H.R. 3376: Water Affordability, Transparency, Equity, and Reliability Act of 2025
Sponsor
Bonnie Watson Coleman
Democrat · NJ-12
Bill Progress
Latest Action · May 13, 2025
Assigned to Subcommittee on Water Resources and Environment. for review
Safe water gets a $35 billion funding push
Why it matters
Up to $35 billion a year could flow into water and sewer projects under H.R. 3376, including free lead line replacement for some homes and a school drinking water program that jumps from $5 million to $1.05 billion. The bill would also raise the corporate tax rate from 21% to 24.5% to pay for it.
H.R. 3376 creates a new federal water trust fund that could receive up to $35 billion a year. The money would come from a corporate tax increase, with the rate rising from 21% to 24.5% for taxable years beginning after December 31, 2024.
Most of the money would go where states already finance pipes, treatment plants, and drinking water upgrades. The bill sends 42% to the main clean water state fund and 42% to the main drinking water state fund, so 84% of the trust fund would move through those two channels.
But this is not just more of the same. States would have to deliver at least half of that aid as subsidized assistance rather than standard loans, which could mean more grants, forgivable loans, or other below-market help for communities that cannot carry more debt.
The bill also steers money toward problems people see up close: lead service lines, PFAS contamination, household wells, school drinking water systems, Tribal sanitation projects, colonias, and operator training. It says lead line replacement grants could cover work on private or public property at no cost to the property owner.
H.R. 3376 also expands what public water financing can do. It allows funds to be used to buy privately owned treatment works and community water systems, including from unwilling sellers, and to cover contract-cancellation costs tied to those takeovers.
The bill adds accountability requirements too. EPA would have to report to Congress within 1 year on water affordability, discrimination and civil rights issues, public participation in regionalization decisions, and water data collection.
H.R. 3376 Bill Summary
What H.R. 3376 actually does.
Creates a water trust fund worth up to $35 billion a year
H.R. 3376 sets up a dedicated federal trust fund for water and sewer infrastructure. Annual funding is capped at the lesser of $35 billion or one-twentieth of the combined 20-year needs in EPA's latest drinking water and clean water assessments.
Routes 84% through the two biggest state water programs
The bill sends 42% of trust fund money to the main state clean water financing program and 42% to the main state drinking water financing program. That means most of the money would flow through systems states already use to finance local projects.
Turns at least half the aid into subsidized help
States would have to provide at least 50% of clean water capitalization grants as extra-subsidized assistance, and drinking water subsidies would also have to total at least 50% of the capitalization grant. The goal is to reduce how much struggling communities have to repay.
Covers lead lines, PFAS cleanup, wells, and school fountains
The bill authorizes grants for lead service line replacement at no cost to the property owner, PFAS-related treatment upgrades or source changes, and filtration for contaminated household wells. It also raises school drinking water funding from $5 million to $1.05 billion through 2027.
Allows public financing to buy private water systems
State water funds could be used to purchase privately owned treatment works and community water systems, including from unwilling sellers. The bill also allows financing for costs tied to canceling operations or management contracts.
Orders a 1-year federal report on affordability and civil rights
EPA would have to report to Congress within 1 year on water affordability, discrimination and civil rights violations, public participation in regionalization, and data collection. The discrimination portion would be done with the Justice Department's Civil Rights Division.
Who benefits from H.R. 3376?
Families dealing with unsafe tap water
If your home has a lead service line or PFAS-related contamination, H.R. 3376 could expand grant funding for replacements, treatment upgrades, or source changes. The bill says lead line work could be covered at no cost to the property owner.
Students and school districts
The school drinking water program rises from $5 million to $1.05 billion through 2027. That is a dramatic increase for replacing fountains, fixtures, and other school drinking water infrastructure.
Rural households with private wells
Annual funding for household water well systems would increase to $348.5 million. Owners of contaminated wells could also qualify for filtration help under the bill.
