Do Earmarks Target Low-Income and Minority Communities? Evidence from US Drinking Water

Area of Science:

• Environmental Science
• Public Policy
• Health Equity

Background:

• US drinking water quality and investment inequality are critical issues, highlighted by environmental disasters.
• Subsidized loans under the Safe Drinking Water Act and congressional earmarks are key federal funding mechanisms for water infrastructure.

Purpose of the Study:

• To compare the targeting of Safe Drinking Water Act (SDWA) loans with that of congressional drinking water earmarks.
• To analyze demographic disparities in the distribution of federal drinking water investments.

Main Methods:

• Comparative analysis of formula-based SDWA loan allocations and congressional earmark data.
• Statistical examination of targeting across various demographic groups (race, income).

Main Results:

• Congressional earmarks, unlike SDWA loans, show a disproportionate targeting of Hispanic communities.
• Earmarks also target communities serving larger populations, which may indirectly benefit minority and low-income groups.
• Significant differences in targeting were observed between earmarks and SDWA loans across analyzed demographics.

Conclusions:

• Congressional earmarks and SDWA loans exhibit distinct targeting patterns, challenging assumptions about "pork barrel" spending.
• Earmarks may play a role in directing funds to underserved Hispanic communities, though not necessarily Black or low-income communities specifically.
• Further research is needed to fully understand the equity implications of different federal water infrastructure funding mechanisms.