Clean and Drinking Water State Revolving Funds

The Lead Service Line Replacement (LSLR) Program, administered by the Texas Water Development Board (TWDB), is funded through the Drinking Water State Revolving Fund (DWSRF) under the Safe Drinking Water Act. The program provides low-cost financial assistance for planning, acquisition, design, and construction of water infrastructure focused on the identification, replacement, and mitigation of lead service lines. The funding originates from the Infrastructure Investment and Jobs Act (IIJA) and is designated specifically for projects aimed at removing lead service lines in Texas communities. The LSLR program aims to assist eligible public water systems (PWSs) in eliminating lead exposure risks by funding projects that locate, inventory, and replace lead service lines. Eligible projects include updating lead service line inventories, mapping lead service lines, replacing lead pipes with approved materials, and conducting non-routine lead sampling for project-related purposes. Additionally, reimbursement may be available for initial service line inventory activities required under the EPA’s Lead and Copper Rule Revisions (LCRR), provided they meet DWSRF program requirements. Eligible applicants for the LSLR program include existing community public water systems, such as political subdivisions, nonprofit water supply corporations, and privately owned community water systems. Nonprofit, non-community public water systems and state agencies may also apply. To qualify for funding under the Intended Use Plan (IUP), projects must meet disadvantaged community criteria, which requires that the applicant's Annual Median Household Income (AMHI) be no more than 150% of the state's AMHI. Full eligibility details, including the disadvantaged community requirements, are available in Appendix D of the 2025 LSLR IUP. For SFY 2025, approximately $27,528,500 is available for funding, subject to changes upon IUP approval. Financing is structured as a combination of 51% principal forgiveness and 49% loan/bond, with the principal forgiveness portion functioning similarly to a grant. Loans for service line inventory projects carry a 0% interest rate, while loans for planning, acquisition, design, and construction are offered at a reduced interest rate under the DWSRF program. All projects funded through the LSLR program must comply with federal requirements, as they are considered "Equivalency" projects. To be considered for funding in the State Fiscal Year (SFY) 2026 cycle, applicants must submit a completed Project Information Form (PIF) by 5:00 p.m. CST on Friday, April 4, 2025. Entities are encouraged to submit a PIF for the current round of funding, even if capacity has been reached for SFY 2023 and SFY 2025. Financial assistance is contingent on compliance with various regulatory and statutory requirements, including environmental reviews, water conservation plans, compliance with the Build America, Buy America Act (BABA), and adherence to Davis-Bacon wage rate requirements. For more information, applicants can contact TWDB regional project implementation teams, review program guidance documents, or visit TWDB’s website for additional updates and workshop announcements.