PFAS Cleanup and the $110 Billion Gap: How Water Utilities Can Build Resilience Through Innovation

Emerging technologies will be key to solving PFAS challenges and rebuilding infrastructure.

Water infrastructure in the United States is under unprecedented strain. Between aging assets, climate-related volatility, and a wave of new regulatory demands, utilities are being asked to do more with less. According to McKinsey & Company’s March 2025 report Water Resilience: Closing the Funding Gap for Utilities, the U.S. faces a staggering $110 billion annual shortfall in water utility funding—a gap that threatens long-term access, quality, and system reliability [McKinsey & Company, Water Resilience: Closing the Funding Gap for Utilities, 2025].

At the heart of this challenge lies a growing urgency around emerging contaminants—particularly per- and polyfluoroalkyl substances (PFAS), also known as “forever chemicals.” These synthetic compounds, once used for their resistance to heat and water, have now been tied to serious health concerns and environmental persistence. The EPA’s newly finalized drinking water standards for PFAS are among the most stringent in the world, and compliance isn’t optional. Utilities nationwide must now take action to remove these contaminants—at scale, under budget, and on deadline.

McKinsey’s Warning: Infrastructure Alone Won’t Be Enough

McKinsey’s analysis outlines three primary obstacles to water resilience:

1. Aging physical systems, many of which are operating well past their intended lifespans.

2. Evolving compliance mandates, especially around contaminant thresholds like PFAS.

3. Limited capital and rising operational costs, particularly for smaller or decentralized systems.

The firm emphasizes that while funding increases are needed, so too is a shift in strategy. Traditional infrastructure alone won’t close the gap. Instead, utilities must embrace innovation—in treatment, monitoring, system design, and strategic deployment.

Among McKinsey’s key takeaways: by adopting smart, adaptable solutions, utilities could reduce the gap by up to 25%. These solutions include advanced digital tools, integrated treatment systems, and public-private partnerships aimed at scaling capabilities quickly [McKinsey & Company, Water Resilience: Closing the Funding Gap for Utilities, 2025].

Enterra’s Role in the Evolving Water Landscape

At Enterra, we believe resilience begins with flexibility. As the water sector faces new regulatory, environmental, and operational risks, we’re building systems designed to meet complexity with adaptability.

Our focus is not on selling a single product, but rather supporting the integration of advanced technologies into the broader effort to modernize America’s water systems. From monitoring systems that help detect contaminants early, to modular approaches for integrating treatment at various scales, we are helping shape a future where utilities can stay ahead of compliance challenges and infrastructure fatigue—without overextending resources.

Enterra is engaging with public and private stakeholders to ensure that PFAS remediation efforts can be both sustainable and scalable. Whether applied in large-scale municipal operations or smaller distributed environments, our goal is to help our partners build systems that adapt to evolving standards and demands, not react to them.

The Bigger Picture: PFAS as a Financial and Strategic Driver

PFAS contamination is no longer a theoretical concern. It is a catalyst for infrastructure overhaul, a driver of federal funding, and increasingly, a legal liability for utilities and industrial operators alike. McKinsey’s report emphasizes this shift—where emerging contaminants are not only reshaping regulatory frameworks but are also beginning to inform financial planning, insurance risk modeling, and community engagement strategy.

As utilities assess their next moves, they must balance today’s operational needs with tomorrow’s resilience goals. This means partnering with organizations that understand how to navigate both the technical and regulatory complexities of water treatment—especially in the PFAS era.

Where Investment Meets Innovation

The infrastructure funding conversation is no longer just about pipes and pumps—it’s about outcomes. PFAS has become a tangible example of what happens when innovation lags behind regulation. Now, utilities and governments alike are racing to catch up. That urgency creates space for forward-thinking approaches to thrive.

At Enterra, we see this moment as an inflection point. The convergence of funding, public awareness, and policy clarity creates a rare opportunity to modernize water systems from the inside out. Whether through direct deployment, advisory support, or ecosystem alignment, our role is to enable that modernization—without overpromising and underdelivering.