Municipalities in the United States are facing challenges in funding infrastructure projects. Traditional federal support has become less reliable. As a result, many local governments are looking for alternative funding sources. One option is using legal settlements from environmental lawsuits. Lawsuits against manufacturers of PFAS (per- and polyfluoroalkyl substances) are a key example. PFAS have contaminated water supplies in many communities.
Major settlements with 3M and DuPont were reached through the Aqueous Film-Forming Foam multi-district litigation (AFFF MDL). These settlements, finalized in June 2023, provide over $14 billion to public water providers that found PFAS in their drinking water. In 2025, hundreds of municipalities are scheduled to receive their first payments from Phase 1 of these settlements. This funding will help address PFAS contamination and support water treatment projects.
The City of Sacramento, California, is one of the first recipients. With legal assistance from SL Environmental Law Group, Sacramento secured about $10.4 million from the PFAS settlements. This money will help pay for PFAS treatment and other capital projects. It may also reduce future costs for ratepayers if more contamination is found…