H.R. 3376, the Water Affordability, Transparency, Equity, and Reliability Act of 2025, creates a dedicated trust fund for water infrastructure by raising the corporate tax rate from 21% to 24.5%, with annual appropriations capped at $35 billion or larger based on EPA-assessed needs. The bill directs these funds primarily to clean water grants and drinking water capitalization grants, while also supporting rural household wells, tribal water systems, and water operator training. It expands state authority to purchase privately owned water systems and requires states to dedicate at least half of grants to subsidies for improvements—particularly lead service line replacement, contamination remediation, and protection against water shutoffs for low-income households. Additionally, the bill increases funding for water assistance in low-income border communities (colonias) from $25 million to $100 million annually through 2029 and broadens eligibility to include local governments beyond border states. Overall, the legislation aims to improve water affordability and access for underserved communities while modernizing aging water infrastructure nationwide.
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