The Infrastructure Investment and Jobs Act (IIJA) appropriated $3 billion annually over fiscal years (FYs) 2022-2026 for lead service line replacement (LSLR) grants under the Drinking Water State Revolving Fund (DWSRF) program. The Environmental Protection Agency (EPA) recently announced FY 2025 allotments to states, which are based on different data than those used for FYs 2022-2024. This data change led to significant funding shifts across states compared to original FY 2024 allotments, ranging from a -85% change in Florida to a +172% change in Texas.
In addition to announcing the FY 2025 allotments, EPA issued a memo expanding eligible uses of LSLR funds to include the replacement of certain galvanized pipes, water mains, water meters, and similar integrated components of water systems.
This brief discusses the change to FY 2025 allotments and the expansion of eligible uses. It also highlights adjustments made to prior allotments that were based on flawed data. Applications for FY 2025 funds are due September 30, 2026.