Proposed USDA Budget Cut Could Pressure State Revolving Funds

The Trump Administration’s proposed 2018 budget cuts to the US Department of Agriculture’s (USDA) rural water and wastewater grant program would likely result in a partial diversion of funds from the U.S. Environmental Protection Agency’s (EPA) State Revolving Fund (SRF) Programs, Fitch Ratings says.The recommended budget essentially calls the USDA program redundant and eliminates its nearly $500 million budget. Without any offsetting increases in SRF grant funding, SRF project funding, which is frequently used, would likely be strained.SRF programs provide valuable financing options for municipalities’ water- and sewer-related infrastructure needs. They combine a pool of loan repayments with additional forms