Costa Introduces Bipartisan Legislation to Modernize Water Systems and Fund Local Water Infrastructure Projects
WASHINGTON – Today, U.S. Representatives Jim Costa (CA-21), Kim Schrier (WA-08), Dan Newhouse (WA-04), John Garamendi (CA-03), Vince Fong (CA-20), Doug LaMalfa (CA-01), and Sharice Davids (KS-03) introduced the Water Infrastructure Finance and Innovation Act (WIFIA) Amendments of 2025, a bipartisan bill to update and improve a loan program that funds critical water and wastewater infrastructure projects through modernized water systems in the San Joaquin Valley and California.
“Water is the lifeblood of our valley; therefore, we must continue to invest in our water infrastructure. We know that where water flows, food grows, and nowhere is that more evident than in the agricultural heartland of the San Joaquin Valley. Over 10-year periods, we have either too much water and flood conditions or too little water and drought conditions,”said Congressman Costa.
“That is why I am proud to lead a bipartisan piece of legislation that includes my bill, the “Restoring WIFIA Eligibility Act.” This effort will help strengthen the tools needed to modernize our water systems and protect every drop of water possible.”
BACKGROUND
The Water Infrastructure Finance and Innovation Act of 2014 (WIFIA) established the WIFIA program, a federal credit program administered by the EPA and other agencies for eligible water and wastewater infrastructure projects. Under this program, eligible borrowers, including state, Tribal, and federal government entities, apply for low-interest, flexible loans to fund water infrastructure projects. These loans are invaluable resources that allow local governments to meet the infrastructure needs of their respective communities at an affordable rate.
The Water Infrastructure Finance and Innovation Act (WIFIA) Amendments of 2025 would improve WIFIA by extending funding for the program, expanding eligibility for loans, and other common-sense reforms.
Specifically, this bill aims to:
Broaden and restore WIFIA funding and financing eligibility to state entities and non-federal cost shares in federally involved projects. This includes state-led water storage projects, transferred works of the Bureau of Reclamation, and congressionally authorized Army Corps of Engineers (USACE) projects.
Authorize the use of collaborative project delivery methods for WIFIA projects, allowing more flexibility and reducing the time and cost of the project.
Allow certain federal water infrastructure loans to have maturity dates of up to 55 years.
Reauthorize the USACE WIFIA program through FY2029.
Rep. Jim Costa’s Restoring WIFIA Eligibility Act, a bipartisan piece of legislation aimed at strengthening water quality and storage infrastructure across the Western United States, is a main part of this bill. It accelerates investment in the nation’s aging water systems by offering long-term, low-cost loans for major water projects.
This bill would clarify that federally owned infrastructure managed and operated by non-federal entities, such as the San Luis Delta-Mendota Water Authority, can utilize WIFIA funding to finance water infrastructure projects, such as the C.W. "Bill" Jones Pumping plant.