The bill amends the New Jersey Infrastructure Bank's (NJIB) authority to provide loans for environmental infrastructure projects for the fiscal year 2026, increasing the aggregate loan amount from $2.4 billion to $2.69 billion. This increase allows for the financing of various projects by local government units or public water utilities, with specific conditions outlined for adjusting loan amounts based on factors such as capitalized interest and administrative expenses. The NJIB is also authorized to make supplemental loans for clean water and drinking water projects, focusing on covering the gap between allowable loan amounts and final building costs. The bill replaces previous references to "this act" with specific citations to the amended P.L.2025, c.125, enhancing clarity in the legislative framework.

Furthermore, the bill updates the eligibility criteria for projects and establishes a new Interim Environmental Financing Program, which allows the NJIB to issue short-term loans for wastewater treatment and water supply projects aimed at reducing lead in publicly owned facilities. It mandates the submission of the Interim Environmental Financing Program Project Priority List to the Secretary of the Senate and the Clerk of the General Assembly annually, ensuring transparency in the funding process. The act is set to take effect immediately upon passage, appropriating up to $1.5 billion for short-term loans from various environmental funds to support these critical infrastructure projects.