To amend the Consolidated Farm and Rural Development Act to modify provisions relating to rural decentralized water systems grants.

This bill would reauthorize and modify a Department of Agriculture program that provides grants to nonprofit organizations for the purpose of funding household water wells and wastewater systems in rural areas. The proposal would adjust income eligibility requirements for subgrants and loans based on the median nonmetropolitan household income of the specific area served by the nonprofit. Additionally, the legislation would allow subgrants for decentralized wastewater systems to include funding for a performance warranty lasting at least five years.

This bill affects nonprofit organizations that receive federal grants to provide financial assistance for rural water systems. It also impacts individuals in rural areas seeking subgrants or loans for household water wells or decentralized wastewater systems, specifically targeting households with annual incomes between 60% and 100% of the median nonmetropolitan household income for their area. Additionally, the Department of Agriculture is affected as the agency responsible for administering and reauthorizing these grant provisions through fiscal year 2031.

• Program reauthorization and extension. The bill reauthorizes the rural decentralized water systems grant program through fiscal year 2031.
• Revised subgrant eligibility requirements. Individuals seeking subgrants must have a household income no higher than 60% of the median nonmetropolitan household income for the specific area served by the nonprofit organization. This replaces the current standard based on the median income of the state or territory.
• Expanded loan eligibility for moderate-income households. The bill permits loans to be awarded to individuals whose household income falls between 60% and 100% of the median nonmetropolitan household income for the area.
• Performance warranty coverage for wastewater systems. Subgrants for household decentralized wastewater systems may now include additional funding to cover the costs of a performance warranty lasting at least five years.

The bill reauthorizes the rural decentralized water systems grant program through fiscal year 2031.

This bill amends and reauthorizes through FY2031 a rural water system financial assistance program established under the Consolidated Farm and Rural Development Act. It modifies existing Department of Agriculture grant and loan regulations by updating household income eligibility requirements and expanding allowable funding uses for wastewater system warranties.

The bill aims to update and extend federal financial assistance for rural water systems through fiscal year 2031 by modifying eligibility requirements for subgrants and loans. It specifically adjusts income thresholds for household water well and wastewater system assistance and expands funding to cover long-term performance warranties for decentralized wastewater systems.