Contributed by Jenny Black, Government Initiatives, PPM Consultants
As a Brownfield Grant Specialist for PPM Consultants, Inc. (PPM), I become acutely interested when new legislation is introduced in Congress that may include tools for making redevelopment a reality for the communities we serve. When I saw that Senator Shelley Moore Capito (R-WV) introduced the Brownfields Reauthorization Act of 2025 (S.347) in the United States Senate, I had to see what the Republican Senator had in mind. This legislation aims to reauthorize and expand funding for brownfields revitalization, addressing environmental contamination and fostering economic development in communities of all sizes.
The proposed bill amends the Comprehensive Environmental Response, Compensation, and Liability Act of 1980 (CERCLA) to provide enhanced funding, reduce financial barriers for local governments, and streamline the grant application process. If enacted, the bill will provide crucial resources to assist communities in redeveloping contaminated properties into productive spaces for businesses, housing, and public use.
Understanding Brownfields and Their Importance
A brownfield site is a property where real or perceived environmental contamination—such as hazardous substances, petroleum, or other pollutants—complicates redevelopment or reuse. These sites can range from abandoned industrial complexes and closed gas stations to vacant warehouses and underutilized waterfront properties. The EPA Brownfields Program, which has provided financial assistance to communities for assessment, cleanup, and redevelopment projects since 2002, has been instrumental in transforming neglected properties into new commercial districts, parks, residential developments, and community centers. However, many communities, particularly smaller and underserved municipalities, struggle to secure sufficient funding or navigate the complex grant application process. The Brownfields Reauthorization Act of 2025 seeks to address these challenges by expanding eligibility, increasing financial support, and simplifying regulatory hurdles.
Key Provisions of the Brownfields Reauthorization Act of 2025
- Expanding Eligibility for Funding
One of the most significant changes introduced by the bill is the expansion of eligible entities that can apply for brownfields funding. Under the proposed legislation, organizations classified under section 501(c)(6) of the Internal Revenue Code—such as chambers of commerce and local economic development groups—will now be eligible to receive grants. This change recognizes these organizations’ vital role in community revitalization efforts and will allow them to secure financial support for site assessments, remediation planning, and redevelopment initiatives.
- Strengthening Community Engagement Requirements
The bill prioritizes community involvement by requiring applicants to develop detailed plans for engaging residents, businesses, and organizations. This ensures that communities directly impacted by brownfield projects have a voice in redevelopment decisions.
Grant applicants would have to outline specific strategies for engaging diverse stakeholders, including small communities and disadvantaged areas. This measure is designed to enhance transparency, build trust, and align redevelopment efforts with the priorities of local residents.
- Reducing Financial Barriers
In recent years, cleanup grants have been funded through the Bipartisan Infrastructure Law (BIL) and included a suspension of the 20% local match cost-share requirement. The BIL zero-match cleanup grants are expected to expire next year and reset to the pre-BIL 20% requirement. To make brownfields funding more accessible, the bill proposes reducing the required local matching share for grant recipients from 20% to 10% and proposes a full waiver of the matching requirement for communities classified as small or disadvantaged. This provision acknowledges that smaller municipalities and economically distressed areas often lack sufficient financial resources, preventing them from participating in brownfield redevelopment programs. By lowering these financial barriers, the bill seeks to level the playing field and ensure that more communities can benefit from brownfields funding.
- Increasing Funding for Site Cleanup and Remediation
For the past several years, BIL increased the statutory limit on cleanup grants to as much as $5M per site. This temporary increase on cleanup grant statutory limits, which were historically capped at $500,000 per site, regardless of actual cleanup costs. The proposed bill seeks to make this increase permanent by doubling the maximum grant amount to $1,000,000 per site. This adjustment reflects the rising expenses of environmental remediation and ensures grant funding better aligns with project needs. By providing greater financial support, the increase could enable communities to more effectively address contamination, particularly at complex brownfield sites such as former industrial plants, chemical storage facilities, and abandoned factories.
- Reauthorizing and Expanding State Response Programs
Under Section 128(a) of CERCLA, state governments receive funding to support local brownfields initiatives, conduct environmental assessments, and develop long-term remediation strategies. The new bill reauthorizes these programs with increased funding levels, rising from $50 million in FY 2025 to $75 million in FY 2030. These funds will enable state and tribal governments to continue their critical work in identifying, assessing, and remediating contaminated sites while providing technical assistance to communities in need.
- Comprehensive Review of the Grant Application Process
Many small municipalities and disadvantaged communities struggle to navigate the complex and competitive EPA grant application process. Limited staff capacity, unfamiliarity with federal grant requirements, and technical barriers often prevent these communities from successfully securing funding. To address this, the bill requires the EPA to conduct a comprehensive review of the application process and submit a report to Congress within one year of enactment.
The report will focus on:
- Common areas of confusion in current application requirements that frequently create barriers for potential grant or loan recipients.
- The most common reasons for point deductions during the application review process, helping future applicants improve their submissions.
- Strategies to encourage applications from small and disadvantaged communities, ensuring they have a fair opportunity to receive funding.
- Recommendations to Congress on potential legislative adjustments that could simplify the ranking criteria and make the process more equitable.
- Inclusion of Alaska Native Corporations
The bill expands the definition of eligible entities to include Regional and Village Corporations under the Alaska Native Claims Settlement Act. This change will allow Alaska Native communities to access brownfields funding and support economic development efforts in Indigenous communities.
Next Steps
The proposed Brownfields Reauthorization Act of 2025 has received strong bipartisan backing, with Senator Capito emphasizing the critical role that brownfield redevelopment plays in environmental protection, job creation, and economic revitalization.
Upon introduction, the bill was referred to the Senate Committee on Environment and Public Works, where it will undergo further discussion and review. A hearing was held on February 5, 2025, to discuss the proposed changes and their potential impact. Lawmakers, environmental experts, and community representatives provided testimony on the importance of increasing brownfields funding, streamlining the grant application process, and reducing financial barriers for municipalities. The discussion highlighted the rising costs of environmental remediation, the need for equitable grant distribution, and ways to improve accessibility for small and disadvantaged communities. The hearing served as a critical step in evaluating the bill’s effectiveness before further legislative action.
“This legislation will help communities turn contaminated, abandoned properties into new businesses, housing, and green spaces,” said Senator Capito. “By expanding eligibility and increasing funding, we’re giving local governments and organizations the tools they need to clean up their communities and attract new investment.”
Conclusion: Strengthening Brownfields Redevelopment for the Future
The proposed Brownfields Reauthorization Act of 2025 builds upon previous efforts to support economic revitalization and community empowerment. By increasing the maximum grant amount for cleanup grants, reducing financial barriers through a lower cost-share requirement, and mandating a review of the grant application process, the bill enhances accessibility and equity in brownfields funding.
However, the bill’s focus on assisting small communities and disadvantaged areas may face new challenges under the current administration. With a push to reduce the cost of big government, federal funding priorities could shift, potentially impacting how grants are allocated. While brownfields redevelopment remains a bipartisan issue due to its economic and environmental benefits, the extent to which future funding remains uncertain, at least for now. If you’d like to learn more about brownfields and the brownfield grant program, contact me at 1-800-761-8673 by email at jenny.black@ppmco.com.