What Lies Ahead

What does the new direction in Washington, D.C., mean for the groundwater industry?

By Ben Frech

Saying the 2024 election cycle was one of the wildest in recent history is kind of like telling people groundwater is wet . . . pretty obvious.

But with the dust settled, and President Donald Trump officially in office, it’s a good time to look at what lies ahead for the groundwater industry. As with any presidency, it’s hard to predict exactly what the next four years will bring, but with this being Trump’s second term, and having a real mandate for change from the voters—we have a pretty good idea.

It’s important to remember this is not going to necessarily be a rehash of the first Trump presidency. The Republican-led Congress in Washington, D.C., is different than that of his first term.

Back then, there were more than a handful of Republicans willing to oppose Trump and vote against him. Now, for the most part, all those individuals have either retired or were beaten by a Trump-backed primary opponent. So, in short, this Congress will be much more willing to follow the Trump agenda.

The water well drilling industry is impacted by a lot of outside forces: federal regulations, state regulations, real estate markets, transportation policy, labor market, and so on. Therefore, we won’t be able to touch on everything here, but we will try to cover the issues that we currently have a trajectory on.

Let’s get started!

Geothermal Tax Credits

While Trump has largely been critical of tax credits and exemptions for certain clean technologies (we’re looking at you, wind farms), geothermal has largely stayed off his radar, and the current tax credits won’t expire for almost a decade.

The National Ground Water Association will keep promoting the credits and the geothermal industry to ensure their continued support, but at this time, it doesn’t feel like we are in direct fear of being targeted for cancellation by the administration.

Tariffs/Trade

The Trump administration’s focus on renegotiating trade deals and imposing tariffs could affect the groundwater industry—especially regarding the import of drilling equipment and materials. Tariffs on steel and aluminum, for instance, may increase costs for drilling operations.

However, these policies also aim to boost domestic manufacturing, which could lead to more locally sourced materials in the long run. It’s a mixed bag, so staying informed on trade developments is crucial.

Infrastructure Funding

Trump’s infrastructure plans have emphasized leveraging private investment to fund projects. This approach could lead to opportunities for the groundwater industry, particularly in projects related to water infrastructure and rural development. Even so, many groundwater project and small public systems have benefited from the previous administration’s Inflation Reduction Act (IRA), which Trump has long rallied and railed against.

Trump struggled to reach deals on larger infrastructure packages during his first administration, so it’s unclear as of now what his strategy for either dismantling the current IRA or moving forward with his own plan will be. Whatever, he will have a completely Republican-controlled Congress to move his priorities forward.

EPA and Environmental Regulations

The administration has signaled intentions to roll back certain environmental regulations to promote economic growth.

Historically, environmental regulations have shifted with the priorities of each administration, often creating a cycle of tightening and loosening that impacts industries differently. Some regulatory changes may provide flexibility and reduce compliance costs, thus benefiting businesses in the short term. But others could pose significant challenges, particularly for industries dependent on long-term environmental stability and predictable rules.

With the recent appointment of Lee Zeldin as secretary of the U.S. Environmental Protection Agency, there is anticipation of a more balanced approach. Zeldin, known for his conservative values and conservationist principles, is expected to emphasize policies that aim to safeguard environmental resources while supporting economic growth.

PFAS Funding

Per- and polyfluoroalkyl substances (PFAS) contamination remains an ongoing concern due to its widespread impact on drinking water and ever-growing presence in the environment. The previous administration initiated new steps to address PFAS, including setting the first national standard.

Regardless, the current administration’s direction on this issue remains uncertain. While Zeldin’s leadership at the EPA may bring a new focus on balancing environmental and economic priorities, the extent to which PFAS funding will be prioritized is unclear. Federal support is essential to help states and local agencies meet new drinking water standards and manage contamination sites effectively.

Without sufficient funding, the burden of addressing PFAS could fall disproportionately on local governments and industries, potentially delaying necessary remediation efforts.

As the administration’s policies take shape, stakeholders will closely monitor whether addressing PFAS contamination remains a federal priority.

Trucking Regulations

Despite a general trend toward deregulation, the administration is not likely to relax the new Commercial Driver’s License (CDL) standards as they are considered crucial for safety and are supported by influential stakeholders in Congress.

This means that drilling companies will likely need to continue to adhere to the new requirements for their transportation operations for the foreseeable future.

Agriculture Bill and the Healthy H2O Act

The current Farm Bill is extended through fiscal year 2025, keeping many programs running but leaving a few without dedicated funding. This means some initiatives will face challenges until the next version of the bill is passed.

Looking ahead, the 2025 Farm Bill will likely bring updates and new policies aimed at supporting farmers, consumers, and environmental needs. However, with slim margins in Congress, crafting a bill that satisfies everyone might take a little extra time.

On the water side, the Healthy H2O Act, which has long been a priority for NGWA, is currently included in the Senate version of the Farm Bill. The act would provide grants to help test and treat water for contaminants, including PFAS. It’s designed to give individuals and local governments the tools to ensure safer drinking water, especially for those relying on private wells.

Both the Farm Bill and the Healthy H2O Act could bring significant benefits, but their futures depend on funding and legislative priorities. Both bills will remain as priorities for NGWA.

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The next four years will bring a host of other issues and opportunities to the country and our industry—but no matter what happens, it will be vital that NGWA and its membership remain active in engaging lawmakers.

I encourage everyone to reach out to their elected officials and let them know how much groundwater matters. Whether it’s protecting water quality, promoting sustainable practices, advancing aquifer recharge, or promoting the drilling industry. Remember it’s not about your political affiliations or who you voted for, but about advancing groundwater and our amazing industry.

Or as the old political saying goes: “The main thing is keeping the main thing the main thing.”

Ben Frech is a consultant for the National Ground Water Association’s government affairs efforts. Frech can be reached at government@ngwa.org.