Investment in U.S. drinking water infrastructure is not keeping pace with need, contributing to water service failures that threaten public health, economic development, and community water security. Many explanations for lagging investment focus on the motivations of local elected officials, but those explanations are not rooted in research on elected officials’ own expressed views. We surveyed a representative nationwide sample of approximately 500 city and county officeholders about their perceptions of need for investment and barriers to meeting that need. Analysis of closed-ended and open-ended question responses reveals that the main barriers to investment are financial: incumbents weigh the cost of capital projects against the debt burden and affordability challenge created by those investments. Their concern about public opposition to rate increases is an important constraint on decisions to invest in water infrastructure. Our results also demonstrate disparities across communities in the perceived fiscal burden of water infrastructure. The great majority of elected officials expressed little concern about the condition of infrastructure in their own communities, but concern about infrastructure condition was positively correlated with concern about making investments, pointing to the financial stress for decision makers who bear the expense of deteriorating water systems.