EPA announced more than $1.1 billion in reallocated Infrastructure Investment and Jobs Act (IIJA) funding for lead service line (LSL) replacement projects for states with higher numbers of LSLs based on the 2024 inventories. States, Puerto Rico and D.C. must apply for these funds by Sept. 30, 2026. This is in addition to the $3 billion just released for FY2025 IIJA funding.
We recommend submitting your funding applications and meeting with your State Revolving Fund (SRF) office to let them know you're planning to apply. That way, they can lock in the funds for you.
What's new in this round?
Recent guidance expands what's eligible for funding:
Galvanized Requiring Replacement (GRR) Service Lines can now qualify even without confirmed lead previously upstream. Galvanized downstream of previous unknown can now qualify for the funding beyond FY2023. Learn more
here.
Integrated Components like water meters and mains can also be covered in some instances when combined with LSL replacement programs. Learn more here.
The reallotment spans two fiscal years:
- Fiscal 2023: $546 million to 41 states, Puerto Rico and D.C.
- Fiscal 2024: $586 million to 36 states, Puerto Rico and D.C.
- At least 49% must be distributed as grants or principal forgiveness
Top state allocations:
- Illinois: $132.8 million
- Ohio: $98.7 million
- Pennsylvania: $85.8 million
- New York: $67.4 million
- New Jersey: $57.1 million
The bottom line: This is a time-sensitive opportunity for utilities to accelerate their LSL replacement programs by bringing additional funding to states most impacted by lead service lines. Questions about eligibility, how to access these funds, or how to ramp up your replacement program? Our experts can help!
