Mary Scott NabersAlthough the federal government’s fiscal year 2025 ends in September, Congress has not enacted a 2026 budget. Federal agencies are operating under a ‘continuing resolution’ that provides funding for 2025 and the uncertainty of funding for 2026 makes planning very difficult.
Public officials at the state and local levels of government hope to see a new budget soon and one with adequate funding support that allows them to protect and modernize public infrastructure. However, without a final budget, nothing is certain yet.
It currently appears that funding will be available for roads and bridges, energy systems, and ports, but funding for much needed upgrades to water infrastructure could be totally inadequate. Safeguarding vital water resources from escalating environmental hazards is more critical now than ever. Without immediate upgrades, flooding and water shortages are major risks.
The U.S. Department of Transportation has requested $147 billion with $72.6 billion earmarked for roadway and bridge projects. Dedicated funding programs such as the Bridge Investment Program and PROTECT grants, if continued, will provide billions more for targeted resilience projects and weather-related needs.
Despite a very significant anticipated reduction in overall discretionary funding for the U.S. Department of Energy, key resilience efforts are expected to remain active. More than $3.5 billion should be available for projects designed to protect the electric grid, support microgrids and bury power lines.
The American Society of Civil Engineers (ASCE) continues to warn of a $3.7 trillion infrastructure investment gap over the next decade. Hundreds of roadways are rated in poor condition, thousands of bridges are considered structurally deficient, and legacy power systems face mounting stress from storms. Water infrastructure has needs just as crucial but there is concern about funding related to water projects.
Cuts to the U.S. Environmental Protection Agency’s (EPA) discretionary budget by more than 50% will put greater stress on water infrastructure. If the EPA’s two flagship financing mechanisms, the Clean Water and Drinking Water State Revolving Funds programs, are reduced or dismantled, that will greatly impact planned water projects nationwide.
Sweeping cutbacks could put thousands of community-level projects at risk, including those aimed at reducing lead exposure in water, managing stormwater flooding, remediation of PFAS contamination, and upgrading aging wastewater systems. Meanwhile, EPA’s Water Infrastructure Finance and Innovation Act (WIFIA) program could have its funding reduced to only $8 million which would limit access to low-cost, large-scale project financing.
The Bureau of Reclamation’s proposed 2026 budget eliminates investments in WaterSMART grants, ecosystem restoration programs, and drought mitigation projects. With water systems experiencing aquifer shrinking, saltwater intrusion, infrastructure failure, and intensifying natural disasters, it is difficult to understand why Congress would allow economic risks and the public health stability of millions of Americans, but that is a possibility.
On a lighter note, sustainability projects are continuing to launch throughout America, and many are funded in part by local budgets.
City leaders in West Haven, Connecticut, will oversee a $13.85 million project to construct a floodwall around a water pollution control plant to safeguard the facility from tidal flooding and storm surges. The floodwall plan will call for the installation of steel sheet piles that form a robust and watertight barrier capable of withstanding abnormal lateral pressure from water. A reinforced concrete base will anchor the floodwall and provide structural support. Floodgates will be added into key access points to allow for operational activity and protect the infrastructure during extreme weather events. These new protective upgrades will encompass both the main treatment plant and a nearby pumping station, protecting both from saltwater intrusion. Several other accommodations will provide protection from other long-term environmental risks. Construction is scheduled to launch between mid-to-late 2026.
A $20 million major water infrastructure upgrade is planned for Laredo, Texas. The project’s objective will be to modernize the city’s aging water systems and support long-term resilience. The effort is part of the city’s commitment to ensure that its public assets can withstand future extreme weather events. Infrastructure upgrades will include strong design components to address sustainability, system durability, and operational resilience. Currently, this project is in the early coordination and design phase, and planning activities are expected to continue into 2026. Procurement solicitations will be released at the conclusion of the planning and design phases.
A $33 million climate resilience initiative will soon launch in Snohomish County, Washington, focusing on the Snohomish River Basin. The work will include various types of infrastructure improvements to address floodplain restoration, habitat protection, and agricultural viability. When completed, the effort will maximize ecological benefits and enhance protection for surrounding communities. Planning documents outline 13 infrastructure sites in the floodplain that will be reconnected, the restoration of 28.5 miles of river corridors, and improvements to 480 acres of working land to protect habitat and ensure climate resilience.
Public engagement and an environmental review for the project will be ongoing throughout 2025. With funding secured, and the design coordination currently in progress, solicitation documents are expected in 2026, and work will begin as soon as contracting partners are selected.
Members of the Harris County Flood Control District have announced a project to deliver two stormwater detention basins along Cypress Creek in Texas. This work will be the final effort of a larger channel rehabilitation Initiative to protect approximately 40,000 citizens from recurring flood risk. The Senger stormwater detention basin carries an estimated cost of $39.9 million, but when completed it will hold 483 acre-feet of stormwater.
The work will include modifications to 4,300 feet to the main stem of Cypress Creek east of I-45.
The Cypress Hill stormwater detention basin carries a projected cost of $15.7 million and, when completed, it will be capable of holding 148 acre-feet of stormwater. This work will include modifications to 3,000 feet to the main stem of Cypress Creek near Kuykendahl Road. Combined, the two basins will reduce the peak creek flow by up to one foot of water. The two projects are funded by federal community block grants and matching local funds and both are currently in the design phase. Solicitations for construction services for both are planned for early 2026.
The California Department of Transportation (Caltrans) has plans for a $18.9 million roadway improvement project. It will be designed to mitigate frequent flooding and improve long-term roadway resilience along State Route 245 in Tulare County. The project is primarily a culvert rehabilitation effort that will replace approximately 150 culverts along 33 miles of roadway. The work will improve drainage flows and provide resiliency and mobility in the transportation corridor. The existing culverts in this area have deteriorated and now have rust, joint separations, and built-up sediment – conditions that increase the risk of flooding and hazardous driving conditions during storm events. The erosion and damage caused by the water also causes erosion, pavement damage and the risk of sinkholes.
The rehabilitation project will require durable materials including cured-in-place pipe liners and reinforced concrete. When completed, the drainage system will restore full hydraulic capacity, reduce sediment and debris buildup, and protect the roadway. Caltrans plans to advertise construction bids in Fall 2025 and construction is scheduled for 2026.
Officials in Henrico County, Virginia, have plans to launch a $328 million regional water system expansion project. The objective will be to improve climate resilience and provide long-term water availability for the Richmond area. The expansion will enhance capacity and reliability at the current water treatment plant by the construction of 13 miles of 48-inch transmission mains with the capacity to supply more than 21 million gallons of water daily to homes and businesses. This project resulted from the regional vulnerabilities which were revealed by the January 2025 Richmond water crisis. It will also involve upgrades to electric systems, improvements to emergency overflow capacity, and enhancements to redundancy to ensure service continuity in the event of future climate-related disruptions.
In addition to the current plan, planners are also considering a potential $583 million expansion that would build on this effort by adding more pipeline miles, storage capacity, and pumping stations along with a separate $1.3 billion desire to build an entirely new treatment plant. These future plans are not currently set in place, but they reflect the county’s broader view for expanding and improving their regional water system. Solicitations for the first project will be released in late 2026.
Contracting firms seeking to collaborate with public officials are likely to be joined by developers, private sector investors, and even regional banks and non-profits that are interested in supporting critical projects. As federal lawmakers ponder a final federal budget, partnerships and funding support are likely to be attractive options for public officials in the months to come.
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