Water Affordability, Transparency, Equity, and Reliability Act of 2025

Bill Number

H.R. 3376

Origin Chamber

House

Congress

119th Congress, Session 1

Policy Area

Environmental Protection

Status

Introduced

Latest Action

2025-05-13: Referred to the Subcommittee on Water Resources and Environment.

Last Updated

2026-06-30T08:07:05Z

AI-Generated Summary

Purpose

The Water Affordability, Transparency, Equity, and Reliability Act of 2025 aims to create a dedicated funding source for improving water and sewer infrastructure across the United States. It focuses on making services more affordable, transparent, equitable, and reliable, particularly for underserved communities, by establishing a trust fund financed through increased corporate taxes and directing funds to grants, loans, and programs under existing environmental laws.

Key Provisions

• Establishment of the Trust Fund (Sec. 2): Creates the Water Affordability, Transparency, Equity, and Reliability Trust Fund in the U.S. Treasury. Funds are generated from an increase in the corporate tax rate and capped annually at the larger of $35 billion or one-twentieth of the 20-year national needs for drinking water and wastewater infrastructure (based on EPA assessments). Allocations include:
• 42% to clean water State Revolving Funds (SRFs) for wastewater projects.
• 42% to drinking water SRFs for safe drinking water projects.
• 3% to Indian Health Service for sanitation facilities on tribal lands.
• Smaller portions (0.5–3%) for technical assistance, grants for nonpoint source pollution, water operator training, household wells, and colonias (underserved border communities).
• Prohibits use of funds for certain labor-management reporting activities.
• Study and Report on Key Issues (Sec. 3): Requires the EPA Administrator, in collaboration with the Department of Justice, to conduct a study within one year on water affordability (e.g., rates, disconnections), discrimination and civil rights violations by service providers, public participation in consolidating (regionalizing) water systems, and data collection on service gaps affecting vulnerable groups (e.g., children, elderly, low-income). A report with recommendations for utilities, federal agencies, and states must be submitted to Congress.
• Household Water Well Systems (Sec. 4): Increases annual funding for grants to support testing, repair, and installation of household water wells in rural areas from $20 million to $348.5 million per fiscal year.
• State Water Pollution Control Revolving Funds (Sec. 5): Amends the Clean Water State Revolving Fund (CWSRF) under the Federal Water Pollution Control Act to:
• Base fund calculations on fiscal year 2021 levels.
• Prohibit assistance for projects benefiting new developments (except advanced decentralized systems).
• Allow funds for purchasing privately owned treatment works or canceling related contracts.
• Require states to use at least 50% of capitalization grants for additional subsidies (e.g., low-interest loans, forgiveness) to disadvantaged communities.
• Safe Drinking Water State Revolving Funds (Sec. 6): Amends the Drinking Water State Revolving Fund (DWSRF) under the Safe Drinking Water Act to:
• Limit primary assistance to publicly owned, operated, and managed community water systems, with exceptions for small systems serving under 10,000 people.
• Allow funds for purchasing privately owned systems or canceling management contracts, and for lead service line replacements, PFAS (per- and polyfluoroalkyl substances, or "forever chemicals") treatment upgrades, and household well filtration.
• Require states to provide at least 50% of funds as subsidies to disadvantaged communities.
• Add guidance for states on affordability, protections against disconnections, and equitable access.
• Drinking Water Grant Programs (Sec. 7):
• Expands school drinking water grants to cover broader infrastructure (e.g., fountains, coolers, bottle fillers) for lead removal and monitoring, increasing funding from $5 million to $1.05 billion annually through 2027.
• Increases set-aside for tribal drinking water projects from 1.5% to 3% of DWSRF funds, making it mandatory.
• Labor Provisions (Sec. 8): Reinforces prevailing wage requirements (fair pay standards based on local rates) for projects under clean water and drinking water laws. Encourages or requires project labor agreements (pre-hire collective bargaining deals between owners and unions) for construction projects to promote efficient labor use.
• Water Operator Jobs Training Grants (Sec. 9): Directs the Department of Labor to award competitive grants for job training, apprenticeships (structured on-the-job learning programs), and related activities in water, wastewater, and stormwater sectors. Prioritizes at least 50% of funds for low-income individuals, high-poverty areas, communities of color, tribal areas, and union members. No matching funds required; grantees must report on outcomes like job placement and earnings.
• Drinking Water Assistance to Colonias (Sec. 10): Expands grants for water and wastewater infrastructure in colonias (unincorporated, low-income border areas) to include local governments, increasing annual funding from $25 million to $100 million through 2029.

