Clean and Drinking Water State Revolving Funds

The Drinking Water State Revolving Fund (DWSRF) Lead Service Line Replacement (LSLR) Program, administered by the Texas Water Development Board (TWDB), is a targeted initiative designed to address the pressing need for lead service line replacements across eligible Texas communities. This program is funded through the Infrastructure Investment and Jobs Act (IIJA), leveraging federal support to expand access to clean, safe drinking water by identifying and eliminating sources of lead contamination in public water systems. As part of the broader DWSRF, the LSLR program offers low-cost financial assistance to qualified applicants engaged in water infrastructure improvement projects specifically connected to lead service lines. The primary objective of the LSLR program is to facilitate the planning, design, acquisition, and construction activities required for the full removal and replacement of lead service lines. The program funds activities that include the development or updating of service line inventories, the mapping and verification of lead-containing infrastructure, and non-routine lead sampling directly associated with the LSLR scope. Critically, eligible projects must replace both publicly and privately owned segments of lead service lines with materials that meet federal (40 CFR 143) and state/local plumbing codes. Entities may also request reimbursement for eligible service line inventory activities that were mandated under EPA's Lead and Copper Rule Revisions, provided those activities complied with DWSRF guidelines. Eligible applicants include existing community Public Water Systems (PWSs), which may be publicly or privately owned, as well as non-profit non-community public water systems and state agencies. However, only those projects serving communities that meet the disadvantaged status criteria—defined as having an Annual Median Household Income (AMHI) of no more than 150% of the state’s AMHI—will be eligible for funding under the State Fiscal Year (SFY) 2026 Intended Use Plan (IUP). For further clarity on these criteria, applicants are advised to consult Appendix D of the SFY 2025 LSLR IUP. The SFY 2026 funding round will offer approximately $73,796,000 in total funding, structured as a combination of principal forgiveness (51%) and low-interest loans or bonds (49%). Projects involving service line inventories will be eligible for zero-percent interest loans, while planning, acquisition, design, and construction activities will receive financing at reduced DWSRF interest rates. All funded projects are treated as equivalency projects, meaning they are subject to all applicable federal requirements. This includes compliance with Davis-Bacon wage standards, EPA's Disadvantaged Business Enterprise rules, and the Build America, Buy America Act (BABA). To be considered for this funding, applicants must submit a completed Lead Service Line Replacement Project Information Form (PIF) prior to the posted deadline. Applications must demonstrate consistency with the State Water Plan and include a Water Conservation and Drought Contingency Plan for projects exceeding $500,000. Environmental reviews consistent with the National Environmental Policy Act (NEPA) are also mandatory. Entities invited to submit full financial assistance applications will undergo a Financial, Managerial, and Technical (FMT) capacity assessment coordinated by the Texas Commission on Environmental Quality (TCEQ) or its contractors. The public comment period for the SFY 2026 Draft Intended Use Plan is open from January 30, 2026, through February 27, 2026. Stakeholders may submit comments via email, an online survey, or at a public hearing scheduled for February 10, 2026, at 10:00 A.M. in Austin, Texas. Additional program information, including application forms, guidance documents, and workshop schedules, is available on the TWDB website. Interested applicants are encouraged to reach out to their designated TWDB Regional Project Implementation Team for assistance. For general inquiries, TWDB can be contacted via email at [email protected].