Identifying Funding Sources for Lead Service Line Replacement
Improving America’s water infrastructure is vital to protecting public health and reducing lead in drinking water. Federal and non-federal funding sources are available to assist states and water utilities with these efforts, including lead service line replacement (LSLR).
On this page:
- Laws and Policies Related to Funding Lead Service Line Replacement
- Funding Resources for Identifying and Replacing Lead Service Lines
- Additional Lead in Drinking Water Funding
- Lead Service Line Replacement Financing Case Studies
Laws and Policies Related to Funding Lead Service Line Replacement
EPA and U.S. Department of Housing and Urban Development (HUD) encourage and support communities to prioritize infrastructure improvement projects including those that remove lead service lines and reduce lead exposure.
EPA and U.S. Health and Human Services (HHS) encourage state and local governments to deploy available resources, including Bipartisan Infrastructure Law funding, and take steps to identify and remediate the effects of lead on children.
Bipartisan Infrastructure Law (BIL)
There are still an estimated 9.2 million lead service lines in cities and towns across the country, many of which are in low-income neighborhoods and communities of color. The Bipartisan Infrastructure Law will deliver resources to remove these lead pipes, in line with EPA's goal of removing 100% of lead service lines. The Bipartisan Infrastructure Law invests $15 billion towards LSLR through the DWSRF. With this investment, 49% of funds will be provided to communities as grants or principal forgiveness loans. State match is not required.
For a project or activity to be eligible for funding under this appropriation, it must be otherwise DWSRF eligible and be a lead service line replacement (LSLR) project or associated activity directly connected to the identification, planning, design, and replacement of lead service lines.
- Memorandum: Implementation of the Clean Water and Drinking Water State Revolving Fund Provisions of the Bipartisan Infrastructure Law (pdf)
- Implementation of the District of Columbia and the U.S. Territories Clean Water and Drinking Water Allocations of the Infrastructure Investment and Jobs Act (pdf)
- Learn more about Bipartisan Infrastructure Law resources for drinking water
Build America, Buy America Act (BABA)
The Infrastructure Investment and Jobs Act, also known as the Bipartisan Infrastructure Law, includes the Build America, Buy America Act ("the Act"). The Act strengthens Made in America Laws and will bolster America’s industrial base, protect national security, and support high-paying jobs.
The Drinking Water Grants Program team is working to standardize and implement the process to support grant recipients with the BABA requirements and how to request/apply for a waiver if they are eligible. The grants team established a grant inbox for questions and eventually receiving waiver requests. Please do not hesitate to reach out to the grants team points of contact at HQ or send your questions/requests to BABA-DrinkingWaterGrants@epa.gov
- EPA Office of Water Build America, Buy America Act Implementation Procedures (November 2022) (pdf) Lists applicable LSLR programs, and the requirements systems using grant funding will have to meet.
- Build America, Buy America Act Office of Water Implementation Procedures Webinar (November 2022) (pdf) Webinar slides include information on LSLR grant programs subject to BABA requirements.
Funding Resources for Identifying and Replacing Lead Service Lines
EPA has developed guides to help communities identify potential federal funding for service line inventories and lead service line replacement.
- Funding Sources Guide for Service Line Inventories:
Funding Sources for Developing Service Line Inventories (pdf)
- Spanish Translation: Fuentes de Financiamiento para Desarrollar Inventarios de Lineas de Servicio (pdf)
- Funding and Technical Guide for Service Line Replacement: Document: Funding and Technical Resources for Lead Service Line Replacement in Small and Disadvantaged Communities (pdf)
Drinking Water State Revolving Fund
The Drinking Water State Revolving Fund can provide financial assistance to publicly-owned and privately-owned community water systems, as well as non-profit non-community water systems, for drinking water infrastructure projects. Projects must either facilitate the system’s compliance with national primary drinking water regulations or significantly further the health protection objectives of the Safe Drinking Water Act (SDWA).
This funding can be used to facilitate LSLR through infrastructure replacement, corrosion control optimization, lead testing and education, as well as interim/emergency protocols. Service line identification, planning, design, and complete service line replacement are eligible DWSRF expenses, regardless of pipe material and ownership of the property on which the service line is located. The entire service line from the public water main to the point at which it connects with premise plumbing is DWSRF-eligible.
Each state has its own application procedure, and the state DWSRF contacts for further inquiry can be found here.
