Environmental groups say that could amount to a $7 million cut for Maryland.
The reductions to water projects come after several years of increases.
The administration’s budget is only a broad guideline and few expect the divided Congress to follow it.
Rawlings-Blake noted that the city is operating under federal mandates to improve the way it treats storm water, which can cause pollution in the Chesapeake Bay.
Those requirements and upgrades have forced the city to consider new fees for ratepayers, she said.
“As politically unpopular as it is during a slow economic recovery, we may be faced with requiring all properties in Baltimore city to pay a charge based on the amount of their impervious area,” according to the city’s prepared testimony.
"We have an aged system and it is very vulnerable," said Sen. Ben Cardin, a Maryland Democrat who chaired the hearing and who has been a leading advocate on environmental issues in Congress. "The needs are rather immense."
Sen. Jeff Sessions, an Alabama Republican, said he shared concerns about the potential water infrastructure cuts and said he supports spending money on the projects. He also said painful cuts will have to be made government wide to address the nation's spiraling budget deficits."Sometimes," he said, "you just have to not spend what you don't have."