Legislative Update: Senate EPW Advances WRDA Bill Expanding State Authority to Use SRF Funds for PFAS Projects

Senate EPW Advances WRDA Bill Expanding State Authority to Use SRF Funds For PFAS Projects 

The Senate Environment and Public Works (EPW) Committee unanimously approved the Water Resources Development Act (WRDA) of 2026 (S. 4949), which includes provisions to reauthorize the Clean Water State Revolving Fund (CWSRF) and Drinking Water State Revolving Fund (DWSRF) while explicitly allowing states to use those funds to address per- and polyfluoroalkyl substances (PFAS) and other emerging contaminants. The legislation would reauthorize the CWSRF at $3.5 billion annually for fiscal years 2027 through 2030 and increase DWSRF authorizations from $3.75 billion in FY2027 to $4.5 billion by FY2030—well above the Trump administration’s proposed funding levels. The measure is intended to replace Bipartisan Infrastructure Law (BIL) authorizations that expire on September 30. Unlike the infrastructure law, however, the bill does not dedicate specific funding exclusively for PFAS projects, instead giving states greater flexibility to direct revolving loan funds toward PFAS assessment, monitoring, treatment, and related infrastructure projects.

The legislation responds to growing concerns from states and water utilities over the substantial costs of complying with EPA’s PFAS drinking water standards. By amending both the Safe Drinking Water Act and the Clean Water Act, the bill explicitly identifies PFAS and other emerging contaminants as eligible uses of SRF financing, including projects involving monitoring, treatment, alternative water supplies, and groundwater protection. In addition, the bill would establish a new competitive grant pilot program to help communities purchase and distribute certified point-of-use filtration systems in areas where drinking water exceeds federal standards for PFAS, lead, or other contaminants while long-term remediation projects are underway.

House Advances GOP Agenda, But Senate Signals Reconciliation Slowdown

Speaker Mike Johnson (R-LA) secured a significant legislative victory by uniting House Republicans to pass three major measures in a single day right before the House is set to recess for August this week.  The House passed its version of the fiscal 2027 National Defense Authorization Act (NDAA), legislation restricting congressional stock trading, and a budget resolution establishing the framework for a third budget reconciliation package. Despite its passage in the House, the resolution faces an uncertain future in the Senate. Senate Majority Leader John Thune (R-SD) has expressed skepticism about pursuing a third reconciliation package and suggested the Senate could instead use the budget resolution as a vehicle for funding the government if bipartisan appropriations negotiations collapse before the October 1 fiscal year deadline. With only a brief legislative window remaining after Congress returns in September, Senate Republicans are prioritizing negotiations over government funding while developing their own stopgap spending proposal, creating uncertainty about whether the House reconciliation plan will advance.

Political considerations are also driving the Senate’s cautious approach. Many Republican senators, particularly those facing competitive elections, are reluctant to endure another reconciliation “vote-a-rama,” during which Democrats can force a series of politically difficult amendment votes on issues such as the Iran conflict, Supplemental Nutrition Assistance Program (SNAP) benefits, and election legislation. The House budget resolution includes funding for military operations, farm assistance, and provisions tied to President Donald Trump’s election integrity agenda, including elements of the SAVE America Act, creating additional political vulnerabilities for Senate Republicans. As a result, many senators now view reconciliation as more likely to slip into the post-election lame-duck session, if it advances at all.

President Trump continues to press Senate Republicans to advance as much of the SAVE America Act as possible through reconciliation and has publicly urged Senate leaders to move more aggressively, including renewing his call to eliminate the legislative filibuster. Some Senate Republicans, including Sen. John Kennedy (R-LA), have criticized the decision to postpone reconciliation, arguing that doing so risks forfeiting an opportunity to provide additional defense funding and enact election-related priorities.

Congress Debates Budget Process Changes as Funding Deadline Nears

With Congress once again facing a looming government funding deadline, the House Appropriations Committee examined potential reforms to the federal budget process aimed at reducing the recurring threat of government shutdowns. Sen. James Lankford (R-OK) promoted his legislation (S. 4632), which would automatically extend government funding in 14-day increments during a funding lapse while requiring Congress to remain in session until full-year appropriations are enacted. Lankford argued the proposal would keep the government operating while maintaining pressure on lawmakers to complete spending bills before the October 1 fiscal year deadline.

