[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3376 Introduced in House (IH)]
<DOC>
119th CONGRESS
1st Session
H. R. 3376
To establish a trust fund to provide for adequate funding for water and
sewer infrastructure, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
May 13, 2025
Mrs. Watson Coleman (for herself, Mr. Khanna, Ms. Balint, Mr. Bell, Ms.
Bonamici, Mr. Boyle of Pennsylvania, Ms. Brown, Ms. Bynum, Mr.
Carbajal, Mr. Carson, Mr. Carter of Louisiana, Mr. Casar, Mr. Casten,
Ms. Castor of Florida, Ms. Chu, Ms. Clarke of New York, Mr. Cohen, Mr.
Conaway, Mr. Connolly, Ms. Crockett, Mr. Davis of Illinois, Mr.
Deluzio, Mr. Espaillat, Mr. Evans of Pennsylvania, Mr. Fields, Mr.
Foster, Mr. Frost, Mr. Garcia of California, Mr. Garcia of Illinois,
Mr. Gomez, Mrs. Hayes, Mr. Horsford, Mr. Huffman, Ms. Jacobs, Ms.
Jayapal, Mr. Johnson of Georgia, Mr. Krishnamoorthi, Mr. Latimer, Ms.
Matsui, Ms. McBride, Mrs. McClain Delaney, Mrs. McIver, Ms. Meng, Ms.
Moore of Wisconsin, Mr. Nadler, Mr. Neal, Mr. Norcross, Ms. Norton, Ms.
Ocasio-Cortez, Mr. Panetta, Mr. Pocan, Mr. Quigley, Mr. Raskin, Mr.
Ruiz, Ms. Sanchez, Ms. Scanlon, Ms. Schakowsky, Ms. Sewell, Ms.
Stansbury, Ms. Stevens, Mr. Thanedar, Ms. Titus, Ms. Tlaib, Ms. Tokuda,
Mr. Torres of New York, Mr. Vargas, and Mr. Thompson of Mississippi)
introduced the following bill; which was referred to the Committee on
Transportation and Infrastructure, and in addition to the Committees on
Energy and Commerce, Ways and Means, Agriculture, Natural Resources,
and Education and Workforce, for a period to be subsequently determined
by the Speaker, in each case for consideration of such provisions as
fall within the jurisdiction of the committee concerned
_______________________________________________________________________
A BILL
To establish a trust fund to provide for adequate funding for water and
sewer infrastructure, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Water
Affordability, Transparency, Equity, and Reliability Act of 2025''.
(b) Table of Contents.--The table of contents for this Act is as
follows:
Sec. 1. Short title; table of contents.
Sec. 2. Water Affordability, Transparency, Equity, and Reliability
Trust Fund.
Sec. 3. Report on affordability, discrimination and civil rights
violations, public participation in
regionalization, and data collection.
Sec. 4. Household water well systems.
Sec. 5. State water pollution control revolving funds.
Sec. 6. Use of State revolving loan funds under the Safe Drinking Water
Act.
Sec. 7. Drinking water grant programs.
Sec. 8. Labor provisions.
Sec. 9. Water operator jobs training grants.
Sec. 10. Drinking water assistance to colonias.
SEC. 2. WATER AFFORDABILITY, TRANSPARENCY, EQUITY, AND RELIABILITY
TRUST FUND.
(a) Establishment.--
(1) In general.--Subchapter A of chapter 98 of the Internal
Revenue Code of 1986 is amended by adding at the end the
following:
``SEC. 9512. WATER AFFORDABILITY, TRANSPARENCY, EQUITY, AND RELIABILITY
TRUST FUND.
``(a) Creation of Trust Fund.--There is established in the Treasury
of the United States a trust fund to be known as the `Water
Affordability, Transparency, Equity, and Reliability Trust Fund'
(referred to in this section as the `Trust Fund'), consisting of such
amounts as may be appropriated or credited to such Trust Fund as
provided in this section or section 9602(b).
