S.2007 - Financing Lead Out of Water Act of 2025 (119th Congress)
Summary
S.2007, the "Financing Lead Out of Water Act of 2025," aims to amend the Internal Revenue Code of 1986. The amendment modifies private business use requirements for bonds issued for lead service line replacement projects. This bill was introduced in the Senate on June 10, 2025, and referred to the Committee on Finance.
The bill clarifies that qualified lead service line replacement use does not constitute private business use. It defines key terms such as 'qualified lead service line replacement use,' 'lead service line,' 'national primary drinking water regulation for lead,' and 'public water system' with references to the Safe Drinking Water Act.
The changes would apply to obligations issued after December 31, 2025.
Expected Effects
The primary effect of this bill is to make it easier for public water systems to finance the replacement of lead service lines. By modifying the private business use requirements for bonds, the bill aims to reduce the financial burden on these systems. This could lead to quicker and more widespread replacement of lead service lines, improving public health.
It incentivizes investment in infrastructure improvements related to water safety. This could lead to a reduction in lead exposure for communities.
Potential Benefits
- Facilitates quicker replacement of lead service lines, reducing lead exposure.
- Lowers the financial burden on public water systems for lead service line replacement.
- Improves compliance with national primary drinking water regulations for lead.
- Encourages investment in water infrastructure.
- Protects public health by ensuring safer drinking water.
Potential Disadvantages
- Potential for increased government debt through bond issuance.
- Possible misuse of funds if oversight is inadequate.
- May disproportionately benefit areas with existing water infrastructure.
- Could create a dependency on federal funding for local water projects.
- The effective date delays implementation, prolonging potential lead exposure.
Constitutional Alignment
This bill appears to align with the Constitution's general welfare clause (Preamble). It promotes the health and safety of the population by addressing lead contamination in drinking water. Congress has the power to tax and spend for the general welfare, which includes ensuring access to safe drinking water.
Furthermore, the bill does not appear to infringe upon any specific rights or liberties protected by the Bill of Rights. It focuses on infrastructure and public health, areas traditionally within the purview of government regulation.
However, the Tenth Amendment reserves powers not delegated to the federal government to the states, and water infrastructure is often managed at the state and local level. The federal government must ensure it does not unduly infringe on state authority.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).