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119-s-2007119th CongressWALLET

Financing Lead Out of Water Act of 2025

Sponsored By: Senator Bennet, Michael F. [D-CO]

Introduced

Summary

Would create a safe harbor so tax-exempt bonds can pay to replace privately owned portions of lead service lines. This change targets projects that help public water systems meet federal lead standards.

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  • Households with private lead service lines: The bill would let bond proceeds cover the privately owned portion of a lead service line when that replacement is needed to comply with the federal lead drinking-water rule.
  • Public water systems and communities: Clarifying eligible uses would make it clearer that replacements needed to achieve or maintain compliance count as bond-eligible projects.
  • State and local issuers and bond markets: The bill would amend Internal Revenue Code section 141(b)(6) by adding a new subsection and definitions so these uses are not treated as private business use for obligations issued after December 31, 2025.

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Bill Overview

Analyzed Economic Effects

1 provisions identified: 1 benefits, 0 costs, 0 mixed.

Tax-exempt bonds to replace lead pipes

If enacted, this bill would let local governments and public water systems issue tax-exempt bonds to replace privately-owned parts of lead service lines. The bonds could pay to replace the private portion when needed to meet a national lead drinking water rule. The bill would use Safe Drinking Water Act definitions. The change would apply to bonds issued after December 31, 2025. If you own the private piece of a service line, this could lower your out-of-pocket cost or speed up replacement.

Sponsors & CoSponsors

Sponsor

Bennet, Michael F. [D-CO]

CO • D

Cosponsors

  • Sen. Justice, James C. [R-WV]

    WV • R

    Sponsored 6/10/2025

Roll Call Votes

No roll call votes available for this bill.

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