H.R. 3376: Water Affordability, Transparency, Equity, and Reliability Act of 2025
Sponsor
Bonnie Watson Coleman
Democrat · NJ-12
Corporations should pay to get the lead out of your water
Why it matters
At least $35 billion a year would go into a dedicated water trust fund, paid for by raising the corporate tax rate from 21% to 24.5%. The money would replace lead service lines at no cost to the property owner, filter PFAS-contaminated wells, and grow the school drinking water program from $5 million to $1.05 billion. Water and sewer projects would get a steady federal funding stream instead of depending on yearly budget fights.
Two numbers carry this bill: 24.5% and $35 billion. H.R. 3376, the Water Affordability, Transparency, Equity, and Reliability Act (WATER Act), raises the corporate tax rate from 21% to 24.5% and sends the new revenue into a permanent Water Trust Fund.
The trust fund can take in up to $35 billion a year, or one-twentieth of EPA's estimated 20-year national water needs, whichever is larger. EPA's most recent surveys put those combined needs at roughly $1.25 trillion, which would put the ceiling above $60 billion. The money is available without Congress having to approve it again each year.
Most of it, 84%, goes out through the two programs states already use to pay for pipes and treatment plants: the clean water and drinking water state revolving funds. On a $35 billion year, that's about $14.7 billion for each. Smaller slices go to Tribal sanitation (3%), school drinking water (3%), rural household wells (1%), colonias along the U.S.-Mexico border (0.5%), and water operator job training (0.5%).
Lead service line replacement becomes a grant, done at no cost to the property owner, on public or private property. Utilities could also get help upgrading treatment plants or switching water sources because of PFAS contamination, and owners of PFAS-contaminated household wells could get grants for filtration systems.
The bill also changes who gets the money. Drinking water funds would go only to publicly owned and operated systems, with an exception for small independent systems serving under 10,000 people. Public agencies could use the funds to buy private water and sewer systems, including from owners who don't want to sell, and to cancel private operating contracts.
States would have to give out at least half of drinking water aid as subsidies, such as grants or forgivable loans, instead of standard loans, when enough disadvantaged communities apply. Construction funded by the bill would be expected to use project labor agreements, and EPA would have one year to report to Congress on water affordability, shutoffs, and civil rights violations in water service.
Bill Progress
Latest Action · May 13, 2025
Assigned to Subcommittee on Water Resources and Environment. for review
H.R. 3376 Bill Summary
What H.R. 3376 actually does.
A permanent water fund paid for by corporate taxes
Creates a Water Trust Fund that takes in up to $35 billion a year, or one-twentieth of EPA's 20-year water needs estimate if that's larger. It is funded by raising the corporate tax rate from 21% to 24.5%, and the money doesn't need yearly appropriations.
Free lead line replacement for homeowners
Public water systems can get grants to replace lead service lines with lead-free copper on public or private property at no cost to the property owner.
PFAS help for utilities and well owners
Water systems can get assistance to upgrade treatment or switch sources because of PFAS contamination. Owners of household wells contaminated with PFAS can get grants to buy and install filtration systems.
Lead-free drinking water in schools
The school program expands from replacing old fountains to all drinking water infrastructure, including coolers and bottle filling stations, plus lead testing. Its authorization rises from $5 million to $1.05 billion, extended through 2027.
More grants, fewer loans for struggling communities
Drinking water subsidies such as grants and forgivable loans must equal at least 50% of each state's federal capitalization grant when enough disadvantaged communities apply. States can also devote half or more of clean water funds to subsidies.
Public agencies can take over private water systems
Clean water and drinking water funds can be used to buy privately owned systems from willing or unwilling sellers and to cancel private operating contracts. Drinking water funds are limited to publicly owned systems, except small independent systems serving under 10,000 people.
More money for Tribes, wells, colonias, and water jobs
The Tribal drinking water set-aside doubles from 1.5% to 3% and becomes mandatory. Household well funding rises from $20 million to $348.5 million a year, and colonias funding rises to $100 million for 2025 through 2029. A new Labor Department program funds training and apprenticeships for water operators.
