Clean Water Affordability Act
- Bill Number
- H.R. 5833
- Origin Chamber
- House
- Congress
- 119th Congress, Session 1
- Policy Area
- Environmental Protection
- Status
- Introduced
- Latest Action
- 2025-10-25: Referred to the Subcommittee on Water Resources and Environment.
- Last Updated
- 2026-04-08T22:43:05Z
AI-Generated Summary
Purpose
The Clean Water Affordability Act (H.R. 5833) aims to make wastewater and stormwater treatment services more affordable, particularly for low-income communities, by expanding state options for subsidizing loans through the Clean Water State Revolving Fund (CWSRF) program. This program provides federal grants to states, which they use to offer low-interest loans for water infrastructure projects under the Federal Water Pollution Control Act (commonly known as the Clean Water Act).
Key Provisions
- Amendments to Subsidization Rules: Updates Section 603(i) of the Clean Water Act to clarify and expand how states can provide "additional subsidization" (financial assistance like forgivable loans or grants) from their revolving loan funds.
- Removes restrictive language in existing rules to focus on helping ratepayers (utility customers) maintain access to essential wastewater and stormwater services.
- Sets limits on subsidization amounts: States may use up to the greater of:
- 50% of their annual federal capitalization grants (federal funds allocated to the state's revolving loan fund), or
- The average amount of state matching funds deposited into the fund over the previous 10 years (beyond the minimum required match).
- Requires a minimum usage: If there are enough qualifying projects, states must allocate at least 20% of their capitalization grants for additional subsidization.
- Definition of Subsidization: Specifies that loans with an interest rate of 0% or higher do not count as "additional subsidization," ensuring subsidies are reserved for deeper financial relief (e.g., principal forgiveness or negative-interest loans).
Significant Changes to Existing Law
- Increased Flexibility and Minimum Commitment: Previously, states had less guidance on subsidization caps and no mandatory minimum allocation. The bill raises the maximum allowable subsidization from 30% to potentially 50% of grants (or more based on state contributions) and introduces a 20% floor to prioritize affordability.
- Broader Focus on Ratepayer Access: Shifts language from general assistance to explicitly supporting ongoing access to services, targeting communities facing rate hikes due to infrastructure costs.
- Removal of Prior Restrictions: Strikes an existing paragraph limiting subsidization and replaces it with more detailed rules, allowing states to leverage their own historical investments.
Potential Impacts
- On Government Agencies: States and the Environmental Protection Agency (EPA), which administers the CWSRF, will need to adjust fund allocation processes to meet the new minimum and track subsidization more closely. This could increase administrative workload but enable more targeted aid for underserved areas.
- On Citizens: Low-income households and communities (often called "ratepayers") benefit from reduced financial burdens for water services, helping prevent service shutoffs or unaffordable bills. It promotes equity in access to clean water infrastructure without raising taxes broadly.
- On International Relations: No direct impact, as this is a domestic environmental funding program.
Main Stakeholders Affected
- States and Local Governments: Primary recipients of federal grants; they manage revolving funds and decide on loan subsidies for wastewater projects.
- Municipal Utilities and Water Treatment Providers: Eligible borrowers who can now access more subsidized financing for upgrades, stormwater management, and pollution control.
- Low-Income Communities and Ratepayers: Direct beneficiaries through lower costs and maintained service access, especially in areas with aging infrastructure.
- Environmental Advocacy Groups: Likely supporters, as the bill advances clean water goals under the Clean Water Act.
Notable Legal, Constitutional, or Political Implications
- Legal Implications: Strengthens the CWSRF program's role in addressing affordability gaps, potentially reducing litigation over unequal access to water services. It aligns with existing Clean Water Act goals but requires states to document compliance with the new subsidization rules to avoid federal grant clawbacks.
- Constitutional Implications: None significant; the bill operates within Congress's authority under the Commerce Clause to regulate environmental pollution affecting interstate waters.
- Political Implications: Supports bipartisan priorities in infrastructure and environmental justice by emphasizing affordability without new federal spending. It could influence future appropriations debates for the CWSRF, highlighting tensions between state flexibility and federal mandates for equity.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Rep. Wilson, Frederica S. [D-FL-24]
Cosponsors (1)
Rep. Sewell, Terri A. [D-AL-7]
Recent Actions
- 2025-10-25: Referred to the Subcommittee on Water Resources and Environment.
- 2025-10-24: Referred to the House Committee on Transportation and Infrastructure.
- 2025-10-24: Introduced in House
- 2025-10-24: Introduced in House
Bill Versions
- Clean Water Affordability Act — issued 2025-10-24 — PDF (3 pages)