``(b) Transfers to Fund.--
``(1) In general.--There are hereby appropriated to the
Trust Fund such amounts as the Secretary from time to time
estimates are equal to the increase in Federal revenues
attributable to the amendment made by section 2(b) of the Water
Affordability, Transparency, Equity, and Reliability Act of
2025.
``(2) Limitation.--The sum of the amounts appropriated
under paragraph (1) during any fiscal year shall not exceed the
larger of--
``(A) $35,000,000,000, and
``(B) one-twentieth of the sum of--
``(i) the 20-year need identified in the
most recent assessment conducted by the
Administrator of the Environmental Protection
Agency in accordance with section 1452(h) of
the Safe Drinking Water Act (42 U.S.C. 300j-
2(h)), plus
``(ii) the 20-year need identified in the
most recent needs survey submitted by the
Administrator pursuant to sections 205(a), 516,
and 609 of the Federal Water Pollution Control
Act (33 U.S.C. 1285(a), 1375, 1389).
``(c) Expenditures.--Amounts in the Trust Fund are available,
without further appropriation and without fiscal year limitation, for
the purposes described in section 2(c) of the Water Affordability,
Transparency, Equity, and Reliability Act of 2025.''.
(2) Clerical amendment.--The table of parts for subchapter
A of chapter 98 of such Code is amended by inserting after the
item relating to section 9511 the following new item:
``Sec. 9512. Water Affordability, Transparency, Equity, and Reliability
Trust Fund.''.
(b) Increase in Corporate Tax Rate.--
(1) In general.--Section 11(b) of the Internal Revenue Code
of 1986 is amended by striking ``21'' and inserting ``24.5''.
(2) Effective date.--The amendment made by this subsection
shall apply to taxable years beginning after December 31, 2024.
(c) Allocation of Funds.--The Administrator of the Environmental
Protection Agency, the Secretary of Agriculture, the Secretary of
Health and Human Services, and the Secretary of Labor shall allocate,
for a fiscal year, the funds available, at the beginning of such fiscal
year, in the Water Affordability, Transparency, Equity, and Reliability
Trust Fund, established by section 9512 of the Internal Revenue Code of
1986, as follows:
(1) Clean water programs.--Of such amount, the
Administrator shall make available--
(A) 0.5 percent for making grants under section
104(b)(8) of the Federal Water Pollution Control Act;
(B) 1.5 percent for making grants under section 106
of such Act (33 U.S.C. 1256);
(C) 2.5 percent for making grants under section 226
of such Act;
(D) 2.5 percent for making grants under section 319
of such Act (33 U.S.C. 1329); and
(E) 42 percent for making capitalization grants
under section 601 of such Act (33 U.S.C. 1381).
(2) Safe drinking water funding.--Of such amount, the
Administrator shall make available--
(A) 0.5 percent for providing technical assistance
under section 1442(e) of the Safe Drinking Water Act
(42 U.S.C. 300j-1(e));
(B) 42 percent for making capitalization grants
under section 1452 of such Act (42 U.S.C. 300j-12);
(C) 3 percent for making grants under section 1465
of such Act; and
(D) 0.5 percent for making grants under section
1456 of such Act (42 U.S.C. 300j-16) and for making
grants under section 307 of the Safe Drinking Water Act
Amendments of 1996 (33 U.S.C. 1281 note).
(3) Household water well systems.--Of such amount, the
Secretary of Agriculture shall make available 1 percent for
making grants under section 306E of the Consolidated Farm and
Rural Development Act (7 U.S.C. 1926e).
(4) Colonias.--Of such amount, the Secretary of Agriculture
shall make available 0.5 percent for making grants under
section 306C of the Consolidated Farm and Rural Development Act
(7 U.S.C. 1926c) described in subsection (c) of such section.
