Constrained budgets at the federal level suggest that state and local governments will have to assume a larger share of infrastructure spending. This has been true historically for water supply, for which federal funding has never played a dominant role, and is becoming increasingly likely for wastewater treatment as well. The limited federal assistance that might become available could take two forms: targeted aid to economically distressed areas, and unrestricted aid through block grants and revolving loan funds. Because congressional consideration of these matters remains incomplete, water supply managers have an opportunity to contribute to the legislative process. Includes 5 references, figures.