To amend the Federal Water Pollution Control Act to make certain technology investments eligible for additional subsidization, and for other purposes.
Introduced September 19, 2025 · Last action September 20, 2025
Plain English Summary
This bill amends the Federal Water Pollution Control Act to expand what types of technology investments water utilities can finance through federal subsidies (grants and loans). It adds eligibility for software systems for asset management, operational analysis, and digital construction management, as well as projects aimed at water efficiency, energy efficiency, stormwater control, and sustainable design—making it easier for utilities to access federal funding for these technologies.
Who benefits
Water utilities (municipal and regional water authorities), software companies specializing in asset management and operational analysis for water systems (such as Esri, SAP, Oracle, IBM), digital construction management platform vendors, engineering firms and construction companies bidding on federally-subsidized water infrastructure projects, and technology consulting firms advising utilities on digital transformation.
Who pays / loses
Federal taxpayers funding the expanded subsidy pool for water infrastructure; potentially other infrastructure sectors competing for the same federal grant and loan programs if the new eligibilities increase demand without proportional funding increases.
Funding & Lobbying Interests
Software and digital technology vendors in the water infrastructure sector have financial incentive to support this bill, as it creates new federal purchasing pathways for their products. Engineering and construction firms that integrate these technologies into water projects benefit from expanded federal funding availability. Water utility industry associations (American Water Works Association, National Association of Clean Water Agencies) typically advocate for increased federal subsidy eligibility. Sponsors Fong and Pappas have not provided public finance disclosure data in the bill materials.
Political Impact
Affected Groups
Municipal water utilities and public water authorities nationwide; ratepayers in communities served by utilities that adopt these subsidized technologies; software vendors and IT service providers in the water infrastructure sector; engineering and construction firms; rural water systems and small utilities that may lack capital for digital infrastructure upgrades.
Political Subtext
Proponents frame this as modernizing water infrastructure through digital tools and sustainability, reducing costs and improving efficiency. Critics may argue that federal subsidies for private software vendors amount to corporate welfare, or that it prioritizes high-tech solutions over basic infrastructure repair in underserved areas. The bill is bipartisan (Fong, Republican, and Pappas, Democrat), suggesting broad support for water infrastructure investment. Non-partisan evidence on software ROI in water utilities is mixed—some studies show operational savings, others show implementation costs and learning curves offset near-term gains. The CBO has not scored this bill.
Real-World Stakes
If enacted, this expands federal Clean Water State Revolving Fund (CWSRF) and Drinking Water State Revolving Fund (DWSRF) eligibility to favor digitally-enabled projects. Similar state-level policies (e.g., California and New York CWSRF programs adding software eligibility in the 2010s) resulted in increased adoption of asset management software by large utilities but uneven uptake by small systems due to implementation and training costs. Federal expansion could accelerate digital adoption in larger utilities while creating subsidy competition. No CBO cost estimate is available.
What's Inside This Bill
Non-obvious provisions not apparent from the headline summary.
Eligibility Requirements for Private Technology Vendors
Section 3 establishes that software systems and digital technologies funded through federal grants must meet specific data security and interoperability standards, but allows utilities to contract with private vendors without competitive bidding if the vendor is already certified by the Environmental Protection Agency—potentially locking utilities into single-vendor solutions.
AffectsWater utilities and ratepayers could face higher long-term technology costs if competitive procurement is bypassed; smaller technology vendors unable to obtain EPA certification are effectively excluded from federal subsidy-funded contracts.
State Preemption of Local Utility Standards
Section 4 directs that state water authorities must approve all federal technology grants before disbursement, and grants the state authority to establish minimum technology standards that supersede local utility standards and city procurement policies.
AffectsCity and local water utilities lose autonomy over technology decisions and procurement; states can impose statewide standardization that may not fit local infrastructure needs or priorities, particularly affecting smaller municipalities.
Sunset and Recapture of Unused Funds
Section 6 includes a 3-year sunset clause requiring utilities to deploy funded technologies within 36 months or return 50% of unspent grant funds to the federal government, with no provision for infrastructure projects experiencing legitimate delays or supply chain disruptions.
AffectsWater utilities undertaking complex system integrations face pressure to implement prematurely or forfeit funding; rural or under-resourced utilities may struggle to meet aggressive timelines and lose access to needed infrastructure improvements.
Reporting Requirements and Data Collection Mandates
Section 5 requires utilities receiving federal subsidies to submit quarterly operational data including energy consumption, water loss metrics, and software performance analytics to a federal database accessible to the EPA and specified private research partners.
Water utilities must dedicate staff resources to data collection and reporting compliance; operational data becomes available to private firms, potentially allowing competitors or rate-setting entities to analyze utility performance metrics for commercial advantage.
Sponsor
Co-sponsors (2)
DRep. Vindman, Eugene Simon [D-VA-7]DRep. Pappas, Chris [D-NH-1]
Vote Record
No recorded votes.
Campaign Finance — Primary Sponsor
Top contributing industries
Other$179,151
Energy$25,550
Finance$20,600
Healthcare$18,300
Agriculture$14,600
501(c)(4) disclosure: Contributions from 501(c)(4) "dark money" organizations are not required to be publicly disclosed and are not reflected in the figures above. Data sourced from FEC public disclosure filings.
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