The federal government has proposed decreased allocations to FmHA for rural water improvement. In the past, the FmHA was the prime source of money for water improvement projects in rural areas. Now, rural water suppliers may have to look to hometown banks for support at a time when some of those banks are in financial trouble. Two bills recently passed by the Texas Legislature, House Bill 2 and House Bill 181, offer new options to rural water supply corporations and may open new sources of funding to them. Lawsuits currently being contested will determine if rural water suppliers will have to pay state and property taxes.
Water quality is another big issue facing rural water suppliers.
Rural water supply systems are faced with the task of providing safe drinking water to ever-increasing numbers at a reasonable cost. With limited facilities and manpower, they have to cope with federal and state water quality regulations, and are charged with protecting diminishing groundwater resources. Finally, contamination of rural groundwater supplies is emerging as a major national problem. It is likely that rural water suppliers would have neither the expertise nor the facilities to remove toxic substances from groundwater sources that have been contaminated by man's activities.