A bill to amend the Safe Drinking Water Act and the Federal Water Pollution Control Act to establish or modify cybersecurity requirements for drinking water and wastewater systems, and for other purposes.

On August 7, 2026, Senators Schiff (D-CA) and Klobuchar (D-MN) introduced S5368, a bill to amend the Safe Drinking Water Act and the Federal Water Pollution Control Act to establish or modify cybersecurity requirements for drinking water and wastewater systems. The bill was read twice and referred to the Committee on Environment and Public Works, placing it at an early legislative stage. No funding amount is specified in the bill; it authorizes regulatory requirements but does not appropriate money. Actual funding for compliance would require a separate appropriations bill or be borne by utilities. The bill's sponsors are both Democrats, with Schiff as the primary sponsor and Klobuchar as the original cosponsor. Neither holds a leadership position on the EPW committee, which may slow momentum. The legislative path includes committee markup, floor vote in the Senate, and a companion bill in the House. Given the early stage and lack of funding, near-term market impact is minimal. However, the bill reinforces the growing federal focus on critical infrastructure cybersecurity. If it advances, pure-play cybersecurity companies with OT/ICS capabilities—CrowdStrike, Palo Alto Networks ($PANW), Fortinet, and SentinelOne—are best positioned to capture new contracts from water utilities. Water utilities themselves (e.g., $AWK) would face compliance costs, but the bill's impact on them is bearish due to increased operational expenses without offsetting revenue. The timeline for passage is uncertain; similar bills in past Congresses have stalled. Investors should monitor committee activity and any House companion bill as signals of momentum.