(5) Indian health services.--Of such amount, the Secretary
of Health and Human Services, acting through the Director of
the Indian Health Service, shall make available 3 percent for
making grants for the planning, design, construction,
modernization, improvement, and renovation of water, sewer, and
solid waste sanitation facilities that are funded, in whole or
part, by the Indian Health Service--
(A) through, or provided for in, a contract or
compact with the Indian Health Service under the Indian
Self-Determination and Education Assistance Act (25
U.S.C. 5301 et seq.);
(B) pursuant to section 7 of the Act of August 5,
1954 (42 U.S.C. 2004a); or
(C) pursuant to section 302 of the Indian Health
Care Improvement Act (25 U.S.C. 1632).
(6) Water operators job training grants.--Of such amount,
the Secretary of Labor shall make available 0.5 percent for
providing job training grants under section 414(f) of the
American Competitiveness and Workforce Improvement Act of 1988.
(d) Prohibition.--None of the funds allocated pursuant to
subsection (c) may be used for any activity described in paragraphs (1)
through (5) of section 203(a) of the Labor-Management Reporting and
Disclosure Act of 1959 (29 U.S.C. 433(a)).
SEC. 3. REPORT ON AFFORDABILITY, DISCRIMINATION AND CIVIL RIGHTS
VIOLATIONS, PUBLIC PARTICIPATION IN REGIONALIZATION, AND
DATA COLLECTION.
(a) Study.--
(1) In general.--The Administrator of the Environmental
Protection Agency shall conduct a study on water and sewer
services, in accordance with this subsection.
(2) Affordability.--In conducting the study under paragraph
(1), the Administrator shall study water affordability
nationwide, including--
(A) rates for water and sewer services, increases
in such rates during the ten-year period preceding such
study, and water service disconnections due to unpaid
water service charges; and
(B) the effectiveness of funding under section 1452
of the Safe Drinking Water Act and under section 601 of
the Federal Water Pollution Control Act for promoting
affordable, equitable, transparent, and reliable water
and sewer service.
(3) Discrimination and civil rights.--In conducting the
study under paragraph (1), the Administrator, in collaboration
with the Civil Rights Division of the United States Department
of Justice, shall study--
(A) discriminatory practices of water and sewer
service providers;
(B) discriminatory practices of State program
administrators in allocating funding; and
(C) violations by such service providers and
program administrators that receive Federal assistance
of civil rights under title VI of the Civil Rights Act
of 1964 with regard to equal access to water and sewer
services.
(4) Public participation in regionalization.--In conducting
the study under paragraph (1), the Administrator shall evaluate
efforts to regionalize public water systems, as defined in
section 1401(4) of the Safe Water Drinking Act (42 U.S.C.
300f(4)), and sewer services with respect to public
participation in--
(A) the decision to undergo such regionalization;
and
(B) decision making by the board of directors (or
other governing body) of the entity that provides, or
oversees or coordinates the provision of, water by the
public water systems subject to such regionalization.
(5) Data collection.--In conducting the study under
paragraph (1), the Administrator shall collect information,
assess the availability of information, and evaluate the
methodologies used to collect information, related to--
(A) people living without water or sewer services;
(B) water service disconnections due to unpaid
water service charges, including disconnections
experienced by households containing children, elderly
persons, disabled persons, chronically ill persons, or
other vulnerable populations;
(C) tax liens and foreclosures due to unpaid water
service charges; and
(D) disparate effects, on the basis of race,
gender, or socioeconomic status, of water service
disconnections, tax liens and foreclosures due to
unpaid water service charges, and the lack of public
water service.
(b) Report.--Not later than 1 year after the date of the enactment
of this Act, the Administrator of the Environmental Protection Agency
shall submit to Congress a report that contains--
(1) the results of the study conducted under subsection
(a)(1); and
(2) recommendations for utility companies, Federal
agencies, and States relating to such results.
SEC. 4. HOUSEHOLD WATER WELL SYSTEMS.
