Disparities in Access to and Allocation of Drinking Water State Revolving Funds (Pre-Recorded)

• In Event: Water Politics and Governance

Abstract

Community water systems (CWSs) provide drinking water to most U.S. residents and rely on service fees to fund both capital and operating costs. Reliance on own-source revenue creates disparities in the financial capacity of CWSs, and their borrowing and administrative capacities. Low-income communities often have lower revenue but similar (or greater) capital investment needs. State and federal financial assistance for water infrastructure investment can reduce these disparities. However, research has shown that state and federal financial assistance may not always reach communities most in need due to the real and anticipated capacity constraints of the recipients. Low-income communities need the financial assistance, but may lack the capacity to apply for assistance implement capital projects, or repay their loans. In this paper we examine the distribution of federal financial assistance for drinking water infrastructure investment, the Drinking Water State Revolving Funds (DWSRF), to determine how community income levels affect the distribution of these funds and whether programmatic decisions made by state governments shape these outcomes. Using DWSRF data for five U.S. states, paired with demographic Census data, we find that CWSs serving lower income communities are less likely to apply for funding and less likely to receive funding. These results support the proposition that communities with lower household income levels face capacity constraints that hinder access to financial assistance. We discuss how state policy and programmatic choices are contributing to these patterns. The results support work in other fields demonstrating that lower income communities face challenges in accessing financial assistance despite high levels of need, and highlight opportunities to improve access to drinking water financial assistance.

Authors

• Sara Hughes, University of Michigan

• Katy Hansen, Duke University