The U.S.-Mexico border extends more than 2,000 miles, from the Gulf of Mexico to the Pacific Ocean. As can be seen in figure 1, portions of four states—Texas, New Mexico, Arizona, and California—encompassing 97 counties and 44 U.S. federally recognized tribal nations make up the border region. The region includes a wide range of community types, from large cities— such as Los Angeles, California, population 3.8 million—to small, rural communities—such as Spofford, Texas, population 75. Of the 44 tribal nations in the region, 30 are in California, 8 in Arizona, 1 in New Mexico, 2 in Texas, and 3 in both California and Arizona. The tribal nations range in population from 1 household in the Jamul Indian Village in California to 3,572 households in the Tohono O’odham tribal nation in Arizona, whose tribal land covers an area approximately the size of Connecticut. Throughout the border region, a lack of safe drinking water and adequate wastewater treatment has been a continuous problem exacerbated by large gains in population associated with rapid industrial growth that has occurred over the past three decades. Part of this population increase has occurred in communities now commonly referred to as colonias. Initially, colonias emerged as developers sold small plots of residential land to individuals without providing water or wastewater infrastructure. Residents often placed a trailer or similar structure on the land or built their homes themselves, many starting with just one room and adding on periodically as they were able to afford it. Numerous news articles during the 1980s and 1990s described colonias, with one referring to colonias as “pockets of poverty” with conditions similar to those generally associated with “third-world” conditions. When colonias first began to emerge, they were often located in remote areas outside of incorporated cities where developers sold land as residential without adhering to the ordinances and regulations of the cities; however, more recently many local governments have begun to classify entire cities or subdivisions within a city as colonias. Since water and wastewater infrastructure were lacking when they bought their lots and built their homes, many residents in colonias relied on on- site alternatives. For example, to obtain water, some used contaminated wells, while others hauled and stored water in barrels or tanks. For wastewater disposal, residents used methods such as septic tanks or cesspools. Septic systems can treat waste safely, but they can also contaminate drinking water with sewage and organic matter if they are not installed and maintained properly. Effective septic systems require that the type and amount of soil be sufficient to absorb wastewater, and that the systems not be located too close to groundwater or surface water. In contrast, cesspools can pose a risk of contamination because they do not treat wastewater and are merely holes in the ground for the disposal of sewage. Problems associated with failing septic systems are not restricted to colonias. Rural households throughout the region can experience difficulties maintaining proper on-site wastewater treatment. Figure 2 compares proper septic system function with improper cesspool disposal. In response to public health concerns in the border region caused by a lack of clean drinking water and adequate sewage treatment, Congress established various programs with dedicated funding. For example, in the early 1990s, Congress established dedicated funding for water and wastewater projects to benefit residents of colonias. These funds have been used for a number of projects to provide colonia residents safe drinking water and adequate sewage disposal, yet some colonias continue to lack these basic services. Appendix II provides additional information on the establishment of federal funding to assist colonias. Colonias are still found throughout the border region, though their characteristics vary widely. Present-day colonias are communities of all types and sizes, both incorporated and unincorporated. For example, a colonia can be a tribal reservation, a fast-growing retirement community, or a high-poverty subdivision. Moreover, not all colonias have the same level of need. For example, a town in Arizona that already had water and wastewater service was designated a colonia in 2008 because the local water utility did not have the funds to address routine repairs, and believed that the designation would increase its ability to receive federal funds. In contrast, residents of the El Conquistador colonia in Hudspeth County, Texas, have lived without access to water and wastewater service for over 20 years. To help communities and households throughout the border region obtain safe drinking water and adequate wastewater treatment, seven federal agencies provide grants, loans, and technical assistance under separate programs and congressional authorizations. These include the following: EPA, which has funding for drinking water and wastewater systems that is complementary to its regulatory and enforcement authorities under the Safe Drinking Water Act and the Clean Water Act. EPA provides grants for water and wastewater infrastructure in the border region through several different programs including the U.S.