Sponsors (8)
The bill redirects and stabilizes federal water infrastructure funding toward measured needs (benefiting disadvantaged, tribal, and territorial systems and smoothing year-to-year swings) while reducing some federal reporting and shifting dollars away from certain high-population/urban systems and immediate construction funding, creating a trade-off between targeted equity and broader funding availability and transparency.
State and local governments will receive a new needs-weighted allocation (60% needs, 20% population, 20% poverty), directing more federal dollars to areas with the greatest wastewater and water infrastructure needs.
The 4-year transition cap (limits increases to 200% and decreases to 25%) smooths funding swings, reducing disruption to multi-year water projects and improving planning stability for states and utilities.
Indian tribes are guaranteed a 2% set-aside, increasing funding certainty for tribal water projects, operations, and residents on tribal lands.
Urban and high-population communities (and the ratepayers they serve) may receive less federal funding because shifting 60% of allocation weight to measured 'needs' can reduce dollars for systems with high populations but lower measured need scores.
Some states could face steep funding drops (subject to the 25% decrease cap), tightening budgets for ongoing water projects and potentially delaying construction or maintenance for local systems.
Removing statutorily mandated EPA reporting (biennial cost estimates and comprehensive economic-impact studies) reduces federally produced data that states, utilities, and communities rely on for planning and budgeting.
Based on analysis of 4 sections of legislative text.
Revises Section 205 allotments to a needs/population/poverty formula, adds small set‑asides for tribes, territories, and Buy American oversight, and permits limited survey funding from grants.
Official title: Amend the Federal Water Pollution Control Act to modify allotments under that Act, and for other purposes.
Introduced July 16, 2026 by Richard Lynn Scott · Last progress July 16, 2026
Revises how federal clean water grant funds are allotted to States, territories, and tribes by replacing the existing Section 205 allotment formula with a new formula that weights State need, population, and poverty. It establishes small set‑asides for Buy American oversight, tribes, and territories, phases in year‑to‑year changes over four years, and requires publication of initial and annual allotments. It also permits States to use up to 0.5% of capitalization grant receipts for Clean Watersheds Needs Surveys and removes a set of statutory reporting/study duties previously required of the Administrator.