Why It Matters

The Council of Infrastructure Financing Authorities (CIFA) engaged Connor Deegan Government Affairs LLC to lobby on Budget/Appropriations issues. The registration was signed on August 25, 2026. CIFA's recent filings show consistent focus on EPA State Revolving Funds and related implementation issues.

The group is targeting legislation including H.R. 4961, which would expand flexibility for states to subsidize disadvantaged communities and small systems, and H.R. 1871, which would expand federal tax code exclusions to cover water conservation rebates and subsidies. CIFA has worked with multiple lobbying firms including Finn Strategies LLC, Summit Strategies Government Affairs LLC, and Madison Associates LLC in recent filings. Mark Dedrick is listed on the lobbying team.

Broader Context

The federal government is grappling with competing budget priorities for water infrastructure. Congress rejected FY2026 EPA budget cuts to water revolving funds, but the FY2027 budget would propose cutting water infrastructure funds by 90 percent, facing bipartisan pushback. A January 27, 2025 OMB memo imposed a temporary freeze on all federal grants and loans. The Pew Charitable Trusts reported in August 2025 that state and local governments could be on the hook for more than $1.2 trillion over the next 20 years to maintain and improve the country's drinking water, wastewater, and stormwater infrastructure.

Between The Lines

H.R. 1871 seeks to amend the Internal Revenue Code of 1986 to expand the exclusion for certain conservation subsidies to include subsidies for water conservation or efficiency measures, storm water management measures, and wastewater management measures. The backdrop includes H.R. 3684, a $1.2 trillion infrastructure law that included approximately $55 billion for water infrastructure, $15 billion specifically to replace lead service lines, and $10 billion to address PFAS contamination.

Bottom Line

The group is targeting specific legislation aimed at expanding state flexibility for water projects and expanding federal tax code exclusions to cover water conservation rebates and subsidies. This engagement reflects CIFA's strategic response to the Trump administration's proposed 90 percent cuts to EPA water infrastructure funding, positioning the organization to advocate for alternative mechanisms, including state flexibility and tax incentives, that could offset federal reductions.

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