Sponsors (34)
The bill provides predictable federal funding and targeted assistance to prevent water shutoffs and improve equity for rural and tribal communities, at the cost of additional federal spending, administrative requirements, limits on funding flexibility, and a potentially small tribal reservation allocation.
Low-income households will receive direct federal assistance to pay past-due water and wastewater bills, reducing the risk of service shutoffs and immediate hardship.
State and tribal governments will get predictable federal funding (about $500 million per year for FY2026–2030) to support household water affordability programs, improving program stability and planning.
Rural, underserved, and tribal communities will gain targeted access to assistance through grants to qualified nonprofit organizations, improving equity in water access where needs are concentrated.
All taxpayers will finance roughly $500 million per year (FY2026–2030) for these programs, increasing federal outlays and potentially crowding out other budget priorities.
State agencies and qualifying nonprofits will face application, reporting, and compliance requirements that impose administrative burdens and may delay getting funds to households.
Jurisdictions that rely on blended funding could be constrained because grant funds may not be used to supplant existing assistance, reducing flexibility to manage local funding mixes.
Based on analysis of 2 sections of legislative text.
Authorizes a federal grant program to fund states, tribes, and nonprofits to help low-income households pay water and wastewater arrearages, with $500M/year for FY2026–2030.
Introduced July 23, 2025 by Eric Sorensen · Last progress July 23, 2025
Creates a new federal Low-Income Household Water Assistance Program to help low-income households pay water and wastewater arrearages and charges. The program is run by the Secretary of Health and Human Services in consultation with the EPA Administrator and awards grants to States, eligible Indian tribes, and qualified nonprofit organizations to support public water systems and treatment works in assisting qualifying households. Grants are allocated by a formula tied to poverty or housing-cost burden, with up to 3% reserved for Indian tribes and additional grants for nonprofits serving rural, underserved, or tribal areas. The bill authorizes $500 million per year for FY2026–2030, prohibits supplanting existing assistance, and requires technical assistance to streamline data-sharing and categorical eligibility.