Environmental Council Of The States: EPA Budget Cut 23%, Staff Cut 23%, Reductions In Grants Supporting State Administration Of Federal Programs, Water Infrastructure Funding

The Environmental Council of the States, a nonpartisan organization representing state environmental protection agencies, issued this summary of budget changes proposed by the US House Appropriations Subcommittee on Interior, Environment, & Related Agencies July 15.

EPA’s overall funding is cut by 23% to $7.01 billion, a reduction of $2.28 billion from FY25 operating plan numbers. 

[EPA announced Friday it has cut its staff by just short of 23%.  Read more here.]

State & Tribal Assistance Grants (STAG) include both Categorical Grants and Infrastructure grants; the 19 Categorical Grants are collectively proposed at $1.088 billion, a reduction of $17 million. 

Within the Infrastructure grants, the largest two are for the continued capitalization of the State Revolving Funds (SRFs). 

Clean Water SRF funding is proposed at $1.208 billion, a reduction of $430 million, and CPF/earmark funding is proposed at $559 million (taken from off the top of SRF capitalization funding). 

Drinking Water SRF funding is proposed at $894.7 million, a reduction of $231 million, and CPF/earmark funding is proposed at $489.7 million  (taken from off the top of SRF capitalization funding). 

CPF includes 912 water and wastewater infrastructure projects requested by 292 Members in 46 states (no CPF from Idaho, Missouri, North Dakota, South Dakota, and Puerto Rico). 

All together, the SRFs are cut by 24% before CPF is taken. 

Twenty STAG Infrastructure grants are proposed for funding overall, with one grant – Alternative Water Sources Grants Pilot Program – proposed for funding for the first time. 

Thirty-nine STAG Infrastructure Grants are authorized overall.

EPA’s main program budget (Environmental Program & Management, or EPM) account is proposed for a 29% cut, and its Science & Technology (Office of Research & Development) account is proposed for a 31% cut. 

Geographic Programs included in the EPM account are proposed at $651 million, $3 million below the fiscal year 2025 enacted level.

The bill Includes 27 policy riders related to EPA activities, including prohibitions on use of funds to implement EPA’s January 2025 draft sewage sludge risk assessment for PFAS, consideration or incorporation of the social cost of carbon, and certain activities pursuant to the March 2024 final rule on Reconsideration of the National Ambient Air Quality Standards for Particulate Matter.

The bill moves next to the full Committee of House Appropriations and then to the House floor. 

The US Senate has not yet announced consideration of its FY26 EPA funding bill but is expected to take it up ahead of the August recess.

Visit the Environmental Council of the States website for more information.

Related Deregulation Actions This Week:

-- EPA Reduces Workforce By Nearly 23% - 3,707 Employees, Eliminates Office Of Research & Development

-- AP: EPA Eliminates Research & Development Office, Begins Layoffs

-- EPA Moves Ahead With Next Phase Of Reorganization, Cuts

-- EPA Is 'Clearing The Regulatory Path For America To Dominate The Global A.I. Revolution'  [PaEN] 

-- AP: President Grants New 2 Year Regulatory Air Pollution Relief To Coal-Fired Power Plant, Chemical Manufacturers, Other Polluting Industries From Mercury, Arsenic, Benzene, Other Chemicals

-- Bloomberg: President Exempts Scores Of Power, Chemical Plants From Pollution Rules 

-- White House: Regulatory Relief For Chemical Manufacturing Industry

-- White House: Regulatory Relief For Coal-Fired Power Plants

-- White House: Regulatory Relief For Sterilization Facilities Using Ethylene Oxide

-- PA Capital-Star: Environmentalists Sue EPA To Reassess A Toxic Chemical Used At A PA Oil Refinery

-- EPA Announces Next Set Of Actions On Coal Ash Disposal Requirements

-- Bloomberg: President Using A Light Touch On Pipeline Safety Oversight; Enforcement Cases Lowest In 20 Years 

-- Bradford Era: End Of Roadless Rule Brings Increase In Timber Sales In Allegheny National Forest 

Federal Funding Cuts, Freeze

-- WHYY: PA, DE, NJ Sue President’s FEMA Over End Of Grant Program That Helps States Prevent Flooding

-- AP: 20 States, Including Pennsylvania, Sue Federal Emergency Management Agency For Canceling Resilient Infrastructure &  Communities Program Grants  

-- WESA - Rachel McDevitt: PA Could Foot More Of The Bill For Disaster Response Under Proposed FEMA Cuts 

-- Republican Herald: PEMA Urges FEMA To Reconsider Cuts, Changes That Would Impact Communities 

-- National Parks Group To Congress: Our National Parks Need More Staff And Funding, Not Less 

[Posted: July 19, 2025]  PA Environment Digest