For years, water professionals have warned that much of the U.S. wastewater infrastructure is teetering on the brink.
According to the 2025 Infrastructure Report Card by the American Society of Civil Engineers (ASCE), the system is now showing those cracks in full. Increased system failures are happening more often, with real consequences for utilities, public health, and environmental safety.
The numbers behind the problem
The ASCE gives America’s wastewater infrastructure a D+ grade, reflecting widespread underinvestment and an accelerating rate of system failures. The number of system failures reported by utilities has increased by more than 30% over the past decade.
These failures include equipment breakdowns at treatment plants, surcharging and overflows from combined sewer systems, pipe collapses, and more frequent violations of National Pollutant Discharge Elimination System (NPDES) permits.
This uptick in failure rates is linked to aging assets—many of which are operating well beyond their design life. More than 30% of wastewater pipes in urban areas are over 50 years old. Some large coastal and inland cities are still running infrastructure installed during the early- to mid-20th century.
Deferred maintenance: a financial time bomb
One of the most telling insights from the ASCE report is the scale of deferred maintenance across wastewater systems. The rate of capital renewal and replacement has declined, dropping from 3% to 2% annually. That may not sound like a big change—but when applied to a national network of over 800,000 miles of public sewer pipes, it means thousands of miles of aging infrastructure are going without critical updates each year.
For many utilities, capital budgets are constrained, and repairs are postponed until failure is imminent. This “run-to-fail” mentality has led to higher long-term costs, emergency repair bills, and significant service disruptions.
Small and midsize utilities are particularly vulnerable. Many of them lack the rate base or political capital to support large infrastructure upgrades, leaving them with a patchwork of short-term fixes.
This growing backlog leads to:
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More sewer overflows, especially during heavy rainfall.
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Increased risk of contamination to local waterways and drinking water sources.
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More frequent service disruptions for homes and businesses.
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Higher long-term repair costs, as emergency fixes and lawsuits from environmental violations become more common.
Root causes
The core issue isn’t a lack of awareness; utilities know these systems are failing.
The problem is a combination of:
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Inadequate funding at local and federal levels.
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Competing budget priorities at the municipal level.
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Limited rate increases, as many utilities hesitate to pass the full cost of upgrades onto customers already struggling with affordability.
In short, wastewater systems are being asked to do more with less—treat more contaminants, serve growing populations, and meet tighter regulations—while running on infrastructure built for another century. The result: rising failure rates that threaten public health, water quality, and economic stability.
The funding gap (and some progress)
While the Infrastructure Investment and Jobs Act (IIJA) injected new money into clean water infrastructure, the report notes that funding still falls well short of what’s needed. The EPA estimates a total of $271 billion in capital investment is required over the next 20 years just to maintain and upgrade existing wastewater systems.
As of 2023, the Clean Water State Revolving Fund (CWSRF) remains one of the primary vehicles for funding upgrades—but it’s oversubscribed. States report needing at least double the current annual funding levels to meet the demand for necessary projects. In particular, many regions struggle to secure funds for advanced nutrient removal, climate resilience upgrades, and lead service line replacement on the stormwater side.
That said, the report credits the IIJA and Bipartisan Infrastructure Law with helping close the gap—especially for disadvantaged communities. Over $12 billion in new funding is dedicated to wastewater, stormwater, and nonpoint source pollution control. However, much of that is already committed to shovel-ready projects, and the long-term pipeline remains under-resourced.
What it means for utilities
The past few years of low marks from ASCE should be operational wake-up call for those in the wastewater business. The increased failure rate is driving up O&M costs, reducing resilience to extreme weather, and exposing utilities to compliance risk.
Forward-looking utilities are responding by:
- Expanding asset management programs with predictive maintenance tools.
- Prioritizing capital planning based on condition assessments.
- Diversifying funding sources by blending state, federal, and private financing.
- Engaging community stakeholders earlier to build support for rate increases or bond measures.
The message is clear: incremental upgrades and strategic investment can make a difference, but the longer systems limp along without major reinvestment, the greater the risk.
With demand increasing and climate pressures rising, the industry has little choice but to act. Failing infrastructure is a system-wide liability. The time to move is now.
