Legislation sponsored by Assemblyman Avi Schnall to deliver critical funding for water infrastructure projects across New Jersey has been signed into law by Governor Phil Murphy.

The new law authorizes the state to provide zero-interest and partially forgivable loans to towns, utilities, and water systems to help pay for clean water and drinking water projects. That includes everything from replacing old lead pipes and upgrading stormwater systems to protecting against flooding and removing harmful contaminants from local water supplies.

“Clean, safe water is a fundamental necessity, and this law ensures that every community — especially our most underserved — gets the support it needs to modernize outdated systems and protect public health,” said Assemblyman Schnall (D-30). “By offering interest-free and partially forgivable loans, we’re making it financially possible for municipalities to take on projects they otherwise couldn’t afford.”

A significant portion of the funding will be made available to communities in the 30th Legislative District, which includes areas with growing infrastructure needs and aging water systems. Local municipalities and utilities will be eligible to apply for this support and pursue long-overdue upgrades that will directly benefit residents across the district.

The funding — which draws from both state and federal sources — will be administered by the Department of Environmental Protection and the New Jersey Infrastructure Bank. Projects in disadvantaged communities, and those addressing urgent needs like lead pipe removal or contamination cleanup, will receive the highest levels of loan forgiveness.

The law covers funding for the 2026 fiscal year and includes continued support for areas recovering from past disasters like Superstorm Sandy, as well as regions facing new environmental challenges. In total, hundreds of millions of dollars will now be made available for approved projects throughout the state.