Relating to: the use of federal capitalization grant funds for lead service line replacement. (FE)

SB 56 clarifies how Wisconsin can use federal funds for water infrastructure projects. It specifically prohibits using federal capitalization grant funds (from 42 USC 300j-12) to forgive loan principal for private community water systems, except for lead service line replacements. The bill ensures these federal dollars can only cover the direct costs of replacing lead pipes, not other types of financial assistance. This affects private water system owners seeking federal funding for infrastructure upgrades. The law was enacted as 2025 Wisconsin Act 8.