Clean Water Allotment Modernization Act of 2026

The Clean Water Allotment Modernization Act of 2026 updates how federal funding for water pollution control is distributed among states, Indian tribes, and U.S. territories. It requires the Environmental Protection Agency to set aside specific portions of funds for oversight and tribes before calculating state shares, while also introducing a new formula that allocates money based on watershed needs, population size, and poverty levels. The bill includes safeguards to prevent funding amounts for any single state from changing drastically from one year to the next and allows states to use a small percentage of their grants to conduct the necessary assessments for this new formula. Additionally, the legislation clarifies that these changes do not affect existing infrastructure funds and expands the allowable uses of capitalization grants to include technical assistance and survey activities.