Wisconsin Could Lose $55 Million Under Proposed EPA Budget Cuts

Running Tap Water. Photo by Steve Johnson (Public Domain).

Wisconsin could lose tens of millions of dollars in funding for water infrastructure upgrades under President Donald Trump’s proposal to cut the Environmental Protection Agency’s budget by more than half.

Trump recommends cutting EPA’s fiscal year 2026 budget by $4.9 billion or a 54.5 percent cut, which would reduce the agency’s budget to levels not seen since the Reagan administration. About half that amount would be stripped from state revolving loan programs that fund drinking water and wastewater projects.

Congress has scaled back Trump’s proposed cuts in past budgets, said Betsy Southerland, a former science and technology director in the EPA’s office of water.

“But if [the cuts] happen, that’s going to be an enormous impact on future funding for lead service line removals and for wastewater and drinking water improvements nationwide,” Southerland said.

The proposed cuts could result in the loss of roughly $55 million for state revolving loan programs in Wisconsin, according to the lobbying firm Banner Public Affairs.

A letter from Russ Vought, director of the federal Office of Management and Budget, said “States should be responsible for funding their own water infrastructure projects.”

Last year, the Wisconsin Department of Natural Resources said it allocated more than $736 million to 125 communities for water infrastructure projects. The state has seen surging demand as it’s set to receive a total of more than $900 million under the bipartisan infrastructure law through September of next year.

“If the federal program is cut as proposed at the federal level, the DNR would have far less funding available to help communities make these critical infrastructure upgrades that ensure Wisconsinites have access to clean water free from lead, PFAS, and other harmful contaminants,” a DNR spokesperson said in an email.

Chris Groh, executive director of the Wisconsin Rural Water Association, said small rural water systems rely on state loan programs to finance water projects because they can’t afford costly treatment systems or upgrades.

“They’re taking money away, which is going to have to be made up out of the customer’s pockets,” Groh said. “They would have to expect paying more for their water and their sewer usage.”

In the Great Lakes region, EPA surveys of drinking water and wastewater systems show around $290 billion in infrastructure upgrades are needed over the next 20 years. Don Jodrey, federal relations director for the Alliance for the Great Lakes, said the cuts are devastating for Great Lakes states.

“They can’t keep up with the need, and so to cut off the federal funding is really not good for Great Lakes states and not good for Wisconsin,” Jodrey said.

Trump proposes $1B cut to grants that support state enforcement

Trump also recommends cutting $1 billion in categorical grants and eliminating environmental justice funds, as well as cutting hundreds of millions for research and superfund cleanups.

Tony Wilkin Gibart, executive director of Midwest Environmental Advocates, said categorical grants support the DNR’s ability to enforce federal environmental laws like the Clean Water Act and Clean Air Act.

“DNR is already stretched thin and in some cases falling short of enforcing those baseline bedrock environmental laws that are necessary to keep all of us healthy and safe,” Wilkin Gibart said.

Wilkin Gibart noted the agency sustained significant cuts during former Republican Gov. Scott Walker’s tenure. The state cut $90 million from the DNR and roughly 250 positions that included half the agency’s scientists.

He said Trump’s proposal would make it more difficult to clean up PFAS contamination in communities like the town of Campbell near La Crosse. Republican Congressman Derrick Van Orden didn’t directly comment on the proposed cuts.

“My primary focus as a Member of Congress in relation to the environment is to ensure that if you live in 2025, whether you live in a trailer or a mansion, you can turn on the faucet and have clean drinking water,” Van Orden said in a statement. “I have been working on this since my first day in office and will continue to do so.”

Democratic U.S. Sen. Tammy Baldwin said in a statement that every Wisconsinite deserves to know the water they drink and air they breathe is safe.

“But, President Trump is putting that all on the line and gutting the very programs Wisconsin needs to get rid of toxic contaminants and replace aging infrastructure — all to shower tax breaks on his wealthy friends,” Baldwin said.

Trump’s proposal comes as the EPA considers cutting more than 1,100 workers and seeks to reorganize under the administration’s plans to cut costs.

“This reorganization will bring much needed efficiencies to incorporate science into our rulemakings and sharply focus our work on providing the cleanest air, land, and water for our communities,” EPA Administrator Lee Zeldin said in a statement Friday.

He also said the reorganization would save around $300 million annually, but he didn’t include details on how those savings would be achieved.

Listen to the WPR report

Wisconsin could lose millions under Trump’s proposed budget cuts to EPA was originally published by Wisconsin Public Radio.