The Clean Water SRF Parity Act of 2025 expands what projects can receive funding through state water pollution control revolving loan funds, which provide low-interest financing for water infrastructure. The bill makes nonprofit organizations and privately owned water treatment facilities newly eligible for this federal assistance, allowing them to finance improvements, conservation measures, energy efficiency upgrades, and security enhancements to their systems. However, the bill restricts the use of funds—assistance to nonprofits and private operators can only support activities that directly benefit the communities they serve, not their shareholders or owners. The legislation does not specify new funding amounts or timelines, but instead modifies eligibility rules under the Federal Water Pollution Control Act to give states more flexibility in allocating existing revolving fund dollars. This change affects water utilities, nonprofit water systems, and the communities they serve by potentially increasing access to affordable financing for water infrastructure projects.
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