- Case studies on how communities used DWSRF assistance for their lead service lines can be found here: Addressing Lead in Drinking Water with the DWSRF (pdf)
- Information and guidelines on how EPA awards and administers SRF grants in the BIL can be found here: Memorandum: Implementation of the Clean Water and Drinking Water State Revolving Fund Provisions of the Bipartisan Infrastructure Law (pdf)
- Webinar slides that review the applicability of BIL Funding through DWSRF can be found here: Presentation: Bipartisan Infrastructure Law SRF Memorandum Webinar (pdf)
Tribal Drinking Water Systems
Both community and non-profit non-community water systems serving tribal members have eligibility for grants administered through EPA’s Drinking Water Infrastructure Grants Tribal Set-Aside (DWIG-TSA) Program.
Tribal public water systems receive DWIG-TSA assistance directly from EPA Regions. Please contact your EPA Regional office Infrastructure Grant Tribal Set-Aside Coordinator for details. Tribes are also eligible to receive support from state DWSRF programs through their state contacts
Small, Underserved and Disadvantaged Communities Grant Program
Authorized under the Water Infrastructure Improvements for the Nation (WIIN) Act, EPA’s Small, Underserved, and Disadvantaged Communities Grant Program assists public water systems in underserved, small, and disadvantaged communities in meeting Safe Drinking Water Act (SDWA) requirements.
For the purposes of this Grant Program, a disadvantaged community is one determined by the state to be disadvantaged under the affordability criteria established by the State under section 1452(d)(3) of the SDWA, or may become a disadvantaged community as a result of carrying out a project or activity.
A project in a small community is eligible for assistance if the community served has a population of less than 10,000 individuals and lacks the capacity to incur debt sufficient to finance a project to comply with the SDWA.
This Grant Program is non-competitive.
Learn more about this grant program.
Reducing Lead in Drinking Water Grant
Section 2105 of the WIIN Act, Reducing Lead in Drinking Water, created a new EPA grant program for lead reduction projects. Eligible entities include community water systems, non-governmental organizations, tribal water systems, nontransient noncommunity water systems, and municipality or state, interstate, or inter-municipal agencies.
Learn more about EPA's WIIN Grants
Water Infrastructure Finance and Innovation Act (WIFIA)
Established by the Water Infrastructure Finance and Innovation Act of 2014, the WIFIA program is a federal loan and guarantee program administered by EPA. WIFIA’s aim is to accelerate investment in the nation’s water infrastructure by providing long-term and low-cost supplemental credit assistance for regionally and nationally significant projects. The WIFIA program has an active pipeline of pending applications for projects that will result in billions of dollars in water infrastructure investment and thousands of jobs.
Learn more at about the WIFIA Program.
HUD Community Development Block Grant (CDBG)
The Community Development Block Grant (CDBG) program is a flexible program that provides communities with resources to address a wide range of unique community development needs. Beginning in 1974, the CDBG program is one of the longest continuously run programs at HUD. The CDBG program provides annual grants on a formula basis to 1209 general units of local government and States.
CDBG is an important tool for helping local governments tackle serious challenges facing their communities. The CDBG program has made a difference in the lives of millions of people and their communities across the Nation.
Additional Lead in Drinking Water Funding
Funding Sources for Schools and Child Care Facilities
EPA has compiled a list of funding sources for improving drinking water quality in schools and child care facilities. This compiled list of 200 sources are from federal partners, associations, non-profits, and organizations. These can be used to test drinking water, implement remediation measures, and replace old plumbing fixtures and service lines.
View additional potential funding sources for schools and child care facilities.
Voluntary Lead Testing and Reduction in School and Child Care Drinking Water Grant
Authorized under the Water Infrastructure Improvements for the Nation (WIIN) Act, EPA's Voluntary Lead Testing and Reduction Grant Program creates a voluntary program to assist with testing for and reducing lead in drinking water at schools and child care programs. The grant will include approximately $43.7 million in funding. The Grant Program is a noncompetitive program. View the state agencies implementing this grant program.
Learn more about this grant program.
Coronavirus State and Local Fiscal Recovery Funds Program
Established by the American Rescue Plan of 2021, the Coronavirus State and Local Fiscal Recovery Funds Program (SLFRF) provides resources to state, local, and tribal governments across the country to maintain vital public services and support recovery from the COVID-19 pandemic. Eligible uses for SLFRF funds include investment in water infrastructure to improve access to clean, safe drinking water.
Lead Service Line Replacement Financing Case Studies
It is estimated that there are between 9.2 million lead service lines in the country. These case studies highlight the proactive actions being taken by cities across the country to finance projects that identify and remove these lead service lines.