Sponsors (5)
The bill redirects a guaranteed share of water infrastructure grants toward green and efficiency projects—boosting resilience and local economic benefits for many communities while reducing state flexibility and potentially delaying or increasing short-term costs for some traditional wastewater priorities.
State governments must allocate at least 20% of capitalization grant funds to green infrastructure or efficiency projects, increasing investment in sustainable water and energy upgrades.
Homeowners and local communities will see improved stormwater management, lower utility bills, and reduced flooding from funded green infrastructure projects.
Utilities and state governments can modernize aging water systems and increase resilience by directing funds to environmentally innovative activities that extend system lifespan.
State governments and utilities will have less flexibility to allocate grant funds to traditional wastewater projects, potentially delaying some conventional upgrades.
Low-income individuals and homeowners in some communities may face higher short-term costs or delayed high-priority local projects if funds are shifted to meet the 20% green/efficiency requirement.
State governments may experience uneven implementation and reduced predictability if there are not enough eligible applications for green/efficiency projects, undermining consistent use of the 20% floor.
Based on analysis of 2 sections of legislative text.
Requires States to use at least 20% of federal capitalization grant funds for green infrastructure, water/energy efficiency, or other environmentally innovative water projects when enough eligible applications exist.
Official title: To amend the Federal Water Pollution Control Act to require a certain percentage of funds appropriated for revolving fund capitalization grants be used for green projects, and for other purposes.
Introduced April 22, 2026 by Nikema Williams · Last progress April 22, 2026
Requires States that receive federal capitalization grant funds for water projects to set aside at least 20% of those funds, when there are enough eligible applications, for projects that implement green infrastructure, water or energy efficiency improvements, or other environmentally innovative activities. The change takes effect on enactment and amends the existing capitalization grant agreement requirements in federal law.