A national report on water bills and shutoffs
Within one year, EPA must report to Congress on water affordability, rate increases, service shutoffs, civil rights violations in water service (with the Justice Department), public input on system consolidation, and gaps in water data.
Who benefits from H.R. 3376?
Homeowners with lead service lines
Replacing the lead pipe on your side of the property line would be done at no cost to you, through a grant to your public water utility.
Families on private wells
If PFAS shows up in your well, you could get a grant for a filtration system. Rural well programs would grow from $20 million to $348.5 million a year.
Students and school staff
Schools could replace fountains, coolers, and bottle fillers that leach lead and test their water, backed by up to $1.05 billion instead of $5 million.
Tribal nations and border colonias
Tribal communities get a guaranteed 3% of drinking water funds plus 3% of the trust fund for sanitation facilities. Colonias, many of them without reliable running water, get up to $100 million over five years.
Small towns with aging pipes
Communities that can't take on more debt would see at least half of drinking water aid arrive as grants or forgivable loans instead of loans to be repaid.
People training for water utility jobs
A new job training grant program would fund apprenticeships in drinking water and wastewater, with at least half aimed at low-income workers.
Who is affected by H.R. 3376?
Corporations
The corporate tax rate rises from 21% to 24.5%. A company with $10 million in taxable income would pay about $350,000 more a year, $2.45 million instead of $2.1 million.
Private water companies
Investor-owned systems would lose access to drinking water revolving funds unless they are small, independent systems serving under 10,000 people. Their systems could also be bought with public funds, including over their objection.
Private water system operators
Firms that run public systems under contract could see those contracts canceled, with the cancellation costs covered by federal water funds.
State water agencies
States would have to meet new subsidy floors, push project labor agreements on funded construction, and follow new guidance on affordability and shutoff protections.
Construction contractors
Water projects funded through the revolving funds would be expected to use project labor agreements, and existing prevailing wage rules continue to apply.
Developers of new subdivisions
Clean water funds could not be used for projects that mainly benefit new communities, lots, or subdivisions, except advanced decentralized wastewater systems.
Cost & Funding
Authorization
Up to $35 billion a year, or one-twentieth of EPA's 20-year water needs estimate if that is larger, funded by raising the corporate tax rate from 21% to 24.5% starting with tax years after 2024. The bill also raises authorizations for school drinking water ($1.05 billion through 2027), household wells ($348.5 million a year), and colonias ($100 million for 2025 through 2029).
- The trust fund receives an amount equal to the extra revenue from the corporate rate increase, up to the annual cap.
- On a $35 billion year: about $14.7 billion each for the clean water and drinking water state revolving funds, $1.05 billion for Tribal sanitation, $1.05 billion for school drinking water, $350 million for household wells, and $175 million each for colonias and water operator job training.
- EPA's most recent surveys put combined 20-year drinking water and clean water needs at roughly $1.25 trillion. One-twentieth of that is over $60 billion, so the cap could exceed $35 billion.
- Trust fund money is available without further appropriation and without a fiscal year limit, so it would not depend on the annual budget process.
- None of the money can be used for activities that employers must report under federal labor law when hiring consultants to influence workers on unionizing.
HR3376 Legislative Journey
House: Committee Action
May 13, 2025
Referred to the Subcommittee on Water Resources and Environment.
About the Sponsor
Bonnie Watson Coleman
Democrat, New Jersey's 12th congressional district · 11 years in Congress
Committees: the Budget, Appropriations
View full profile →
Cosponsors (90)
All 90 cosponsors are Democrats. Cosponsors represent 32 states: Alabama, Arizona, California, and 29 more.
Ro Khanna
Democrat · CA
Becca Balint
Democrat · VT
Wesley Bell
Democrat · MO
Suzanne Bonamici
Democrat · OR
Brendan Boyle
Democrat · PA
Shontel Brown
Democrat · OH
Janelle Bynum
Democrat · OR
Salud Carbajal
Democrat · CA
André Carson
Democrat · IN
Troy Carter
Democrat · LA
Greg Casar
Democrat · TX
Sean Casten
Democrat · IL
Committee Sponsors
Transportation and Infrastructure Committee
15 of 67 committee members cosponsored
Education and Workforce Committee
10 of 37 committee members cosponsored
Natural Resources Committee
6 of 45 committee members cosponsored
Agriculture Committee
8 of 53 committee members cosponsored
Ways and Means Committee
12 of 45 committee members cosponsored
Energy and Commerce Committee
8 of 54 committee members cosponsored
66 Democrats across these committees haven't cosponsored yet. Mobilize their constituents
What laws does H.R. 3376 change?
