Lead Pipe Replacement Grants and Funding in New Mexico
Overview
If you own your home and have a lead service line, replacing it is expensive—often $3,000 to $15,000 out of pocket. New Mexico offers several funding paths to help. The state does not currently report confirmed lead service lines in its inventory, but that doesn't mean they're absent; many older homes in the state may still have them. The programs below are designed to reduce your cost or cover it entirely, especially if your household qualifies as low-income.
New Mexico's Drinking Water State Revolving Fund (DWSRF)
The state uses federal dollars through the Drinking Water State Revolving Fund to finance water infrastructure upgrades, including lead line replacement. New Mexico's DWSRF Intended Use Plan dedicates a significant set-aside for disadvantaged communities—households and systems serving low-income areas get priority access to below-market-rate or forgivable loans.
Contact the New Mexico Environment Department, Water Quality Bureau directly to ask:
- Whether your water system is participating in DWSRF-funded lead replacement projects
- If you qualify for principal forgiveness (meaning you don't repay part or all of the loan)
- How to apply if your system isn't yet running a replacement program
Federal Infrastructure Funding (Bipartisan Infrastructure Law / IIJA)
While New Mexico received federal funding under the Bipartisan Infrastructure Law for water infrastructure, the state has not yet announced a dedicated homeowner reimbursement program for private lead line replacement. Federal dollars are flowing to public water systems to replace their portions of lead lines (the part from the main to your property line).
Your next step: Contact your local water utility to find out if they have received federal grants for lead replacement and whether they offer any cost-sharing for the private side of the line.
Direct Homeowner Assistance
New Mexico does not currently operate a standalone, state-run lead line replacement rebate or reimbursement program for homeowners. However, some water utilities in the state have created their own assistance programs using federal or state funds.
Check with your water utility to ask:
- Do you have a lead line replacement program?
- Are rebates, grants, or zero-interest loans available to homeowners?
- Is there a waiting list?
Next steps for residents
- Contact your water utility — Ask if they have a lead replacement program and what funding you may qualify for.
- Apply for DWSRF assistance — Reach out to the New Mexico Environment Department, Water Quality Bureau, to learn about state revolving fund loans and forgiveness options for disadvantaged households.
- Test your water — If you're unsure whether you have a lead service line, your utility can often tell you based on your property records, or you can request a free or low-cost water test through your local health department.
- Verify your household income — Most assistance programs require proof of income; have your tax return or recent pay stubs ready when you apply.