The Rural Water Gap:
A Retrospective Equity Analysis of USDA Rural Development’s Water and Environmental Programs
Executive Summary
Millions in the U.S. live without access to safe water and sanitation. The burden of this crisis falls disproportionately on rural communities and communities of color due to historical disinvestment and regulatory failures, among other structural challenges. Federal investments are crucial to ensuring everyone has reliable access to water and sanitation, but some communities face disproportionate obstacles accessing funding.
This report analyzes U.S. Department of Agriculture Rural Development (USDA RD) investments in water and wastewater infrastructure, because USDA RD is a core element of the federal government’s strategy to eliminate the racialized rural water gap. Between 2010 and 2021, USDA RD released $3.4 billion dollars in grants and $6.2 billion in loans for water projects. Of the 6,664 projects analyzed during this time period, we found that 15% of awards funded projects in majority Black, Indigenous, and People of Color (BIPOC) communities.
While some USDA RD benefits reach rural communities of color, more funding is needed to address persistent water inequities. USDA RD has an opportunity, and responsibility, to better serve BIPOC communities. Doing so will require new approaches and resources; USDA RD staff and technical assistance contractors must be supported and resourced to achieve this. Overall, local community-based organizations that work in and with communities of color should also be better supported by USDA to improve racial equity outcomes.
This preliminary report analyzes the USDA RD Rural Utilities Service Water and Environmental Programs (WEP) funding portfolio as an important mechanism by which drinking water and wastewater infrastructure projects get funded. The report both analyzes existing WEP funding and offers recommendations for USDA to conduct its own analyses.
Based on our analysis, we make the following recommendations:
As part of the Farm Bill reauthorization process, USDA should conduct a robust racial equity analysis of its WEP investments in projects, grantmaking staff, and technical assistance providers to ensure funding is serving BIPOC communities, and make the results publicly available as soon as possible.
USDA should continue to build trusting and collaborative relationships with environmental justice and community-based organizations to inform USDA RD priorities and better meet rural communities’ and Tribal Nations’ needs.
USDA should proactively, publicly, and transparently identify communities that may need assistance accessing safe water and improved sanitation, including prioritization of communities of color historically underfunded by USDA programs.
Through the Farm Bill, Congress should increase crucial investments, especially grants, in BIPOC rural communities.
We encourage USDA RD and stakeholders to conduct a thorough racial equity analysis of all RD water infrastructure funding to better evaluate benefits to BIPOC communities. The analysis should be done this year considering the whole-of-government Justice40 Initiative, the Infrastructure Investment and Jobs Act, and other pending funding, such as the FY2023 Farm Bill. By doing so, USDA can seize this moment to leverage its investments to meet President Biden’s vision for equity and justice in all communities.