Stormwater Sector Faces $8.5 Billion Annual Funding Gap

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The U.S. stormwater sector faces an estimated $8.5 billion annual funding gap, according to a survey by the Water Environment Federation.

The funding shortfall exists as municipalities nationwide work to maintain water infrastructure, control pollution in waterways and protect communities from flooding.

The funding gap was identified in WEF’s 2020 National Municipal Separate Storm Sewer System (MS4) Needs Assessment Survey and based on data collected from more than 800 systems in 47 states, the District of Columbia and Puerto Rico.

Municipal governments annually spend an estimated $18 billion to $24 billion on stormwater infrastructure and programs. The 2020 annual funding gap of $8.5 billion is a 10% increase over the funding gap identified in WEF’s 2018 survey.

“The stormwater infrastructure that is vital to the health of our communities and our environment is in desperate need of increased and sustained investment,” says WEF President Lynn Broaddus. “Stormwater infrastructure is an integral part of our overall water infrastructure and it is imperative that it be included in any infrastructure package developed by the Biden Administration and Congress.”

WEF supports increased funding for stormwater systems through the Clean Water State Revolving Fund, new EPA Sewer Overflow & Stormwater Municipal Reuse Grant, and the Water Infrastructure Financing & Innovation Act. Additionally, WEF continues to advocate for new federal resources and technical support to help communities access federal funding to build and maintain stormwater infrastructure.

In addition to the funding gap, stormwater systems cited aging infrastructure and increasing regulations as challenges. Stormwater systems also reported needing assistance with technical resources for financing, asset management, and watershed-based planning.

The survey is accompanied by a new online tool that can be used to filter data by permittee type, geographic region, and other characteristics. This information can improve understanding of the challenges, needs and drivers for stormwater programs.

Stormwater is one of the fastest growing sources of water pollution in many waterways across the U.S. Pressure on stormwater systems will continue to grow as nearly 70% of the U.S. population shifts to urban areas by 2050, and climate change leads to an increase in droughts in some areas and more frequent and intense storms in others.

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