Cook County TAP is committed to connecting municipalities with up-to-date information on funding opportunities to help you offset the often-costly effort of developing and implementing a lead service line replacement program.
The Bipartisan Infrastructure Law passed in 2021, provides the U.S. Environmental Protection Agency with funding to support water infrastructure through 2026. Along with the American Rescue Plan Act, the Bipartisan Infrastructure Law allocates funding for lead service line replacement and provides significant resources to Cook County communities planning to replace lead service lines.
Federal, State, and Local Funding Opportunities
The Bipartisan Infrastructure Law, or Infrastructure Investment and Jobs Act (IIJA), was set to expire on September 30, 2026. IIJA has provided over $26 billion in funding to support water infrastructure, including $15 billion for LSLR. The Illinois EPA is expected to receive $1.03 billion of these funds over the course of five years. Funds are currently available through the State Revolving Fund and other initiatives such as the Lead Service Line Inventory grant opportunity.
To prevent the suspension of funding for critical programs relying on the IIJA, H.R. 6500, the “Continuing Appropriations and Extensions Act, 2027,” was passed and includes a short-term continuing resolution that provides fiscal year 2027 appropriations to Federal agencies through December 11, 2026.
Currently, there is no certainty that water infrastructure will be funded at the levels provided under the IIJA. The federal Transportation and Infrastructure Committee approved the bipartisan BUILD America 250 Act (H.R. 8870) on May 22 and hopes to move the bill through the legislative process. The bill primarily focuses on investing in roads, bridges, and other surface infrastructure, and does not directly address water infrastructure.
The American Rescue Plan Act (ARPA) provided $8.1 billion to Illinois State and Local Fiscal Recovery Funds ($350 billion, nationally), which were in part used for clean drinking water projects, including LSLR. LeadCare Cook County, for example, received ARPA funding through the Cook County Bureau of Economic Development to complete LSLR for child care providers and schools in suburban Cook County. LeadCare Cook County has ceased enrollment and will focus on completing LSLRs for those currently enrolled.
ARPA ends on September 30, 2026, at which point all funds must be obligated.
The Federal Government provides Drinking Water State Revolving Funds with dedicated funding to address water infrastructure and lead service line replacement needs. States administer the funds allocated by Congress and community water suppliers then apply for funding from their state.
The Illinois EPA State Revolving Fund (SRF) is a primary resource for Cook County municipalities seeking federal funding for lead service line replacement. Depending on a community’s eligibility, SRF is either a low- or no-interest loan program aimed at protecting public health. Supplemental funds have been provided to distribute principal forgiveness loans.* Illinois received a $325M federal appropriation and other carryover funding for LSLR for IL FY 2025. On November 25, 2025, Illinois received an additional $199M reallotment of unclaimed FY 2023/2024 IIJA Lead Service Line Replacement Drinking Water State Revolving Funds. These funds will be made available in IL FY 2026 (beginning July 1, 2026). All LSLR loans will have an interest rate of 0% and a loan term of 30 years (40 years for disadvantaged communities). The initial funding cap for projects is $2,755,000/loan recipient for principal forgiveness, and $13M cap for low-interest loan recipients. There is an additional $132M in General Supplemental and Emerging Contaminants capitalization grants available, of which $108M can be used for other drinking water infrastructure needs, including LSLR. Applications for SRF funding are typically due by September of the year preceding the fiscal year in which the project will begin.
*Principal forgiveness loans are essentially grants. They require no repayment of the loan principal.
For more information on the Illinois State Revolving Fund program, visit the Illinois SRF website and this factsheet on Preparing a State Revolving Fund Application.
State Revolving Fund (SRF) Scoring Map
This map can provide guidance when deciding which census tracts to include in an SRF application for lead service line replacement funding. The map shows the scoring methodology defined in 35 Illinois Administrative Code section 663 345. The higher the census tract loan priority score, the more likely a project is to secure funding.
Three grants are available through The WIIN Act to help with drinking water projects, including lead service line replacement: 1) the Small, Underserved, and Disadvantaged Communities grant, 2) the Reducing Lead in Drinking Water grant, and 3) the Voluntary School and Child Care Lead Testing and Reduction Grant.
