The bill amends existing legislation to enhance the funding and support for environmental infrastructure projects in New Jersey, specifically under the FY2026 environmental infrastructure funding program. It authorizes the Department of Environmental Protection (DEP) to utilize various funds, including the Clean Water State Revolving Fund and the Drinking Water State Revolving Fund, to provide loans and technical assistance for clean water and drinking water projects. Significant changes include the DEP's ability to charge interest on loans from the Clean Water State Revolving Fund when used for drinking water projects, as well as the provision of zero-interest and principal-forgiveness loans to local government units and public water utilities. The bill allocates up to $60 million for principal forgiveness and grants to disadvantaged communities and specifies funding for combined sewer overflow projects, water quality restoration, and lead service line replacements.

Additionally, the bill updates the appropriations for environmental infrastructure projects managed by the DEP, increasing the total appropriation to up to $2.69 billion to support 225 eligible projects, including those related to Storm Sandy recovery and drinking water infrastructure. Key amendments include new provisions allowing the New Jersey Infrastructure Bank to use loan repayments to secure trust bonds and appropriating funds from the Federal Disaster Relief Appropriations Act for necessary reserves. The act emphasizes compliance with environmental regulations and establishes criteria for municipalities seeking funding, with the aim of streamlining the financing process for critical infrastructure improvements in New Jersey.