Sponsors (26)
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Creates a federal grant program to help low-income households pay drinking water and wastewater bills by sending funds to public water systems and treatment works on the households' behalf. Grants are awarded to States, Indian tribes (entities eligible under LIHEAP), and qualified nonprofits, with allocations based on poverty or housing cost burden and up to 3% reserved for tribes. The program is administered by the Secretary of Health and Human Services in consultation with the EPA and authorizes $500 million per year for fiscal years 2026–2030. Grantees must apply to the Department, may not use funds to replace existing funding (but can supplement), and must follow program requirements; the Department must provide technical assistance and support data-sharing to streamline eligibility and enrollment, and grants to nonprofits are allowed to help rural, underserved, or tribal jurisdictions access funds.
The bill directs federal funding and administrative support to keep water services affordable and prevent shutoffs for low-income and underserved households, but does so at a federal cost and with administrative and allocation limits that could delay aid or leave some tribal and small jurisdictions inadequately served.
Low-income households will receive direct federal assistance to pay drinking water and wastewater arrearages and charges, reducing the risk of service shutoffs.
State and Tribal governments will receive predictable federal funding ($500 million per year FY2026–2030) plus technical assistance and data-sharing to support water affordability programs and streamline administration.
Rural, underserved, and tribal communities will get increased outreach and enrollment support through funded nonprofits and program technical assistance, improving access to assistance.
All taxpayers will fund an additional $2.5 billion over five years, creating budget trade-offs and potential pressure for offsets elsewhere in the federal budget.
Smaller states, tribal governments, and local jurisdictions may lack the administrative capacity to apply for and manage grants quickly, delaying aid to households.
A 3% reservation cap for tribes may leave some tribal households underfunded relative to need, limiting the bill's effectiveness in tribal communities.
Introduced July 23, 2025 by Eric Sorensen · Last progress July 23, 2025