EPA Budget Would Eliminate 19 of 22 State Environmental Grants, Cutting $1B
March 6, 2026 · 2 min read
Jared Klein
The Environmental Protection Agency's FY2026 budget request proposes eliminating 19 of 22 categorical grants that fund state and local environmental programs — a cut exceeding $1 billion that would upend how states monitor air quality, manage water pollution, and clean up contaminated sites.
The proposal would slash EPA's overall budget from $9.14 billion to $4.16 billion, a 54 percent reduction. Staffing would drop to 12,856 full-time equivalents, the agency's lowest headcount in four decades.
The Three Largest Cuts
Three programs account for 63 percent of the categorical grant reductions. State and Local Air Quality Management grants face a $235.6 million cut. Section 106 Water Pollution Control grants would lose $225.4 million. Section 319 Nonpoint Source grants — which fund efforts to control agricultural runoff, stormwater, and other diffuse pollution — would be cut by $174.3 million.
Other targeted programs include Public Water System Supervision ($115.8 million), Brownfields ($46.2 million), and environmental justice enforcement, which would be completely eliminated. Only three categorical grants survive: Tribal Air Quality Management, Underground Injection Control, and the Tribal General Assistance Program.
Water Infrastructure Takes an Even Bigger Hit
Beyond categorical grants, the Clean Water State Revolving Fund faces a 90.5 percent reduction ($1.5 billion cut), while the Drinking Water State Revolving Fund would shrink by 87 percent ($976.1 million). These funds backstop water infrastructure projects in every state.
What This Means for Grant Seekers
EPA characterizes the cuts as "a back-to-basics approach," arguing that states can now fund their own compliance programs. Congress rejected similar proposals during the first Trump administration, and opposition is building again. But even if Congress restores funding, ongoing staffing reductions will slow permitting, chemical reviews, and rulemaking.
Organizations relying on EPA pass-through funding should identify alternative state and foundation sources now. Tools like Granted can surface state-level environmental funding that may fill gaps left by federal cuts.
For in-depth coverage of how these cuts affect specific programs, visit the Granted blog.