Affordable Clean Water Infrastructure Act

The Affordable Clean Water Infrastructure Act aims to modernize and expand the Clean Water State Revolving Fund (CWSRF), a federal-state partnership that provides low-interest loans for wastewater and stormwater projects. The bill proposes to increase the maximum amount of federal funding that states can provide as grants or principal forgiveness rather than loans. Specifically, it would allow states to subsidize up to 50% of their capitalization grants, with a requirement that at least 20% of those funds go toward eligible subsidies for high-need areas.

If enacted, the legislation would provide additional financial relief to rural, small, and Tribal water systems through a new 10% subsidy. This is intended to help underserved communities afford critical upgrades to aging infrastructure without passing the full cost onto residents through significantly higher water and sewer bills. The bill also seeks to expand assistance programs that help low-income households afford essential water services, ensuring that modernizing infrastructure does not compromise water affordability for vulnerable populations.