President Signs Water Infrastructure Funding Transfer Act

Last Friday, President Trump signed into law the Water Infrastructure Funding Transfer Act. In the statute Congress finds that excessive amounts of lead have been found in water systems throughout the United States and recognizes that States do not have adequate funds in the DWSRF to address lead contamination in drinking water. Congress also acknowledges that some States have available funds in the CWSRF that could be used to address lead in drinking water.

The Water Infrastructure Funding Transfer Act allows transfers from the Clean Water State Revolving Fund (CWSRF) to the Drinking Water State Revolving Fund (DWSRF) during a one-year period ending on October 4, 2020, in an amount up to 5% of the state’s cumulative CWSRF federal grant dollars. During the one-year period (starting October 4, 2019) if States, in consultation with the EPA Administrator, determine CWSRF funds are necessary to address lead in drinking water, States may transfer funds.

The transferred funds may be used to provide financial support in the form of forgiveness of principal, negative interest loans or grants (or any combination). This authority is in addition to the existing transfer authority under the Safe Drinking Water Act.

For information on the statement from EPA Administrator Andrew Wheeler regarding the new law, click here.