In the past, the NPS also removed the handles when the water from the wells doesn't test as potable. Perhaps the rumored funding cuts and the removed handles have more to do with not having the manpower to test all the wells along the C&O on a regular basis, so they are just removing the handles entirely.

But, I find no mention of this on the NPS C&O website: Camping - Chesapeake & Ohio Canal National Historical Park (U.S. National Park Service) or on their News page: News Releases - Chesapeake & Ohio Canal National Historical Park (U.S. National Park Service)