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

H.R. 7921, also known as the Rural Decentralized Water Systems Reauthorization Act, aims to strengthen a U.S. Department of Agriculture (USDA) program that assists rural households with private water and waste disposal. The bill proposes extending the program's authorization through 2031 and increasing the maximum amount of financial assistance available to individual households from $15,000 to $20,000. These funds are typically used to construct, repair, or service individually owned household water wells and septic systems.

The legislation would modify eligibility rules to better target low-income residents. Specifically, it proposes that individuals earning 60% or less of their area's median nonmetropolitan household income would be eligible for subgrants, which do not have to be repaid. Those earning between 60% and 100% of the median income would be eligible for low-interest loans. Additionally, the bill would allow grant funds to cover the cost of a performance warranty for new wastewater systems, providing homeowners with at least five years of protection against equipment failure.