Lead hazard reduction in housing

Full Title:
GET THE LEAD OUT Act of 2026

Summary#

This bill creates a federal program to find and remove lead in pipes, taps, and plumbing in housing. It funds grants and new rules for testing, training, contractor certification, disclosure when homes are sold or leased, and studies and public education. It also includes tax changes that affect certain partnership income (often called "carried interest") and returns the estate and gift tax exclusion to its pre-2018 level.

  • Main change: Authorizes large, ongoing HUD grants to help states and local governments evaluate and reduce lead in plumbing and to require training, certification, and standards for such work.
  • Grants and rules: HUD must run a grant program for “priority housing”; EPA must write rules for training, lab testing, and defining dangerous lead levels; states may run authorized programs that replace federal rules if they are at least as protective.
  • Disclosure and enforcement: Sellers and landlords must disclose known lead plumbing hazards, give a lead information pamphlet, and let buyers have a 10‑day inspection window; violations carry civil penalties and possible triple damages for buyers or lessees.
  • Funding and costs: The bill authorizes $9.5 billion per year (HUD grants) for 2026–2035 and sets other funding authorities and small set‑asides; EPA funding is “such sums as may be necessary.”
  • Tax changes: Adds new tax rules treating some partnership investment-manager income differently (recharacterizing certain capital gains as ordinary income) and changes partnership tax rules; it also restores the estate and gift tax exclusion to the amount used before 2018.

What it means for you#

  • Homeowners and homebuyers

    • Sellers must disclose any known lead-based plumbing hazards and give a federal lead information pamphlet before a buyer is obligated.
    • Buyers get a default 10‑day chance to have a risk assessment or inspection for lead plumbing hazards before closing.
    • If a seller knowingly violates the disclosure rules, the buyer can seek damages (including a potential triple damages award) and the seller faces civil penalties.

  • Renters and landlords

    • Landlords must disclose known lead plumbing hazards to new tenants and provide the lead pamphlet.
    • Public housing and many federally assisted housing programs must follow schedules for risk assessments and do hazard reduction or abatement during rehabilitation or major repairs.
    • HUD may allow rent adjustments for project-based assisted properties to cover lead-evaluation and reduction costs, subject to appropriations.

  • Local and state governments

    • States and eligible local governments (those with an approved housing strategy) can apply for HUD grants to assess and reduce plumbing lead hazards.
    • States may seek EPA authorization to run their own certification and enforcement programs if they are at least as protective as federal rules.

  • Contractors, labs, and training providers

    • The EPA must set national rules for training, accreditation, and contractor certification for lead‑plumbing work. Certified contractors must perform risk assessments, inspections, and abatements in housing.
    • The EPA (or authorized states) may charge fees to cover administration of accreditation and certification; some fees may be waived in limited cases. Laboratories that test for lead must meet performance standards and may need certification.

  • Workers and public health

    • The bill funds studies and surveillance on lead exposure sources, promotes testing of children, and supports public education and a national clearinghouse and hotline for lead information.
    • Employers doing abatement must monitor worker blood-lead levels as specified for HUD‑funded projects.

  • Investors and investment managers

    • Certain income from providing investment management services through partnerships would be taxed differently — some gains treated as ordinary income rather than capital gain. This can raise tax bills for affected managers and change reporting rules.

Expenses#

Estimated public cost: The bill authorizes $9.5 billion per year for HUD grants for fiscal years 2026–2035.

  • HUD grants: $9,500,000,000 authorized annually for 2026–2035 for lead hazard reduction in housing.
  • EPA programs: “Such sums as may be necessary” are authorized for FY2026–2035 to carry out Title II and related activities (no dollar estimate provided).
  • Set‑aside: $3,000,000 per year (FY2026–2035) is set aside for capacity building under the HUD grant title.
  • Small grants: HUD may make grants up to $200,000 in FY2026 and FY2027 to help states set up training/certification programs.
  • Matching and limits: Grant recipients must provide at least 10% matching funds; no more than 10% of a grant may be used for administrative costs.
  • Fees and penalties: EPA (or authorized states) may charge accreditation and certification fees to cover program costs; the bill also authorizes civil penalties for disclosure violations and uses existing statutory penalty limits (including up to $10,000 per violation under TSCA for enforcement).
  • Other costs for homeowners/landlords: Testing, abatement, temporary relocation during abatement, and any required matching funds could be borne by property owners, grantees, or lenders depending on local programs and funding.

If you need a full fiscal estimate or budget score, there is no public fiscal note in the bill text. No publicly available information.

Proponents' View#

The bill appears intended to do the following:

  • Build a national, coordinated program to remove lead from plumbing in housing and reduce childhood lead poisoning.
  • Shift resources to evaluate and fix lead plumbing hazards in private housing that is not currently covered by some federal programs.
  • Create clear standards and certified training so evaluations and abatement are done safely and consistently.
  • Help communities pay for testing, interim controls (temporary fixes), abatement (permanent removal), relocation during work, and public education.
  • Improve disclosure so buyers and renters know about lead plumbing hazards before they commit to a purchase or lease.

Opponents' View#

One concern is that the bill leaves several important details open or could create trade-offs:

  • The EPA funding is open‑ended (“such sums as may be necessary”), and while HUD grants are authorized at $9.5 billion per year, the bill does not include a full budget or offset; this implies substantial federal spending that would need appropriation.
  • The bill gives large new disclosure and civil-liability rules (including triple damages for knowing violations) that could increase legal risk and costs for sellers, landlords, and real estate agents.
  • The new certification, accreditation, and laboratory standards will create administrative and compliance costs for training providers, contractors, and labs; fees to cover program administration may be passed on to businesses.
  • The timelines for rulemaking and implementation range from months to years (some rules take effect 1–4 years after enactment), so actual work could be delayed.
  • It is unclear how liability, “safe harbor” protections, and insurance availability for landlords and contractors will be resolved; the task force is to study these issues but offers no immediate solution.
  • The tax changes in Title IV recharacterize some partnership income and alter estate/gift exclusion amounts; these are complex and may affect investment managers, partnerships, and estates in ways that increase taxes or compliance burdens.