February 04, 2009

Senators Announce State Revolving Fund Amendment to Economic Recovery Package

Measure will ensure communities have faster access to money for water quality improvement projects

WASHINGTON, D.C. - Today, U.S. Senators Claire McCaskill and Kit Bond from Missouri and Jeff Bingaman and Tom Udall from New Mexico filed an amendment to the economic recovery package that will make it easier for states to administer the funds allocated to the State Revolving Funds (SRF). The amendment would provide the states with the flexibility to choose to provide grants to municipalities for their water, waste water or drinking water projects.

 

Currently, the economic recovery package only allows states to fund SRF projects through loans, negative interest loans or principal subsidies. However, many states, like Missouri and New Mexico, have constitutional laws that make it extremely difficult to administer the SRF through these means in the timeframe required under the bill. For states like Missouri, that means many rural communities could be precluded from accessing this funding.

 

"The only way this bill will truly help our economy is if the money gets out the door quickly. This amendment is an easy fix to help states like Missouri get dollars to communities that are hurting as soon as possible," McCaskill said.

 

"This amendment will make sure our communities, especially those in rural areas, are not denied vital funds to help them clean their water, something I have long fought for and am proud to join with my colleagues again on today," said Bond.


"This amendment will help make sure New Mexico's communities are treated fairly and can make the best use of this critical stimulus funding for water and wastewater projects," Bingaman said.

 

"Our amendment would help remove the obstacles that would prevent New Mexico from accessing funds from this recovery package to bring clean water to our communities," said Udall. "I am pleased to join with my colleagues to introduce this amendment to make vital resources like water more available to rural areas and help get our economy moving again."