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 in 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 facilitate the replacement of lead service lines and plumbing.

The act assigns the Commissioner of Environmental Protection the responsibility of implementing its provisions, including setting eligibility criteria for grants and loans. It mandates that the bond act be presented to voters for approval during a general election at least 70 days after enactment and allocates $5,000 for publicizing the act. Additionally, the bill includes provisions for fund management and oversight, ensuring that appropriations are made on a project-specific basis and require approval for any fund transfers. 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.