The bill authorizes the New Jersey Infrastructure Bank (NJIB) to allocate up to $2.4 billion for loans to local governments and privately-owned water companies to finance environmental infrastructure projects during the fiscal year 2026. This funding is part of the New Jersey Environmental Infrastructure Financing Program (NJEIFP) and is aimed at improving water discharge, treatment systems, and drinking water systems. The bill also appropriates up to $1.5 billion for short-term loans and includes provisions for funding projects under the Environmental Disaster Relief Emergency Financing Program.

Additionally, the bill establishes specific requirements for loans, including conditions for loan amounts and repayment terms, while granting the NJIB the authority to adjust these amounts based on project costs. It allows for the transfer of funds between various State accounts to facilitate the NJEIFP and match federal funding, ensuring effective financial management. The NJIB is also permitted to use generated funds for its operating expenses, enhancing the program's efficiency. Overall, the legislation aims to bolster New Jersey's environmental infrastructure through substantial financial support for critical projects.