The U.S. Environmental Protection Agency (EPA) has announced $3 billion in new federal funding to help states reduce lead contamination in drinking water systems. The money will be distributed through the State Revolving Fund (SRF) programs, which support infrastructure upgrades in public water systems across the country.

The agency also said that an additional $1.1 billion in previously allocated but unused funds will be redistributed to states with unmet needs for lead service line replacement. This move is part of the EPA’s broader goal of accelerating the removal of lead pipes from homes, schools, and businesses.

Lead service lines, the pipes that carry drinking water into buildings, are the main source of lead contamination in water systems. Lead is a toxic metal that poses serious health risks, especially for young children, and there is no safe level of exposure.

The EPA’s announcement aligns with its broader efforts to reduce lead exposure through its “Powering the Great American Comeback” initiative. It follows updated estimates that show there are about 4 million lead service lines in the United States today. That figure is significantly lower than previous estimates, which placed the number at around 9 million.

According to the EPA, the updated figure is the result of improved data reporting from water systems, driven by inventory requirements introduced under revisions to the Lead and Copper Rule first enacted during the Trump administration. These revisions mandated that states and utilities compile and submit more accurate data on their infrastructure.

To help make this information more accessible and actionable, the EPA has launched a new online dashboard featuring data from lead service line inventories submitted by states.

Redistribution of Unused Federal Funds

In addition to the new $3 billion allocation, the EPA is redistributing $1.1 billion in Drinking Water State Revolving Fund (DWSRF) dollars that were previously allocated but remain unused. According to the Safe Drinking Water Act, unused funds can be reallocated to other eligible states with demonstrated needs.

Some states have faced delays in deploying federal infrastructure funding. As a result, those that have not obligated or spent any awarded lead-related funds since fiscal year 2023 will now be required to submit a plan to the EPA detailing how they intend to use the money efficiently. Only after this step will they be eligible for new funding.

The agency said it will work proactively with state partners to ensure that resources are directed toward projects that can move quickly to replace lead pipes and upgrade water infrastructure.

How the Funding Can Be Used

The funds can support a range of lead service line replacement (LSLR) activities, including identifying where lead lines are located, designing and planning replacement projects, and executing the replacements themselves.

To make sure the money is used as effectively as possible, the EPA also released a new guidance memo outlining additional eligible uses of the funds under the Infrastructure Investment and Jobs Act (IIJA). The guidance is intended to give states more flexibility in applying the funding to real-world needs.

This investment comes at a time when many communities, especially those with aging infrastructure or limited local budgets, continue to struggle with lead contamination. While significant progress has been made in replacing lead pipes in recent years, funding gaps, permitting delays, and technical challenges have slowed some efforts.

By providing both new funding and reallocating unspent dollars, the EPA aims to remove barriers and help water systems get projects off the ground faster.

Although the agency framed this announcement as a major step forward, experts and environmental groups have previously stressed the importance of continued oversight and community engagement to ensure that the most at-risk populations receive support first.

As states begin drawing from this new wave of funding, the EPA says it will track progress closely to ensure transparency and effectiveness in how the money is used.