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

The Rural Decentralized Water Systems Reauthorization Act aims to update and extend a federal program that helps rural homeowners access clean water and safe waste disposal. Currently, the government provides grants to nonprofit organizations, which then offer low-interest loans or subgrants to individuals in rural areas. This bill would specifically authorize these funds to be used for the construction, refurbishing, and servicing of individually owned household water wells and decentralized wastewater systems, such as septic tanks.

If enacted, the bill would increase the maximum amount an individual can receive from $15,000 to $20,000. It also proposes new income eligibility rules: households earning 60% or less of their area’s median nonmetropolitan income would be eligible for subgrants (which do not have to be repaid), while those earning between 60% and 100% of the median income could qualify for loans. Additionally, the legislation would allow grant funds to cover the cost of a five-year performance warranty for new wastewater systems to ensure long-term reliability.