Replace water valve. Parts a available at most bog box hardware stores.
SOURCE: I have a GE smartwater reverse osmosis system
That is the drain for the reverse osmosis system. You have what is referred to as an AIR GAP faucet. The waste water is pushed up there before it goes to drain just as the drain for a dishwasher does. If water is coming out of the faucet the drain is most likely plugged or the line is kinked causing water to back up and overflow. Check the drain line for kinks and clean out the drain where it attaches to the stand pipe.
RJ
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