Summary#
This bill changes how money for clean water projects is divided among States, Indian tribes, and U.S. territories. It updates Section 205 of the Federal Water Pollution Control Act to set new formulas and required set-asides before States get funds. Key changes include required set-asides for Buy American oversight (0.1 percent), Indian tribes (2 percent), and U.S. territories (1.5 percent). After those set-asides, State allotments are to be split: 60 percent based on needs from the clean watersheds needs survey, 20 percent based on State population, and 20 percent based on the share of a State's population at or below 200 percent of the federal poverty level. The bill requires the Environmental Protection Agency Administrator to publish the initial formula and annual updates using the most recent census, American Community Survey data, and the clean watersheds needs survey. A four-year transition limit prevents any State’s allotment from increasing by more than 200 percent or dropping by more than 25 percent compared to the prior year. The bill also updates the clean watersheds needs survey statute and allows States to use up to 0.5 percent of capitalization grant funds for activities needed to prepare that survey. It clarifies that these changes do not affect amounts provided under the Infrastructure Investment and Jobs Act or their allocations.
What it means for you#
- If you live in a State: How much your State receives for clean water projects may change because more weight is given to the needs survey and to poverty measures. The EPA will publish the new formula and annual updates. A transition rule limits sudden big changes in a State’s allotment for up to four years.
- If you are part of an Indian tribe: Tribes receive a 2 percent set-aside of amounts available for this section for eligible work described in section 518(c)(3).
- If you live in a U.S. territory: Territories get a 1.5 percent set-aside and are to receive an amount consistent with what they received in fiscal year 2026.
- If you work for a State water program: States may spend up to 0.5 percent of capitalization grant funds on activities to complete the clean watersheds needs survey. The EPA will oversee and publish the allotment formula and updates.
Expenses#
- Required set-asides from amounts available under this section each fiscal year: Buy American oversight 0.1 percent; Indian tribes 2 percent; U.S. territories 1.5 percent.
- State allotment split after set-asides: 60 percent needs-based (clean watersheds needs survey), 20 percent population-based, 20 percent poverty-share based (population at or below 200 percent of poverty).
- States may use up to 0.5 percent of capitalization grant funds for clean watersheds needs survey activities.
- No publicly available information on total dollar costs, annual appropriation levels, or changes to overall funding amounts.
Proponents' View#
No publicly available information.
Opponents' View#
No publicly available information.