Restoring WIFIA Eligibility Act
- Sponsor
- Rep. Costa, Jim [D-CA-21]
- Committees
- Transportation and Infrastructure Committee (primary)
- Last action
- Apr 28, 2025
Bottom line
This bill clarifies how certain WIFIA financial assistance is scored in the federal budget, potentially streamlining access to funding for non-federal water infrastructure projects.
What it actually does
This bill amends the Water Infrastructure Finance and Innovation Act (WIFIA) of 2014 to clarify the budgetary treatment of financial assistance provided under the Act. Specifically, it mandates that if WIFIA financial assistance is given to a non-Federal entity for a project, and the repayment sources are non-Federal, then this assistance will be considered "non-Federal" for budgetary purposes under the Federal Credit Reform Act of 1990. It also specifies that such assistance will be treated as a direct loan or loan guarantee.
Proponents argue
Supporters argue that this bill provides crucial clarity for the budgetary scoring of WIFIA loans, ensuring that financial assistance to non-federal entities with dedicated non-federal repayment sources is not incorrectly scored as federal spending. This clarification can streamline the application process, encourage more private and local investment in water infrastructure, and ultimately expand access to WIFIA funding for critical projects by removing ambiguity that might otherwise deter eligible projects.
Opponents contend
Opponents might argue that this bill could potentially obscure the true federal exposure or subsidy involved in WIFIA loans by reclassifying them, or that it might create loopholes that could lead to less stringent oversight of federal financial assistance. Some might also contend that it shifts more risk onto non-federal entities or that it could be a precursor to expanding the program without adequate federal budgetary accountability.
The bill is very short and can be read quickly, allowing ample time for comprehensive evaluation.
Section 2, amending Subtitle C of title V of the Water Infrastructure Finance and Innovation Act of 2014 (33 U.S.C. 3901 et seq.)
Budgetary Treatment of Non-Federal WIFIA Financial Assistance
This provision adds a new section to the Water Infrastructure Finance and Innovation Act (WIFIA) of 2014. It specifies that if financial assistance from WIFIA is given to a non-Federal entity (meaning not a Federal entity, agency, or instrumentality) for a project, and the money to repay that assistance comes from non-Federal revenue sources, then for federal budget accounting purposes, this assistance will be considered "non-Federal." It will also be treated as a direct loan or loan guarantee, as defined by the Federal Credit Reform Act of 1990. This clarifies how these loans are scored in the federal budget.
Supporters argue
Supporters argue that this clarification is essential for accurate federal budgeting and for ensuring that WIFIA's credit program operates as intended, encouraging non-federal investment without unnecessarily burdening the federal budget with "on-budget" scoring for self-sustaining projects. It removes ambiguity that might otherwise deter eligible projects and ensures that the program's financial tools are used efficiently.
Critics contend
Critics might contend that this provision could be used to minimize the perceived federal financial commitment or risk associated with WIFIA loans, potentially leading to less scrutiny of the program's overall financial health or the projects it supports. They might argue that any federal financial assistance, regardless of repayment source, carries some federal risk and should be fully accounted for as such to maintain transparency.
Tradeoffs
The tension lies between accurately reflecting the federal government's direct financial exposure for projects repaid by non-federal sources and ensuring transparency in all federal financial assistance programs. This provision aims to reduce the perceived federal budgetary impact to encourage more infrastructure investment, potentially at the cost of some federal oversight if not carefully managed.