Sponsors (2)
The bill uses federal grants, very low‑interest loans, and debt relief to make rural water systems more reliable and affordable—especially for disadvantaged households—while increasing federal spending and creating risks of moral hazard and administrative complexity.
Rural water and wastewater utilities will receive low-cost capital (grants and 0–1% loans) and options to refinance or forgive existing debt, lowering utility costs, improving system reliability, and freeing funds for operations and repairs.
Households in disadvantaged or economically distressed areas will get targeted aid through an affordability indicator, helping keep water and wastewater bills affordable for low-income families.
Assistance is authorized to maintain public health and safety during emergencies, helping ensure safe drinking water and wastewater services when systems are stressed or damaged.
Expands federal spending on rural water programs, which could increase costs for taxpayers or require cuts/offsets elsewhere in the budget.
Loan forgiveness, modification, or refinancing could create moral hazard by reducing incentives for utilities to set adequate rates or maintain systems, potentially shifting future costs to taxpayers or other communities.
Creating and applying a new affordability indicator and related eligibility rules could add administrative complexity and delay assistance while the Secretary develops metrics and guidance.
Based on analysis of 2 sections of legislative text.
Creates USDA authority to provide grants, 0%–1% loans, and limited debt relief to eligible rural water, wastewater, and waste‑disposal systems, prioritizing disadvantaged areas using an affordability indicator.
Official title: Amend the Consolidated Farm and Rural Development Act to provide additional assistance to rural water, wastewater, and waste disposal systems, and for other purposes.
Introduced February 27, 2025 by Jeanne Shaheen · Last progress February 27, 2025
Authorizes the USDA to provide new financial assistance to rural water, wastewater, and waste-disposal systems, including grants, very low‑interest loans (0% and 1%), and options to forgive, modify, or refinance existing loans (with one exception). It directs the Secretary to target help to systems that maintain public health and safety or face financial hardship, and to create a residential affordability indicator and other factors to identify disadvantaged or economically distressed areas for prioritization. The assistance supplements existing program authorities under the Consolidated Farm and Rural Development Act and applies to entities already eligible under current rural water loan and grant statutes. The law sets program design features (loan terms, forgiveness/ modification authority) and criteria for targeting aid, but does not itself specify appropriations or an exact funding level.