Subcommittee hearing entitled “Reliable Water in the Digital Age: Examining Legislation to Strengthen Drinking Water Systems and Protect Ratepayers.”
Hearing memo
Witnesses:
- Neil Bradley, Executive Vice President, Chief Policy Officer, and Head of Strategic Advocacy, U.S. Chamber of Commerce
*Julie Moore, Secretary, Vermont Agency of Natural Resources, and Vice Chair, Water Committee, Environmental Council of States (ECOS)
- Mae Wu, Founder and Principal, Health and Environmental Advising, LLC
Items to be considered:
- H.R. ____, Safe Drinking Water Infrastructure Improvement Act of 2026
- H.R. ____, Water Cost Accountability Act of 2026, to amend the Safe Drinking Water Act to limit the pass-through of data center costs
The Safe Drinking Water Infrastructure Improvement Act would extend or re-establish existing programs to 2027 and add cybersecurity to the Safe Drinking Water Act grant programs.
The Water Cost Accountability Act would require public water systems in states receiving grants from Safe Drinking Water Act State Revolving Loan Funds to charge data centers for costs for connecting to public water system or expanding the system’s infrastructure, and would require the Environmental Protection Agency to provide a report to Congress on data centers whose water usage exceeds 200,000 gallons per day on average.
The Subcommittee on Environment is considering two pieces of draft legislation to
amend the Safe Drinking Water Act (SDWA), which is the main federal law regulating drinking
water in the United States. Under SDWA, the U.S. Environmental Protection Agency (EPA) establishes drinking water regulations to protect public health and administers funding programs,
including the Drinking Water State Revolving Fund (DWSRF), to help states deliver safe,
reliable and affordable drinking water to their communities. Congress originally enacted SDWA
in 1974, and the law has been reauthorized and amended multiple times, including in 1986, 1996,
2015, 2018, and most recently with enactment of the Infrastructure Investment and Jobs Act
(IIJA).
The DWSRF provides capitalization grants to states, enabling states to finance drinking
water infrastructure through low-interest loans. Eligible projects include the construction and
replacement of treatment facilities, upgrades to distribution and storage systems, improvements
to existing infrastructure, and lead service line replacement. The IIJA provided about $50 billion
in supplemental funding to multiple EPA programs, including $11.7 billion in general DWSRF
capitalization grants for fiscal years 2022 through 2026, $15 billion for lead service line
replacement set-asides, and $4 billion to address emerging contaminants such as per- and
polyfluoroalkyl substances (PFAS).
Annual discretionary appropriations for the core DWSRF program have remained largely
consistent from Fiscal Year (FY) 2022 through FY2026, generally about $1.1 billion per year.
Of the approximately $1.1 billion appropriated by Congress for FY2026, roughly $715 million
was congressionally directed spending in the form of grants for specific projects, rather than used
to capitalize state revolving loan funds, which provide loans that are repaid with interest to fund
future infrastructure investments.
As part of this work, the Subcommittee on Environment staff has examined proposals to
improve access to safe and affordable drinking water, strengthen the security and resilience of
water systems against cyber and other threats, and to ensure that SDWA funding is reaching
small, rural, and disadvantaged systems that need it most.
House Energy and Commerce Committee
Environment Subcommittee
2123 Rayburn
09/03/2026 at 09:00AM