3 changes
Sections Amended
Section 11(b) of Internal Revenue Code of 1986
striking ``21'' and inserting ``24
Section 306E(d) of Consolidated Farm and Rural Development Act (7 U.S.C. 1926e(d))
striking ``$20,000,000 for each of fiscal years 2019 through 2023'' and inserting ``$348,500,000 for each fiscal year''
Section 8(f) of National Labor Relations Act.''. SEC. 9. WATER OPERATOR JOBS TRAINING GRANTS. Section 414 of the American Competitiveness and Workforce Improvement Act of 1998
adding at the end the following: ``(f) Water Operator Jobs Training Grants
H.R. 3376 Quick Facts
- Committee
- Transportation and Infrastructure
- Chamber
- House
- Policy
- Environmental Protection
- Introduced
- May 13, 2025
Assigned to Subcommittee on Water Resources and Environment. for review
May 13, 2025
Official Sources
The official bill page, with full text, cosponsors, and referrals to six House committees.
About 42% of the Water Trust Fund would flow through this program, which finances wastewater and stormwater projects.
Another 42% of the trust fund would go through this program, which the bill limits to publicly owned systems and requires to give at least half its aid as subsidies.
EPA's 20-year needs estimates set the trust fund cap: one-twentieth of national water needs if that exceeds $35 billion a year.
The bill makes lead service line replacement a grant, done at no cost to the property owner on public or private property.
Owners of PFAS-contaminated household wells could get grants to buy and install filtration systems under the bill.
The bill expands this school lead program to all drinking water infrastructure and raises its authorization from $5 million to $1.05 billion.
The bill sets aside 3% of the trust fund for Tribal sanitation facilities, the work this Indian Health Service program carries out.
H.R. 3376 Common Questions
How much money would H.R. 3376 put into water systems each year?
At least $35 billion a year, or one-twentieth of EPA's 20-year water needs estimate if that's larger. Based on EPA's latest surveys, that ceiling could top $60 billion. The money would come from a corporate tax increase and wouldn't need yearly approval from Congress.
How much would the corporate tax go up under H.R. 3376?
From 21% to 24.5%, starting with tax years after 2024. A company with $10 million in taxable income would pay about $350,000 more a year. The added revenue goes into the new water trust fund, up to the annual cap.
Would H.R. 3376 replace my lead pipe for free?
Yes, if your public water utility takes part. Utilities could get grants to replace lead service lines with copper on public or private property at no cost to you.
My well has PFAS. Would H.R. 3376 help?
Yes. Owners of household wells contaminated with PFAS could get grants to buy and install a filtration system. Funding for rural household well programs would also rise from $20 million to $348.5 million a year.
What does H.R. 3376 do for lead in school drinking water?
It raises the school program from $5 million to $1.05 billion through 2027. Schools could replace fountains, coolers, and bottle filling stations to make them lead-free, and pay for lead testing.
Could the government take over my private water company?
The bill lets public agencies use federal water funds to buy privately owned water and sewer systems, including from unwilling sellers. It also limits drinking water funds to publicly owned systems, except small independent ones serving under 10,000 people.
Would towns get grants or just more loans?
More grants. When enough disadvantaged communities apply, states would have to give at least half of drinking water aid as subsidies such as grants or forgivable loans. States could also put half or more of clean water funds toward subsidies.
Will H.R. 3376 pass?
It faces a steep path. It has 90 cosponsors, all Democrats, and has been in committee since May 2025. The corporate tax increase is the main obstacle, so pieces like school or well funding are more likely to show up in other water bills.
Based on H.R. 3376 bill text
H.R. 3376 Bill Text
“To establish a trust fund to provide for adequate funding for water and sewer infrastructure, and for other purposes.”
Source: U.S. Government Publishing Office
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