Significant Changes to Existing Law

• Tax and Funding Mechanism: Introduces a new trust fund under the Internal Revenue Code, funded by raising the corporate tax rate from 21% to 24.5% starting in 2025, marking a shift from general appropriations to dedicated revenue for water infrastructure.
• Expanded Eligibility and Uses: Broadens SRF uses to include acquisitions of private systems (even unwilling sellers), PFAS remediation, and lead line replacements at no cost to owners—previously limited or prohibited. Increases subsidy mandates to 50% for disadvantaged areas and boosts specific program funding levels significantly.
• Equity and Oversight Enhancements: Adds requirements for civil rights studies, public input in system regionalization, and protections against disconnections; mandates project labor agreements in some cases, building on but strengthening existing labor standards.
• Small System Exceptions: Allows DWSRF assistance for small, standalone private systems, diverging from prior public ownership mandates.

Potential Impacts

• On Government Agencies: EPA, USDA, HHS, and DOL gain new or increased responsibilities for allocating and administering billions in funds annually, potentially straining administrative capacity but enabling large-scale infrastructure upgrades. States must adjust SRF programs to meet new subsidy and equity guidelines.
• On Citizens: Improves access to safe, affordable water for millions, especially in rural, tribal, low-income, and border areas; reduces health risks from contaminants like lead and PFAS; creates jobs in training and construction. However, higher corporate taxes could indirectly affect economic growth or consumer prices.
• On International Relations: Minimal direct impact, though enhanced U.S. water infrastructure could strengthen environmental diplomacy, particularly regarding PFAS pollution shared across borders (e.g., with Canada or Mexico).

Main Stakeholders Affected

• Federal Agencies: EPA (primary administrator for SRFs and studies), USDA (rural wells and colonias), HHS (tribal sanitation), DOL (training grants).
• State and Local Governments: Receive increased capitalization grants but must comply with new rules on subsidies, acquisitions, and labor; utilities and municipalities benefit from funding for upgrades.
• Communities and Individuals: Low-income, rural, tribal, and colonia residents gain better access and affordability protections; vulnerable groups (e.g., children, elderly) see reduced disconnection risks.
• Utilities and Private Entities: Water/sewer providers face scrutiny on discrimination and rates; private operators may lose contracts or sell systems to public entities.
• Workers and Labor Groups: Benefits from prevailing wages, project labor agreements, and training programs targeting underserved workers.
• Corporations: Face a 3.5% tax increase, potentially reducing after-tax profits but funding public goods.

Notable Legal, Constitutional, or Political Implications

• Legal: Strengthens enforcement of civil rights under Title VI of the Civil Rights Act of 1964 by studying and addressing discrimination in water services; expands eminent domain-like powers for public acquisitions of private systems, which could face challenges if deemed overly broad. Labor provisions align with National Labor Relations Act but may invite disputes over mandatory agreements.
• Constitutional: Potential takings clause issues (Fifth Amendment) from unwilling seller provisions in system purchases, requiring "just compensation." Equity focus advances environmental justice without directly conflicting with equal protection principles.
• Political: Bipartisan sponsorship (119 cosponsors) signals broad support, but corporate tax hike could polarize debates on fiscal policy and revenue for infrastructure versus tax cuts. Emphasizes progressive priorities like equity and worker protections, potentially influencing future environmental and labor legislation amid ongoing infrastructure needs estimated at hundreds of billions over 20 years.

This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.

