Financing Lead Out of Water Act

HR 1407, the Financing Lead Out of Water Act, modifies tax rules to help communities replace lead water pipes. It clarifies that using tax-exempt bonds to replace privately-owned sections of lead service lines connected to public water systems does not count as "private business use" under federal tax law. This change allows public water systems to more easily finance lead pipe replacements through tax-exempt bonds, which are typically restricted from funding private business activities. The bill directly affects public water systems and local governments managing drinking water infrastructure, making it simpler to secure funding for compliance with federal lead regulations.