- The Small, Underserved, and Disadvantaged Communities grant offers funding for infrastructure and capacity building activities to help communities comply with the Safe Drinking Water Act. The funding is non-competitive and eligible applicants submit workplan application packages on a continuous basis to receive funding.
- The Voluntary School and Child Care Lead Testing and Reduction grant is available to all states, territories, and tribes. It provides non-competitive funding for lead testing and mitigation projects at schools and child cares.
- The Reducing Lead in Drinking Water grant is available for projects that reduce lead in drinking water through LSLR and treatment projects for public water systems, schools, and child cares.
More information on these grants is available on the USEPA website and in an overview infographic produced by USEPA.
Administered by USEPA, the WIFIA program offers long-term, low interest loans for a host of drinking and wastewater projects, including drinking water treatment and distribution projects. Local, state, and tribal government entities can apply to receive a loan, along with partnerships, joint ventures, corporations, trusts, and Clean Water and SRF programs. The minimum project size for small communities is $5 million; for large communities it is $20 million.
More information is available on USEPA’s website and in their informational overview sheet.
The U.S. Department of Housing and Urban Development (HUD) makes Community Development Block Grants available to communities to address critical housing needs in disadvantaged communities, including public infrastructure and housing rehabilitation grants. Both can be used for lead service line removal and are administered by the Illinois Department of Commerce and Economic Development.
Cook County uses its CDBG funding primarily to support capital improvement projects (e.g., roads, sewers, facilities) and social services, including houseless prevention/intervention, development of public-private partnerships, and planning in suburban Cook County. Applications for CDBG programs open each year in early February and are typically due around March 20 of the same year. Funding is capped at between $150,000 and $500,000.
More information is available on Cook County’s application website.
Community Project Funding (House) and Congressionally Directed Spending (Senate), both formerly referred to as “earmarks,” are directed by legislators and distributed at the local level. Projects receiving Community Project and Congressionally Directed Funding are typically shovel-ready and selected by legislators for their district. Submissions for projects are typically available one to two times a year. Check your legislator’s website regularly for updates.
For FY 2026, examples of funding awarded can be found here on the Senators Durbin/Duckworth 2026 list of funded projects. Over $7.7 million was granted for water main or lead service line replacement projects.
To apply for funding, reach out to or visit the website of your federal representatives to learn more about their process. You can also visit the Senate Appropriations Committee website for an overview of currently funded projects.
As part of Illinois’ State Revolving Fund program, the LSLI Grant Opportunity provides up to $50,000 to Illinois community water suppliers (CWS) to complete service line inventories. Funds cannot be used for CWS staff costs, but they may be used for third-party activities related to service line inventory work. CWS may submit at any time during the fiscal year and submit more than one application as needed to complete the service line inventory process.
Applications are open now until the funds are depleted. Learn more on the LSLI grant opportunity page.
The Distressed Cities and Persistent Poverty Technical Assistance (DCTA) program is designed to build capacity of local governments experiencing economic distress and assist local governments and their nonprofit partners in alleviating persistent poverty in specific areas. Through DCTA, HUD provides technical assistance (TA) directly to entities serving smaller communities with populations under 50,000.
Central to the success of a robust LSLR program is good fiscal health, strong financial performance, and effective financial management practices. These are the primary components of the technical assistance offered through this program.
Find out more at The Distressed Cities and Persistent Poverty Technical Assistance.
The USDA Rural Development program funds projects in rural communities in 70 program areas including “Water and Environmental” and “Single & Multi-Family Housing” programs. For example, in FY 2024 there was $1M available in the “Revolving Funds for Financing Water and Wastewater Projects” for small water infrastructure projects. There is no exact definition of “rural” other than it is a community that is not designated as “urban” by the U.S. Census Bureau. Typically, the population is not to exceed 20,000 with some exceptions.
Find out more at USDA Rural Development.
LeadCare Illinois℠ offers free lead-in-water testing, training, and reimbursement of mitigation costs for licensed child care facilities and schools across Illinois. Through LeadCare Illinois, child care providers and schools can receive a test kit by mail, guidance on reducing lead, and potential reimbursement for mitigation costs. LeadCare Illinois will consider requests for mitigation reimbursement for lead reducing activities such as faucet, fixture, and drinking fountain replacement, point of use filter installation, water pitcher filters, up to $10,000 for lead or galvanized service line replacement, replacement or removal of lead plumbing, and installation of automatic flushing systems. Total project costs must remain under $50,000 per facility and must be approved by the program in advance.
