A bill to permit States to transfer certain funds from the clean water revolving fund of a State to the drinking water revolving fund of the State in certain circumstances, and for other purposes.

This bill, signed into law on October 4, 2019, as Public Law 116-63, permits states to transfer up to 5% of the cumulative federal grant dollars awarded to their Clean Water State Revolving Fund to their Drinking Water State Revolving Fund for one year, specifically to address threats to public health from lead in drinking water. The mechanism is a temporary, capped transfer authority, not a new appropriation. The bill does not authorize any new spending; it merely reallocates existing authorized funds within the SRF program. The money trail: states can use transferred funds to provide additional subsidy (principal forgiveness, negative interest loans, or grants) to eligible recipients for lead remediation projects. The primary beneficiaries are municipalities and water utilities undertaking lead service line replacement. For investor-owned water utilities like American Water Works ($AWK), Essential Utilities, California Water Service Group, and SJW Group, the incremental subsidy is small relative to their capital expenditure programs. The one-year window and 5% cap limit the structural impact. No convergence with other signals was identified. The legislative timeline is complete; this is a closed event.