The Water Infrastructure Modernization Act of 2025 updates federal water infrastructure programs by expanding support for "smart water" technologies that use real-time monitoring, artificial intelligence, and data analytics to improve wastewater treatment, stormwater management, and water supply systems. The bill allows federal grant funding to be used for implementing these intelligent technologies—such as leak detection systems, remote sensors, and automated operational tools—alongside traditional water infrastructure projects, and clarifies that adoption and training costs for these technologies are not considered routine maintenance expenses. The legislation increases annual funding for the alternative water source pilot program from $25 million to $50 million and extends the authorization through 2028, while requiring the Environmental Protection Agency to report to Congress within 180 days and annually thereafter on funded projects, their effectiveness in improving resilience, and reasons for any denied grant applications. This bill affects water utilities, municipalities, and communities seeking to modernize aging water systems while improving efficiency and reliability.
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