This bill appropriates funds from various state and federal sources to support clean water and drinking water projects in New Jersey, utilizing the Clean Water State Revolving Fund and the Drinking Water State Revolving Fund. It allows for the transfer of funds between these two funds to address public health threats and meet financing needs. The bill authorizes the New Jersey Department of Environmental Protection to provide zero-interest and principal-forgiveness loans to local government units and public water utilities, with specific provisions for disadvantaged communities to receive financial support for planning, design, and construction costs associated with water infrastructure projects.

Additionally, the bill establishes a "Storm Sandy and State Fiscal Year 2026 Clean Water Project Eligibility List" for environmental infrastructure projects, with estimated loan amounts exceeding $1.2 billion. It outlines the terms for principal forgiveness and loan amounts, allowing for adjustments based on project costs and borrower tiers. The legislation also includes provisions for municipalities to access loans for specific projects and mandates compliance with federal disaster relief provisions for Sandy financing loans. The act is set to take effect immediately upon approval, aiming to enhance New Jersey's capacity to manage and improve its water infrastructure.