A bill 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 well and wastewater systems in rural areas. The proposal would update eligibility requirements by basing income limits for subgrants and loans on the median nonmetropolitan household income of the specific area served rather than the entire state. Additionally, the bill would allow subgrants for wastewater systems to cover the costs of 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 those with household 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 the program through fiscal year 2031.

• Program reauthorization and extension. The bill reauthorizes financial assistance for rural decentralized water systems through fiscal year 2031.
• Modified income eligibility for subgrants. Individuals must have a combined household income of no more than 60% of the median nonmetropolitan household income for the area served by the nonprofit organization to qualify for a subgrant.
• Expanded loan eligibility. The bill permits loans to be awarded to individuals whose household income is between 60% and 100% of the median nonmetropolitan household income for the area.
• Wastewater system performance warranties. Subgrants for household decentralized wastewater systems may include additional funding to cover the costs of a performance warranty lasting at least five years.

The bill reauthorizes the rural water systems financial assistance program through fiscal year 2031.

This bill amends the Consolidated Farm and Rural Development Act to revise and reauthorize through fiscal year 2031 a Department of Agriculture program that provides financial assistance for rural decentralized water and wastewater systems.

The bill aims to reauthorize and modify financial assistance for rural water systems by adjusting income eligibility requirements for subgrants and loans and expanding coverage for wastewater system performance warranties.