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Amends Section 1452 of the Safe Drinking Water Act (42 U.S.C. 300j–12) to modify allowable uses of State revolving loan funds in subsection (a), including changes to paragraph (2) subparagraphs and adding an exception for certain small public water systems; replaces/substitutes text in multiple subsections and adds new assistance authorities in subsection (k)(1).
Amends Section 1456 of the Safe Drinking Water Act (42 U.S.C. 300j–16) by (1) redesignating subsection (a)(2) as (a)(3) and inserting a new definition of 'covered entity' in subsection (a) (defining 'covered entity' to mean a border State or a local government with jurisdiction over an eligible community); (2) replacing references to 'border State' with 'covered entity' in subsection (b); (3) striking subsection (d); and (4) redesignating subsection (e) as subsection (d).
Adds a new paragraph (16) to subsection (b) requiring States to permit recipients of assistance under this title to enter into agreements authorized under section 8(f) of the National Labor Relations Act (project labor agreements) for building or construction projects carried out with that assistance, and to ensure, to the maximum extent practicable, that recipients carry out those projects through the use of those agreements.
Amends section 1465 of the Safe Drinking Water Act by (1) modifying the section heading (text of inserted heading not shown in section), (2) replacing the phrase "fountains manufactured prior to 1988" in subsection (a) with the word "infrastructure", and (3) striking existing subsection (b) and inserting a new subsection (b) titled "Use of funds" that specifies permissible uses for grant funds (installation/repair/replacement of infrastructure to ensure school drinking water fixtures are lead free and monitoring/reporting of lead levels in school drinking water as determined by the Administrator).
Modifies paragraph (2) to change wording about the timing/source of capitalization grants to reference funds made available for fiscal year 2021, and adds a new paragraph (15) prohibiting States from using fund amounts to provide financial assistance for projects that will provide substantial direct benefits to new communities, lots, or subdivisions (except for construction of an advanced decentralized wastewater system).
Alters punctuation in subparagraphs (11)(B) and (12)(B) to allow addition of a new eligible use, and adds new paragraph (13) to authorize use of funds to purchase a privately owned treatment works (from a willing or unwilling seller) and to cover expenses related to canceling a contract for operation or management of a publicly owned treatment works.
Replaces existing subparagraph (B) to require that, to the extent there are sufficient applications, a State must use not less than 50 percent of the total amount received by the State in capitalization grants under this title for a fiscal year to provide additional subsidization under this subsection.
Amends section 306C(e)(1) of the Consolidated Farm and Rural Development Act by inserting additional language 'after each place it appears' (the inserted text is not specified in this section).
Read twice and referred to the Committee on Environment and Public Works.
Introduced May 13, 2025 by Bernard Sanders · Last progress May 13, 2025
Requires annual Treasury transfers to fund clean water, drinking water, rural water, and Indian Health Service sanitation projects and expands how Clean Water and Drinking Water State Revolving Funds (SRFs) may be used. It directs a one-year federal study on water and sewer service access and affordability, boosts required subsidization from SRF capitalization grants, enables SRFs to buy privately owned water systems, funds lead service line replacement and PFAS response, updates school and tribal drinking-water grant rules, and allows states to permit and encourage project labor agreements for SRF-funded construction.
Defines the term "Administrator" for this Act: "Administrator" means the Administrator of the Environmental Protection Agency.
At the beginning of each fiscal year, the Administrator shall obligate not more than $175,000,000 for making grants under section 104(b)(8) of the Federal Water Pollution Control Act (33 U.S.C. 1254(b)(8)).
At the beginning of each fiscal year, the Administrator shall obligate not more than $525,000,000 for making grants under section 106 of the Federal Water Pollution Control Act (33 U.S.C. 1256).
At the beginning of each fiscal year, the Administrator shall obligate not more than $875,000,000 for making grants under section 226 of the Federal Water Pollution Control Act (33 U.S.C. 1302d).
At the beginning of each fiscal year, the Administrator shall obligate not more than $875,000,000 for making grants under section 319 of the Federal Water Pollution Control Act (33 U.S.C. 1329).
Who is affected and how:
Utilities and treatment works: Publicly owned treatment works (POTWs) and community water systems can access expanded SRF financing options, including loans or grants to purchase privately owned systems; POTW owners/operators may use SRF funds for broader project types but must comply with updated SRF requirements.
Small and rural communities: The bill explicitly expands assistance to small systems (under 10,000 people), increases subsidization targets (making loans more affordable or converting loans to grants), and provides persistent federal funding that can improve access and affordability in rural and underserved areas.
Tribal communities and Indian Health Service sanitation projects: Receive strengthened grant rules and increased programmatic emphasis; tribal grant provisions are made mandatory in one case, likely increasing funding reach or requirements for tribal recipients.
K–12 schools and students: School grant rules are broadened so funds may fix or replace water-dispensing fixtures to eliminate lead exposure and pay for monitoring/reporting of lead levels, directly protecting children’s health.
Households and homeowners: The authorization of lead service line replacement and PFAS response will benefit homeowners and renters served by public systems by reducing health risks and potential service disruptions.
State governments and SRF administrators: Must adapt program rules to meet the new subsidization floor (50% when demand exists), eligible uses, reporting/accounting updates, and to allow and encourage project labor agreements; these changes create administrative work and potential shifts in how funds are allocated.
Federal agencies: EPA must run the mandated study and produce recommendations within one year. Treasury must execute annual transfers on Oct 1 each year for the amounts specified. These duties increase federal administrative responsibilities.
Labor and construction stakeholders: Prevailing-wage protections remain; states are required to permit project labor agreements and are encouraged to ensure their use on SRF projects, which may change contracting and labor relations on large projects.
Overall effects: The bill increases and stabilizes federal funding for water infrastructure, expands allowable SRF investments to accelerate equity and public-health projects (lead line replacement, PFAS), and directs attention to affordability, data gaps, and civil-rights concerns. States gain more subsidization flexibility to target low-income and small systems, but must update administration, outreach, and compliance practices. The measures likely improve water quality and access over time but require implementation capacity at state/local level and ongoing federal oversight.
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Read twice and referred to the Committee on Environment and Public Works.
Introduced in Senate