Democrats opposed the concept of automatic continuing resolutions, with House Appropriations Committee Ranking Member Rosa DeLauro (D-CT) warning they could discourage Congress from completing annual appropriations. Former Office of Management and Budget Director Shalanda Young cautioned that prolonged stopgap funding delays military procurement, agency planning, and grants to states and local governments. The hearing also explored broader reforms, including Rep. Tom McClintock’s (R-CA) proposal (H.R. 8380) to provide expedited, filibuster-proof Senate consideration of appropriations bills. While some Republicans argued Senate procedures contribute to repeated funding delays, Lankford maintained that the larger obstacle is Congress’s inability to sustain bipartisan negotiations, highlighting broad agreement that the current appropriations process requires reform even as lawmakers remain divided over the solution.

Bipartisan Senators Propose Overhaul of CWSRF Funding Formula 

Sens. Rick Scott (R-FL) and Mark Kelly (D-AZ) have introduced the bipartisan Clean Water Allotment Modernization Act (S. 5016) to overhaul the formula used to distribute Clean Water State Revolving Fund (CWSRF) grants. The bill would replace the largely unchanged 1987 allocation formula with a needs-based approach that considers current population, EPA-identified water infrastructure needs, and low-income populations. The proposal comes as the Senate Environment and Public Works Committee advances reauthorization of the CWSRF through the Water Resources Development Act (WRDA) of 2026, setting the stage for a broader debate over how federal water infrastructure funding should be allocated.

Supporters argue the current formula no longer reflects the needs of fast-growing states and cite a 2024 Government Accountability Office recommendation calling for modernization. Under the proposal, many rapidly growing states would receive larger funding shares, while a four-year transition period would limit annual funding changes. Although proponents estimate that 31 states would receive the same or higher allocations, several states—including Michigan, Illinois, Massachusetts, Pennsylvania, South Carolina, and West Virginia—would see reduced funding, setting up a regional debate when the measure is considered on the Senate floor.

TSCA Reform Stalls as Fee Authority Deadline Approaches

The outlook for Toxic Substances Control Act (TSCA) reform has slowed as Congress approaches the September 30 expiration of EPA’s authority to collect TSCA user fees. Although bipartisan negotiations continue in both the Senate EPW Committee and the House Energy and Commerce (E&C) Committee, neither committee has introduced or marked up reform legislation, despite earlier expectations that action would occur before the August recess. Industry leaders, including the American Chemistry Council (ACC) and the U.S. Chamber of Commerce, now acknowledge that comprehensive TSCA reform is unlikely to advance through regular order before the fee authority expires.

The Vinyl Institute, along with Industry stakeholders, continue to press Congress for targeted reforms, citing persistent delays in EPA’s new chemicals review program, inefficiencies in existing chemical reviews, and the need for greater regulatory certainty to support domestic manufacturing. Stakeholders argue that extending EPA’s fee authority should be paired with modest bipartisan changes to improve review timelines, increase communication with manufacturers, and enhance agency staffing and efficiency. However, with Congress focused on appropriations, reconciliation, the NDAA, and other priorities, observers increasingly expect that any TSCA provisions will need to be attached to must-pass legislation before the September 30 deadline or, more likely, during the post-election lame-duck session. Failure to extend EPA’s fee authority would not halt the TSCA program but would force the agency to fund its chemical review activities from its broader appropriations, creating additional budgetary pressure and uncertainty for both EPA and industry.

Trump Administration Weighs Next Steps as Global Tariffs Near Expiration

The Trump administration’s temporary 10 percent global tariffs imposed under Section 122 of the Trade Act of 1974 are scheduled to expire on July 25, creating uncertainty over whether replacement tariffs will be implemented immediately or whether a brief lapse will occur. The Office of the USTR has proposed new tariffs of 10 to 12.5 percent on imports from 60 trading partners following its forced labor investigation but has not yet issued the final report required before the duties can take effect. USTR Jamieson Greer said the administration is focused on meeting legal requirements rather than a specific timeline, while also leaving open the possibility of reissuing Section 122 tariffs or pursuing other mechanisms to maintain the existing tariff structure.

The administration’s options carry significant legal risk. A federal trade court has already ruled that the current Section 122 tariffs are unlawful, although the decision is under appeal and the duties remain in effect pending that litigation. Legal experts note that the administration could attempt to apply new tariffs retroactively or issue another 150-day Section 122 tariff, but both approaches would likely face additional court challenges. Meanwhile, the Department of Justice continues to defend the Section 122 tariffs on appeal, arguing the lower court misinterpreted the statute by relying on legislative history rather than the law’s text.

