Local Water Protection Act

1) WHAT HAPPENED: On February 11, 2026, the House Committee on Transportation and Infrastructure ordered HR7376 reported by voice vote. The bill was placed on the Union Calendar on March 20, 2026 with committee report H. Rept. 119-566. It has not yet received a floor vote in the House. The bill is sponsored by Rep. Scholten (D-MI) with one Republican cosponsor (Rep. Mast), indicating bipartisan but low-priority status. 2) MONEY TRAIL: The bill text explicitly only amends Section 319(j) of the Clean Water Act to extend the authorization period from 'FY2023-2027' to 'FY2027-2031'. No dollar amounts appear in the bill text. This is a pure authorization extension — it does not increase or decrease the authorized funding ceiling. Actual appropriations for section 319 grants will continue to be determined annually by the Interior-Environment appropriations subcommittee. Historically, section 319 receives ~$200 million annually. This bill does not change that. 3) STRUCTURAL WINNERS: Companies that supply equipment for municipal stormwater and erosion control projects see a moderate benefit from program certainty — their customers can plan 5-year capital cycles knowing federal grant matching will continue. Mueller Water Products ($MWA) and Powell Industries ($POWL) are the most directly exposed publicly traded companies. Larger diversified infrastructure firms ($GE, $CAT) have minimal exposure — this program is too small ($200M nationally) to move their revenue. 4) COMPETITIVE LANDSCAPE: The water infrastructure supply market is fragmented. Mueller (valves/hydrants) and Powell (electrical systems) are the largest pure-plays. Badger Meter ($BMI) and Xylem ($XYL) would also benefit indirectly from maintained municipal spending, but the mechanism is weaker — section 319 grants primarily fund planning and implementation of nonpoint source controls (agricultural BMPs, stormwater retrofits), not meter replacement or pump station upgrades. 5) TIMELINE: The bill must pass the House floor, then the Senate, then be signed by the President. Current authorization expires September 30, 2027. If not passed by then, the program lapses (though appropriations typically continue under continuing resolutions). Given the bipartisan nature and low controversy, passage is likely but not guaranteed this session.