This bill updates a federal program that helps rural Americans get clean water and proper wastewater systems. Right now, the Department of Agriculture gives money to nonprofit organizations, which then help individual homeowners pay for things like private water wells or septic systems in rural areas where public water systems aren't available.

The bill makes two main changes. First, it adjusts who qualifies for grants (free money that doesn't need to be repaid). To get a grant, a household's combined annual income now needs to be no more than 60% of the typical income in their rural area—this is a shift from the current rule that looks at state-level income. Second, the bill allows grants to also cover the cost of a five-year warranty on wastewater systems, so homeowners have protection if something goes wrong. For people with higher incomes (60% or more of the area's median), the program now offers loans instead of grants, giving them another option to finance their water or wastewater improvements.

Basically, this helps low-income rural families afford essential water and sanitation infrastructure while also creating loan options for middle-income households. The program is extended through 2028, ensuring this assistance continues for the next several years.

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

Sewell, Terri A.

This bill revises and reauthorizes through FY2028 a program that provides financial assistance for rural water systems under the Consolidated Farm and Rural Development Act. Under the existing program, the Department of Agriculture may provide grants to nonprofit organizations that in turn must provide subgrants and loans to individuals for household water well systems or individually owned household decentralized wastewater systems in rural areas. This bill modifies the eligibility requirements for subgrants. To be eligible for a subgrant, an individual must be a member of a household with an annual combined income that is no more than 60% of the median nonmetropolitan household income for the area served by the nonprofit (currently, the state or territory in which the individual resides). The bill also allows a subgrant for a household decentralized wastewater system to include sufficient additional funding to cover the cost of a performance warranty with a duration of at least five years. In addition, the bill allows loans to be awarded to an individual who is a member of a household with an annual combined income that is 60% or more of the median nonmetropolitan household income for the area.