The re-election of Donald Trump in 2024 brings with it a notable shift in U.S. water policy. As the new administration moves away from sustainability-focused initiatives, water treatment and utility professionals will see a change in infrastructure funding, water quality regulations, climate change policy, and the overall regulatory landscape. Let’s explore how these expected changes will affect various aspects of the water industry.
Infrastructure: Moving Toward Private Investment
Under the Biden administration, modernizing water infrastructure was a priority, with the Bipartisan Infrastructure Law directing $3.6 billion in 2024 alone toward water systems. This funding supported lead removal, pipeline modernization, and projects aimed at protecting public health. Trump’s administration is likely to reduce federal intervention in water infrastructure, opting instead to encourage state, local, and private investment partnerships.
For water treatment professionals, this shift means that reliance on federal grants and subsidies for upgrading systems may decrease. Instead, a new focus on private investment may require utilities to engage in public-private partnerships that prioritize economic efficiency. While this market-centered approach could encourage innovation and cost-cutting, it may also lead to fewer projects targeting the underserved, as private investors prioritize quick returns over broad public health initiatives.
Water Quality: A Deregulatory Agenda
Water quality protection was a central issue for the Biden administration, which implemented the first national drinking water standards for PFAS and worked to remove lead service lines in vulnerable communities. Conversely, Trump’s approach is likely to reduce federal regulations and oversight. A prime example of this approach is the 2020 Navigable Waters Protection Rule, which redefined federal protections for smaller streams and wetlands, effectively reducing the scope of the Clean Water Act.
While reduced federal oversight may temporarily lower compliance costs and ease the regulatory burden for utilities, this change could pose long-term challenges. Water utilities, especially those near deregulated industries, may face increased contamination risks if pollution control standards are relaxed. This means more local governments and utilities may need to take on additional responsibilities to ensure water quality, which could lead to increased costs or pressure to establish local regulations in areas previously protected by federal standards.
Climate Change: Shifting Responsibility for Resilience
Climate resilience was an urgent priority for the Biden administration, which allocated billions to prepare water systems for climate-related threats such as floods and droughts. In contrast, Trump’s stance downplays climate change concerns in favor of supporting fossil fuel development and reducing environmental regulation.
This pivot could leave many water utilities, especially those in vulnerable regions, with limited federal support for climate adaptation projects. Consequently, utilities will likely need to secure alternative funding to adapt infrastructure for extreme weather. Private funding for resilience projects may be challenging to secure, as immediate financial returns are not always evident. Water professionals may also experience uneven climate readiness across regions, with wealthier or urban areas better positioned to fund their adaptation needs than rural or underserved areas.
Navigating the New Landscape in Water Treatment
For water treatment professionals, managing operational risk in this new landscape will require adaptive strategies to handle potential contamination or infrastructure deficiencies. Some utilities may benefit from reduced regulatory costs, but others might face heightened exposure to liability if contamination incidents arise from relaxed standards.
With the water industry shifting from federal to private-sector-driven initiatives, companies that support the water sector will need to adapt. The transition away from federally mandated sustainability initiatives may decrease demand for certain engineering and construction projects, as public contracts for sustainability-focused infrastructure are expected to decline. Instead, the focus may shift to cost-effective, market-driven projects, especially those funded through public-private partnerships.
For digital solution providers, the decrease in compliance-based demands could impact tools focused solely on regulatory reporting. However, as utilities increasingly prioritize operational efficiency, demand for digital solutions that enhance cost reduction and equipment longevity is likely to persist.
In the water treatment sector, relaxed water quality standards may reduce the immediate need for advanced treatment technologies. Nonetheless, sectors with high quality standards—such as pharmaceuticals and food production—will still require these technologies, sustaining demand for advanced treatment options in certain applications.
A Proactive Path Forward
As the water industry faces regulatory shifts and evolving public expectations, remaining agile and adaptable will be essential. Companies can build resilience by emphasizing data-driven decision-making, adopting technologies that streamline operations, and actively engaging with private investors to secure funding for essential projects. While the short-term outlook may bring some regulatory relief, the industry’s commitment to responsible water management will play a significant role in ensuring the sustainability and quality of U.S. water resources in the long term.
In the face of anticipated challenges, the water sector has an opportunity to lead by example, demonstrating how innovation and resilience can sustain high standards in an evolving regulatory landscape. By prioritizing adaptability and public health, water utilities and supporting industries can navigate the changing policy environment while continuing to safeguard the nation’s water resources.
SOURCES: EPA, Resources.org, Smart Water Magazine
