The Environmental Protection Agency (EPA) distributed approximately $3 billion to states in 2023 for the replacement of harmful lead pipes, based on unverified data, according to an inspector general's memo. Investigators identified inaccuracies in data submitted by two states, although they were not named.

The funding, part of the $15 billion provided under the Bipartisan Infrastructure Law over five years, aims to address the health risks posed by lead pipes, which are prevalent in older homes in the Midwest and Northeast. The EPA requested state and utility estimates to allocate resources based on the number of lead pipes.

Two states, Texas and Florida, reported higher-than-expected totals of lead pipes. Florida received $254.8 million, the highest amount allocated in 2023. Texas and Florida received significant funding reductions in 2024 following adjustments: Texas by $117.6 million and Florida by $26.1 million. Nineteen states, including Minnesota and New Jersey, saw increases in their allocations.

The EPA has been criticized for not adequately verifying data, though it has made adjustments and plans to release new projections later this summer. The inspector general's final report is expected in the fall, which will detail state inaccuracies. Some states had already expressed concerns about the fairness of the funding decisions before the memo's release.