Sponsors (44)
The bill expands and stabilizes federal support to prevent water shutoffs and improve equitable access—especially for low-income, rural, and tribal communities—but does so at an ongoing federal cost and with administrative rules and allocation limits that may constrain flexibility and leave some tribal needs underfunded.
Low-income households will receive direct assistance to pay water and wastewater arrearages, reducing the risk of service shutoffs and immediate loss of water service.
State governments and tribal governments will receive predictable federal funding ($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 funds through grants to qualified nonprofits, improving equity in water access and helping communities with limited local capacity.
Taxpayers will bear the $500 million annual cost, increasing federal spending and potentially crowding out other budget priorities.
State governments and qualified nonprofit organizations will face application, reporting, and compliance requirements that increase administrative burden and could delay fund disbursement.
Jurisdictions that rely on blended funding will have less flexibility because grant funds cannot be used to supplant existing assistance, potentially complicating program design or funding continuity.
Based on analysis of 2 sections of legislative text.
Establishes a federal grant program to help low-income households pay water and wastewater arrearages and authorizes $500M/year for FY2026–2030.
Creates a federal Low-Income Household Water Assistance Program that awards grants to States, eligible Indian tribes, and qualified nonprofits to help low-income households pay past-due water and wastewater bills and related charges. The program is run by HHS in consultation with the EPA and includes formulas for allocating funds, tribal set‑aside, and nonprofit grants for rural, underserved, or tribal areas. The bill defines who counts as a low-income household, prohibits replacing existing assistance, requires technical assistance for data sharing and categorical eligibility, and authorizes $500 million annually for fiscal years 2026 through 2030.
Official title: To authorize the Low-Income Household Water Assistance Program, and for other purposes.
Introduced July 23, 2025 by Eric Sorensen · Last progress July 23, 2025