The "Lead-Free Drinking Water Bond Act of 2025" authorizes the issuance of $400 million in State general obligation bonds to finance lead plumbing replacement projects across New Jersey. The funding is divided equally, with $200 million allocated for grants to homeowners and schools, and $200 million designated for low-interest loans to water system operators, schools, and businesses. The act establishes two separate accounts for managing these funds: the "Lead-Free Drinking Water Act of 2025 Grant Fund" for grants and the "Lead-Free Drinking Water Act of 2025 Revolving Loan Fund" for loans. It highlights the risks of lead exposure in drinking water, particularly for vulnerable populations, and aims to enhance public health through financial support for necessary infrastructure improvements.

The act assigns the New Jersey Commissioner of Environmental Protection the responsibility of implementing its provisions, including establishing eligibility criteria for grants and loans and overseeing the application process. It mandates that the bond issuance be presented to the public for approval during a general election occurring at least 70 days after enactment, with $5,000 appropriated for the publication of the public question. The bonds will be a direct obligation of the State, exempt from state and local taxes, and will mature no later than 35 years from issuance. The legislation also includes provisions for fund management, investment of proceeds, and the replacement of lost or destroyed bonds, ultimately aiming to ensure access to lead-free drinking water through these financial mechanisms.