LSL Policy Lowdown: July 13–19, 2026
🔎Legislative Scanner
Check out EPIC's legislative scanner to keep track of all the state LSL bills worth keeping an eye on.
Federal Updates
Congress Moves to Reauthorize DWSRFs
The Senate is advancing DWSRF reauthorization under the Water Resources Development Act (WRDA). The proposal would authorize $3.75 billion in FFY27, increasing by $500 million each year through 2030, for a total of $5.25 billion investment. Unlike IIJA, the proposal does not include dedicated funding for LSL replacement, and instead authorizes the use of base SRF funds for these projects. This bill would also continue to allow SRF earmarks which our research finds to result in long-term losses for states.
EPIC’s take: 🚩More funding is always welcome, but the details matter. The use of base funds for LSL projects isn’t something new, however, dedicated IIJA LSL funding under has been a huge driver of progress because it:
Expands access to funding: Dedicated LSL dollars prevent replacement projects from competing with every other drinking water priority for limited SRF resources, helping maintain the pace needed to meet the LCRI’s 10-year replacement deadline.
Provides more favorable financing terms: Under IIJA, roughly half of LSL funding was provided as principal forgiveness, making projects financially feasible for more communities—especially small and under-resourced systems.
Strengthens state implementation: Dedicated funding also means additional set-asides to support inventories, customer outreach, technical assistance, and state program administration—all which will become increasingly important as the LCRI compliance date approaches.
💡 Looking ahead: Congress still has an opportunity to strengthen the SRFs and sustain momentum for LSL replacement. In addition to establishing dedicated LSL funding, Congress should consider waiving the 1% minimum state allotment so funds reach higher-need states more quickly and reduce reliance on reallotments. It should also fund earmarks through separate appropriations to preserve SRF integrity while continuing to support targeted investments. (See our broader recommendations here).
Want to learn more?
Visit EPIC's LSL Policy Lowdown page, LSL Replacement Initiative page, and our Lead Innovation Hub.
