President Trump on October 4 signed into law legislation that will allow states to make a one-time transfer of funds from their Clean Water State Revolving Fund (CWSRF) balances to their Drinking Water State Revolving Fund (DWSRF) for the purpose of addressing lead in drinking water.
Introduced by Sen. Cory Booker (D-N.J.) and approved by the House and Senate in September, S. 1689 gives states a one-year window within which to transfer up to five percent of their available CWSRF grant dollars to the state’s DWSRF program, if the funds are determined “necessary to address a threat to public health as a result of heightened exposure to lead in drinking water.” Any funds transferred will have to support eligible lead-reduction projects through principal forgiveness, negative interest loans, or grants. A state will be required to consult with the EPA administrator before deciding to transfer funds, but EPA’s approval will not be necessary.
The Senate approved the bill on September 9 through an expedited procedure for noncontroversial legislation. The House of Representatives followed suit one week later, clearing the way for President Trump to sign the measure into law.
Congressional staff have indicated that they view S. 1689 as a one-time opportunity to allow states to transfer funding between their SRF programs to carry out lead repair projects, and they do not envision lawmakers agreeing to future SRF transfers for other purposes.