Community water suppliers are encouraged to refer schools and child care providers served by their system to the program for a free lead-in-water test kit and mitigation reimbursement support. If you would like program materials to share with your school and child care community, please contact the program at info@leadcareillinois.org.
LeadCare Illinois℠ is administered by Elevate Energy (Elevate) in partnership with the Illinois Department of Public Health. Funding is provided by the Illinois Department of Public Health.
One of the most significant barriers to lead service line replacement (LSLR) is the possibility of expenses incurred by the resident. Experience shows that a program that offers free lead service line replacement at no cost to residents is the most equitable solution. A no-cost LSLR program prioritizes health, incentivizes participation, and promotes efficiency of program implementation. Further, a study by the Environmental Defense Fund highlights how wealthier residents are favored when free LSLR is not offered.
A Cook County TAP Water Rate Setting factsheet shows how some communities have tackled no-cost lead service line replacement. However, municipalities may need to consider alternative financial structures to ease the expense borne by the resident. We outline a few such structures here.
Income-Eligible Deferred Payment Programs
The utility pays a certified plumber or contractor to complete LSLR for income-eligible residents. The resident may defer the cost through a lien on the home's sale or pay it back over time at the resident’s discretion, based on what they can afford, until the property transfers ownership.
- Use case: This type of program may be attractive to elderly customers who anticipate selling their home soon and moving to senior housing.
- Mount Prospect, IL, offers 0% interest-deferred loans to low-income residents with no monthly payments. The municipality recoups costs upon the sale or refinance of the home.
Providing Credit to a Certified Plumber or Contractor
A specified amount of credit is offered to a certified plumber or contractor (of the resident’s choosing) to offset the cost of replacing the service line. This could be based on income with a value range at a specified discount. Homeowners would be responsible for any costs over the allotted credit.
- Use case: One scenario for this type of credit is allowing the balance to be billed on a resident’s water account with repayments over a 24-month period with no interest accrued.
- Pittsburgh, PA, allows plumbers to submit an invoice for homeowner-initiated LSLR directly to the water utility, Pittsburgh Water, for reimbursement.
Resident Reimbursements
After the service line replacement, the resident is reimbursed for a portion of the replacement cost. This could be as a percentage of the cost or a flat rate. A needs-based component for income-eligible homeowners could be incorporated into the incentive.
- Use case: This structure might be most successful when paying for the cost of LSLR upfront does not present a financial hardship for the resident.
- Geneva, IL, helps homeowners contract with a plumber and reimburses up to a set amount, with other options available.
Property Tax Assessment
The resident's property taxes are reduced by an amount equivalent to the replacement cost via a one-time tax assessment. A court ruling in 2024 confirmed that LSLR is not considered taxable income. Learn more at the American Water Works Association.
- Use case: This structure might be most successful when the tax decrease is minimal, so it does not unduly upset the taxing structure of a community.
- Milwaukee, WI, allows homeowners to pay for LSLR over 15 years as a special assessment of their tax bill in addition to other options.
Financing the Cost of Replacement
The resident can finance the cost of the service line replacement via a low-interest loan offered by the utility (e.g., a four percent interest rate with an established “not to exceed” payback period).
- Use case: As with other alternative financial structures listed here, this incentive is typically most successful in higher-income communities.
- Denver Water offers 0% or low-interest loans for qualifying households through the not-for-profit organization Denver Urban Renewal Authority.
Waiving Fees
Permitting and other fees associated with replacing service lines can be waived by the municipality where the replacement occurs, leading to substantial savings for the resident.
- Use case: Waiving fees removes a common barrier to LSLR (where economically feasible) and can be combined with other incentives to lower the overall cost.
- Roselle, IL, waives all permitting fees associated with LSLR.
For more, see Strategies to Achieve Full Lead Service Line Replacement from the U.S. EPA. In all cases, strive to make it easy for residents to take advantage of the financial incentives offered. Provide the resident with simple and specific information about the terms of the program. Involving governing boards in the development of any incentive program can facilitate approval. For private utilities, authorization by regulatory authorities may be necessary before offering incentives to residents.