Restoring WIFIA Eligibility Act of 2025

S. 1760 would modify how the federal government accounts for water infrastructure loans provided through the Water Infrastructure Finance and Innovation Act (WIFIA) program. Currently, some water projects that are managed and funded primarily by state and local entities have been classified as federal projects for budgeting purposes, making them ineligible for WIFIA loans, which are restricted to non-federal borrowers. This bill would clarify that when a non-federal entity receives WIFIA financing and repays it using local or state revenues, the loan would be treated as non-federal for budgetary accounting purposes. This change would remove technical barriers that have prevented certain water infrastructure projects from accessing federal financing.

If enacted, the bill could expand access to low-interest federal loans for water and wastewater projects in states and communities. These projects could include water storage initiatives, drinking water systems, wastewater treatment facilities, and stormwater management projects. The bill is designed to help local governments and water utilities finance critical infrastructure improvements, particularly in western states facing drought and population growth pressures. The legislation is currently in committee and has not yet been voted on by the full Senate.