Sponsor

Rep. Watson Coleman, Bonnie [D-NJ-12]

Cosponsors (90)

Rep. Khanna, Ro [D-CA-17], Rep. Balint, Becca [D-VT-At Large], Rep. Bell, Wesley [D-MO-1], Rep. Bonamici, Suzanne [D-OR-1], Rep. Boyle, Brendan F. [D-PA-2], Rep. Brown, Shontel M. [D-OH-11], Rep. Bynum, Janelle S. [D-OR-5], Rep. Carbajal, Salud O. [D-CA-24], Rep. Carson, André [D-IN-7], Rep. Carter, Troy A. [D-LA-2], Rep. Casar, Greg [D-TX-35], Rep. Casten, Sean [D-IL-6], Rep. Castor, Kathy [D-FL-14], Rep. Chu, Judy [D-CA-28], Rep. Clarke, Yvette D. [D-NY-9], Rep. Cohen, Steve [D-TN-9], Rep. Conaway, Herbert C. [D-NJ-3], Rep. Connolly, Gerald E. [D-VA-11], Rep. Crockett, Jasmine [D-TX-30], Rep. Davis, Danny K. [D-IL-7], Rep. Deluzio, Christopher R. [D-PA-17], Rep. Espaillat, Adriano [D-NY-13], Rep. Evans, Dwight [D-PA-3], Rep. Fields, Cleo [D-LA-6], Rep. Foster, Bill [D-IL-11], Rep. Frost, Maxwell [D-FL-10], Rep. Garcia, Robert [D-CA-42], Rep. García, Jesús G. "Chuy" [D-IL-4], Rep. Gomez, Jimmy [D-CA-34], Rep. Hayes, Jahana [D-CT-5], Rep. Horsford, Steven [D-NV-4], Rep. Huffman, Jared [D-CA-2], Rep. Jacobs, Sara [D-CA-51], Rep. Jayapal, Pramila [D-WA-7], Rep. Johnson, Henry C. "Hank" [D-GA-4], Rep. Krishnamoorthi, Raja [D-IL-8], Rep. Latimer, George [D-NY-16], Rep. Matsui, Doris O. [D-CA-7], Rep. McBride, Sarah [D-DE-At Large], Rep. McClain Delaney, April [D-MD-6], Rep. McIver, LaMonica [D-NJ-10], Rep. Meng, Grace [D-NY-6], Rep. Moore, Gwen [D-WI-4], Rep. Nadler, Jerrold [D-NY-12], Rep. Neal, Richard E. [D-MA-1], Rep. Norcross, Donald [D-NJ-1], Del. Norton, Eleanor Holmes [D-DC-At Large], Rep. Ocasio-Cortez, Alexandria [D-NY-14], Rep. Panetta, Jimmy [D-CA-19], Rep. Pocan, Mark [D-WI-2] and 40 more

Recent Actions

• 2025-05-13: Referred to the Subcommittee on Water Resources and Environment.
• 2025-05-13: Referred to the Committee on Transportation and Infrastructure, and in addition to the Committees on Energy and Commerce, Ways and Means, Agriculture, Natural Resources, and Education and Workforce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
• 2025-05-13: Referred to the Committee on Transportation and Infrastructure, and in addition to the Committees on Energy and Commerce, Ways and Means, Agriculture, Natural Resources, and Education and Workforce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
• 2025-05-13: Referred to the Committee on Transportation and Infrastructure, and in addition to the Committees on Energy and Commerce, Ways and Means, Agriculture, Natural Resources, and Education and Workforce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
• 2025-05-13: Referred to the Committee on Transportation and Infrastructure, and in addition to the Committees on Energy and Commerce, Ways and Means, Agriculture, Natural Resources, and Education and Workforce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
• 2025-05-13: Referred to the Committee on Transportation and Infrastructure, and in addition to the Committees on Energy and Commerce, Ways and Means, Agriculture, Natural Resources, and Education and Workforce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
• 2025-05-13: Referred to the Committee on Transportation and Infrastructure, and in addition to the Committees on Energy and Commerce, Ways and Means, Agriculture, Natural Resources, and Education and Workforce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
• 2025-05-13: Introduced in House
• 2025-05-13: Introduced in House

Bill Versions

• Water Affordability, Transparency, Equity, and Reliability Act of 2025 — issued 2025-05-13 — PDF (25 pages)