H.R. 3376

Water Affordability, Transparency, Equity, and Reliability Act of 2025

Sponsor: Bonnie Watson Coleman

90 cosponsors
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Sec. 2. Water Affordability, Transparency, Equity, and Reliability Trust Fund

(a) Establishment

(1) In general. Subchapter A of chapter 98 of the Internal Revenue Code of 1986 is amended by adding at the end the following:

Text this section adds to the law

9512. Water Affordability, Transparency, Equity, and Reliability Trust Fund

(a) Creation of trust fund. There is established in the Treasury of the United States a trust fund to be known as the Water Affordability, Transparency, Equity, and Reliability Trust Fund (referred to in this section as the Trust Fund), consisting of such amounts as may be appropriated or credited to such Trust Fund as provided in this section or section 9602(b).

(b) Transfers to fund

(1) In general. There are hereby appropriated to the Trust Fund such amounts as the Secretary from time to time estimates are equal to the increase in Federal revenues attributable to the amendment made by section 2(b) of the Water Affordability, Transparency, Equity, and Reliability Act of 2025.

(2) Limitation. The sum of the amounts appropriated under paragraph (1) during any fiscal year shall not exceed the larger of—

(A) $35,000,000,000, and

(B) one-twentieth of the sum of—

(i) the 20-year need identified in the most recent assessment conducted by the Administrator of the Environmental Protection Agency in accordance with section 1452(h) of the Safe Drinking Water Act (42 U.S.C. 300j–2(h)), plus

(ii) the 20-year need identified in the most recent needs survey submitted by the Administrator pursuant to sections 205(a), 516, and 609 of the Federal Water Pollution Control Act (33 U.S.C. 1285(a), 1375, 1389).

(c) Expenditures. Amounts in the Trust Fund are available, without further appropriation and without fiscal year limitation, for the purposes described in section 2(c) of the Water Affordability, Transparency, Equity, and Reliability Act of 2025.

(2) Clerical amendment. The table of parts for subchapter A of chapter 98 of such Code is amended by inserting after the item relating to section 9511 the following new item:

Text this section adds to the law

Sec. 9512. Water Affordability, Transparency, Equity, and Reliability Trust Fund.

(b) Increase in corporate tax rate

(1) In general. Section 11(b) of the Internal Revenue Code of 1986 is amended by striking 21 and inserting 24.5.

(2) Effective date. The amendment made by this subsection shall apply to taxable years beginning after December 31, 2024.

(c) Allocation of funds. The Administrator of the Environmental Protection Agency, the Secretary of Agriculture, the Secretary of Health and Human Services, and the Secretary of Labor shall allocate, for a fiscal year, the funds available, at the beginning of such fiscal year, in the Water Affordability, Transparency, Equity, and Reliability Trust Fund, established by section 9512 of the Internal Revenue Code of 1986, as follows:

(1) Clean water programs. Of such amount, the Administrator shall make available—

(A) 0.5 percent for making grants under section 104(b)(8) of the Federal Water Pollution Control Act;

(B) 1.5 percent for making grants under section 106 of such Act (33 U.S.C. 1256);

(C) 2.5 percent for making grants under section 226 of such Act;

(D) 2.5 percent for making grants under section 319 of such Act (33 U.S.C. 1329); and

(E) 42 percent for making capitalization grants under section 601 of such Act (33 U.S.C. 1381).

(2) Safe drinking water funding. Of such amount, the Administrator shall make available—

(A) 0.5 percent for providing technical assistance under section 1442(e) of the Safe Drinking Water Act (42 U.S.C. 300j–1(e));

(B) 42 percent for making capitalization grants under section 1452 of such Act (42 U.S.C. 300j–12);

(C) 3 percent for making grants under section 1465 of such Act; and

(D) 0.5 percent for making grants under section 1456 of such Act (42 U.S.C. 300j–16) and for making grants under section 307 of the Safe Drinking Water Act Amendments of 1996 (33 U.S.C. 1281 note).

(3) Household water well systems. Of such amount, the Secretary of Agriculture shall make available 1 percent for making grants under section 306E of the Consolidated Farm and Rural Development Act (7 U.S.C. 1926e).

(4) Colonias. Of such amount, the Secretary of Agriculture shall make available 0.5 percent for making grants under section 306C of the Consolidated Farm and Rural Development Act (7 U.S.C. 1926c) described in subsection (c) of such section.

(5) Indian health services. Of such amount, the Secretary of Health and Human Services, acting through the Director of the Indian Health Service, shall make available 3 percent for making grants for the planning, design, construction, modernization, improvement, and renovation of water, sewer, and solid waste sanitation facilities that are funded, in whole or part, by the Indian Health Service—

(A) through, or provided for in, a contract or compact with the Indian Health Service under the Indian Self-Determination and Education Assistance Act (25 U.S.C. 5301 et seq.);

(B) pursuant to section 7 of the Act of August 5, 1954 (42 U.S.C. 2004a); or

(C) pursuant to section 302 of the Indian Health Care Improvement Act (25 U.S.C. 1632).

(6) Water operators job training grants. Of such amount, the Secretary of Labor shall make available 0.5 percent for providing job training grants under section 414(f) of the American Competitiveness and Workforce Improvement Act of 1988.

(d) Prohibition. None of the funds allocated pursuant to subsection (c) may be used for any activity described in paragraphs (1) through (5) of section 203(a) of the Labor-Management Reporting and Disclosure Act of 1959 (29 U.S.C. 433(a)).