Sen. Ron Wyden (D-OR), ranking member of the Senate Finance Committee, argued the administration remains committed to maintaining broad tariff policies despite concerns about their impact on consumer prices. On July 22, Wyden introduced the Congressional Trade Powers Reform Act, which would require congressional approval for tariffs imposed under authorities related to unfair trade practices, national security, or import surges, while repealing Section 122 of the Trade Act of 1974 and Section 338 of the Tariff Act of 1930. The bill would also establish a Joint Committee on Tariffs and Trade, move the Office of the U.S. Trade Representative outside the Executive Office of the President, and create an inspector general for the agency.

Senate Finance Examines Trump Administration Trade Strategy and USMCA Negotiations 

On Wednesday, July 22, the Senate Finance Committee held a hearing with USTR Jamison Greer testifying on U.S. trade policy. The hearing highlighted the sharply contrasting views between Republicans and Democrats over the Trump administration’s trade strategy, particularly its expanded use of tariffs, the ongoing renegotiation of the U.S.-Mexico-Canada Agreement (USMCA), and efforts to restructure global supply chains away from China. Republicans generally defended the administration’s use of tariffs as a necessary enforcement tool to rebuild domestic manufacturing, reduce dependence on China, strengthen supply chains, and improve market access through bilateral reciprocal trade agreements. Members focused heavily on ensuring stronger enforcement of existing trade agreements, expanding agricultural exports, securing critical minerals, and negotiating stronger rules of origin under USMCA.

Democrats argued that the administration’s tariff strategy has increased costs for consumers, harmed farmers and small businesses, and created significant uncertainty for U.S. manufacturers. While exchanges were frequently contentious, there remained bipartisan agreement on several issues, including the importance of enforcing USMCA, addressing China’s non-market practices, strengthening critical mineral supply chains, improving environmental enforcement within trade agreements, and maintaining competitive agricultural exports.

Throughout the hearing, Ambassador Greer vigorously defended the administration’s record, arguing that tariffs, combined with reciprocal trade agreements, have reduced the U.S. trade deficit, increased manufacturing wages, expanded exports to record levels, lowered China’s share of U.S. imports, and encouraged domestic industrial investment. Greer said the Trump administration remains confident that newly proposed 50 percent tariffs on a limited range of Canadian products will not derail broader U.S.-Canada trade relations, describing the dispute as a business negotiation rather than a political conflict.

While offering no indication that bilateral negotiations with Canada have significantly advanced, Greer said the administration hopes to develop interim trade arrangements with both Canada and Mexico by the end of the year as part of the ongoing USMCA review, with more complex issues such as rules of origin, labor, and environmental provisions likely extending into next year. Greer also emphasized that agricultural issues, including Mexico’s antidumping investigation into U.S. pork exports and its compliance with the 1944 U.S.-Mexico water treaty, remain central to negotiations, warning that Mexico’s cooperation on those matters will influence future USMCA revisions. Separately, Greer declined to detail how the administration will maintain its tariff agenda after the expiration of its Section 122 global tariff authority, saying only that officials are focused on meeting statutory requirements and signaling additional trade actions could be announced in the coming days.

New Housing Law Faces Implementation Challenges Amid Reduced HUD Workforce 

Congress recently enacted the bipartisan 21st Century ROAD to Housing Act, the most significant federal housing legislation in decades, but lawmakers and housing advocates are raising concerns that the Department of Housing and Urban Development (HUD) may lack the staffing and resources needed to implement its 59 provisions. The law directs HUD to expand and reform affordable housing programs, update manufactured housing standards, and improve low-income housing initiatives, but the agency has lost more than 30 percent of its core policy workforce since 2023 following budget cuts and workforce reductions. While HUD Secretary Scott Turner and congressional Republicans remain confident the department can carry out the law, lawmakers from both parties, housing groups, and former HUD officials warn that reduced staffing, the loss of institutional expertise, and the absence of dedicated implementation funding could significantly delay rulemaking and program rollout. Outside organizations are already offering technical assistance, including drafting proposed regulations, while lawmakers plan to closely monitor implementation to ensure the legislation achieves its goal of expanding housing supply and improving affordability.