sections of the Safe Drinking Water Act that govern EPA’s regulation of drinking water contaminants. Some influential House Democrats have looked favorably on the idea of weakening the cost-benefit analysis requirements currently part of the regulatory process, in order to expedite promulgation of new regulations. In a Democratic House, AMWA would need to be prepared to devote significant resources to defending the current regulatory process, but any legislation along those lines would have very little chance of making it to the floor in a Republican-controlled chamber.

In the near term, Republican control of the House and Senate could reduce the likelihood of the current Congress finalizing FY25 spending legislation before the end of the year. An extension of FY24 funding levels for EPA and other federal agencies is scheduled to expire on December 20, and lawmakers had been planning to negotiate a final omnibus FY25 spending plan before departing for the holidays. However, if Republicans expect to control both chambers of Congress, along with the White House next year, they may instead push to delay consideration of the final FY25 appropriations package into the new year and use the opportunity to dial back funding for certain departments and programs. How this scenario would affect FY25 appropriations for several water infrastructure programs at EPA remains to be seen, but the agency would almost certainly face a more constrained budget going forward.

However, the Heritage Foundation’s widely-discussed Project 2025 policy agenda suggests that increased funding for EPA’s water infrastructure programs could win the support of conservatives during the Trump Administration. The document’s chapter on EPA policy calls the State Revolving Fund programs “underfunded,” and says water infrastructure is “one very targeted area where increased spending would be in the nation’s interest.”

As the nation’s path becomes apparent in the coming weeks and months, AMWA will continue to work across both sides of the aisle to represent and promote the interests of the nation’s largest publicly owned drinking water systems. The association will engage with President Trump’s transition team, make connections with incoming members of Congress, and work to set the tone for a productive working relationship with all policymakers.?