Sponsors (5)
The bill strengthens and guarantees subsidized assistance for wastewater and stormwater affordability—particularly for low-income and underserved communities—and makes funding more predictable, but does so by imposing caps and set-asides that limit program flexibility, may divert money from other SRF priorities, could reduce use of below‑market loan tools, and adds administrative burden for States.
Low-income households and ratepayers will have greater access to subsidized wastewater and stormwater bill assistance because the bill expands subsidy eligibility and requires States to set aside at least 20% of capitalization grants for subsidization when eligible applications exist.
States gain clearer, more predictable fiscal limits for State Revolving Fund (SRF) subsidization through caps tied to either 50% of grants or a 10‑year average of excess State deposits, improving multi-year planning and budget stability for affordability programs.
Rural, small, and tribal publicly owned treatment works (POTWs) can receive an additional 10% of capitalization grants for subsidization, increasing affordability and access in underserved and remote communities.
States could have reduced flexibility to respond in high-need years and may leave some eligible applicants unfunded because the new caps and formulas limit how much can be allocated to subsidization in any given year.
The required minimum 20% set-aside for subsidization could divert capitalization funds away from other SRF priorities (like project loans for construction or upgrades), reducing funding available for infrastructure investments.
Excluding loans with interest rates at or above 0% from counting as subsidization may discourage States from using below‑market interest loans as an affordability tool, reducing the range of assistance mechanisms available to households.
Based on analysis of 2 sections of legislative text.
Changes CWSRF rules for additional subsidization: clarifies eligible uses, sets caps and a 20% floor, adds a 10% bonus for rural/small/tribal POTWs, and excludes nonnegative‑interest loans from subsidization counts.
Official title: To amend the Federal Water Pollution Control Act to provide additional financial assistance to rural, small, and tribal publicly owned treatment works, and for other purposes.
Introduced December 4, 2025 by Kristen McDonald Rivet · Last progress December 4, 2025
Makes targeted changes to how States may provide "additional subsidization" from Clean Water State Revolving Funds (CWSRFs). It changes which projects and ratepayers can receive grant-like assistance, sets new annual caps and minimum floors for subsidization tied to capitalization grants and State deposits, allows an extra subsidy percentage for rural/small/tribal publicly owned treatment works (POTWs), and clarifies that zero‑interest-or-higher loans don’t count as subsidization. The Act also only provides an official short title and does not itself appropriate funds.