The Government Accountability Office says in a new report that USDA and EPA need to improve how they support rural communities seeking water‑infrastructure assistance. The congressional watchdog said the agencies lack comprehensive data on unserved areas but can draw on information from their programs and datasets to better identify needs.
Sens. Peter Welch, D-Vt., and Cory Booker, D-N.J., requested the review in 2023, and GAO conducted the audit from February 2024 to June 2026.
GAO also recommended that EPA provide clearer guidance to technical assistance providers on how to assess local capacity and knowledge when helping communities address water needs.
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The report identified 28 USDA and EPA programs — including USDA’s Rural Decentralized Water Systems grant and EPA’s Closing America’s Wastewater Access Gap Initiative — that offer funding to rural communities without drinking water or wastewater service. In a 2017 memorandum, USDA and EPA outlined best practices to help these communities access state and federal funding. However, GAO said the agencies have not maintained or reviewed the memo, limiting their ability to coordinate support.
GAO noted that many rural communities face structural barriers in securing assistance. Some are unincorporated and therefore ineligible for loans and grants. Others lack the administrative capacity, technical expertise or staffing needed to apply. And because many of these communities are so small, they cannot fund water infrastructure projects on their own.
In a written response, Karl Elmshaeuser, on behalf of USDA, disagreed with GAO’s recommendation, arguing that it “is not an accurate representation of the scope of effort” and that EPA — not USDA — should issue guidance because it has jurisdiction over the Safe Drinking Water Act and the Clean Water Act. EPA said it generally agrees with the report’s recommendations.
