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OMB proposes revisions to federal financial assistance practice
On May 29, the Office of Management and Budget (OMB), U.S. Environmental Protection Agency (EPA), and more than 30 other federal agencies proposed a rule to modify and consolidate requirements for federal grants and contracts to a single, government-wide regulation. To date, OMB has provided guidance that was subsequently implemented on a program-specific basis by responsible agencies, incorporating statute-specific requirements of various programs.
The practical implications of this proposal are clearest for federal grant programs, including more ways to terminate grants, new restrictions on how grant funds can be spent, and changes to how proposals are evaluated and awarded. Some requirements apply more broadly when federal financial assistance, including loans, is directly or indirectly present, although it is not yet clear which ones would apply to which programs. The rule would require recipients and subrecipients to use the Department of Homeland Security’s (DHS) E-Verify program to confirm the employment eligibility of employees and contractors hired by or performing work in the United States under a federal award. The proposal also encourages federal agencies to use multi-year awards where legally permissible, potentially reducing repetitive applications and providing more predictable funding for longer-term work by funding recipients. While the proposal would extend Buy America preferences, it does not appear to intend to change current Buy America Build America (BABA) practice as implemented following the Infrastructure Investment and Jobs Act in the water sector.
Comments are due by July 13. (Submit comments to www.regulations.gov, Docket # OMB-2026-0034.) OMB is seeking to finalize the rule with an effective date of Oct. 1.
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PFAS in biosolids
EPA Deputy Administrator David Fotouhi announced that EPA is working with the U.S. Department of Agriculture (USDA) to inform review of the agency’s 2025 draft risk assessment of PFAS in biosolids. This announcement follows recent comments, by Assistant Administrator for Water Jessica Kramer, that the agency was developing guidance on the risks associated with land application of biosolids containing PFAS. Late last year, the National Association of Clean Water Agencies (NACWA) released a model template for a tiered risk management approach.
This movement in EPA activity is occurring at the same time as the DC Circuit Court of Appeals stalls the schedule of proceedings in the plaintiff’s appeal (Case # 25-5431) of James Farmer v EPA (Case # 1:24-cv-01654) to determine if amici briefs should be allowed to file in support EPA. In September 2025 the DC Circuit District Court had ruled that the Clean Water Act did not impose a non-discretionary biennial duty to identify and regulate sewage-sludge pollutants (in this instance, PFAS) on EPA.
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Deadline extension for government website ADA compliance proposed
Recognizing progress being made but the need for many sites to be updated, DOJ has recently issued an Interim Final Rule extending the compliance date to April 26, 2027, for governments serving 50,000 or more persons, and April 26, 2028, for governments serving fewer than 50,000 persons and special district governments. For utilities associated with a state or local government or that are considered a special district government, this notice offers an opportunity to further evaluate websites and check on accessibility. This is in addition to generalized requirements under the upcoming CCR rule revisions to make sure those reports are accessible whether in paper or digital format.
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U.S. House Appropriations Committee advances EPA funding bill
This week, the House Appropriations Committee voted to advance the Interior and Environment appropriations bill, which includes the EPA and corresponding water infrastructure programs. The bill features a 20% cut to EPA’s overall budget for fiscal year 2027, including cuts to the State Revolving Funds (SRFs).
Specifics of the bill include funding for the Drinking Water SRF at $910 million and funding for the Clean Water SRF at $1.1 billion. Both SRFs also continue to have substantial amounts of funding reserved for Congressionally Directed Spending, also known as earmarks, reducing the amount available for state formula allotments. Notably, WIFIA (the Water Infrastructure Finance and Innovation Act) receives level funding ($72 million) in the proposed bill. While the SRFs do receive reductions from fiscal year 2026, the cuts are not as severe as those proposed by the president earlier this year.
The bill was advanced by the full House Committee on June 3; it now awaits consideration on the House floor. The Senate Appropriations Committee has yet to release their Interior and Environment appropriations bill. It is unclear what the timing for negotiation between the House and Senate might be. AWWA will continue to advocate for full funding of the SRFs and WIFIA as the process continues this year.
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Regulatory deadline reminder for RMP facilities
Water systems are advised of pending regulatory deadlines under the Clean Air Act regulations for the Risk Management Program (RMP). In the water sector, this rule is typically triggered by storage and handling of 2,500 or more pounds of chlorine or 10,000 pounds or more of anhydrous ammonia. The rule requires Program 2 and 3 facilities to conduct full emergency response exercise requirements under 40 CFR § 68.96. Requirements differ based on whether the system is a responding facility (staff or contractors handle releases) or a non-responding facility (relies entirely on local HAZMAT/fire). For a full explanation of these designations and their obligations, refer to EPA RMP Guidance, Chapter 8: Emergency Response.
Non-Responding Agencies are required to:
- Conduct annual notification exercise before December 19, 2024.
Responding Agencies are required to:
- Conduct annual notification exercise before December 19, 2024;
- Conduct a tabletop exercise (TTX) by Dec. 21, and at least once every three years thereafter, in coordination with your Local Emergency Planning Committee (LEPC); and
- Conduct a field exercise by March 15, 2027, and at least once every ten years thereafter, in coordination with your LEPC.
EPA's proposed rule, titled "Common Sense Approach to Chemical Accident Prevention" (published Feb. 24, 2026), seeks to change several provisions in the current Safer Communities by Chemical Accident Prevention (SCCAP) rule finalized in 2024. Notably, the field and tabletop exercise requirements are retained in the proposed rule. Until a final rule is promulgated, the current deadlines remain in effect. For more information, refer to 40 CFR § 68.96 and EPA's RMP Common Sense Rule Fact Sheet.
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Managing PFAS waste streams
The Water Research Foundation (WRF) is collecting data from utilities in connection with WRF Project # 5285 – Available Options for Regeneration or Disposal of PFAS-Laden Drinking Water Residuals, Media, and Waste. The goal of the project is to develop a practical, utility-focused decision framework and guidance document to support effective management of PFAS-laden wastes while meeting regulatory requirements.
Interested utilities can access the survey, which is expected to take 5-10 minutes to complete, here. WRF team members will receive respondent information, but utilities can choose to remain anonymous in publications/presentations.
Additionally, if you own/operate more than one water treatment plant, WRF requests that the survey be completed for each one. This option is presented in question 2 of the survey. The survey closes on June 18.
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