Tribal communities and border-region communities
The bill reserves funding for Indian Health Service sanitation facilities and increases colonias drinking water authorization from $25 million to $100 million for fiscal years 2025 through 2029. Those are communities that often face chronic infrastructure gaps.
Cash-strapped towns and utilities
Because at least half of major state water aid would have to be subsidized, communities with aging systems and thin tax bases could get more help that does not have to be repaid on normal loan terms.
Who is affected by H.R. 3376?
Corporations paying federal income tax
H.R. 3376 would raise the corporate tax rate from 21% to 24.5%, and that increase is the bill's funding source for the trust fund.
State water agencies
States would have to meet new subsidy floors, follow new project eligibility rules, and allow project labor agreements to the maximum extent practicable on assisted projects.
Private water system owners
Privately owned treatment works and community water systems could be purchased using publicly backed financing under the bill, including in cases involving unwilling sellers.
Developers of new subdivisions
The bill limits certain clean water funding for projects that provide substantial direct benefits to new communities, lots, or subdivisions, with an exception for advanced decentralized wastewater systems.
Cost & Funding
Authorization
Up to $35 billion a year, funded by raising the corporate tax rate from 21% to 24.5%. The bill also boosts specific programs, including $1.05 billion for school drinking water infrastructure through 2027, $100 million for colonias for fiscal years 2025 through 2029, and $348.5 million a year for household water well systems.
- The trust fund's annual cap is the lesser of $35 billion or one-twentieth of EPA's combined 20-year drinking water and clean water needs estimates.
- Because 42% goes to the main clean water fund and 42% goes to the main drinking water fund, about $29.4 billion of a full $35 billion year would flow through those two state programs.
- At least 50% of those major state allocations would have to be subsidized rather than offered only as standard loans.
- The bill's funding design aims to create a dedicated revenue stream instead of relying entirely on yearly appropriations.
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
Official congressional bill page with status, text, actions, and committee referrals for H.R. 3376.
The bill routes a large share of funding through the Clean Water State Revolving Fund, making EPA’s program page a key reference.
The bill sends another major share of funding through the Drinking Water State Revolving Fund for drinking water infrastructure projects.
This EPA page is directly relevant to the bill’s no-cost lead service line replacement grants for homeowners.
The bill funds PFAS-related treatment upgrades and source changes, so EPA’s PFAS overview is an authoritative background source.
The bill reserves funding for Tribal sanitation facilities, making the Indian Health Service sanitation program page directly relevant.
H.R. 3376 Common Questions
How much money would H.R. 3376 put into water systems each year?
Up to $35 billion a year. H.R. 3376 caps annual funding at the lesser of $35 billion or one-twentieth of EPA's combined 20-year clean water and drinking water needs estimates.
How does H.R. 3376 pay for all that water funding?
By raising the corporate tax rate from 21% to 24.5%. That higher rate would apply to taxable years beginning after December 31, 2024, and the added revenue would go into the new water trust fund.
Would H.R. 3376 help replace lead pipes for homeowners?
Yes. The bill says states may provide grants for lead service line replacement on private or public property at no cost to the property owner.
Does H.R. 3376 help schools with drinking water problems?
Yes. It raises the school drinking water program from $5 million to $1.05 billion through 2027, a major increase for upgrading fountains, fixtures, and related infrastructure.
Would towns get grants or just more loans under H.R. 3376?
Not just loans. States would have to provide at least 50% of major clean water and drinking water aid as subsidized assistance, which can include grants, forgivable loans, or other below-market help.
Can H.R. 3376 money be used to buy private water systems?
Yes. The bill allows public water financing to purchase privately owned treatment works and privately owned community water systems, including from unwilling sellers.
Does H.R. 3376 do anything for private well owners?
Yes. Annual funding for household water well systems would rise to $348.5 million, and owners of contaminated wells could get help for filtration systems.
What happens to H.R. 3376 now?
Right now, it has been referred to the House Subcommittee on Water Resources and Environment. Its biggest hurdle is political: the bill ties water spending to a corporate tax increase.
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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