The re-election of Donald Trump as U.S. president in 2024 brings a notable shift in American water policy, particularly through a move away from the sustainability-focused initiatives of the Biden administration. Under Biden, the focus was on investments in water infrastructure, strict water quality standards, and comprehensive climate change actions, including significant public funding in the billions. In contrast, Trump plans to shift more responsibility to local authorities and private investors, likely leading to greater deregulation and a market-oriented approach that prioritizes short-term economic benefits¹.

Reversal of Biden’s water quality standards under Trump

Among Biden’s initiatives were comprehensive water quality standards, including the nation’s first limits on PFAS chemicals and strict guidelines for reducing lead in drinking water pipes. He also introduced the “Waters of the United States” (WOTUS) rule, which expanded protections for smaller streams and wetlands. However, under Trump, many of these measures could be reversed. During his first term, Trump modified the Clean Water Act to exclude many smaller waterways from federal protections, which provided temporary relief to industries and utilities but raised environmental concerns and led to unequal water quality across different regions².

A second Trump administration is also expected to re-evaluate the Biden administration’s water program addressing PFAS chemicals. These harmful substances are found in many everyday products and can accumulate in water supplies. While Biden’s EPA set strict limits for six PFAS types and tightened lead pipe removal requirements, Trump is signaling that he may reassess these measures as part of his deregulatory agenda. The Trump administration’s past deregulatory policies gave state authorities more latitude, resulting in relaxed environmental regulations. In particular, the loosening of requirements for coal plants and coal ash wastewater could pose long-term risks to water quality, as these materials can introduce heavy metals and other pollutants into waterways³.

Climate change and deregulation: Implications for water infrastructure and industry

Climate change also played a central role in the Biden administration’s water policy. By rejoining the Paris Agreement and providing $4.9 billion for water security, Biden sought to help regions adapt to climate-related threats like droughts and floods. However, Trump has historically downplayed the significance of climate change, focusing instead on fossil fuels. The shift to a deregulated approach without climate adaptation measures could lead to significant cost increases for water infrastructure in climate-vulnerable areas. Without adequate federal funding, local governments and water utilities may need to seek alternative funding sources to safeguard their systems against extreme weather events, which could further strain the already tight budgets of many municipalities¹.

The planned deregulations could bring short-term relief to certain industries. Water utilities, for example, could allocate resources differently and save costs with reduced regulatory burdens. However, for engineering and construction firms, a decline in public projects driven by sustainability goals could present challenges, pushing them to seek partnerships in the private sector. Sectors that rely on high-quality water treatment, such as pharmaceuticals and food, will continue to require effective solutions. Digital service providers offering regulation-compliant tools may face reduced demand in a deregulated environment, though the need for efficiency improvements and cost reductions will persist, providing opportunities for innovation and adaptation³.

In summary, the water industry must brace for profound changes. The shift from federal mandates to a deregulated, market-oriented system brings both opportunities and challenges. While the future direction of U.S. water policy could lead to greater flexibility for companies and regulatory relief for industries, it also poses potential risks to water quality and environmental sustainability. For the water industry, adapting to these changing political conditions and exploring new markets will be essential to continued success in a deregulated environment.

Sources

¹ Smart Water Magazine (2024 U.S. Presidential shift: Water policy impact and industry implications)
² Bloomberg Law (Biden Clean Water Rules Vulnerable in New Trump Administration)
³ WaterWorld (What a Trump presidency means for the water industry)