The State Water Board is facing steep reductions in both federal and state grant funding for water infrastructure. With the federal Bipartisan Infrastructure Law (IIJA) funding ending after this fiscal year, staff projects an 84% reduction in federal dollars and a 79% reduction in state grant dollars for drinking water by FY 2027-28. The Safe and Affordable Drinking Water Fund is also entering a "gap year" with zero new appropriations projected for planning. Over 400 water systems remain on the state's failing list, and only about 153 are currently in the funding pipeline—meaning the need far outstrips available resources in the years ahead.
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