H.R. 9837: Grants for Eliminating the Toxic Hazard of Environmental Lead in Our Towns Act of 2026

The bill would make a set of changes to federal housing, lead-hazard, and tax rules.

Housing and Lead-Pipe Hazard Programs

The bill would create and fund HUD grant programs aimed at identifying and removing lead-based pipe hazards, with a focus on priority housing and federally assisted housing. It would also support related work such as planning, task forces, and the development of guidelines. In addition, it would make conforming changes to certain federal housing and mortgage programs so they align with the new lead-hazard policies.

Lead Disclosure, Inspections, and Safety Requirements

The bill would require sellers and landlords to disclose known lead hazards to buyers or tenants. They would also have to provide a lead-warning pamphlet and allow a 10-day window for inspection. The bill would expand requirements for training and certification of EPA-related workers, allow states to run approved programs, support public education efforts, certify laboratories, and require federal facilities to comply with lead-safety rules. Violations could be subject to penalties.

Tax Changes for Carried Interest

The bill would change how certain partnership investment earnings are taxed. In general, carried-interest income earned by service partners would be taxed as ordinary income rather than at preferential capital-gains rates, with limited exceptions such as qualified capital interests and certain family partnerships. It would also add anti-abuse rules and penalties, treat some of this income as subject to self-employment tax, and make related changes affecting partnerships, REITs, and publicly traded partnerships.

Relevant Companies

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