As a city, the Las Vegas Metropolitan Sewage District has been plagued by wastewater leaks and a wastewater spill at the Cecil Hotel last year.
The city is currently under a state-mandated $3 billion in emergency funding and is facing a shortfall of about $2 billion by the time it runs out in January 2018.
The federal government is expected to take another $30.4 billion to cover the cost of cleaning up the Las Vega Sewage Basin.
In the meantime, city officials are planning to spend $10 billion on a sewage treatment plant that will be built at the site.
The project, which is expected in 2018, will be paid for with federal money that will help the city deal with its wastewater issues.
Las Vegas Mayor Carolyn Goodman, a Democrat, said that it would be irresponsible for the federal agency to take on the work without providing adequate oversight.
“This project will be done on a local level and not the federal level,” she said in a statement.
“The city’s response to the Sewage Crisis has been to invest in a highly skilled workforce, including contractors and subcontractors who are ready and willing to perform the necessary work to ensure the clean-up is completed safely and quickly.”
“The federal government cannot take on this task on its own,” Goodman said.
“It has to get local and state government to step in.”
The federal agency has said it has received the backing of both the Las Venetas Water Authority and the Las Vegas Sewage Authority.
It said it will pay for the work, which will be run by the Water District of Southern Nevada, through a federal program called the Emergency Sewage Capacity Fund.
That program was created in the wake of the Sewing Disaster of 2015 that killed more than 6,000 people.
“The Sewage Conservation and Improvement Act of 2017 has provided for the creation of a Federal Sewage Recovery Fund to assist in the construction of a sewage facility and related mitigation measures,” a statement from the agency read.
“Federal funds will be used to construct a project that will provide a permanent facility for the purpose of remedying waste produced by the Las Vegas Sewage facility.”
Despite that, the project could still run into problems.
Goodman said the federal program is still in its early stages, and the city is in discussions with other states about funding.