Flow Act

This bill changes federal tax rules so cities and public water systems can use tax‑favored bonds to replace the privately owned parts of lead water lines without breaking “private use” limits. In short, it clears the way to finance full, curb‑to‑home lead pipe replacements to meet federal drinking water standards for lead.

It also sets a start date: the new rule applies to bonds issued after December 31, 2025.

Key points

• Who is affected: Public water systems, local bond issuers, and households with lead service lines connected to those systems.
• What changes: Using bond funds to replace the privately owned part of a lead service line will not count as “private business use,” making it easier to fund full replacements with tax‑advantaged bonds to meet national lead-in-water rules.
• When it starts: Applies to bonds issued after December 31, 2025.