Sponsors (2)
The bill directs federal funds and flexible assistance to make water more affordable and reliable—especially for disadvantaged and rural communities—while increasing federal spending and potentially leaving non‑targeted utilities with slower access to help and less refinancing flexibility.
Low-income households in disadvantaged areas: lower water bills and fewer service disruptions because the Secretary can fund projects that maintain public health and safety.
Struggling local utilities and rural water systems: relief from fiscal pressure through loan forgiveness, modification, or refinancing authority, reducing the risk of rate hikes or service cuts.
Rural communities and local governments: access to low-cost loans or grants for water and wastewater systems, improving service reliability and lowering operating costs.
All taxpayers: higher federal spending and potential increased taxpayer costs if many loans are modified or forgiven under the program.
Utilities and communities outside designated disadvantaged areas: slower access to aid or higher borrowing costs if funding is concentrated on targeted places, delaying necessary upgrades elsewhere.
Some local governments and recently financed utilities: reduced flexibility to restructure recent borrowing because modification/refinance authority cannot be applied to loans made under the new program.
Based on analysis of 2 sections of legislative text.
Authorizes USDA to provide grants, near-zero interest loans, loan forgiveness/modification, and refinancing to eligible rural water/waste facilities in disadvantaged areas.
Official title: To 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 12, 2026 by Don Davis · Last progress February 12, 2026
Authorizes the Department of Agriculture to give extra financial help to rural water, wastewater, and waste disposal systems through grants, zero-percent and 1% loans, loan forgiveness or modification, and refinancing for qualifying projects. The assistance is targeted to systems in disadvantaged or economically distressed areas as identified by a new residential affordability indicator and other factors the Secretary must establish. The aid can be used to protect public health, safety, or order or to address financial hardship for eligible rural facilities, but the bill bars using the loan-modify/refinance authority on loans made under the new grant/loan authority itself.