Restoring WIFIA Eligibility Act

Bill Number

H.R. 3035

Origin Chamber

House

Congress

119th Congress, Session 1

Policy Area

Economics and Public Finance

Status

Introduced

Latest Action

2025-04-28: Referred to the Subcommittee on Water Resources and Environment.

Last Updated

2025-06-12T08:06:13Z

AI-Generated Summary

Purpose

The "Restoring WIFIA Eligibility Act" (H.R. 3035) aims to modify how certain financial assistance provided under the Water Infrastructure Finance and Innovation Act of 2014 (WIFIA) is accounted for in the federal budget. Specifically, it seeks to treat assistance to non-federal recipients funded by non-federal revenues as non-federal for budgeting purposes, potentially expanding eligibility for infrastructure funding without impacting federal spending limits.

Key Provisions

• Addition to WIFIA: The bill adds a new section (SEC. 5037) to Subtitle C of Title V of WIFIA (33 U.S.C. 3901 et seq.).
• Budgetary Treatment Criteria:
• Applies to financial assistance for projects where the recipient is a non-federal entity (e.g., state, local, or tribal governments, not a federal agency).
• Requires that repayment sources are non-federal revenues (e.g., user fees, state bonds, or local taxes, rather than federal funds).
• Federal Credit Reform Act Compliance: Under these conditions, the assistance is:
• Deemed "non-federal" for budgeting.
• Treated as a direct loan or loan guarantee, as defined in the Federal Credit Reform Act of 1990 (2 U.S.C. 661 et seq.), which governs how federal credit programs are scored in the budget.

Significant Changes to Existing Law

• Prior Treatment: Previously, WIFIA assistance might have been scored as federal spending or credit, potentially counting against federal budget caps and limiting availability.
• New Approach: This amendment shifts the budgetary classification for qualifying assistance, excluding it from federal scoring if non-federal in both recipient and repayment. This restores or expands eligibility for projects that were previously restricted due to federal budget rules, aligning WIFIA more closely with standard federal credit programs like direct loans.

Potential Impacts

• On Government Agencies: Federal agencies administering WIFIA (e.g., the Environmental Protection Agency or Army Corps of Engineers) could provide more assistance without straining federal budgets, enabling faster approval of water infrastructure projects like dams, wastewater treatment, or flood control.
• On Citizens: Local communities and residents may benefit from increased funding for essential water and infrastructure projects, potentially improving access to clean water, reducing flood risks, and supporting economic development in underserved areas.
• On International Relations: Minimal direct impact, as the bill focuses on domestic U.S. infrastructure; however, it could indirectly support U.S. commitments to global water security standards by bolstering domestic capabilities.

Main Stakeholders Affected

• Non-Federal Recipients: State, local, and tribal governments or private entities eligible for WIFIA loans/guarantees, who gain easier access to low-interest federal financing for water projects.
• Federal Agencies: Administrators of WIFIA programs, who can expand project portfolios without additional budgetary constraints.
• Congress and Taxpayers: Lawmakers benefit from fiscal flexibility in infrastructure funding; taxpayers may see indirect savings by avoiding full federal scoring of these programs.
• Infrastructure Developers: Utilities, contractors, and project sponsors involved in water-related initiatives, who could see more projects funded.

Notable Legal, Constitutional, or Political Implications

• Legal: Ensures compliance with the Federal Credit Reform Act by standardizing budgetary treatment, reducing risks of legal challenges over improper scoring of federal credit assistance. No direct constitutional issues, as it pertains to congressional spending authority under Article I.
• Political: The bill could facilitate bipartisan support for infrastructure by addressing budgetary hurdles, potentially "restoring" eligibility lost in prior fiscal reforms. It highlights ongoing debates over federal versus state funding for public works, emphasizing fiscal responsibility without increasing federal outlays.

This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.

Sponsor

Rep. Costa, Jim [D-CA-21]

Cosponsors (3)

Rep. Newhouse, Dan [R-WA-4], Rep. Fitzpatrick, Brian K. [R-PA-1], Rep. Gray, Adam [D-CA-13]

Recent Actions

• 2025-04-28: Referred to the Subcommittee on Water Resources and Environment.
• 2025-04-28: Referred to the Committee on Transportation and Infrastructure, and in addition to the Committee on Energy and Commerce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
• 2025-04-28: Referred to the Committee on Transportation and Infrastructure, and in addition to the Committee on Energy and Commerce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
• 2025-04-28: Introduced in House
• 2025-04-28: Introduced in House

Bill Versions

• Restoring WIFIA Eligibility Act — issued 2025-04-28 — PDF (2 pages)