Section 306E(d) of the Consolidated Farm and Rural Development Act
(7 U.S.C. 1926e(d)) is amended by striking ``$20,000,000 for each of
fiscal years 2019 through 2023'' and inserting ``$348,500,000 for each
fiscal year''.
SEC. 5. STATE WATER POLLUTION CONTROL REVOLVING FUNDS.
(a) Specific Requirements.--Section 602(b) of the Federal Water
Pollution Control Act (33 U.S.C. 1382(b)) is amended--
(1) in paragraph (2), by striking ``will be made to the
State with funds to be made available'' and inserting ``were
made to the State with funds made available for fiscal year
2021'';
(2) in paragraph (13), by striking ``and'' at the end;
(3) in paragraph (14), by striking the period at the end
and inserting a semicolon; and
(4) by adding at the end the following:
``(15) the State will not provide financial assistance
using amounts from the fund for any project that will provide
substantial direct benefits to new communities, lots, or
subdivisions, other than a project to construct an advanced
decentralized wastewater system; and''.
(b) Projects and Activities Eligible for Assistance.--Section
603(c) of the Federal Water Pollution Control Act (33 U.S.C. 1383(c))
is amended--
(1) in paragraph (11)(B), by striking ``and'' at the end;
(2) in paragraph (12)(B), by striking the period at the end
and inserting ``; and''; and
(3) by adding at the end the following:
``(13) to any municipality or intermunicipal, interstate,
or State agency for--
``(A) purchasing from a willing or unwilling seller
a privately owned treatment works; and
``(B) expenses related to canceling a contract for
the operation or management of a publicly owned
treatment works.''.
(c) Increasing the Amount of Additional Subsidization by the
State.--Section 603(i)(3)(B) of the Federal Water Pollution Control Act
(33 U.S.C. 1383(i)(3)(B)) is amended to read as follows:
``(B) Additional limitation.--A State may use not
less than 50 percent of the total amount received by
the State in capitalization grants under this title for
a fiscal year for providing additional subsidization
under this subsection.''.
SEC. 6. USE OF STATE REVOLVING LOAN FUNDS UNDER THE SAFE DRINKING WATER
ACT.
Section 1452 of the Safe Drinking Water Act (42 U.S.C. 300j-12) is
amended--
(1) in subsection (a)--
(A) in paragraph (2)--
(i) in subparagraph (A), by inserting
``publicly owned, operated, and managed''
before ``community water systems''; and
(ii) in subparagraph (E), by striking ``The
funds under this section shall not be used for
the acquisition of real property or interests
therein, unless the acquisition is integral to
a project authorized by this paragraph and the
purchase is from a willing seller.'' and
inserting ``The funds under this section may
also be used for purchasing from a willing or
unwilling seller a privately owned community
water system, or for the expenses related to
canceling a contract for the operation or
management of a community water system.''; and
(B) by adding at the end the following new
paragraph:
``(6) Exception to public ownership, operation, and
management requirement.--Notwithstanding paragraph (2)(A),
public water systems that regularly serve fewer than 10,000
persons, and which are not owned, operated, or managed by any
person who owns, operates, or manages any other public water
system, may receive assistance under this section.'';
(2) by amending subsection (d)(2) to read as follows:
``(2) Total amount of subsidies.--To the extent that there
are sufficient applications for loans to communities described
in paragraph (1), of the amount of the capitalization grant
received by a State in a fiscal year, the total amount of loan
subsidies made by the State in the fiscal year pursuant to
paragraph (1) may not be less than 50 percent.'';
(3) in subsection (e), by striking ``to be made to the
State'' and inserting ``that was made to the State in fiscal
year 2021'';
(4) in subsection (g)(3)--
(A) in paragraph (B), by striking ``and'' at the
end;
(B) in paragraph (C), by striking the period at the
end and inserting ``; and''; and
(C) by inserting after subparagraph (C) the
following:
``(D) guidance to ensure affordable, equitable,
transparent and reliable water service provision, to
provide protections for househol