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

Bill Number

S. 1730

Origin Chamber

Senate

Congress

119th Congress, Session 1

Policy Area

Environmental Protection

Status

Introduced

Latest Action

2025-05-13: Read twice and referred to the Committee on Environment and Public Works.

Last Updated

2025-05-29T15:51:54Z

AI-Generated Summary

Purpose of the Legislation

The Water Affordability, Transparency, Equity, and Reliability Act of 2025 aims to ensure reliable access to clean water and sewer services by providing dedicated federal funding for infrastructure improvements. It focuses on making these services more affordable and equitable, especially for underserved communities, while addressing issues like discrimination, service disconnections, and data gaps in water management.

Key Provisions

• Mandatory Annual Funding Transfers:
• Requires the U.S. Treasury to transfer funds each fiscal year (starting October 1) to the Environmental Protection Agency (EPA), U.S. Department of Agriculture (USDA), and U.S. Department of Health and Human Services (HHS) for water and sewer programs. These funds remain available indefinitely without needing further congressional approval.
• Total transfers: Approximately $35 billion annually, broken down as follows:
• Clean Water Programs (EPA): $17.237 billion for grants related to water pollution control, including capitalization grants for state revolving funds (SRFs) to support wastewater treatment and stormwater management.
• Safe Drinking Water Programs (EPA): $16.187 billion for technical assistance, SRF capitalization grants, and specific grants for emerging contaminants and infrastructure.
• Rural Water Services (USDA): $525 million for grants to rural communities for water and waste disposal systems.
• Indian Health Service Programs (HHS): $1.05 billion for sanitation facilities on tribal lands, including planning, construction, and renovation under self-determination contracts.

• Study and Report on Water Issues (Sec. 4):
• Directs the EPA to conduct a comprehensive study within one year on water affordability (e.g., rate increases and disconnections), discrimination and civil rights violations by service providers, public involvement in consolidating (regionalizing) water systems, and data collection on service gaps, especially for vulnerable groups like children, the elderly, disabled, or low-income households.
• Requires a report to Congress with recommendations for utilities, federal agencies, and states to improve equity and access.

• Amendments to State Revolving Funds (SRFs):
• Clean Water SRF (Sec. 5): Prohibits funding for projects benefiting new housing developments (except advanced decentralized systems); allows funds for purchasing private wastewater treatment plants and canceling related contracts; mandates states use at least 50% of grants for subsidized loans (e.g., forgivable loans or low-interest options) to disadvantaged communities.
• Drinking Water SRF (Sec. 6): Expands eligibility to include purchasing private water systems (even from unwilling sellers) and canceling management contracts; creates exceptions for small systems serving under 10,000 people; requires 50% of funds for subsidies to low-income areas; adds guidance for affordable service delivery and protections against disconnections; introduces grants for replacing lead service lines at no cost to property owners, treating water contaminated by certain "forever chemicals" (PFAS with fully fluorinated carbon atoms), and installing household filtration for private wells.

• Drinking Water Grant Enhancements (Sec. 7):
• Expands school grants to cover broader infrastructure (e.g., installing lead-free fountains, coolers, and monitoring lead levels), not just pre-1988 fountains.
• Doubles the tribal set-aside in drinking water SRFs from 1.5% to 3% of funds.

• Labor Requirements (Sec. 8):
• Preserves existing prevailing wage standards (fair pay rates for workers on federally funded projects under the Clean Water Act and Safe Drinking Water Act).
• Encourages states to allow and promote "project labor agreements" (pre-hire collective bargaining deals between owners, contractors, and unions) for construction projects to ensure efficient labor use.

• Assistance for Colonias (Sec. 9):
• Expands grants for underserved border communities (colonias) to include local governments, not just states, for improving drinking water infrastructure.

Significant Changes to Existing Law

• Funding Mechanism: Shifts from annual appropriations to automatic, mandatory transfers from the Treasury, providing stable, long-term funding without fiscal year limits— a major departure from discretionary budgeting.
• SRF Eligibility and Restrictions: Adds prohibitions on funding sprawl-inducing developments; introduces options to buy out private or mismanaged systems; increases mandatory subsidies from previous levels (e.g., from 20-30% to 50%) to prioritize affordability.
• Equity and Health Focus: Incorporates new protections against disconnections and discrimination; expands grants for lead removal, PFAS remediation (previously limited), and small/tribal systems; updates school programs for wider infrastructure support.
• Labor and Oversight: Reinforces wage rules and adds project labor agreement requirements, while mandating a study on civil rights and data gaps not previously required in these acts.
• Conforming Amendments: Limits certain rural grant authorizations through fiscal year 2025 and redefines colonias aid recipients.

Potential Impacts

• Government Agencies: EPA, USDA, and HHS gain predictable funding streams, reducing reliance on annual budgets and enabling long-term planning for infrastructure. States must adjust SRF programs to meet new subsidy and eligibility rules, potentially increasing administrative burdens but also federal support.
• Citizens: Improves access to safe, affordable water for low-income, rural, tribal, and border communities by funding repairs, contamination fixes, and disconnection protections; could lower utility rates through subsidies and prevent health risks from lead or PFAS. However, higher federal spending may indirectly affect taxes or budgets.
• International Relations: Minimal direct impact, though enhanced U.S. water infrastructure could strengthen environmental diplomacy, especially on shared border issues like colonias along the U.S.-Mexico line.

Main Stakeholders Affected

• Underserved Communities: Low-income households, rural residents, tribal nations, colonias (impoverished border areas), and vulnerable groups (e.g., children, elderly, disabled) benefit from affordability measures and targeted grants.
• Utilities and Local Governments: Public water/sewer providers gain funds for upgrades and acquisitions but face restrictions on private expansions and new equity requirements; states and municipalities must ensure public participation in regionalization.
• Federal Agencies: EPA (primary implementer), USDA (rural focus), HHS (tribal sanitation), and the Department of Justice (civil rights collaboration).
• Labor and Industry: Construction workers and unions supported by wage and labor agreement provisions; private water companies may face buyouts or contract cancellations.
• Environmental and Advocacy Groups: Gain tools to address pollution, discrimination, and data gaps through the mandated study.

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 recommending fixes for discriminatory practices in water services; expands eminent domain-like powers for purchasing private systems, which could face legal challenges from property owners. Maintains compliance with existing labor laws (e.g., Davis-Bacon Act for wages) without altering them.
• Constitutional: Aligns with the federal spending power (Article I) for infrastructure and general welfare; promotes equal protection by targeting disparities based on race, gender, or income, but regionalization provisions emphasize public input to avoid due process issues.
• Political: Represents a progressive push for equity and automatic funding (bypassing annual debates), potentially reducing partisan gridlock on environmental bills but increasing mandatory spending amid budget concerns. Introduced by Democratic senators, it highlights priorities like climate resilience and social justice, with implications for future infrastructure debates.

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

Sponsor

Sen. Sanders, Bernard [I-VT]

Cosponsors (5)

Sen. Blumenthal, Richard [D-CT], Sen. Warren, Elizabeth [D-MA], Sen. Wyden, Ron [D-OR], Sen. Merkley, Jeff [D-OR], Sen. Markey, Edward J. [D-MA]

Recent Actions

• 2025-05-13: Read twice and referred to the Committee on Environment and Public Works.
• 2025-05-13: Introduced in Senate

Bill Versions

• Water Affordability, Transparency, Equity, and Reliability Act of 2025 — issued 2025-05-13 — PDF (21 pages)