-Mexico Border Water Infrastructure Program. EPA’s binational program provides grants to water and wastewater facilities within 62 miles of the border. EPA allots most of these funds to the Border Environment Cooperation Commission (BECC) and the North American Development Bank (NADB). These organizations then administer these funds to implement project development activities and construction. In addition to the funds administered by BECC and NADB, EPA provides grants to tribal nations within the border region. Colonias Wastewater Treatment Assistance Program (CWTAP). EPA awarded grants to the state of Texas from fiscal years 1993 through 1999 for the purpose of funding the construction and improvement of water and wastewater systems in colonias. The state of Texas obligated this funding, along with a state match, to public entities during fiscal years 2000 through 2008. Drinking Water and Clean Water State Revolving Fund Programs. EPA annually provides grants to states to help finance local drinking water and wastewater projects nationwide through the Drinking Water and Clean Water State Revolving Fund Programs. The states use this funding, along with a required 20 percent match, to capitalize their state revolving funds. The funds provide low-cost loans or other financial assistance for a wide range of water infrastructure projects. In addition, EPA provides funds from the Drinking Water and Clean Water Revolving Fund Programs to tribal nations throughout the United States for water and wastewater projects. USDA, which provides grants, loans, and technical assistance for rural water and wastewater projects through its Water and Environmental Program. The department can provide assistance for various activities, such as construction of water treatment and sewage collection facilities, connection of single-family homes to water distribution or wastewater collection lines, and training for the operation of water and wastewater utilities. While the program is available to eligible entities nationwide, USDA has been required by annual appropriations acts to set aside a portion of this funding—up to $25 million annually—for water and wastewater systems that benefit colonia residents (referred to as the Section 306C Colonia funds). HUD, which disburses grants to states and local governments through the Community Development Block Grant (CDBG) Program to fund housing, infrastructure, and other community development activities. The annual appropriation for CDBG is split according to HUD formulas so that 70 percent is allocated among eligible metropolitan cities and counties (referred to as entitlement communities) and 30 percent among the states to serve cities with populations of fewer than 50,000 and counties with populations of fewer than 200,000 (referred to as nonentitlement communities). Each border state is required to use up to 10 percent of total funds for projects to meet the water, sewage, and housing needs of colonia residents (referred to as the Colonia Set-aside). According to a HUD official, HUD determines each state’s Colonia Set-aside amount annually based on input from state officials and other colonia stakeholders, such as nonprofit organizations. For fiscal years 2000 through 2008, HUD established a 10 percent annual set-aside amount for Texas, New Mexico, and Arizona and a 5 percent annual set-aside for California. Additionally, HUD provides CDBG funds to tribal nations that can be used for any eligible CDBG activity, including water or wastewater projects. IHS, which constructs water and wastewater projects through its Sanitation Facilities Construction (SFC) Program. This assistance is available to tribal nations within the United States, and through the program, IHS constructs various projects, including distribution and collection lines, treatment facilities, and home connections. EDA, which provides grants to economically distressed areas through its Public Works and Economic Development Program. The funds are used for construction of public facilities, including water and wastewater facilities. The Corps, which has provided assistance for water and wastewater projects in the border region as directed by Congress. Congress has authorized and appropriated funds for the Corps to provide assistance for a number of projects, including projects to benefit colonias in need of water or wastewater infrastructure. Reclamation, which has been directed to provide assistance for drinking water or wastewater treatment projects in response to individual project authorizations but does not have an established program for such assistance. However, in 2006, Congress passed the Rural Water Supply Act, directing Reclamation to develop a rural water supply program. Entities that can seek assistance from most of these federal agencies include local units of government, tribal nations, water or wastewater utilities or similar entities, nonprofit organizations, or individual homeowners. Each federal program has its own application process but generally involves the following steps: Pre-application meeting. Federal agencies generally require the entity seeking assistance to meet with agency officials prior to submitting an application. During this meeting, officials and the potential applicant discuss program eligibility, the type of assistance needed, and application requirements. Submission of application. After the pre-application discussion, the entity seeking assistance prepares an application that can include information such as financial, engineering, and environmental studies that describe the project plan and its costs. Some agencies require additional documentation, such as evidence of public support for the project and documentation that the entity cannot obtain commercial credit at a reasonable rate. Review and evaluation of application.