House Bill 1344 designates East Chicago as "an area of special concern," and allocates resources for water and soil testing in the city.
The same group who requested federal assistance for Flint, Michigan, is now stepping in for East Chicago, Indiana.
The city's LEAD program will hire two additional full-time employees to locate residences and businesses that are being served by lead-based lines.
The Environmental Protection Agency found dangerous levels of lead and arsenic in the soil in the Calumet neighborhood of East Chicago.
One of the main byproducts of burning coal, power companies usually store coal ash on site in largely unregulated ponds and pits.
Nearby residents have expressed concerns that the hog farm could contaminate their well water, but state officials say they do not expect any issues.