The American Water Works Association (AWWA) has welcomed President Barack Obama's economic stimulus bill, signed on 25 February, which provides over £4B for water and wastewater projects.

While admitting that the funds represent only a fraction of the need, executive director Gary Zimmerman said, "AWWA is optimistic that the investment in water will jump-start many critical projects and create hundreds of thousands of new jobs." He continued, "We applaud Congress's decision to waive requirements that states provide matching funds, which would be difficult in today's economic climate and will speed distribution of funds."

According to US government data, over 20% of drinking water is lost and 4.5B cubic metres of storm water and wastewater overflow every year due to leaks and breaks in the US's 1.2M kilometers of water pipe and 965,000km of sewer lines. More than 7 million people become ill from contaminated water each year, and in 2006, the Environmental Protection Agency reported 73,000 sewage spills.

The US faces a £200-£350B funding gap over 20 years between what is needed to upgrade and repair the nation's wastewater infrastructure and what is currently being spent. The US Conference of Mayors has identified 4,029 "shovel ready" projects including flood control, sewer rehabilitation and supply and treatment improvements that could create more than 271,000 jobs in 2009 and 2010, for an investment of £16.3B.

Speaking for the suppliers organisation British Water, Paul Mullord said there should be opportunities for UK companies already operating in the US.