Georgia cities stand to benefit from several federal policy changes to water infrastructure financing. The U.S. Environmental Protection Agency (EPA) announced that it will waive key Water Infrastructure Finance and Innovation Act (WIFIA) loan fees for small communities during Fiscal Years 2026 and 2027. While the House Transportation & Infrastructure Committee released a draft bipartisan Water Resources Development Act (WRDA) to authorize flood control, navigation and ecosystem restoration projects under the U.S. Army Corps of Engineers.
New WIFIA Fee Waiver
Under EPA’s new fee waiver, small communities could save nearly $200,000 in upfront costs. For communities with populations of 25,000 or fewer, it will waive:
- The $25,000 application fee
- The credit processing fee, which averages roughly $156,000 per loan
These fees normally cover federal costs associated with processing and underwriting WIFIA loans. Cutting these fees for the next two years will make it easier for small systems to make needed upgrades. EPA currently has $11 billion available nationwide, and WIFIA’s low-interest, long-term loans can finance up to 80% of project costs. Communities can also apply at nearly any stage of a project, including for planning or design only efforts.
Application Process
EPA is currently accepting letters of interest. Georgia cities considering water or wastewater improvements should:
- Submit a letter of interest outlining the project’s eligibility and financial capacity
- Review EPA’s WIFIA Program Handbook and FAQs
- Coordinate early with project engineers, financial advisors, and GMA resources to strengthen submissions
WRDA 2026 Reauthorization
The House Transportation & Infrastructure Committee released a bipartisan draft of the Water Resources Development Act of 2026 (WRDA), which authorizes U.S. Army Corps of Engineers projects and sets federal water resource policy. The Senate Environment & Public Works Committee is also working on WRDA legislation but has not released legislative text yet. This WRDA legislation is separate from legislation being developed in the House and Senate to reauthorize water programs, such as the State Revolving Funds, that expire on Sept. 30.
It’s important to note WRDA is an authorization bill, meaning all projects and studies will still require separate congressional appropriations before work can begin. Key policy provisions of interest to local governments in the draft include:
- Clarity that the Army Corps' flood risk management and coastal storm risk management missions should address all types of flooding and utilize both structural and nonstructural approaches to flood risk management
- Authorization for the Army Corps to accept non-Federal funds (such as from a local government) for a project that has exceeded or is expected to exceed its authorized maximum cost threshold
- Resources to address invasive species and harmful algal blooms
- A “Sense of Congress” that the Army Corps should maintain a workforce necessary to achieve its missions, including through use of apprenticeship and mentoring programs
- A Sense of Congress that contracts used by the Army Corps for emergency debris removal should expedite removal of such debris and minimize harmful impacts to property or wildlife
GMA and the National League of Cities support the legislation and will continue to monitor progress across both Chambers to ensure timely enactment before the end of the year.