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. The Commissioner of Environmental Protection is responsible for creating rules and regulations regarding the implementation of the act, including eligibility criteria for applicants.

To ensure public engagement, the bill requires that the bond act be presented to voters for approval during a general election occurring at least 70 days after its enactment. It also allocates $5,000 to the Department of State for publicizing the ballot question. The act emphasizes the need to address lead exposure in drinking water, particularly for vulnerable populations, and includes provisions for the management and oversight of the funds, requiring specific project allocations and approval from the Joint Budget Oversight Committee for any fund transfers.