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 expansion allows the NJIB to finance a wider array of projects for local government units and public water utilities. The bill also specifies that the trust can include various expenses such as capitalized interest, administrative costs, and reserve capacity expenses in the loan amounts, as well as funds appropriated for zero-interest loans from the Department of Environmental Protection. Additionally, it outlines the process for supplemental loans for clean water and drinking water projects, prioritizing them based on project needs and available funds.

Furthermore, the bill establishes the Interim Environmental Financing Program Fund to provide short-term loans to project sponsors on the Interim Environmental Financing Program Project Priority List. It allows the NJIB to issue market-rate interest loans for wastewater treatment and water supply projects aimed at reducing lead in publicly owned facilities that do not qualify for other funding. The bill also mandates the submission of the Project Priority List to the Secretary of the Senate and the Clerk of the General Assembly annually, ensuring transparency in the funding process. Key amendments include extending loan repayment terms to 35 years for certain loans and allowing unspent bond proceeds to be redirected for project-related costs.