Sponsors (5)
The bill significantly expands and guarantees targeted affordability support for wastewater and stormwater customers—especially low-income and rural/tribal communities—while imposing caps and rules that improve predictability but may reduce state flexibility and divert funds from other SRF priorities.
Low-income households and ratepayers will gain expanded eligibility for subsidized assistance covering wastewater and stormwater service costs, increasing direct affordability help for vulnerable customers.
States must allocate at least 20% of capitalization grants to subsidization when eligible applications exist, creating a more predictable, minimum stream of affordability funding year-to-year.
Rural, small, and tribal publicly owned treatment works (POTWs) can receive an extra 10% of capitalization grants for subsidization, improving access and affordability for underserved and remote communities.
State SRF programs could have reduced flexibility and funding availability in high-need years—minimum floors and caps may force diversion of capitalization funds to subsidization and leave some projects or applicants unfunded.
Excluding loans with interest rates ≥ 0% from counting as subsidization may discourage states from offering below-market interest loans as an affordability tool, reducing lower-cost financing options for communities.
New administrative clarifications and changes to program scope and purpose may require states to revise rules and outreach, creating implementation costs and short-term delays in program delivery.
Based on analysis of 2 sections of legislative text.
Revises SRF additional-subsidization rules: new cap (greater of 50% of grant or 10-year average), 10% rural/tribal bonus, 20% minimum floor, and excludes certain loans from counting.
Introduced December 4, 2025 by Kristen McDonald Rivet · Last progress December 4, 2025
Amends the rules for State water pollution control revolving funds (SRFs) to change how states may provide "additional subsidization" (grant-funded subsidies) for wastewater, including stormwater, services. It clarifies eligible geographic scope, sets a new annual cap based on either 50% of the capitalization grant or the state's 10-year average of excess deposits, creates a 10% bonus for rural, small, and tribal publicly owned treatment works (POTWs), requires a 20% minimum floor of the capitalization grant when eligible applications exist, and excludes loans with interest rates at or above 0% from counting as additional subsidization. The changes shift how much and to whom SRF grant money can be delivered as grants or principal forgiveness, expand affordability support to include stormwater costs, and impose new calculation and reporting choices states must follow when determining subsidization levels.